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The Premium on Gold Coins

Friday, April 4th, 2014

Some of you have been enquiring about the Premium. What is it ? What does it mean ? Here are a few answers.

sovbb3

Sovereign Price= Premium + Price of Gold

In the United Kingdom, the current premium is dependant on source, quantity, supply and demand and currently can range from 5% to over 40% depending on source and condition.  But what is this premium for gold coins?

The premium is the difference between the current gold value contained in the coin and the price paid for the coin and is usually expressed as a percentage. The price and premium depend on market factors at the time and are constantly changing.

e.g. a Sovereign may contain gold with a value of £160 but be worth £199 and for a newly minted proof coin £299 . The difference between these two figures, expressed as a percentage, is the premium thus a the proof coin is sold at approximately 46% premium

The premium for a coin is linked to several criteria:

· production: The smaller the coins and the harder they are to produce, the more chance there is that they will have a high premium, this principle that explains why the smaller half sovereign have a higher premium .  The quality of a proof coin usually demands a higher premium

· speculation: the premium changes to reflect supply and demand. In a period where more coins are being sold than are being bought, the premium is zero or slightly negative (in this situation, coins of moderate quality are often melted down). When there is high demand or excess speculation, the premium resulting from this speculation climbs sharply. The premium is therefore a very good indicator of the balance between supply and demand, the latter’s potential and also what actions should be taken. A negative, zero or slightly positive premium should stimulate purchases whilst a high premium of should lead to selling.

calc

· conservation: a quality coin that has no trace of being handled will retain all its premium. Poor conservation conditions (contact with fingers, scratches, wearing…) results in a reduction of 4 – 10% and can lead to a negative premium. When this happens the coins are melted down and sold for the price of their precious metal

· collectors: some coins are rarer due to them being minted in small numbers or because they have special characteristics related to numismatic rarity criteria. In certain years where very few coins were minted a sovereign can cost several thousand pounds depending on its rarity and its condition. This value is therefore completely unrelated to the value of the coin’s gold content.

· geographical location: gold coins are not equally popular in every country and generally speaking coins that were the currency of a country are more popular in that country e.g.: Napoleons are very popular in France but are much less well known in China or the USA and people there prefer to buy local coins the exception is the Sovereign which is the most popular in the UK but also has an international reputation.

Premium differential: This the differential between the basic (normal ) premium and the highest sale price usually in times of crisis where there is great demand.

Below is some translated correspondence that occurred with our partner in France:

LORetLARGENT.info editor and a reader about the premium:

Xavier (blog reader): Why do you consider that the ingot is “banal”? Although its premium is not high, or even zero, isn’t this the simplest means of buying investment gold at its market price? When the price goes up (very high, I hope), the deal becomes interesting. A coin currently has a high premium so is interesting if you want to sell but not necessarily if you want to buy…

LORetLARGENT.info: If you want to invest 2,000 Euros, don’t buy an ingot. Wait until the premium for Napoleons drops below 5% to develop your position.
The premium has a real lever effect. Consider the cases of buying, in a few months, an ingot or the same value of 20 FRF Napoleons with a premium of zero. If you sell when you need your capital (don’t forget that gold is an insurance against the crisis but not against life’s challenges – in this latter case, other investments are better), you will have at least 20% more for equal weights with your coins (the premium) without considering the greater ease of selling them.
In summary, starting from the principle that gold coins are an anti-crisis investment, an insurance where you get back what you pay (normally insurance is lost money), you have to take account of the concept of the premium from the start, especially the premium differential. You must buy gold coins with the greatest potential growth from their base premium (the average premium outside of crisis periods) and the highest premium recorded during a crisis. There is a differential of 5% for an ingot but 76% for a half Napoleon. Consider what this means for our investment of 2,000 Euros when we come to sell. Obviously, the coins must be in excellent condition. (Above all, avoid buying via generalist on-line auctions where about 1/3 of the coins are good for the smelter even if the photos are flattering).
Bear in mind that the only thing that should determine your gold purchase (coins or other) is its resale (when and how). Usually, you should do it quickly and at the best price. The ingot is not a winner in this type of competition…

Xavier: (…) Can the premium fall as the value of gold increases ?

