It is often said that investors tend to invest in bullion coins, so that they may maximise the value of gold for the price they pay. Likewise, collectors buy proof versions of coins. In this article, we will explore what is a proof coin and why they are highly valued amongst collectors.

What is a proof coin?

A publisher would like to study the edited, proofed, and ready to go to the print version of an author’s work before mass copies are printed. In the same way, a proof coin or a set of coins is produced initially to secure approvals from important authorities like the Ministry of finance, the Chancellor of the Exchequer and the Directors of the Mint. Apart from procuring these important approvals, a proof coin can be used to check the accuracy of the dies used in minting the coins.

The dies are specially polished to produce the proof coin set. It is quite different from a mass-produced bullion coin. A proof coin has an extremely high-quality finish and a polished shine. The edges are sharp, and the design stands out magnificently. The manufacturing dies are often chemically treated to create a frosty finish in certain areas on the face of the coin.

When the coin is presented in its case, there is a mirror-like appearance, which is appealing to most coin lockers. Historically, they were usually archived after approvals had been procured and the coin issued to the general public. However, the Royal Mint today releases limited editions of proof coin sets that can be purchased by collectors. Commemorative issues are also interesting to the general public, who would pay a premium to procure these coins.

Why are collectors buying proof coins?

First of all, many collectors are well aware of what is a proof coin. The mintage of these sets is limited and attractive to collectors, simply because their rarity, may go up in the years to come. The aesthetic look and feel of a proof coin, with its high-quality finish and attractiveness make it desirable to collectors. Needless to say, these coins are sold with hefty premiums.

Proof coins as an investment

Bullion coins have always appealed to investors as a better bet. Bullion coins come with an uncirculated finish that does not have the finesse of a proof coin. However, these coins offer the investor an opportunity to acquire gold or silver at a cheaper price per gram than paying huge premiums for a proof coin.

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An important problem also crops up at the time of sale. Dealers are unprepared to repay the premiums paid on these coins. The coins are therefore valued for their gold content, and the premium originally paid for the proof version of the coin is lost. Due to these factors, a proof coin is best acquired as a collectable or given to someone as a present.

It is also important to note that many dealers will offer good discounts when you place an order for a large number of bullion coins. These deals do not apply to proof coins. The premium paid is largely due to the finishing, detail, production costs and limited mintage. So, if you are building a gold portfolio, it is far better to invest in the gold Britannia or the Sovereign, both of which are bullion coins with abundant availability, available at low premiums.

Find out more from Physical Gold

Our precious metal experts at Physical Gold have a great deal of knowledge that you can benefit from. We are one of the country’s largest and most reputed online dealers. We can leverage our expertise and assist you in getting the best deals for gold and silver coins. Please call us on (020) 7060 9992 for a chat. You can also reach out to us via our website.

 

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Investors often buy silver coins expecting the prices of silver to rise in the future. The other reason that investors are often interested in buying the white metal, is that it provides them with an easy route to enter the precious metals market. This is because silver is a lot cheaper than purchasing gold and large quantities of silver can be bought at the same price that one would pay when buying a small amount of gold. However, the silver market is not limited to only those coins whose value is decided by the spot price of silver. There are plenty of rare and old silver coins that command large premiums based on their scarcity and history. Today, we will explore some of the best and rarest silver coins in the market

Rare coins with history are always worth more than coins based on weight alone. Collectors are willing to pay huge premiums for scarcity. Some Morgan Silver Dollar coins worth 1$ Face value and £8 melt value, are actually worth over £300k due to their scarcity. Based on weight alone, the popular 1kilo coins such as the Perth Mint Koalas and Kookaburra coins are worth around £500 each.

The American Flowing Hair Dollar 1794

The coin was the first dollar coin to be minted by the US Mint. In the US, the coinage act of 1792, paved the way for the establishment of a new Mint. At the time, the Spanish silver dollars were already being used in the US. The Flowing Hair Dollar contained 0.773 ounces of 90% silver. The coin is valuable due to its rarity and one of these coins fetched $10 million at an auction in 2013.

The American Half Dollar (1797)

Popularly known as the Draped Bust Half Dollar, the coin was minted by the US Mint as a replacement for the flowing hair dollar, due to its unpopularity. The Draped Bust Half Dollars were minted in 1796 and 1797. These coins featured a new design, called the ‘Small Eagle’. Since the coins were minted in two subsequent years, most collectors prefer to complete their set by acquiring the half dollars, with the Small Eagle from both years. It must be noted that the scarcity of this coin is because very limited numbers were ever minted. 1796 witnessed only 934 of these coins being made, while a further 3,000 were minted in the next year. A 1797 Draped Bust Half Dollar fetched US$1,527,500 in an auction in 2015.

