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‘Bank Sold Us £5 Coins That Aren’T Worth A Penny’

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http://www.telegraph.co.uk/finance/personalfinance/11001196/Bank-sold-us-5-coins-that-arent-worth-a-penny.html

When Pat and John Owers wanted to deposit five £5 coins, Lloyds bank refused to accept them – because although "legal tender", the money was in the form of commemorative coins.

Staff at the Owers' local bank branch in Barking, Essex, turned away the money. They offered no advice about where it could be exchanged or spent.

Such coins are produced by the Royal Mint as souvenirs of royal occasions like births, weddings and anniversaries, and are bought in their millions - and often given to children or other family members as keepsakes. Because they are produced in limited quantities and for a certain period, they are often initially sold for more than their face value. Over time, their value changes according to demand from other collectors.

But most owners do expect to be able to realise at least the face value of the money at any time.

Mr Owers, 67, had collected £25 worth in coins since the 1990s, including the 2002 Queen’s Golden Jubilee and Queen Mother’s centenary in 2000.

Don't worry the BoE is doing all it can to make it's paper money just as worthless....

If he took them to the fraud of England would they issue a £5 note in return?

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I thought everyone knew these coins were just memorabilia. They should be investigating how an education system got so bad that these nut jobs tried to deposit memorabilia coins in a bank.

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Guest The Relaxation Suite

I thought everyone knew these coins were just memorabilia. They should be investigating how an education system got so bad that these nut jobs tried to deposit memorabilia coins in a bank.

They are legal tender, technically, referred to as non-circulating legal tender. I'm more amused by the fact that the melt value of a pound ("regular issue coinage") is around 5p. People should be more angry about that, but where, oh where are the newspaper articles about that? Naturally....

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What would be more interesting is if silver reached £40/Oz -- then these £20 coins would be worth more than £20 in silver alone....

http://www.royalmint.com/shop/Outbreak_2014_UK_20_Fine_Silver_Coin

Incidentally, these are spendable, since the definition of "legal tender" says that you cannot be sued for trying to pay off a debt using them. One way to incur the debt is to just fill up your car, then pay with £20 coins :)

£20 coins are legal tender up to any value.

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I wondered why the US would have been interested in buying £5.00 coins :)

People buy me coins as gifts frequently just coz I like them. Don't think they or I ever saw them as investments (unless gold or silver & nobody buys me them). They should be worth face value though. Friend commented recently that the shop she works in (small local grocery store) had had an influx of George Best memorial fivers in their tills this summer. I like them too so have asked her to keep me any more they get but people must be really struggling when memorabilia is being used as food money.

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I thought everyone knew these coins were just memorabilia. They should be investigating how an education system got so bad that these nut jobs tried to deposit memorabilia coins in a bank.

Bizarre thing to say, given that the bloke in question is 67 years old. It's a long time since he was at school!

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The former Ford engineer bought them for about £10 each from high street banks, hoping they would grow in value or at least be worth their stated, face value.

Mr Cohen said: “Banks are suspicious of these coins,

No wonder the banks are suspicious of the coins considering that the banks sold them.

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I thought everyone knew these coins were just memorabilia. They should be investigating how an education system got so bad that these nut jobs tried to deposit memorabilia coins in a bank.

Memorial or not, they ARE legal tender, although a shop could refuse if they are unsure if they are real (a bit like trying to spend Scottish notes)! The real nut jobs are working in the bank! They should be aware of all the current forms of legal tender.

I wondered why the US would have been interested in buying £5.00 coins :)

People buy me coins as gifts frequently just coz I like them. Don't think they or I ever saw them as investments (unless gold or silver & nobody buys me them). They should be worth face value though. Friend commented recently that the shop she works in (small local grocery store) had had an influx of George Best memorial fivers in their tills this summer. I like them too so have asked her to keep me any more they get but people must be really struggling when memorabilia is being used as food money.

Agree. Weird times indeed.

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I thought everyone knew these coins were just memorabilia. They should be investigating how an education system got so bad that these nut jobs tried to deposit memorabilia coins in a bank.

They work fine. I've spent £5 coins in numerous places over the years and they've always been taken without even anyone mentioning it. They are legal tender and pretty much any high street shop will take them.

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They have the WW1 Commemorative 15.7g silver coins at £20 with £20 face value at the RM

http://www.royalmint.com/shop/Outbreak_2014_UK_20_Fine_Silver_Coin?tab=specification#productdetails

The intrinsic silver value is 15.7*0.42p = £6.59 Longterm it might be a winner if you are bullish on silver, but no guarantees.

(price per gram from http://www.postalbullion.com/silver-price-per-grams-week-gbp-5.aspx)

You exchange £20 for £20; orders over £45 qualify for free postage and packaging. Although the silver £20 will be less liquid if you want to spend them as not everywhere wants to take them. Remember the gentleman who wanted to pay for his petrol at Tesco with a commemorative coin.

Legal Tender Guidelines.

http://www.royalmint.com/en/aboutus/policies-and-guidelines/legal-tender-guidelines

Legal tender has a very narrow and technical meaning in the settlement of debts. It means that a debtor cannot successfully be sued for non-payment if he pays into court in legal tender. It does not mean that any ordinary transaction has to take place in legal tender or only within the amount denominated by the legislation. Both parties are free to agree to accept any form of payment whether legal tender or otherwise according to their wishes. In order to comply with the very strict rules governing an actual legal tender it is necessary, for example, actually to offer the exact amount due because no change can be demanded.

--------------

Remember this is "money" from the government, and the rules can always change. You should always look at the intrinsic value.

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Of course they're legal tender.

I worked with an alcoholic who was (genuinely) a great laugh.

One thing he made a point of was not using cashpoints but instead would draw £100 or so out each time in whatever commemorative coins were out that week.

Everyone was interested and they were always a talking point in the pub.

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Memorial or not, they ARE legal tender, although a shop could refuse if they are unsure if they are real (a bit like trying to spend Scottish notes)! The real nut jobs are working in the bank! They should be aware of all the current forms of legal tender.

Agree. Weird times indeed.

Scottish notes are not legal tender, even in Scotland, although generally accepted at face value. I think only £1 Scottish notes were legal tender, but they are not produced any more.

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I thought everyone knew these coins were just memorabilia. They should be investigating how an education system got so bad that these nut jobs tried to deposit memorabilia coins in a bank.

:lol: Exactly! Even if the bank accepted them as a deposit, did they seriously think they could get the very same coins back in 10 years time?

The bank might, reasonably, have accepted them, but as the customers were not technically paying a debt, the bank was free to refuse any such transaction, no matter what the coinage.

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One thing he made a point of was not using cashpoints but instead would draw £100 or so out each time in whatever commemorative coins were out that week.

Everyone was interested and they were always a talking point in the pub.

Gotta be careful there. I still have £97-worth of Jade Goody Memorial Proof 50p pieces and my landlord won't touch them with a shіtty stick.

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