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How Do I Sell Silver Coins?

Selling silver coins can be more difficult than you think. When someone goes to the high street to sell silver, it’s difficult to get the real value that the silver may be worth. Generally, when selling silver coins, you should receive a price below the spot price of silver on that day. However, the price you get will largely depend on how you have stored your silver coins and the condition they are in. In this article, we will explore the best ways to sell your silver coins and receive the best price.

How Do I Sell Silver Coins?
It’s best to sell silver coins through a reputed dealer

Identifying an online broker

The best way to sell your silver coins is to identify a reliable broker. A list of reputed and reliable precious metal dealers can be found on the website of the British Numismatic Trade Association (BNTA). Once you have identified a broker near you, it’s important to establish a good working relationship with the company. If you regularly buy and sell silver coins, you should be able to quickly establish a good relationship that can ensure the best prices for your coins. Remember, most reliable brokers will already have a buyback guarantee, so if you buy coins from them, selling these should not be a problem.

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They can be sold in various ways. Many silver dealers can be found online who will pay you according to the weight of silver, and potentially extra if the coins have a historical or scarcity premium. They will be able to explain the process, but generally, you will need to send the coins to them after agreeing on a price. These coins can also be sold at auctions (for highly valuable coins or large collections), at a local jeweller if convenience is a higher priority than price, or privately.

Online auctions

Online auctions posted by sites like eBay, may look like a good place to sell your silver coins, however, you may not get the best possible price. Your coins may mostly be purchased by dealers who will try to pay the least possible price to get a bargain.

How Do I Sell Silver Coins?
Well known coins like the Silver Britannia are great for investors

Taking care of your silver coins

You are likely to receive a higher price if the silver coins are in good shape. When you purchase your silver coins, ensure that they remain intact inside the sealed packaging. This proves that the coin has not been tampered with and usually, the sealed packaging also comes with a certificate of authenticity. This can ensure better prices for your silver coins. If you buy your silver coins from another collector, and they arrived without packaging, please ensure that you store your coins in a dry environment, so that they do not tarnish. When polishing your silver coins, make sure you do not use chemicals or abrasives that are likely to damage the coins.

Insider's Guide to gold and silver

Buying the right coins

When you purchase your silver coins, it’s important to ensure that you do not end up buying obscure coins that are unknown. Buying well-known silver coins like the silver Britannia ensures liquidity and these well-known coins are more likely to fetch you the best prices and sell quickly. If you do invest in rare and collectable coins, research them thoroughly before you purchase. If the coin commands a rarity premium, then you are likely to attract interest from collectors. In such cases, the value of the coin will be much more than its weight in silver and depending on the demand of the coin, you should receive a good price.

Before selling silver coins, speak to our experts

Physical Gold is one of the country’s best-known precious metal dealers. Our coin experts can advise you on the best way to sell your silver coins and the prices you could receive. Please call us on (020) 7060 9992 or get in touch with us online before you make a sale.

 

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Are Silver Eagle Coins a Good investment?

The American Silver Eagle is one of the most prestigious coins to be minted in the US. The coin is a relatively new one, having been released in 1986. This makes the first edition of the coin only a year older than the gold Britannia. The US Mint released the silver Eagle with one Troy ounce of silver that has a purity of 999.9. The coin was released with a face value of one dollar.

Interestingly, ever since the American silver Eagle has been released, the designs have never changed. Unlike the silver Britannia, the coin is presented in the same style, look and feel and the only difference from one coin to the other is the respective mint mark, which is found on the reverse of the proof coins. Well, the coin enjoys healthy interest from investors, and we want to find out whether the silver Eagle is worth its salt as an investable coin.

Are Silver Eagle Coins a Good investment?
The American Silver Eagle coin known across the world as a liquid coin.

Divisibility and liquidity

In terms of divisibility, the silver Eagle does not offer much choice. As discussed above, the coin has always been available in the same size, shape, and design. However, there are some variations in its design that can add to the variety of an investor’s silver portfolio. The obverse of the coin features an image of Lady Liberty, created by the designer Adolph A. Weinman. Apart from the famous image of Lady Liberty, the obverse of the coin also features the American national motto – “In God we trust”.

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Design options

The reverse of the coin carries the image of the Heraldic Eagle. Right above the head of the bald eagle, there is a cluster of 13 stars, each of which represents one of the original colonies of America, at the time of its founding. The only design change for the American Silver Eagle was in 2021. In the new 2021 design, the bald eagle on the reverse of the coin is featured flying back with its wings spread out. So, this is perhaps the only element of variety that an investor can hope for when investing in the American Eagle. The 2021 design commemorates the 35th anniversary of the coin, and the US Mint has taken this opportunity to refurbish the design of the coin.