LORetLARGENT.info: Trying to compare the changes in the price of gold with the premium on a Napoleon is like trying to compare the ethics of American and English bankers with those of French households. My proposition is a bit exaggerated but it is a good reflection of the fact that the criteria leading to an increase in the price of gold are not the same as those determining the premium on a Napoleon. To confirm this, look at the sharp rise in the price of gold in March 2008 and the dead calm for the premium during the same period. In March, the French only had a vague idea that a crisis was coming and continued to sell Napoleons until September 2008. You should be aware that our own bankers were using every conceivable method to try and sell gold coins to us in January 2008 whilst they had no difficulty in offering us LYXOR GOLD. In summary, we are talking about the same precious metal but certainly not the same investment instrument and the premium is an excellent indicator of the difference between the price of gold on the markets, linked mainly to changes in the price of oil and the US Dollar, and the value of gold coins sold in France, which is more linked to the moral of small investors with tangible values such as the readers of this blog.

Xavier: OK, I accept your arguments, which are logical. It’s a question of investment instruments.



Buying gold coins as a safe haven

Wednesday, January 8th, 2014

Gold coins struck for liberty

Gold is an asset able to provide real freedom of action. It has had an inherent value for over 6000 years and is still going strong. It provides the reassurance to your savings and wealth that allow you to sleep easy at night – real freedom. This concept of freedom should increase with the value of our assets but today it is so often used as just a lure of clever marketing that distorts the truth about your savings and investments without the reassurance.

The culprits? Banks, once again. Indeed, our bankers have long forgotten the fundamentals of their activity and prefer to sell us complex financial products or random diversifications like mobile phone contracts. Many contracts tie us to them day after day. They have forgotten that they were to be the guarantors of our freedom by means of the values and valuables that we entrusted to them and included the right for our investments to remain our property.

We became completely dependant on these same banks: obligatory bank accounts to cash our wages, money blocked on accounts which pay hardly more than inflation (and sometimes less), credit, risky investments, etc. With gold coins it is quite the reverse.

Gold coins as an investment

Gold coins as an investment

Today in France, as in many other countries, their holding, their transport, their purchase and their sale are free. But that was not always the case. During the Second World War, Germans prohibited the French from having more than 6 g of gold, not even a 20F Napoleon coin. To deprive the French of their gold, was also to deprive them of their freedom. Very happy were those who could rely on their treasure being locked up in vaults

in Switzerland, able to convert it into cash on the local market and return to France with the revenue of the resale. Those who could not travel abroad could obviously buy or sell some in France, but they were exposed to the risks, including theft, blackmail and denunciation. Feeling confident with this assessment, many sought to shelter their treasure in Switzerland but not having anticipated the war, they subsequently had to take enormous risks in order to

smuggle their coins across the border by using secret compartments in their walking sticks that would be stacked full of Napoleon gold coins.

Another example: between 1933 and 1975, the possession of gold was prohibited in the USA. That did not prevent Americans from being among the largest hoarders of gold currency. The Swiss vaults were then filled with Eagles, Double Eagles and Sovereigns which reappeared at the end of the prohibition on gold or which were directly converted into cash in Europe.

During the Cold War, the Americans were right and gave their pilots (or their spies) gold coins so that they could have the possibility to buy their freedom in certain countries. Proof that even the king dollar would be insufficient in some cases. In the eyes of the Vietcong soldiers for example, it was just a vulgar piece of green paper bearing the marks of an enemy culture.

A gold coin, even struck by the American administration, remains above all gold with universally recognized and accepted values.

Contrary to bank notes, gold does not preach politics or try to impose any lifestyle. Gold does not have a nationality, it is neutral, and does not preach a doctrinaire approach. Gold coins are thus the last obstacle against attacks on our freedom and they will always be recognized at their rightful value. This is not the case with the fiduciary currencies in the form of banknotes, coins, and today of electronic currencies, which are sometimes so difficult to get accepted from one country to another.

Geographical locations

Gold coins are not in demand in the same way in all countries. Thus, in China or in the USA, Napoleon gold coins are not so well known and investors prefer to buy local coins or Krugerrands and Sovereigns which have an international appeal. In France it would be the reverse: in a period of crisis, the Napoleon national coin will tend to see its price shoot up beyond the value of the metal content whilst coins from other countries will maintain a steady premium.

Ideally, one would want to buy coins that are less in demand in a certain country and sell them to a market with a high demand for that particular coin.

