Complete Gold Coins Value Guide

As we have a large range of gold coins here at London Gold Bullion, we are regularly asked about advantages of investing in gold coins and about the values of different types of gold coin. Investors are often more comfortable with gold bars because their value is more straightforwardly connected to their weight in gold. Looking for a simpler investment makes a lot of sense, and we dedicate entire blog posts to the benefits of gold bars over gold coins. However, there are several advantages and additional values that gold coins offer that gold bars do not. This complete gold coins value guide will look at the value of gold coins in contrast to gold bars and it will look at the value of different kinds of gold coins, including sovereign gold coins, numismatic coins, and the different sizes of gold coins.

 

The Value of Gold Coins in Comparison to Gold Bars

Gold bars vs gold coins

One thing first-time investors want to know is whether gold coins or gold bars are more valuable. There isn’t a simple answer to this. The answer is multifaceted and depends on the price of gold at the time and the different kinds of gold coins. Gold bars are cheaper to make in relation to their weight as they have a simpler shape and less detail. Gold coins have beautiful details on them that require more time, equipment, and labour to produce. All of this makes it more expensive to make gold coins, and these added overheads result in higher premiums for coins. If this was all you had to go on, gold bars would obviously be a better investment, but there are other kinds of value to consider.

All of the gold coins we stock here at London Gold Bullion are sovereign coins. A sovereign coin is one that has been backed by a government and given a currency denomination. A standard British gold sovereign coin, for example, has the nominal value of £1. Its weight in gold means it is worth significantly more. For instance, at the time of writing this article, the average ¼ ounce gold sovereign available from our UK gold coin collection is valued at approximately £255, and the average 1-ounce gold sovereign is valued at approximately £1,100, and it is a gold Britannia coin, with a nominal value of only £100. So, although you would never actually use a sovereign coin’s nominal value, it does provide investors with a significant advantage: as they count as official currency, all sovereign coins are not susceptible to UK capital gains tax. This means that all profits made from sovereign coins will stay with you, helping you avoid a hefty tax bill. Gold bullion bars do not receive the same tax loophole.

The following gold coins are sovereign coins and allow UK investors to avoid capital gains tax:

1oz Gold Britannia Coin

£100 nominal currency value.

£1,100 retail value when this article was published.

1oz South African Krugerrand Gold Coin

Krugerrands are stamped with a weight denomination instead of a currency.

£1,053 retail value when this article was published.

1oz American Gold Eagle

$50 nominal currency value

£1,056 retail value when this article was published.

 

1oz Gold Australian Nugget Coin

$100 nominal currency value.

£1,163 retail value when this article was published.

1oz Gold Canadian Maple Leaf Coin

$50 nominal currency value.

£1,058 retail value when this article was published.

1oz Gold Chinese Panda Coin

500 yuan nominal currency value.

£1,056 retail value when this article was published.

 

Storing Gold Coins

One factor against gold coins is storage, as their shape and size doesn’t make them ideal for putting in a safe because there is a lot of wasted space between the coins. Gold bars, in contrast, are designed for storage and will slot into the corners of any safe and fit neatly on top of one another. As storage costs money and can be a hassle, some people believe this means gold coins are ultimately worth slightly less, as their upkeep is higher. However, gold is so valuable in relation to its weight that this only makes a big difference if you invest in a lot of gold – which most people can’t afford.

 

The Value of Numismatic Gold Coins

On top of sovereign gold coins, there is a whole other world of valuable gold coins known as numismatic coins. Numismatic coins function as collectables or antiques where different factors (rareness, history, aesthetics, etc) all increase the value of the coins. Numismatic coins can be worth significantly more than their weight in gold, but these values can be very unpredictable and rely on keen collectors looking to buy your specific coins, so they aren’t nearly as liquid as buying and selling normal gold sovereigns. Another disadvantage of investing in numismatic coins that you often have to wait many years before your investment increases significantly. This is because most numismatic coins increase in value over time, so you may have to wait a long time before you can receive any return on your initial investment.

If you know what you’re doing, however, investing in numismatic coins can be incredibly profitable. You have to fully immerse yourself in the numismatic world and learn everything there is to know. There are entire websites dedicated to numismatic coins, so we won’t try to cover everything here. Instead, here are a few of the most valuable numismatic coins to pique your interest:

  • 1787 Brasher Doubloon – This rare coin was made by Ephraim Brasher, a very talented goldsmith who lived in New York State in the late 18th Brasher asked his local state authority to mint a new set of copper coins and they refused, so he decided to make his own. However, he decided to use bronze for some and 22-carat gold for a few others. The most valuable is a gold doubloon that was bought for $7.4 million by an investment firm.
  • 1933 Double Eagle – This coin is valuable because a small amount of them were made before the president at the time (FDR) ordered that the coins not be released as he was trying to fix the banking crisis at the time. However, 20 1933 Double Eagles managed to get out into public ownership, making them some of the rarest gold coins in the world and worth an estimated $7.6 million each!
  • 1907 Saint-Gaudens double eagle – This coin’s design by Augustus Saint-Gaudens was too difficult for the US Mint to make in larger quantities, so they had to simplify it. However, they didn’t want to lose any of Saint-Gaudens’ beautiful design, so they removed words ‘In God We Trust’ and Congress was not happy and quickly order them to stop minting them. These coins are very rare and are worth an estimated $7.6 million.

 

The Different Sizes of Gold Coins

When dealing with sovereign gold coins or just privately minted coins (coins with no currency denomination and government backing), the weight of the coin affects the value, just as the weight of a gold bar affects its value. Therefore, the bigger and heavier the coin is, the more gold content it has and the more valuable it is.

 

Final Tips When Investing in Gold Coins

When buying gold coins, make sure they are of investment-grade purity. This level of purity is at least 99.5% (also known as .995), but it can be as much as 99.99999% pure.

When buying gold coins, it is safest to stick with sovereign coins as opposed to privately minted coins. This is because they all have serial numbers and can be easily verified by an assay office.

Avoid numismatic coins unless you want to dedicate a lot of time and effort to it. It can be very worthwhile and produce massive returns but there is much more risk and there are many more variables involved.

Make sure to buy your gold coins from a reputable vendor. Online stores are good, as they tend to offer the best prices as they have smaller overheads. However, make sure the online store has a high Trustpilot rating or equivalent customer review rating. If there is nothing like Trustpilot on the website, then just go to a different site – there are plenty of websites to choose from.

 

I hope you’ve found this guide useful and that you have a better idea of the different values of gold coins. Gold coins are a fascinating area of bullion investment, and if you’re keen to learn more, there is loads more information on our blog.

 

 

 

 

 

Comments are closed here.