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Liquidity

The American Silver Eagle is a famous and well-known coin across the world. This ensures the liquidity of the coin and the coin can be easily cashed in at any point in time, bringing in cash as you need it. Previous editions may command a premium due to increased numismatic interest. American Eagle coins are available in uncirculated, proof, and burnished versions, giving a certain amount of choice to investors. Being a well-known coin, the coin has a good chance of being sold for its value in a short period.

Are Silver Eagle Coins a Good investment?
The obverse of an American Silver Eagle – the year 2000

Silver Eagles can provide a good medium to long term investment and balance to other assets. The 1oz coins afford high flexibility to sell small parts of the silver holding compared to owning huge silver bars. The mass-produced coins are relatively cheap compared to collectors’ coins and their value can rise along with the underlying silver price and age of the coin. Many analysts feel the silver price is very undervalued, suggesting holding silver Eagles will benefit the investor in the long run.

Talk to the coin experts at Physical Gold

One of the country’s most reputed and well-known precious metal dealers is Physical Gold. Our advisors are always happy to discuss your silver coin purchases with you and can offer valuable advice. Get in touch with us on (020) 7060 9992 or simply drop us an email by visiting our website.

 

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Silver Coins vs Face Value

As the demand for silver has risen over the years, primarily due to industrial requirements, the price of silver has seen some volatility. Investors want to get into the silver market because of two reasons – they believe that the price of silver will rise significantly in the future and offer them the opportunity to book lucrative profits. Silver also allows investors access to the precious metals market at a fraction of the price of gold.

The popularity of silver coins

Many investors prefer silver coins since the coins allow them to add divisibility and liquidity to their portfolios. Investing in different sizes and denominations of silver coins has its advantages. One can use a variety of coins to sell the silver at various price points in the market and book profits.

Silver Coins vs Face Value
Close up of the Silver Britannia – one of the most popular silver coins

Collectable silver coins

Silver coins are also attractive to investors for their collectable value. Silver has been in circulation as a precious metal for minting coins over several centuries. As a result, there are plenty of historical silver coins that command hefty premiums based on their rarity value. These premiums are payable due to the historical value of the coin and its demand. Therefore, such coins are worth a lot more than their silver content or their face value.

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They are worth significantly more than their face value. A £2 silver Britannia has a melt value more than 5 times its face value. Also, they can possess a degree of numismatic value, which reflects their rarity, age and desirability. Limited issue coins may be worth more again. The face value benefits the buyer by qualifying the coin as capital gains tax-free

Silver Coins vs Face Value
Many silver coins have embossing on the sides

Limited edition silver coins and proof coins

For example, in 2013, the Royal Mint released a £20 coin minted with silver that carries a fineness of 999.9. Despite the coin having a face value of £20, it is worth much more and is viewed as a collector’s item, by numismatists. The coin is considered to be legal tender, with a face value of £20. Similarly, the 2018 five-ounce silver Britannia proof coin has a face value of £10 but is listed on the Royal Mint site for £455. The coin is minted with 99.9% pure silver and enjoys great demand as a proof coin, leading to the high value of the coin.

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Silver Britannia coins and their face values

The current year silver Britannia (2021) carries a face value of £2. This is a 1-ounce coin, manufactured with fine silver (999.9). Although it is a bullion coin, its face value has nothing to do with the market price. The 2021 silver Britannia 1 ounce coin is priced at approximately £31.

Some coins achieve their rarity status by default. A good example of this would be a batch of silver Britannias struck by the Royal Mint in 2014. 17,000 of these coins were erroneously struck with the obverse used in the lunar series. So, you had a silver Britannia with the “year of the horse” image on the obverse. These coins were later called the Mule Britannia and attracted large premiums due to their rarity. These are often sold at prices close to $700, as collectors are willing to pay lucrative amounts to secure a coin for their collection.

Our coin experts at Physical Gold can help you make the right purchases

Physical Gold is one of the U.K.’s most reputed precious metals dealers and coin specialists. Get in touch with our team by dialling (020) 7060 9992 or send us an email via our website. We are always happy to speak to customers like you and offer advice on buying the right silver coins.

 

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Are Silver Coins Pure Silver?

Silver is gaining in popularity due to its investment potential that has grown over the years. Due to the rising industrial demand for silver, many investors envision making windfall gains in the future, on the rising price of silver. However, silver has a long history of usage in British coinage and coinage across the world.

Most precious metal investors will insist on finding out the purity of the coin before investing. This may not be entirely true for collectors, who wish to acquire a coin, based on its rarity and numismatic value. However, many collectors have also moved to become investors and want to build a strong portfolio of coins that are both collectable and deliver good value for money. Therefore, in this article, we will explore the purity of silver coins across continents.

