Your guide to owning commemorative gold bullion coins

Commemorative bullion coins are some of the most sought-after coins in the world.  These coins regularly sell out, causing stock shortages at major national mints. So what do you get for your money? And why should you buy one?

the queens 90th jersey gold bu penny both sides - Your guide to owning commemorative gold bullion coins
The Queen’s 90th Birthday Gold Penny

Well the key reason most people purchase a bullion coin is the precious metal content.  But these coins are not just lumps of metal. For example the 90th Birthday Gold Penny authorised by the Government of Jersey is a real piece of craftsmanship, with a specially commissioned portrait just for the Queen’s 90th birthday, which is a key theme for coin collectors this year.

Combine all of this with the gold content and you start to see just why this coin is so collectable.

And that’s what makes it different from a gold bar or round.

On some coins you will have to pay VAT.  And as with any struck coin, you will have to pay a premium over the raw metal value to cover production costs.  For example, The Queen’s 90th Birthday Gold Penny is a specially produced commemorative coin.  Its cost is made up of much more than just the gold content.  There are significant design and striking costs associated with producing relatively short-run, high quality collector coins, such as this.

If you compare the Gold Penny to a UK Silver Proof £5 coin, where the silver value comprises approximately 15% of the ex VAT selling price, the Gold Penny provides excellent value for collectors, with around half of its ex-VAT selling price being accounted for by the gold content.

Of course, as a special issue collector coin, it will compete on price with mass-run bullion coins, like the US Eagle and Canadian Maple Leaf.

Bullion coins facilitate an easy entry into the world of owning precious and collectable coins.  They are not about face value for example, the Gold Penny is legal tender in Jersey and with a denomination of a penny, its value comes from a combination of its precious metal content, craftsmanship and overall collectability.

three tips for buying commmemorative gold bullion coins1 - Your guide to owning commemorative gold bullion coins
Three tips for buying commemorative gold bullion coins

 


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One thought on “Your guide to owning commemorative gold bullion coins

  1. Cheryl Reply

    Here is another way to buy gold.

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