The Royal Mint regularly issues collections of proof coins for collection and, it is inferred, potential investment.

However, recent claims by top dealer Richard Lobel of Coincraft say that the cost price of these collections is so high that the buyer has a nearly zero chance of the coins ever reaching the value the paid for them, let alone realizing a profit on them.

He cites an example of a £5 silver proof coin being sold for £99.50 – and having a best trade price of just £20. He goes on to claim that the Royal Mail is “either incompetent in setting prices or cynically exploiting non-expert buyers who think they are getting something special.”

If you are going to invest in coins, invest in coins that have already accumulated great value through their history and, preferably, have valuable metal content too!

Further reading.

When a local woman took a few old coins she had in her household to a touring collector’s show, she did not know that she had a very rare penny amongst her collection!

The 1787 Fugio Penny was said to have been designed by Benjamin Franklin and features the words “Mind Your Business” on one side and “We Are One” on the other side – reflecting the attitude of a newly independent America.

Just shows how much certain old coins can appreciate in value, 1 penny to $24,000!

Full article here.

Uncleaned, this half-crown is from the last year of James II’s reign.

Much wear to both sides and edge (click photo for larger image) but major detail and lettering intact.

We grade this coin as F
£150

Victoria 1845 Crown

Queen Victoria “Bun Head” Silver Crown with Cinquefoil stops.
Edge reads: “DECUS ET TUTAMEN * ANNO REGNI VIII *”
Fantastic lustre, few, very minor scratches, slight mark below 1845 (see photo).

Reverse close to Uncirculated condition.

We grade this beautiful coin as EF.
£870

Another article documenting the rise in popularity of old coins as an alternative investment.

Coins have an edge on nearly all other asset classes as they generally become more valuable with age and scarcity – both of which increase with time. In other words, unlike shares and bonds, their downside is almost non-existent!

Add to this other factors such as the precious metal content in many of them and they become a very attractive investment vehicle.

Read more here: Young Indians Buy Old Coins as Investment

Anne 1710 Silver Twopenny

This tiny (13.44mm diameter) silver twopence comes to you in stunning condition, with clear detail on both sides.

Slight scratch from “G” to “T” of GRATIA (see photo).

This beautiful coin would look great in any collection.

Take this opportunity to get a high grade example.

We grade this coin as EF.
£75

A firm favourite today, the iconic ‘Cartwheel’ George III twopence – so called because of its large size (41mm diameter!) and weight.

Well preserved example.

£77

Today’s selection is a double florin, a coin minted for four years of Victoria’s reign with a value of 4 shillings.

Treat yourself to this beautiful example of the issue, graded EF.

 

£70

Investors looking for alternatives

With the state of the economy uncertain to put it mildly, the stock market is seen by many as a high risk investment and, with interest rates at record lows, staying in cash has little to no reward, especially when coupled with the devaluing of major currencies. This has moved many investors to seek alternative markets to invest in with many drawn to old coins for some of the following reasons:

Excellent retainers of value

Coins are viewed as a safe haven for investors, as they are excellent at retaining their value. Some of the factors that influence their prices, such as scarcity and age, can only improve with time, making old coins a low-risk investment with good growth potential.

Gold prices have risen over 350% over last 10 years

Precious metal content

Many old coins have a significant gold or silver content making them increasingly valuable for this alone. With the precious metals market being on a long-term bull run, any and all gold, silver and platinum objects are in high demand. (The BBC article linked below describes how one investor saw his coins increase in value by over 700% in 4 years because of the gold content)

English gold coins have traditionally been produced from 91.7% 22 carat gold, including those commemorative coins of Queen Elizabeth II.

The following is the gold content of some of these coins:

Quarter-Guinea (0.0618 Troy ounces)

Seven Shillings/ Third Guinea (0.0824 Troy ounces)

Half-Sovereign (0.1177 Troy ounces)

Half-Guinea (0.1236 Troy ounces)

Sovereign (0.2354 Troy ounces)

This George III Guinea has around £228 Gold content

Guinea (0.2472 Troy ounces)

Two Pounds/Double Sovereign (0.4708 Troy ounces)

Two Guineas (0.4944 Troy ounces)

Five Pounds (1.171 Troy ounces)

Five Guineas (1.2360 Troy ounces)