The purity of investment-grade coins

Investment coins are as near to pure as possible. Popular bullion coins such as the Britannia are struck to 99.99% purity. None are 100% pure silver. Silver currency coins such as the 50 pence piece are not made from silver at all despite their colour. Their alloy is 75% copper and 25% nickel, a mix known as cupronickel.

Are Silver Coins Pure Silver?
Sterling silver is often used to make jewellery

Similarly, in the United States, most silver coins in circulation contained 90% silver. It was only in 1986, when the American Eagle bullion silver coin was introduced, that the purity of silver was raised to 99.9%, to qualify the coin for investors.

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Purity of silver coins across the world

The silver used for coinage in Britain has a minimum purity of 95.8%. Typically, this implies that the silver used for coinage will be an alloy of pure silver, copper and other base metals. The percentage of pure silver in this alloy is 95.84%. Likewise, the alloy would contain 4.16% of copper and other base metals, if any. This standard was developed in Britain as early as 1697. However, we have seen that in recent years, most silver bullion coins minted by the Royal Mint have a purity of 99.9%.

Similarly, France also follows a standard known as the ‘French first standard’. According to this, the alloy contains 95% pure silver and 5% of other base metals, including copper. Russians, on the other hand, use their own standard, known as “91 Zolotnik Russian Silver”. In this, the proportion of pure silver is 94.79%, while 5.21% represents copper and other base metals.

Are Silver Coins Pure Silver?
Queen Victoria silver coins from British India

Britain also used “Sterling Silver”, as early as the 12th century. Sterling silver was used for coinage across the British Empire, and many commonwealth countries continued this tradition after the end of colonial rule. Sterling Silver uses 92.5% of pure silver and 7.5% of copper and other non-precious metals.

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Other nations may use different standards. For example, Scandinavian silver uses the number 830 to denote its fineness. This simply means that the silver alloy contains 83% pure silver and 17% base metals. In the same way, German silver is denoted with the number 800/835. German silver typically uses 80% to 83.5% of pure silver. However, the term “German silver”, also popularly called nickel silver or alpaca, may contain no silver at all. It is an alloy constructed out of different metals. So, it’s helpful to know and understand these details as an investor, which may help us to ascertain the value of the silver products we are buying.

Talk to our precious metal experts at Physical Gold

At Physical Gold, we have a team of precious metals experts who can advise investors, just like you on making the best investments. Call us today on (020) 7060 9992 or get in touch with us by email regarding your silver investments.

 

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What Silver Coins are Worth the Most?

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.

What Silver Coins are Worth the Most?
The Flowing Hair Dollar was the first dollar minted in the US

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.

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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.

What Silver Coins are Worth the Most?
The Morgan Silver Dollar is one of the rarest and most valuable silver dollars

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.

Insider's Guide to gold and silver

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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Where Can I Buy Silver Coins?

Over the years, investor interest in silver coins has increased manifold, with the expectation of rich dividends when silver prices skyrocket in the years to come. While gold has been consistent in delivering steady returns to investors, silver has had a more volatile ride. Although silver prices fluctuated in the short term, the high industrial demand for the white metal has ensured healthy interest from investors.

The industrial use of silver

Silver is used in industry, across many applications. As the electronics industry has grown, so has the demand for silver. Silver has certain unique properties like conductivity and ductility that makes it perfect for use in electric cars, computers, mobile phones and solar panels. Most of the components under the hood of these devices use silver extensively.

Where Can I Buy Silver Coins?
British commonwealth silver coins

Advancing technologies

Due to the advancement of technology in the world, these industries have flourished and are likely to continue growing at an unprecedented pace. Therefore, large volumes of silver will be required to fuel the growth of these industries. However, the production of silver has also dropped over the years. Silver is mined in a select few countries across the world and its production has been continuously falling. The easy inference that one can draw from this situation is that the prices of silver will eventually go up. Silver has also been attractive for precious metal investors since it offers an easy entry into the precious metals market. It is much cheaper than gold and many investors prefer to buy the white metal.

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Why buy silver coins?

The two obvious routes for silver investors to take is to buy coins and bars. UK silver coins are preferred by many investors, since they qualify for Capital Gains Tax benefits, as they are considered to be legal tender in the UK. All investment-grade gold is VAT free in the UK, however, in most cases, silver purchases would be subject to VAT. Silver coins are also available in various denominations. Investors who are building a precious metals portfolio will follow their investment objectives, and decide to maximise the liquidity and divisibility of their portfolios. Investing in prestigious silver coins like the silver Britannia, or the silver Maple leaf can increase the value of the portfolio.

Where Can I Buy Silver Coins?
Bullion coins like the Silver Maple Leaf can be bought from reputed dealers

Where can you buy silver coins?

