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New Silver Coin From Royal Mint

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The Royal Mint have just started advertising a new £20 coin.

http://www.royalmint..._and_the_Dragon

Normally, I wouldn't consider buying from the Mint but this particular offering has me wondering if this is worth a go:

Can you imagine a £20 coin? The Royal Mint has never struck one before, but in 2013, for the very first time, an official, legal tender UK £20 coin will be available. Exclusively available in the UK and only available online. This is the £20 coin of the people, at an affordable price that makes it an ideal gift for everyone – made of fine silver, carrying one of our most famous designs and, most importantly, priced at just £20.

Your £20 coin has inherent, lasting value – you can purchase with confidence it is worth what you paid for it.

The coins contains 15.71g of .999 silver i.e. bullion vaue of about £7.55 at today's prices but has a theoretical spending value of £20. Can a bank refuse to take legal tender?

Though I'm not 'in' metals at the moment, I thought this might be worth a look for anybody who is thinking of buying e.g. Brittanias at this time.

There is a limit of three coins per household and they can only be bought online from the Mint (for now.)

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Half ounce legal tender silver coin for £20, surely a warning sign that they think something big is going to happen.

Just more marketing for the Royal Mint IMO, get me on their email list. Fine.

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Guest unfunded_liability

:lol:

I did get three though. They'll make nice Christmas gifts.

You exchange 3 x £20 paper notes for 3 x £20 silver coins. Bargain.

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The Royal Mint have just started advertising a new £20 coin.

Your £20 coin has inherent, lasting value – you can purchase with confidence it is worth what you paid for it.

The coins contains 15.71g of .999 silver i.e. bullion vaue of about £7.55 at today's prices but has a theoretical spending value of £20.

Basically, sold with a 'money back' guarantee. What more could you ask for ????

Except, perhaps, a rather butch 1/2 ounce mens solid silver (.925) chain from Argos,retailing at nearly thirty five quid !!!!!

http://www.argos.co.uk/static/Product/partNumber/2439837.htm

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It annoys me that they always have the St George/Dragon design. Varied designs are why the Perth products are so successful in my opinion.

You are right, but as this is an official legal-tender coin, they perhaps want to use their most "trusted" or well-known design. Like a Silver sovereign. Maybe they even used the same dies?

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The Royal Mint has launched the first £20 coin, but its claims that the coin will have "lasting value" were immediately described as "rubbish" by one the country's largest coin dealers.

Richard Lobel of Coincraft, said the coin displaying the traditional St George and dragon design contained little more than £8 of silver and would likely trade for less than £10 after its launch on 31 October.

"Not since the 1980s has a Royal Mint coin gained in value. I doubt any dealer will give more than £8 or £9 for it," he said.

http://www.theguardian.com/business/2013/sep/05/20-pound-coin-royal-mint-dealer-sceptical

- What part of 'legal tender' does this man not understand? I will be spending any coins I get in a shop - for the full £20 value. I may buy more to spend in this way. It will NEVER be worth anything less than £20.

How does this man think the coin could 'trade for £10'? If it does I will buy them all and spend them for the full £20 value. :lol:

(I never had any issue spending £5 coins - all the old collectible issues).

Edited by Errol

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What part of 'legal tender' does this man not understand? I will be spending any coins I get in a shop - for the full £20 value. I may buy more to spend in this way. It will NEVER be worth anything less than £20.

I agree that this 'expert' is talking tosh, or has been asked a leading question....

But why would you ever spend any of these in a shop, surely that defeats the purpose of buying them - surely just the same as spending your paper £20 note but without holding up the queue for ages as the shop staff get in a confused muddle as they try to work out whether or not to accept it or kick you out of their shop ;)

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I would just spend them for the fun of it. It hardly matters since the coin costs what the face value is. As I said, I've used commemorative £5 coins in the past with absolutely no trouble at all. The fact that they have the face value on them is all that matters - they are legal tender.

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The Royal Mint has launched the first £20 coin, but its claims that the coin will have "lasting value" were immediately described as "rubbish" by one the country's largest coin dealers.

Richard Lobel of Coincraft, said the coin displaying the traditional St George and dragon design contained little more than £8 of silver and would likely trade for less than £10 after its launch on 31 October.

