There are a few good reasons suggesting that 2014 will be a splendid year for the UK Gold Coins market. The sad 100th anniversary of WWI will be widely celebrated throughout the country and the commemorative coins are sure to attract the investors’ interest. So make sure you get your hands on as many 2014 coins as you can.
There are also other causes that lead to an optimistic prediction for gold coin sales this year. The application of a VAT surcharge on silver purchases is sure to make a difference for many buyers, at least at first. It does seem a bit odd to pay a 50 % premium for a Silver Britannia, a coin that is so popular with the Britons. On the other hand, paying almost 50 times as much to buy the same beautiful coin in gold is not so easy for everyone.
Nevertheless, it is certain that more coins will be sold this year. In their projections for the year the large Mints take into account statistics showing that large portfolios hold on average 8% of their value in coins and only 7% in bars- an impressive total of 15%- the same percentage they hold in stocks and in bonds. This is a serious boost for coins.
With the rising of gold coin sales both the Mints and the large gold sellers saw a great opportunity for profit, but also faced a challenge to please perspective buyers who were becoming more and more demanding. The quality of the minting is now state-of-the Art and there are more and more versions of coins to choose from.
Competition drove sellers to lower their premiums, although there are cases where you might be confused, so be very careful with prices. I oz. coins are the easiest to buy as you can easily calculate the premium. For example, at coininvestdirect.com a 2014 Gold Britannia will cost you £ 814.98 , which is a 5.5% premium with the spot price of gold at $ 1,255 per troy ounce, while the lighter 2014 Gold Sovereign sells at £ 192.18 with an 8% premium. Bearing that in mind, you should know that the value that a coin carries usually makes people forget the small premium.
Such an example is the exquisite 1/2 gold English Rose, a very particular coin, with the depiction of the British Isles on the obverse side instead of the Queen’s portrait and a rose designed with great artistry, calling for peace and Union. The coin sells for £ 420.58, with a 9% premium, although it’s double the size of the Sovereign.
UK gold coin purchases will certainly depend on spot gold prices
This is actually the strongest argument supporting a positive prognosis for gold coin sales in the UK this year. Realistically collecting gold coins is a very fascinating business, but gold is a very expensive commodity and all coin collectors have the idea of a profitable investment in the back of their minds. And the market shows that we will have a good course of gold prices this year and without last year’s surprises.