The best place to buy all precious metals is from a reputable dealer. They will likely have a wide choice and stock which can be delivered to you with insured delivery, saving you the time and security of having to pick them up in person. A good dealer will be able to offer guidance and a buyback guarantee. Some silver brokers can sell coins without charging VAT.


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Reputed silver dealers can be identified by visiting the website of the British Numismatic Trade Association (BNTA). Most reputed dealers are listed on this website, and once you have identified the right ones for you, it’s down to shortlisting them by making contact. If you prefer to invest in silver coins, it is best to identify a good dealer who specialises in this area. Discussing your investment objectives with the dealer may be an excellent idea, as the dealer then becomes aware of what you want from the market and will give you a heads up when the right products become available. When identifying a reputed dealer, always ensure that they provide the certificates of purchase, and have a buyback scheme. Most reputed dealers will also have storage options for you and will deliver your silver purchases through a secure, insured parcel service.

Speak to the silver experts at Physical Gold

At Physical Gold, we pride ourselves on being one of the country’s most reputed silver dealers. We are fully registered with the BNTA and offer free advice to investors on their silver purchases. Please call us today on (020) 7060 9992, or get in touch with us online and a member of our team will contact you very shortly.

 

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Pre-decimal Coins – What are the Benefits in Investment?

Coins become increasingly attractive to collectors and investors as their rarity increases. Bullion coins may be easily available in abundance at low premiums, making them attractive for investors. However, coins with a history are always more attractive to collectors and numismatists. The gold Sovereign coins, which have been around for centuries are a classic example.

The Sovereigns are available with the portraits of several British monarchs during whose reigns, these coins were issued. Queen Victoria alone has three different portraits on these Sovereigns. As a coin collector, it is exciting to delve into the history of these coins. But, let us look at a more recent event that has significantly impacted how coins were struck. Decimalisation has created two distinct category of coins – pre-decimal coins and post decimal.

When was decimalisation

Throughout the history of British coinage, a separate system was in existence for centuries. This was a system that divided the coinage of the nation into pounds, shillings and pence. This system divided the denomination of British currency and everyone knew that 12p was equivalent to a shilling. A shilling was one 20th of a pound, so 20 shillings added up to a pound. However, this was a complex system and needed to be simplified. It’s not that past governments did not realise that there was a need for a simpler system. However, it hadn’t been put in place.

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In 1848, there was an attempt to introduce a decimal coin. This coin was called the Florin. Its value was 1/10 of a pound. But, the values of other coins remained the same. The decimalisation system had been suggested during the 19th century by Sir John Bowring, who was a Member of Parliament. It was due to his suggestions that the Florin had been introduced.

Pre-decimal Coins
King Edward VIII abdicated to marry Mrs Simpson. Coins created for his reign are rare

The decimalisation idea would divide British currency into pre-decimal coins, which would be withdrawn from circulation. A special task force was created in 1961 to debate and decide on the introduction of a decimalisation system for the British currency. The question on everyone’s minds was, “When was decimalisation going to kick in?” “When was decimalisation money, or post decimal coins going to be available?”

Eventually, the decision to withdraw the old system and pre-decimal coins were finally announced in March 1966. The D- Day or, Decimal Day was 15th February 1971. It was on this date that pre-decimal coins were finally withdrawn from British coinage. Decimal Day will celebrate its Golden Jubilee, or completion of 50 years on 15th February 2021. Today, with the passing of years, not everyone remembers the date and many people from the younger generation ask, “When was decimalisation?” As we celebrate its 50th year, it is certainly a date that changed the coinage of our country forever.

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What pre-decimal coins should I collect?

Well, not all pre-decimal coins would command a high value. Firstly, only some of them are made of gold and silver. Others are made with copper. Although they have been withdrawn from circulation, they are freely and abundantly available. However, some of them have become rare over the years and can fetch a tidy sum. For example, the 1917 George V Sovereign from the London Mint could be worth around £ 15,000. Another pre-decimal coin that’s worth quite a bit is the 1937 Edward VIII brass threepence. Only 10 were produced and their release was withdrawn due to the abdication of the King.

One of these could be worth as much as £45,000. Amongst the pennies, the 1933 George V penny is highly valued, mainly due to its rarity. Only seven were issued at the time, and if you manage to get your hands on one, it could fetch you as much as £72,000. There is also a 1937 copper one penny coin that had been struck to be released during the reign of King Edward VIII. Only a few were produced and one of these fetched £111,000 at an auction in 2019. So, if you were to find one of these in your attic, you could make a hefty sum of money very quickly.

Pre-decimal Coins
Decimalisation changed the way the Royal Mint struck their coins

Call us at Physical Gold to find out more about rare coins

Our coin experts at Physical Gold can help you identify rare coins and assist you in purchasing them for your collection. Call us on (020) 7060 9992 or drop us an email today by visiting our website.