The 1870 Seated Liberty Dollar

This historic coin became a part of US coinage for a little more than 30 years from 1840 to 1873. It is considered historic since it was the last silver dollar minted by the US Mint prior to the coinage act of 1873. The coinage act was an important milestone for the United States, as it would put the country on the gold standard. Well, by 1870, the production of these coins had been moved to other cities like San Francisco. These are very rare and an 1870 Seated Liberty Dollar produced in San Francisco was priced at US$1,092,500 in 2003.

1889 Morgan Silver Dollar

Despite the nation being on a gold standard, a financial crisis prompted the US Mint to produce the Morgan silver dollars. These were minted from 1878 to 1904. It was named after the design of the coin, George T Morgan. Due to the limited numbers of production, the coin is considered to be very rare and one of these was sold for $ 881,250 in 2013.

Talk to our silver experts to buy the best silver coins

Physical Gold is a highly reputed precious metals dealer in the country. Our advisors are best placed to discuss your silver investments and identify the best silver coins for you to buy. Please call us today on (020) 7060 9992 or get in touch with us online, via our website.

 

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Investors have found the white metal alluring for some time now. Due to the potential to make significant gains once prices rise, the popularity of silver is gaining ground. The gold-silver ratio has widened considerably and silver is now more than 100 times cheaper than gold. Investment options and silver include bars of varying sizes and a variety of choice in coins.

There are important differences in buying bars and coins. These include considerations of important investment factors like divisibility, value, variety and liquidity. In this article, we will explore these differences and understand whether it is prudent to invest in silver coins or bars.

Coins offer distinct advantages

Coins are usually a better bet for investment for a couple of reasons. They offer far better divisibility than owning large silver bars, providing flexibility to sell small amounts. If living in the country of issue, they can also be Capital Gains Tax-free. Bars can be slightly cheaper due to lower production cost, but quantity discounts are achievable when buying lots of coins.

It is interesting to know that silver coins are available in 10 ounces and 1 kg versions. One of the compelling reasons for the popularity of silver bars is that they carry lower production costs. This offers investors the opportunity to acquire more silver for their money. However, large coins are almost similar to investing in bars. Additionally, these coins are tax-efficient if they have a face value.

The importance of divisibility

Investing in a variety of smaller coins will enable the investor to spread the value of the investments. This is an important factor as it allows you to take advantage of different price points when the market is good. Investing in a large bar gives you that one opportunity to sell, while smaller coins can be sold bit by bit to maximise profits.

Silver bars can offer greater value

The experience of purchasing a large silver bar is altogether different from acquiring coins. There are large bars available that weigh 1 kg or 5 kg, and they offer an excellent opportunity to acquire more silver at a cheaper price per gram. This is simply because silver bars carry lower production costs and design costs. If the purpose of your investment is simply to acquire a larger amount of silver at cheaper prices, then bars could be the right choice for you. However, you need to bear in mind that large silver bars do not tick the boxes for divisibility, variety and tax efficiency.

Tax-efficient investments in silver

Unlike gold, 20% VAT is payable on all silver bars and coins. Needless to say, this escalates your purchase price and eats into your profit margins.

Physical Gold, a well-known precious metals dealer in the country prior to Brexit offered VAT free silver. Sadly this is no longer possible, due to the terms of the UK’s exit from the EU. However, even with paying 20% VAT, the price differential is negligible. This is because:

a) We have reduced our product range of silver products. This means we are buying at highly competitive prices and pass this discount on to our customers!

b) We can also now provide free delivery on silver, as we ship now directly from the UK. Delivery was previously charged for

In addition, we can also supply silver and gold together in the same order now, whereas previously to attract VAT free silver we needed to accept “silver only” orders.

Silver coins that carry a face value, on the other hand, is recognised as legal tender in the country. Therefore, they can be acquired CGT free. While you will end up paying VAT when buying these coins, the profits you make when selling them are tax-free up to a level of £ 12,000 in a single tax year. It is important to be aware of these tax implications when investing in silver to make the right choices when building your portfolio.

Call our silver experts to get the right advice before buying

At Physical Gold, our precious metals experts can offer you impartial advice on making the right purchases. Call us on (020) 7060 9992 or get in touch with us online to discuss buying your silver.

 

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The silver Britannia has won its place in British coinage history as one of the most iconic UK coins to be ever released. The coin was introduced in 1997 and had a fineness of 95.8% in its original issue. The 1-ounce silver coin reflected the design elements of the original gold Britannia, which was introduced by the Royal Mint 10 years earlier. The popularity of the gold Britannia prompted the Royal Mint to start minting a similar coin using silver. Within two years of its release, the fineness of the silver Britannia had been increased to 99.9%. Needless to say, the 24-carat silver coin enjoyed immense popularity amongst collectors and investors alike.