This is possible today using systems like LinGOLD.com, AuCOFFRE.com and LingORO.com which unite French, Spanish and English speaking gold investors around the world, providing opportunities for a Chinese Member to buy Pandas from a UK Member for example.

Extract from the English adaptation of the French book : L’or, Un Placement qui (R)Assure (2011) written by Jean-François Faure,President and founder of AuCoffre.com.

The gold buyer is a contrarian

Monday, January 6th, 2014
contrarian-etfs

Contrarian mind, are you ???

A contrarian is a person who buys or sells his position against the opinion of the market and which is wary of the majority opinion while intervening in the contrary direction. The most famous contrarian is none other than Warren Buffet… the richest man on the planet. One of his best pieces of advice is not to follow the herd. His secrecy lies in a sentence typical of a contrarian: “The average is what everyone else is doing; if you want your shares to perform above the average, you must do something else”.

Among the politically incorrect followers of gold, one finds visionaries like William Bonner, historian and specialist in the US economy, who warns his compatriots living on credit:

“Imagine a shopkeeper whose biggest customer was having a hard time paying his bills. The shopkeeper extends credit, hoping the man will get his finances in order. But the more credit he gives him, the worse the man’s finances are. It would be very nice if that could work out. But it rarely does. Instead, it eventually blows up. The customer has to stop buying and the shopkeeper has to stop lending. There’s going to be hell to pay, in other words.”

“What should an investor do to protect himself,” our friend asked.

“Buy gold.”

“Gold? What a strange idea. I haven’t heard anyone mention gold in many years. It seems so out-of-date. I didn’t think anyone bought gold anymore.”

“That’s why you should buy it.”

And that is the person who is currently buying gold.**Extract from the book by William Bonner Empire of Debt : The Rise of an epic financial crisis(published by John Wiley & Sons, 2005).

To put an end to the generally accepted idea according to which gold savings is the act of nostalgic older men, one only needs to go onto some specialized forums to realise that this type of saver is not only younger than the average but that he or she also has a very informed view on the global economic system. From his profile one would say above all that he or she is a careful saver with a different vision of value in the future. This new generation of gold investors is logical, practical and in search of a different type of security than that offered with traditional investment or savings instruments. They have witnessed the demise of their parents “trusted” plans and they are not keen to

repeat the mistake. They may share the perfectly normal aspiration to save for their future but they are looking for security, reliability and protection of the

purchasing power stored up in their savings.

Given the current high street offerings with returns on investment equivalent to a net loss due to the effects of inflation, it is no surprise that savers and investors are turning to something tangible and an asset they can own.


Gold, an alternative Currency of Confidence?


Where would we turn to if the known currencies of the world suddenly devalued and became worthless in real terms?

Throughout history there have been instances when all faith has been lost in the official currency usually because it has become worthless and therefore all confidence has been lost. However, people have always looked for an alternative to maintain commerce and everyday survival. This has sometimes taken the form of bartering but it is limited by the difficulty of assigning recognisable value to a wide range of goods and services. There has to be some common denominator and unit value that is commonly recognised and therefore allows the cycle of trade to turn.

During the French revolution the state coffers were completely empty and so the emerging Constitutional Assembly created a system based on “assignats” which gained their value through selling off the assets of the church. These “assignats” would be guaranteed by the state and the objective was to reconstruct a functioning economy. However, they became greatly over subscribed to the tune of 47 billion causing inflation, zero rates of interest and

ultimately ended in collapse.

Extract from the English adaptation of the French book : L’or, Un Placement qui (R)Assure (2011) written by Jean-François Faure, President and founder of AuCoffre.com.

Gold Trends Analysis

Tuesday, December 24th, 2013

Gold Medium Term and Resistance Line
Long Term Trend ~ Neutral since 4/12/13 @ 1501 ~ Moving averages 1560 – 1561
Medium Term Trend ~ Bearish since 4/5/13 @ 1575 ~ Moving averages 1321 – 1370

From a medium term perspective, as long as price is below the UPPER RED LINE near and below the moving averages, the overall medium term trend is still down. We need a close above the moving averages in order to neutralize the downtrend and take it out of bearish mode. The moving averages have now come down to 1321-1370 as we enter this week.

The potential for the year end to be another low cycle has not been eliminated.   We’ve got to get above the averages and the red line in order to become more favorable towards the medium term.  Last week we lost the 1220-1222 area and came within 8 dollars of our target (1180) if broken.

