Jump to content
House Price Crash Forum
Sign in to follow this  
Blink-Star

The Price Of Old British Silver Coins

Recommended Posts

I have been spending some time this week watching the price of ebay sales of silver British coinage. I used to collect coins as a schoolboy, and I am keen to own some bullion as an inflation hedge.

A Britich Crown coin, minted before 1919, contains 28.3 g (1 oz) of 0.999 grade silver.

The spot silver level yesterday was USD 13.50, and the USDGBP rate was around 1.64, so I estimate the value of 1 oz of silver to be around GBP 8.23. (OK, the spot price is for a troy ounce, which is 31.1g, but let's call it an even nine quid for 28.3g of silver)

Standard-issue, Queen Victoria silver crowns are selling on ebay for between £16 and £20 on average, around TWICE their silver value. Half-crowns are selling for between £8 and £10.

Can anyone shine any light on the price disparity here? Does the 'collectability' of these coins warrant the 100% price premium? Or are they just over valued right now, due to there being greater demand than there is supply? I'm yet to go to the local coin-collectors shop and ask about prices and stock levels. I'll report back when I do.

James.

Share this post


Link to post
Share on other sites

There must be some numismatic interest in this. Maybe young investors investing pocket-money on coins which actually have a silver content as well. There was an advert by our "old friends" the London Mint for a set of these, offered at some ridiculous price in a fancy wallet.

Advert in the Daily Express, if I remember it rightly. It's not on their website. Perhaps some people think the ebay price is cheap by comparison. Which it is, of course.....

Share this post


Link to post
Share on other sites
I have been spending some time this week watching the price of ebay sales of silver British coinage. I used to collect coins as a schoolboy, and I am keen to own some bullion as an inflation hedge.

A Britich Crown coin, minted before 1919, contains 28.3 g (1 oz) of 0.999 grade silver.

The spot silver level yesterday was USD 13.50, and the USDGBP rate was around 1.64, so I estimate the value of 1 oz of silver to be around GBP 8.23. (OK, the spot price is for a troy ounce, which is 31.1g, but let's call it an even nine quid for 28.3g of silver)

Standard-issue, Queen Victoria silver crowns are selling on ebay for between £16 and £20 on average, around TWICE their silver value. Half-crowns are selling for between £8 and £10.

Can anyone shine any light on the price disparity here? Does the 'collectability' of these coins warrant the 100% price premium? Or are they just over valued right now, due to there being greater demand than there is supply? I'm yet to go to the local coin-collectors shop and ask about prices and stock levels. I'll report back when I do.

James.

I looked into using silver as an investment (bullion not numismatic ) some months ago and I did not like what I saw. The markup between the silver spot price and articles sold is awful, partly due to VAT.

Best coin I can find at this time appears to be the Silver Philharmonic sold by CoinInvestDirect.com (http://www.coininvestdirect.com/main.php?a=11&id=297)

For bullion, consider CoinInvestDirect (http://www.coininvestdirect.com/main.php?a=10&id=167) and Goldline (http://www.goldline.co.uk/investmentBarsPage.page)

There is another interesting silver bullion supplier called Silverbase but I can't find any feedback about them so I'm a bit wary (http://www.silverbase.co.uk/16280.html)

Basically, I suspect the overheads on traditional UK coins are mainly due to collectors and hence should be avoided unless you are genuinely interested in that field and know what you're doing.

Share this post


Link to post
Share on other sites

My advice:

Be careful when buying old silver coins.

If you have them in large quantities and are not prepared to spend years selling them off 1 at a time on ebay, then you are going to end up selling them to a dealer.

Most dealers will not buy coins of less then 90% so forget 50/50 coins, and most will be melting them and won't buy any old coins containing unpleasent elements that make refining difficult, so you are highly unlikely to get more than 80% of the value of your coins and they have to be high quality. This is only provided you can get a reputable refinery to deal with you, most won't if you are an individual, and a dodgy refiner will pay much less...

If you want to invest in Silver buy it unallocated (avoiding the VAT) via Bairds or Goldmoney (there may be other sources?) or buy physical bars and have it stored at a market member to avoid the VAT. Then if you get panicky about not having your hands on the metal, you can request to take it out of the vault and pay the VAT at the time. This method will save you a lot of cash if you are looking to spend a reasonable amount - e.g 1000 oz market bar at approx £8500, rather than buying small bars or coins.

That's my advice.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   296 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.