The iconic design

The silver Britannia, like its gold counterpart, features the classic image of Britannia on its reverse. The Britannia icon was possibly conceived as early as Roman times. It is the image of a goddess warrior, carrying a shield and a trident. This classic image is a testament to the spirit and bravery of the people of Britain. The design elements used in the silver Britannia coin was created by the famous designer, Jody Clark. The obverse of the coin features an image of our reigning Queen, Elizabeth II. Since its issue, the coin has seen some changes in design and mintage with different weights and dimensions.

Silver Britannias are the most popular silver investment coin in the UK. They represent very good value as they are mass-produced to bullion finish which keeps production costs low. They are legal tender, so any gains made are also tax-free.

The value of a silver Britannia for an investor

The value of the coin is dependent on the spot price of silver. As a thumb rule, the coin can fetch a sale value of approximately the 1-ounce silver spot price. Generally, the sale price would be just under the spot price of silver, unless the coin commands a premium due to a collector’s edition. The bullion version of the coin is mass-produced and attracts low premiums. In addition to this, bulk orders of the bullion coin can qualify for attractive discounts, when buying from a reputed dealer. The best part is that the silver Britannia offers investors an incredible opportunity to enter the precious metals market at a lower price point. On the other hand, the gold Britannia is a prohibitively expensive coin to buy.

The rising price of silver

One of the reasons that the coin has enjoyed popularity amongst investors is the expectation that silver prices will eventually rise in the future. The use of silver in industrial applications has grown over the years and will continue to rise in the coming years, as electronic cars, solar power solutions and other electronic products continue to dominate the marketplace.

However, the production of silver has dipped over the years. Market experts believe that a price rise is imminent for silver, and investors who purchase silver Britannia coins today can expect to book healthy profits once the price of silver reaches its peak.

The precious metal experts at Physical Gold can advise you on buying silver coins

Physical Gold is one of the country’s most reputed gold and silver dealers, who offer free advice to precious metal investors. Call us on (020) 7060 9992 or drop us an email by visiting our website, and a member of our team will be in touch with you to discuss your silver investments.

 

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What are the best silver coins to invest in?

There has been great interest in silver in the recent past. The silver market has become buoyant with positive sentiment over expectations of huge price rises in the future. When buying silver, it makes more sense to invest in coins, rather than silver bars, although a mix of both can be desirable for your portfolio. These choices are likely to be governed by individual investment objectives. Having said that, what are the best choices out there in the silver coins’ market?

The silver Britannia

The best coins to invest in for UK investors are the Royal Mint produced coins. The UK silver Britannia should form the backbone of the investment as the standard coin is cheap but very liquid. Premiums are low, as it is a mass-produced bullion coin. The upside potential of buying these coins is tremendous, as it enjoys great availability. Buying large quantities of these coins from dealers can get you hefty discounts.

The Royal Mint issues regular additions of this coin, so, buying the current edition will ensure that you pay little or no premium at all. The Britannia is legal tender in the UK, making it highly tax-efficient in terms of CGT. This is likely to be an advantage for investors who want to cash in their profits after the price of silver rises.

Combining Britannia investments with some more limited issue coins such as the Queens Beasts and Lunar series will provide portfolio balance and create the chance to benefit from these coins rising in value quicker due to limited issue.

The Lunar series

One of the great flagship coins launched by the Royal Mint is the Lunar series. It is a set of coins that features a different animal from the Chinese calendar for every issue. The 2019 issue depicts the year of the pig, according to the Chinese calendar. These coins are a must-buy, due to their collectability – there are 12 coins in the set. Each coin has a limited mintage and demand is great due to its popularity in Asia. So, investing in these coins can make your tidy profit, as the demand pushes prices up.

The Queen’s Beast series

The silver Queen’s Beast coins, that are minted by the Royal Mint is yet another beauty. This coin can add great variety to your collection as two sizes are available – a 2-ounce version and a large 10-ounce coin. Once again, they have great collectability value and are tax-efficient. All UK silver coins have the advantage of being Capital Gains Tax-free.

The silver Krugerrand

It is one of the best-known coins in the world and benefits from a very strong secondary market. Investing in the silver Krugerrand ensures great liquidity for your portfolio. The silver version has recently been launched in 2018 and it makes a great addition to any silver portfolio in terms of value and liquidity.