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Dieu et Mon Droit – How did this French Phrase get Used on British Coins?

Dieu et Mon Droit – How did the phrase originate?

The origin of the phrase goes back to the time of Richard I, who was descended from French ancestry. King Richard was the King of England from 1189 till his demise in 1199. King Richard used this phrase to announce that it is the divine right of the King, or Monarch to govern.

The phrase was later adopted by King Henry V, as the Royal motto for the Kingdom of England. The phrase now appears on the coat of arms used by the British monarchy. People often wonder how a French phrase could be adopted by the English Royal Family. However, mediaeval England was not the same place that we know now. Norman-French was the language of the English Royal Court at the time. The rulers and the upper classes also spoke this language during that period.

Dieu et Mon Droit
The Royal Coat of Arms

The meaning of the phrase on the coat of arms

When translated, the phrase simply means “God and my right”. Currently, it is the motto of the British Royal Family. A close inspection of the coat of arms used by the British Monarch, reveals that the inscription can be found on a small banner underneath the shield. In the present day, the coat of arms is used by our reigning monarch, Queen Elizabeth II. On the left of the shield, stands the guardian lion wearing the crown of St. Edward. On the right of the shield is a Scottish Unicom. Underneath the shield, there is greenery, with a thistle, Tudor rose and Shamrock. These are representative of the kingdoms of Scotland, England and Ireland. Right below this display is a banner containing the words “Dieu et Mon Droit”.

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Where can this coat of arms be seen?

The coat of arms is the official symbol of the British Queen. Therefore, it is clearly visible in every UK court of law, except for the Supreme Court of the United Kingdom and the Magistrate’s Court in the City of London. It is also used on government documents and you might be able to view it on your passport. Globally, this coat of arms is visible on the entrances to UK embassies and consulates.

Dieu et Mon Droit
1983 one-pound coin

Appearance on coins

The royal coat of arms has been featured regularly on British coinage, manufactured by the Royal Mint. The most common example of this is the British one pound coin, which has been in circulation since 1983.

By 2008, the Royal Mint had minted a new series of coins with a denomination of 1 pound and below. The full Royal coat of arms appears on the one pound coin with the phrase Dieu et Mon Droit. However, only sections of the coat of arms can be seen on the coins of lower denomination. In 2016, the Royal Mint released a new bimetallic coin called the nations of the crown. Interestingly, an old British coin called the Guinea, which was minted between the years 1663 and 1814 also displayed the royal coat of arms, with the inscription. The coin took its name from the West African nation, Guinea. The gold that was used to mint this coin was sourced from here.

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The numismatic experts at Physical Gold can address all your queries related to coins

Collecting coins can be an absorbing hobby, and if the coins are produced from precious metals, they can add tremendous value to your collection. Many collectors and investors have questions related to precious metal coins. Call our coin experts on (020) 7060 9992 or reach out to us via our website and we will be happy to advise you on all your coin purchases.

 

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Why invest in silver coins?

Investing in silver coins

Silver coins are a great investment choice if you’re seeking potential capital growth and also want a hedge against falling stock markets and banks. The value of coins tends to rise over time, especially when there’s political and economic instability. Silver coins are also exempt from Capital Gains tax. The modest price of the coins enable accessibility to the market for many compared to gold coins (such as Sovereigns and Britannias), and divisibility to sell part of your holding. The silver price can also rise when demand for industrial silver rises, with its predominant use in electronics.

The industrial demand for silver is rising

The white metal is used extensively in the electronics industry, IT, solar panel manufacturing and a host of other industrial processes. On the other hand, the production of silver from mines has greatly reduced over the years. Rising demand and dwindling supplies have fuelled speculations that there may be a huge price in the spot price of silver in the years to come. Many investors have started buying up silver early with an expectation of making profits, once the prices go up.

Why invest in silver coins?

Coins like the silver Dollar do not enjoy tax free status in the UK

Silver to gold price ratio looks enticing

Today, silver is almost a hundred times cheaper than gold. Therefore, it provides investors with easy access to the precious metals market. If you are planning to invest in silver, there could be no better time than the present to take a calculated risk and purchase the white metal. Silver bars and coins can provide you with good investment options if you plan to get in early and wait for the long term to generate good returns. While silver bars allow you to acquire more silver at a cheaper price per gram, silver coins have several distinct advantages.

Variety and purity

Firstly, they are available in a wide variety of sizes. 1-ounce coins are quite common, but now there are larger silver coins of 10 ounces and even up to 1KG. These large coins also offer you the same advantages as buying a silver bar. Secondly, purity is an important consideration. Silver coins with a purity of 95.8% are easily available. However, better options can be found like the Canadian Silver Maple Leaf, which is a coin with 99.9% purity.