"Not since the 1980s has a Royal Mint coin gained in value. I doubt any dealer will give more than £8 or £9 for it," he said.

http://www.theguardi...ealer-sceptical

- What part of 'legal tender' does this man not understand? I will be spending any coins I get in a shop - for the full £20 value. I may buy more to spend in this way. It will NEVER be worth anything less than £20.

How does this man think the coin could 'trade for £10'? If it does I will buy them all and spend them for the full £20 value. :lol:

(I never had any issue spending £5 coins - all the old collectible issues).

Sadly, I think he is correct. Trying to spend these coins would be like trying to pay for a round of drinks with a Scottish £20 note in South East England. The vendor has no obligation to accept the payment.

I should have realised this offer was too good to be true. Back to my usual policy of avoiding the Royal mint then ...

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Sadly, I think he is correct. Trying to spend these coins would be like trying to pay for a round of drinks with a Scottish £20 note in South East England. The vendor has no obligation to accept the payment.

I should have realised this offer was too good to be true. Back to my usual policy of avoiding the Royal mint then ...

Yes, but could always cash them out at a bank if needs be...

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Sadly, I think he is correct. Trying to spend these coins would be like trying to pay for a round of drinks with a Scottish £20 note in South East England. The vendor has no obligation to accept the payment.

I should have realised this offer was too good to be true. Back to my usual policy of avoiding the Royal mint then ...

I've had no trouble using commemorative £5 coins (even very old ones). A bank would always accept this coin as it is legal tender.

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Guest unfunded_liability

Sadly, I think he is correct. Trying to spend these coins would be like trying to pay for a round of drinks with a Scottish £20 note in South East England. The vendor has no obligation to accept the payment.

I should have realised this offer was too good to be true. Back to my usual policy of avoiding the Royal mint then ...

I hope I'll always be solvent enough to have £60 cash on hand, so for me it's a no brainer - keep £60 cash in paper notes that are losing value with every round of QE, or keep £60 cash in silver coins, that although at this point in time don't have £20 worth of silver content, will still have some residual value and at some point in the future could exceed the face value of the coin.

There'll be no problems with acceptance as payment, in the past I've used Scottish notes in Costa, McD's, Wilkinsons. Also used the £5 Diana commemorative coins a few years back, and they've all been hoarded out of circulation.

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I hope I'll always be solvent enough to have £60 cash on hand, so for me it's a no brainer - keep £60 cash in paper notes that are losing value with every round of QE, or keep £60 cash in silver coins, that although at this point in time don't have £20 worth of silver content, will still have some residual value and at some point in the future could exceed the face value of the coin.

There'll be no problems with acceptance as payment, in the past I've used Scottish notes in Costa, McD's, Wilkinsons. Also used the £5 Diana commemorative coins a few years back, and they've all been hoarded out of circulation.

Good points - have ordered 3 seeing how I usually have more than £60 in notes.

Looks like their marketing puff is working, what percentage of buyers are going to spend them into the economy? Not many I'll bet. So it gets them their sales on a £10 coin for £20 each...

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So we think these are worth a punt? Might use a portion of my ISA interest to get 3...

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And if one day, the Silver content goes way North of the face value, then there's no CGT to pay either. Legal tender...

Except that to extract the metal value, in the future event of the metal content value far exceeding the face value, one will have to take the coin to a precious metals dealer....who in turn would ordinarily melt the object down??

BUT.....it is illegal to melt/destroy coin of the realm that is currently legal tender and has not been de-monetised (e.g pre-decimal coinage)!!!

And since these coins are unlikely to ever be demonetised (odds of us joining the Euro?)........

This, so I understand, is one appeal of the gold sovereign. It has no monetary legal tender face value but is CGT exempt - and can be legally melted down?

Edited by anonguest

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Except that to extract the metal value, in the future event of the metal content value far exceeding the face value, one will have to take the coin to a precious metals dealer....who in turn would ordinarily melt the object down??

BUT.....it is illegal to melt/destroy coin of the realm that is currently legal tender and has not been de-monetised (e.g pre-decimal coinage)!!!

And since these coins are unlikely to ever be demonetised (odds of us joining the Euro?)........

This, so I understand, is one appeal of the gold sovereign. It has no monetary legal tender face value but is CGT exempt - and can be legally melted down?

Sovereign is face value £1 I believe.

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