We can help you select the right silver coins

At Physical Gold, our silver investment experts can discuss your investment objectives and suggest the best silver and gold coins to buy. The current gold-silver ratio is around 88:1, so you can purchase quite a large amount of silver for your money compared to when you buy gold. The guidance you receive from our team can ensure that you make the right investment decisions. Call us today on (020) 7060 9992 or contact us via our website to find out more.

 

 

Image credit: Eric Golub

If you’re going to invest in gold coins, you will need to ensure they are the genuine article, rather than fake. But how can you tell if a coin is nothing more than a convincing counterfeit? Here are eight techniques to help you avoid being scammed.

How Do I Detect Counterfeit Coins?

1)    Check gold and silver coins with a magnet

Anyone who knows a little about precious metals will already be familiar with the fact that gold and silver do not interact with magnetic forces. This means that a high quality, genuine coin should remain unmoved if exposed to a magnet.

If a coin that is claimed to have a high gold or silver content is attracted to a magnet, then it is likely a counterfeit that contains more steel or iron than advertised.

It’s worth remembering that for this reason, some counterfeiters use other non-magnetic metals like copper and lead. This means the magnet test should be carried out alongside the other techniques if it proves inconclusive.

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2)    Examine coins closely for visual imperfections

Even the best counterfeiters in the world make mistakes, and with a well-trained eye, you should be able to spot the difference between the real deal and a fake. This applies to counterfeits of mainstream coins as well as rare collectable coins for investment.

To do this most accurately, pick up a magnifying glass, or go a step further and invest in a specialised loupe used by jewellers to get a closer look at the surface.

If you don’t have a genuine coin to hand, find a high-resolution image of the coin online and use this to make your comparison.

3)    Weigh and measure coins

From modern silver Britannia coins to vintage gold half sovereigns, all high quality coins will have been struck consistently and only put into circulation if they adhere to strict standards for their dimensions and weight.

Because major mints are so reliable in these terms, spotting a fake coin is fairly easy. You just need a calliper and a set of electronic scales.

A standard set of kitchen scales will not offer sufficiently accurate measurements, so buy a scale that displays weights to at least two decimal places. Weigh the suspicious coin and if it is out of kilter with official figures by a significant margin, reject it.

Even a coin that is on the ball in terms of weight can still be a fake. By using a calliper to measure its depth and diameter, you will be able to spot any inconsistencies.

Counterfeiters find it almost impossible to create the perfect phoney coin which both weighs the same as the currency it is spoofing and also has the same dimensions. With the right kit, you can steer clear of dodgy deals.

4)    Stack suspicious coins

Another obvious sign that a coin is not of sound origin can be seen in the relief. Even small variations in the height of the relief can become apparent with a straightforward stacking test.

All you need to do is place the coin in a small stack with other examples of similar heritage. Real coins will stack neatly and remain stable, while fakes that are not struck with the same attention to detail or high-quality craftsmanship will teeter, totter and tumble over.

Identifying uneven relief height using this technique does require that you have access to real coins of the same age and denomination. This might limit its usefulness if you are new to investing in or collecting coins, but will help those who are expanding an existing hoard.

5)    Ping silver and gold coins

This technique is specific to gold and silver coins as a result of the properties of the metals and the noise that coins make when they collide with a hard surface.

Pinging is a straightforward test for valuable coins, as the sound produced by silver and gold as they hit a tabletop, or are struck against another coin, is unique. While coins made with lesser metals, including counterfeits, will sound dull when dropped, a genuine coin will ring out for longer and produce an unforgettable high-frequency sound.

Prepare yourself to scrutinise potential coin purchases by performing the ping test on a gold or silver coin you know to be genuine, or check audio examples online. That way you’ll have a fixed idea of what to listen out for later on.

6)    Place an ice cube on the coins

Gold is a great conductor of heat, silver even more so. That means as soon as an ice cube comes in contact with the surface of a gold or silver coin, it will begin to turn back into liquid water.

If a coin is made of a less conductive and less valuable metal, this process will not begin as quickly. Try this test out with genuine gold and collectable silver coins to see what the reaction should look like.

7)    Check the specific gravity of gold and silver coins

This is a far more technically advanced test than the others covered so far, which makes it a little harder to recommend to the average coin investor. However, arming yourself with as much knowledge as possible is always a good thing, so understanding the specific gravity test will be helpful for everyone.

The specific gravity of gold and silver will be unique and thus different from that of other metals. You can calculate the expected relative density of a coin made of a precious metal, then test it in real time using a set of scales, a container and some distilled water.