Insider's Guide to gold and silver

A vibrant secondary market

Liquidity is also an important consideration when building a precious metals portfolio. Always buy silver coins that are popular and enjoy a strong secondary market. Obscure and rare coins can be difficult to sell later on. Well-known coins with a vibrant resale market include 1-ounce silver coins like the Krugerrand and the silver Britannia.

The silver Britannia is one of the finest silver coins to invest in
The silver Britannia is one of the finest silver coins to invest in

Tax efficiency

Any investment portfolio needs to be tax-friendly. While coins like the Canadian Maple Leaf are a great buy, the profits you make from their sale are taxable. UK silver coins like the silver Britannia, on the other hand, are CGT free, due to their status as legal tender in the country. The silver Britannia, in particular, is a bullion coin and is available in plenty. Therefore, premiums are low, they are CGT exempt and available with good discounts on bulk orders from reputed silver dealers.

Get in touch with Physical Gold to plan your silver portfolio

Physical Gold is one of the most reputed gold and silver dealers in the UK. Our investment experts can help you identify the right silver coins to buy. Give us a call on (020) 7060 9992 or drop us an email and a member of our team will get in touch with you right away.

 

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Are silver coins or bars better?

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.

Are silver coins or bars better?
Large silver bars carry lower production costs

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.

Insider's Guide to gold and silver

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.

Are silver coins or bars better?
Silver coins offer tax advantages

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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Are Silver Proof Coins a Good Investment?

Proof silver coins as an investment

Silver coins have increasingly gained popularity over the years for several reasons. Firstly, silver is much cheaper than gold and provides investors with an affordable pathway to access the precious metals market. Secondly, the industrial demand for silver has steadily risen over the last decade. At the same time, supplies have fallen significantly. So, there is a legitimate expectation amongst investors that the spot price of silver will eventually rise, allowing those who invested early to book healthy profits.

Investing in silver coins

Silver coins are a popular choice for collectors and investors alike. As many silver coins are legal tender in the UK, they provide an opportunity to invest, without having to carry the burden of Capital Gains Tax (CGT). However, when investing in silver coins, one needs to make the right choice. Silver coins are available as proof sets, bullion coins and rare/ collectable coins.

Are Silver Proof Coins a Good Investment?
These US Mint proof coins in silver are great for collectors

What are silver proof coins?

Proof coins were originally produced before the actual issue of a coin. They were used for securing approvals from the Ministry of Finance and the administration of the mint. Checking the proof coins is also a method used for verification of the dies used during the production process. Finally, they were retained for archival. Proof coins are usually produced by polishing the dies. This results in a high-quality finish, with a polished look and feel and sharp edges and design. The polished areas of the coin take on an almost mirror-like finish, especially in silver coins. Additionally, the dies used for production are often chemically treated to create a frosty appearance in some areas of the coin.


FREE Guide. Click here to download The Insiders Guide to Gold & Silver Investment


The rising popularity of proof coins

Due to their high-quality finish and attractiveness, silver proof coins have become extremely popular over the years and enjoys healthy demand from the general public. As a result of this, the Royal Mint has been issuing limited edition sets of proof coins. Of course, these coins can be bought at hefty premiums and are usually purchased by numismatists.

Silver proof coins as an investment

If an investment is a primary focus, then buying bullion coins is a better bet. Bullion coins finished to brilliant uncirculated finish are cheaper per gram than a silver proof coin. Most silver dealers will not pay you the same premium when you come to sell the proof silver coin. Proof coins are better suited to collectors or as presents.

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The premiums you would pay for buying a proof coin set is more or less the same as that of a commemorative issue. One needs to bear in mind that the higher price being charged for a proof coin is simply on account of production costs and limited availability. This does not change the price of the silver contained within the coin. Bullion coins, on the other hand, are freely available with low premiums. As an investor, you can secure great deals from dealers on bulk purchases of bullion coins. So, if you are buying silver coins as an investment, steer clear of buying silver proof coin sets. Buy current issues of silver bullion coins like the silver Britannia and you can land yourself a much better deal.

 

Call our silver investment team to discuss your silver coin purchases

Our investment experts offer you free and impartial advice on buying silver coins and bars (such as this 1KG bar). By connecting with the Physical Gold team, you can stay abreast of the latest deals and find out everything you need to know about buying silver coins. Call us today on (020) 7060 9992 or contact us online to speak to a member of the team.

 

 

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What Silver Coins to Invest In?

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.

What Silver Coins to Invest In?
The silver Britannia is a highly collectable coin

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.

Insider's Guide to gold and silver

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.

 

 

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What Silver Coins Should I Collect?

