It may seem like buying a limited-edition coronation coin to celebrate the coronation and leave a valuable inheritance to your children is the best option. But you’ll probably be paying too much, and reselling it won’t net you much. Merchants selling commemorative coins went into overdrive in September 2022 as the nation mourned the loss of its monarch. Within a month, Instagram users were bombarded with ads for a commemorative coin featuring contrasting portraits of the Queen as a young woman and an older woman, along with the years 1926 and 2022.
Coronation Coins:
Not long after that, coins with “Charles III” went on sale; some were so popular that they ran out months before the coronation. Some of the highest quality “collector” or “commemorative” coins are those minted in pure 22-karat gold and given the highest finish, known as “proof.” They make for great keepsakes or presents, similar to fine jewelry, and are sold by the Royal Mint and several private companies for hundreds or thousands of pounds. Unfortunately, people have lost a lot of money buying commemorative coins thinking they were investments in gold.
Investing in Coins
In a survey by Which in February 2023, 8 percent of respondents reported investing in a cryptocurrency. Five-hundred-fifty percent of those people bought a collector coin made just for them. Unfortunately, a person who invests in that sort of coin is highly likely to lose their money. Three main categories of coins are available for purchase, but only bullion coins are appropriate for long-term investment. Although the designs can be appealing, bullion coins are not considered collectible in and of themselves. They are typically purchased at a premium of 3-5% over the value of the gold they contain.
On the other hand, Numismatic coins are old, scarce, and were originally struck for use in commerce rather than as collectibles. Numismatists, who specialize in collecting coins, know that some coins can fetch astronomical prices despite having almost no precious metal; however, this is highly speculative, so you should avoid purchasing them for this purpose. Collector or commemorative coins fall somewhere between these two extremes. They are often sold with the ‘limited edition’ label, despite being made of anything from solid gold or silver to gold plating or cheap metal. These coins are a potential minefield for inexperienced investors.
Gold Mark-Up
We discovered that Charles III commemorative coins typically have a high premium over their gold content. For £399, you can purchase a ‘Passing of the Crown’ 22-carat gold proof quarter sovereign from the London Mint Office, which is unrelated to the Royal Mint. This gold is worth approximately £94. In the past five years, gold’s price has risen by 48 percent as of April 26. However, a return of 332% over the next five years would be required to make an investment in the Mint’s quarter sovereign worthwhile. ‘
For any investment, that seems extremely unlikely, especially given that the price of gold has increased by only 2% in the past year. Like any other investment, gold and silver prices are subject to fluctuations; if they fall or lag behind inflation, your purchasing power will decrease over time. See our advice below or consult an independent financial adviser to invest in gold.
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