Weigh the coin, then fill the container with the water and place it on the scales, before resetting the measurement to zero. Tie a small length of thread around the coin and slowly place it into the water until it is entirely beneath the surface, but not touching the bottom of the container. Take a note of the weight that has been added and then divide it by the ‘dry’ weight of the coin you took earlier.

For gold, the specific gravity you are looking for is 19.3 for a completely pure sample. For silver, it’s 10.49.

8)    Work with respected silver and gold coin dealers

If you want to avoid all of the complications that come with trying to detect counterfeit coins under your own steam, the best option is to only buy from dealers that have a good reputation.

This isn’t just about avoiding first-hand contact with con artists, but also about building up a trusting relationship with a company like Physical Gold which you can rely on for all your future precious metal investment needs.

Most of all you should avoid coins that are being sold well below their market value, or being pushed upon you by a dealer who seems eager to get the sale over with as quickly as possible. The signals of an attempt to shift fake coins should be clear, so long as you are willing to look for them and don’t fall for a deal that’s too good to be true.

Call or email Physical Gold for more coin advice

Our experts know everything there is to know about gold and silver coins, such as Sovereigns and Britannias. So, if you are thinking about investing and want more information, then the best option is to get in touch. Make a quick phone call to 020 7060 9992 or email us for outstanding coin advice.

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Coinex numismatic trade show is an annual event held every September in London. It marks one of the most anticipated events of the British calender for avid coin collectors and enthusiasts. Organisers, The British Numismatic Trade Association (BNTA) are opening up the event to more dealers than ever, promising excellent choices for collectors and investors alike. 2023 is a special year as it marks 50 years of the BNTA and more than 4 decades of the Coinex event.

Who are the BNTA?

The BNTA was first formed all the way back in 1973 in order to help the nation’s community of coin dealers engage with the government on tax issues impacting their industry, while also attempting to stamp out forgery and counterfeit coin operations.

Just five years after its formation it launched the first Coinex event, traditionally hosted in the heart of the capital at hotels and event centres near Mayfair.

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Plans for Coinex

Coinex is traditionally held each year at The Ballroom of The Biltmore Hotel, Mayfair, Grosvenor Square, London W1K 2HP. This  at the Millennium Hotel, London, Mayfair. This venue is rebranded from the old Millennium Hotel. The hotel has was recently upgraded to a five-star status following an extensive renovation and facelift. Today, the prestigious hotel at 44, Grosvenor Square, Mayfair is part of the Hilton group. The hotel has been renovated at a cost of £50 million through 2018 and will celebrate its brand-new opening in September 2019. The BNTA believes that it will be an ideal location for Coinex for years to come. The luxurious new conference halls will mean that a larger line-up of coin dealers and attendees can be accommodated. With excellent public transport links, secure delivery access and the perfect positioning for people who want to explore London as well as buying gold coins, the Biltmore, Mayfair should be an ideal setting for Coinex Trade Fair.

Why attend this event?

Quite simply the BNTA’s size and influence mean that this annual get-together of dealers is one of the best places to find valuable coins of every conceivable age and quality.

The involvement of the BNTA also gives buyers peace of mind about the provenance of what they are buying. Every dealer this year will either be a member of the association or have been invited specifically to set up shop because they are known to be reputable. A total of more than 45 exhibitors are in attendance, representing the top UK numismatic traders, auction houses and European dealers.

It’s worth noting that over the years Coinex has expanded to include more than just rare coins. Everything from banknotes and medals to bonds and shares will be on sale, so even people with a passing interest in rarities and collectables should make an effort to attend.

With the event increasing in size year on year, you can also expect to see antiques of other types mixed in amongst the stalls, ensuring there’s something for everyone.

The 2023 Coinex event will be from 29 September 2023 – 30 September 2023. Opening times are 11am-4,30pm on Friday 29th Sep (last entry 4pm). VIP entrance fee £30. Saturday 30th Sep 10am-3.30pm (last entry 3pm), entrance fee just £5.

Why buy gold and silver coins?

Some people buying precious coins just for the thrill of collecting rare, historic objects. Others do so to make an investment in a physical commodity that will appreciate in value. Whichever category you fall into, Coinex should pique your interest. Gold coins have historically kindled the interest of numismatists and investors alike. As a stable asset class, gold coins add balance to an investment portfolio. Silver coins, on the other hand, have gained popularity over the years, as investors see the white metal as a promising investment vehicle that could provide rich returns in the foreseeable future.

Invest in precious coins with Physical Gold

If you are interested in buying rare gold coins and collectable silver coins, you don’t have to head all the way to an event in London and haggle with dealers. Contact Physical Gold by calling 020 7060 9992 or using our contact form for advice, quotes and assistance.

 

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