Collecting silver coins

Silver has become an extremely popular investment vehicle for obvious reasons. The price of silver is expected to rise heavily in the coming years. Thanks to huge industrial demand and short supplies, the price of silver is predicted to rise inevitably. Currently, the gold-silver price ratio also makes silver investments desirable. Silver is currently 85 times cheaper than gold and offers easy access to the precious metals market for investors who are starting out.

How to choose the right silver coins

Coins are preferred by investors due to their liquidity and divisibility. But which coins should one invest in? The best coins to collect will depend on your objectives. If you wish to collect for investment gains, then any coins of a limited issue which you’re able to purchase at a relatively low premium will work out best. Examples may be The Royal Mint’s Queen’s Beast and Lunar series of coins. If you simply wish to collect for variety and rarity sake, then some older coins will have a great deal of history and numismatic value. Expertise is required to buy at the right price, but the upside potential can be great.


Click here to download the FREE Insiders Guide to buying tax free gold and silver


The silver Britannia

A starting point for many investors is frequently the UK silver Britannia. It is considered to be the backbone of any good silver portfolio. The Britannia enjoys a distinct advantage when compared to other silver coins. It is a mass-produced, bullion coin with low premiums and manufacturing costs. The coin is easily available and also enjoys an extremely vibrant secondary market. Since all issues are recent, the coin does not command any numismatic premium. Therefore, in terms of value, it is a great investment.

What Silver Coins Should I Collect?
Silver coins post a good possibility of high value returns

The silver Krugerrand

The Krugerrand is well-known across the world and is a very liquid coin. Infact, it is one of the most available 1-ounce silver coins. It is an excellent choice for adding to your portfolio. In terms of both value and liquidity. Most reputed UK brokers have these coins and they are available at low premiums and bulk discounts, just like the Britannia. However, in terms of tax efficiency, one must remember that these coins are not considered to be UK legal tender and CGT could be payable on any profits made on sales.

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The Royal Mint’s collectable series

The Queen’s Beast

The Royal Mint has issued certain collectable silver coins are available as the Queen’s Beast series and the Lunar series. Variety is an important consideration when building your portfolio and both these coins offer this attribute to your collection. The Queen’s beast series of coins can be purchased in different sizes. There is a 2-ounce version, and a large 10-ounce version, as well. Buying the larger coin can ensure that you avail a lower price per gram, due to reduced manufacturing costs.

The Lunar Series

The Lunar coins, produced by the Royal Mint is a set of 12 coins. Each coin features a different animal from the Chinese calendar. The coins are issued annually and enjoys great demand from collectors due to the variety it brings to the portfolio. Collectors are keen to collect every coin in the series. Therefore, it is worth purchasing for your portfolio. These coins are also in great demand in the Asian markets, and their price can rise quickly due to this.

Call the silver experts at Physical Gold to identify the best coins to buy

The investment team at Physical Gold is always ready to offer you advice on the best silver coins to add to your collection. Call us today on (020) 7060 9992 or get in touch via email. We can help you take the right silver coins in line with your investment objectives (as well as silver bars) and make your portfolio stronger.

 

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Will Silver Coins Go Up in Value?

Spotting an investment opportunity in precious metals can be lucrative if you buy early. Silver is currently very low-cost compared to gold so is seen as a bargain, providing more likelihood of future gains. The current gold-silver price ratio is 85:1. It’s interesting to note that this ratio was 47:1 some years ago. In other words, the spot price of silver has fallen significantly over the years. Of course, many investors believe that there is a downside risk of investing in silver. The present price of silver is around £12 per ounce. So, is there a risk involved in buying silver coins?

A case for the appreciation of silver prices

Silver is in great demand all over the world. As the most conductive of all metals, silver is the preferred use in technological goods, so analysts predict demand to continue rising. Silver continues to remain the preferred metal for conductivity in photovoltaic cells, which is an integral part of solar panels. As the world moves toward sustainable energy solutions, the production of solar panels is likely to keep rising. Silver is also used in all electronic products like mobile phones, laptops and tablets. As our world becomes increasingly connected through technology, the demand for silver will rise.

Will Silver Coins Go Up in Value?
Silver coins can be a great investment over the long term

Rise in prices due to falling supplies

Electric cars are soon becoming the obvious choice for land transportation. With petroleum and diesel passenger vehicles expected to be phased out from Europe between 2030 to 2040, electric cars will occupy the lion’s share of the market. Silver is a critical component for e-mobility and the overall demand is expected to shoot up due to the above factors. On the other hand, there has been a significant drop in the production of silver from the world’s largest producing countries like Peru, Mexico and China. So, on the basis of supply and demand, we can reasonably expect prices to go up eventually.

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How can silver coins deliver value?

