The word bullion is both widely used and misinterpreted. It basically refers to bars and coins produced in mass for investment purposes. With regards to coins, the term also refers to the standard of production of coins minted after the early 1930s. These coins are generally regarded as the most cost efficient way of purchasing gold coins as their market value is determined almost exclusively by their gold content. In contrast to other types of coins such as proofs, commemorative, or historic coins, you will not pay premiums for packaging, finish or exclusivity. Physical Gold offer an easy way to buy gold coins online in the uk.
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It was around the 1930s that the use of gold coins was lifted from circulation as the major economic powers around the world decided to recall their gold reserves and discontinue the use of gold in coinage. However, this did not stop the minting of gold coins and the major mints around the world continued to issue gold coins for the purpose of collection by numismatists and investors alike. Many of these coins are available at the value of their weight in gold. However, there are also coins from this period that have witnessed a significant escalation in value due to numismatic interest. For example, a 1933 gold double eagle fetched a record £7.5mn at an auction in 2002.
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Numismatists have always enjoyed collecting gold coins of collectable value. Coins that enjoy rarity and historical value have a great propensity to increase in value. This value is based on the demand of the coin itself, and not it’s weight in gold. However, needless to say, counterfeiters and rogue dealers also seize the opportunity of cashing in on such trends and there are a number of fake coins circulating in the market.
When investing in bullion coins (including coin sets) as part of a portfolio, it is very important to determine whether the coin is genuine. There are internationally acclaimed coin certification agencies that can ensure that the bullion you are buying is genuine. The well-known ones across the world are the Professional Coin Grading Service (PCGS) and the Numismatic Guaranty Corporation (NGC).
Getting your coin certified by one of these organisations is one way of getting it done. PCGS and NGC do appear often at important numismatic events, like the International Numismatic Convention in New York or the London based Coinex event, organised by BNTA, which has its 40th international convention due in September 2018. Collectors who want to have their coins graded, usually file their submissions in advance and collect them at the event, while networking with other collectors and viewing the displays.
However, there are other methods to determine whether the coin you’re buying is a fake. A coin gauge is a handy tool often used by dealers and collectors alike to detect counterfeits. Also, it is important to bear in mind that due to the unique properties of gold, coins are difficult to duplicate. Base metals have a lower density, which means that counterfeit coins would have the wrong dimensions or be underweight. Interestingly, there is even a mobile phone app that can ping the coin with sound and analyse the echo to detect a fake. In the UK, the forgery and counterfeiting act 1981 effectively outlawed the counterfeit trade. At Physical Gold, our team of numismatist experts always ascertain the genuineness of each and every coin we trade-in. We are also happy to help you ascertain the type of gold, authenticity, and the value of your gold coins, as well as guide you on how, where, and when to get the best deals on gold bullion.
Bullion coins are available in various fractional denominations, but the general rule of thumb is you’ll pay increasingly more as the denomination reduces. We feel the common 1oz coins and the full Sovereigns offer a great balance of divisibility and value. Because we only source the world’s most recognised bullion coins, they are always easy to trade at the tightest margins. Investors also benefit from price savings as the quantity of bullion coins they buy grows.
Sovereign coins are now
recognised by the Royal Mint as bullion quality as they’re issued to non-proof finish for investment purposes in laminated sheets. However, many older Sovereign coins are widely traded in today’s investment market alongside the newer coins. These coins pre-dating 1933 encompass the Sovereign heads of early Elizabeth, George V & VI, Edward VII & VIII and Queen Victoria. Due to their age and limited issue, they can be deemed to contain a degree of historical value – and may be classed as semi-numismatic.
In practice the cost of these coins is usually slightly less than their bullion cousins of the past 10-15 years as their historic value is cancelled out by their inferior condition. Just like with new cars, you tend to find that the latest year’s bullion coins may carry a slightly higher premium than ‘nearly new’ coins even though they are of identical design and condition. Our consultants will guide you as to the current premiums on these coins to ensure you assemble the best value portfolio of coins.
Below we list and describe some of the world’s best known bullion coins. The two main tax free bullion coins in the UK are the Britannia and the Sovereign. The Krugerrand is known as the world’s original bullion coin as it was the first to guarantee 1oz of pure gold.
Those interested in investing in bullion have two main options – bars or coins. Whilst both have their benefits, the beauty of choosing gold bullion coins is that they offer more flexibility, especially for those planning to sell their gold coins on.
There are a variety of bullion coins in the UK, suitable for people with different aims. From rare and beautiful coins such as the Chinese Panda or American Eagle, to more common options, we’re pleased to supply an extensive range.
Amongst our collection, you’ll notice some of the world’s most well recognised gold bullion coins, including the South African Gold Krugerrand. Attracting lower margins than many other coins, this makes them ideal for investment although your selection will no doubt depend upon a number of factors, including budget, taste and use.
Aside from the type of coin itself, another consideration for those looking to buy gold coins online should be their storage. Naturally security will be a priority, leading many to store theirs in a safe, although some do choose to keep them in their homes. Those who do opt for the latter should make sure their coins are covered by their home insurance.
It may be useful for inexperienced buyers to take advantage of our expert advice before making any purchase.
Investing in gold bullion can be very lucrative, as well as an absorbing and immersive experience for many buyers like yourself. It is important to get the right advice before investing your hard earned money in buying coins. At Physical Gold, our team consists of numismatics experts who possess a wealth of knowledge and years of experience in advising clients on how to make the right buying decisions when it comes to bullion. Call us today on 020 7060 9992 or get in touch online by filling out the contact form provided on our website. Our team will be happy to get in touch with you right away.
Daniel Fisher formed physical Gold in 2008, after working in the financial industry for 20 years. He spent much of that time working within the new issue fixed income business at a top tier US bank. In this role, he traded a large book of fixed income securities, raised capital for some of the largest government, financial, and corporate institutions in the world and advised the leading global institutional investors. Daniel is CeFA registered and is a member of the Institute of Financial Planning.