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)