First of all, silver coins provide divisibility to any precious metal portfolio. Many investors prefer to purchase silver bars. However, when selling back into the secondary market, bars (such as a 1 kilo silver bar) give you only one chance to sell. Coin investors, on the other hand, benefit from holding a variety of denominations. They can sell small parts of their silver holding as and when the price is right.

Silver coins (such as the silver Britannia) also provide a tax-efficient avenue for investment. Many silver coins are considered to be legal tender in the UK since they have a face value. Investing in these coins can provide an attractive CGT exemption.

Silver coins can deliver value over the long term

The value of silver coins can be volatile. They can go up and down in the short term. Over the long term as a precious metals with limited supply and increasing demand, they are likely to rise in value. Premiums on collectable silver coins can rise quicker than the market price of silver due to interest from both collectors and investors.

So, we can surmise that the downside risk involved in buying silver coins is minimal. Coins, in particular, can deliver good returns over a period of time while maintaining tax efficiency for your portfolio.

Contact Physical Gold to buy silver coins

The investment team at Physical Gold are always helpful in guiding buyers to make the right choices when it comes to silver coins. Contact the team on (020) 7060 9992 and you can benefit from advice, as well as guidance in buying the right silver coins that can provide great value.

 

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Are Silver Coins a Good Investment?

Investing in silver coins may be attractive, but there are certain important points we need to consider first. In this article we explore “Are silver coins a good investment?”

Size and investment options

Silver coins are available in a variety of sizes. Apart from the normal sizes up to an ounce, they are now available in larger versions of 10 ounces and 1 kg. There has been speculation in the market for a while that the prices of silver are likely to go up significantly. With the spot price currently hovering around £11 per ounce, there are great profits to be made if it rises threefold. The other reason that silver is attractive to investors is that it is 85 times cheaper than gold. Gold can be prohibitively expensive for retail investors. Silver offers access to the precious metals market at an unbelievable price point.

The industrial demand for silver

Silver has a huge industrial demand. It is widely used for the manufacture of electronics, computers, solar panels, and has a range of other industrial applications. Reducing supplies of the white metal has prompted investment experts to speculate about a possible hike in prices. If you are thinking of silver coins investment and taking a calculated risk on its price, you may have to wait for at least 3 to 5 years before you can get a reasonable return.

Insider's Guide to gold and silver

They can be a great investment if bought in the right way at the right time. Silver is significantly undervalued compared to historical levels, so a medium to long term holding is advised to maximise returns.

Are Silver Coins a Good Investment
Silver coins can be a great investment if the right coins are chosen

Need for liquidity and buying coins which can be resold

Your investment is only as good as its liquidity. If you cannot take advantage of the right price point in the market by selling easily and quickly, the investment is useless. Therefore, always buy silver coins with a mass appeal and avoid purchasing obscure and rare coins. Well-known coins enjoy a vibrant secondary market, which makes it much easier to sell when the time is right. 1-ounce silver coins like the silver Krugerrand is an ideal choice.

How about collectable coins?

You may be able to extract better value from your investment if you choose a collectable coin. The premiums on these coins usually rise very quickly and investing in them can be an excellent strategy to get quick returns. Likewise, a popular coin like the 1-ounce silver Britannia makes an excellent addition to your investment portfolio. It ticks all the boxes for divisibility, liquidity and collectability. So, it’s evident that investing in silver coins can be a great idea as long as you plan properly and buy the right coins which are likely to meet your investment goals.

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Understand purity levels

When choosing coins, purity is an important factor. Many silver coins are available with 95.8% purity. But, if you do your research well and choose a coin like the Canadian Silver Maple Leaf, you have a coin with 99.9% purity. There can be different strategies for choosing the right silver coins for your investment. Purity, divisibility, variety and value are important considerations.

Tax advantages and efficiencies

From a tax perspective, silver coins which are legal tender in the UK will automatically be CGT free.

Prior to the UK leaving the EU, Physical Gold were the only silver dealer in the UK who could provide VAT free silver. Post-Brexit this is no longer possible. Due to the following reasons though, we are able to sell silver coins and bars at similar “all in” prices to previous:

  1. Free delivery – we can now provide free delivery, previously this was chargeable
  2. Reduced product range – we now provide a reduced range of silver products. This means we have negotiated better prices for the products we supply, we pass this discount on to our customers!

The overall net result is that the price difference when you buy silver coins and bars the price difference even with paying VAT is negligible and certainly competitive with other UK dealers.

We also can now accept orders for mixed gold and silver purchases, whereas previously we could only process “silver only” orders to obtain VAT free silver.

Contacting Physical Gold for Advice

Please visit the Physical Gold website for more information on how to profit from your investment in silver coins. Speak to us today on 020 7060 9992, leave an instant message or complete our contact form. We look forward to being of service and support.

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