If you look at the end of 2008 you see that the green channel line was broken right at the crash low.

If the lines do break the June lows on the downside the next support is the dotted line near 1100 and then the 1000-1040 area where the white line crosses.   The key for gold is for price to get back above 1370 on a weekly basis for the medium term trend to get out of this bearish mode.  Support is getting thin as we’re at the weekly trend lines.  The June lows can still be taken out if those lines give way but there is a weekly support at 1172 on a Friday close basis that would be the next point to watch for support before the line near 1000 on the chart comes into play.


Gold Trends Analysis

Gold Trends Analysis

Ext : http://www.goldtrends.net

The Australian Nugget 1 ounce

Monday, December 16th, 2013

The Australian Gold Nugget is a popular series of Gold bullion coins issued by the Perth Mint. They
have legal tender status in Australia and are one of the few legal tender bullion coins to change
their design every year, the most notable other being the Chinese Panda.

Details

Australian Nugget 1 ounce

Australian Nugget 1 ounce

Australia issued its first Gold Nugget coins in 1986. From 1986 to 1988, the reverse of  these coins featured images of various Australian Gold nuggets, hence the name. From 1989, the design changed to feature different Kangaroos, a more world-recognised symbol of Australia. The coins are sometimes referred to as Kangaroos but the name

Nugget seems to have stuck. The coins up to 1 Toz change design each year. Each year, a Proof edition is issued and that design becomes the bullion coin design for the following year.

The coins have a unique market niche for two reasons; a “two-tone” frosted design effect and individual hard plastic encapsulation of each coin. Provided they remain as they came from the mint, the quality is maintained and thus premium.

The initial sizes offered were 1/20 Toz, 1/10 Toz, 1/4 Toz, 1/2 Toz and 1 Toz. In 1991, the 2 Toz, 10 Toz and 1 Kg sizes were added. These were created with the intention of using economies of scale to keep premiums low. The face values of the two larger coins were lowered in 1992 in order to bring them more in line with the smaller sizes.

In October 2011, the Perth Mint created a one tonne Gold coin to break the record for the biggest and most valuable, previously held by the Royal Canadian Mint. It is approximately 80 cms diameter and 12 cms thick. The face value is A$1 million but at the time of minting, the Gold price made it worth over A$53 million.

As mentioned, the reverse of the coin features in the early years a Gold nugget and thereafter a Kangaroo. It states the year of the coin, the weight and Gold fineness.

There is also a mintmark ‘P’ which signifies the Perth Mint.

The obverse features a profile view of Queen Elizabeth II designed by Ian Rank-Broadley. The portrait is surrounded by her name, the denomination of the coin and the word AUSTRALIA.

The Australian Gold Nugget coins should not be mistaken for the Australian Lunar Gold Bullion coins. Both coins are minted by Perth Mint and have 999.9‰ fineness but Lunar coins use different animals from the Chinese calendar instead of the Kangaroo.

Investment Advice

There are various grading systems in use around the world. However, the British system is as follows:

All Nugget coins are issued as pure Gold finewness, 999.9‰ and in theory have a low premium just above the value of the Gold.

However, their intrinsic beauty makes them very collectable and they attract good premiums.

As with any coin, the best quality grades will attract the best premiums. The three early years in particular will be those with the highest premium. Although the coins

were issued in Proof form, many were unpacked and have thus been damaged and are at lower gradings. The mintage figures for all sizes of Nuggets are in general quite low, thus every coin will have numismatic premium value also. All round, the Nugget is both a collectable and investable product.

Specs

Tax Free Savings

Wednesday, December 11th, 2013

A Tax Free Savings Account in physical gold that you own

UK Taxpayers have a unique opportunity to save in pure gold, a real tangible asset, without paying VAT or Capital Gains Tax. Start from just 1 gram a month.

Gold Britannia and Sovereign investment quality coins offer a unique advantage to investors because they offer between 18% -28% additional benefits over other investments. Why? … because they are completely exempt from Capital Gains Tax. Furthermore, they are exempt from VAT.

Britannia 1 ounce_averse

Britannia 1 ounce averse

Gold Britannia 1 ounce coin

Britannia 1 ounce obverse

Britannia 1 ounce obverse

A beautifully struck gold bullion coin that has UK legal tender status and a face value of £100 – although its actual value is many times greater. The Gold Britannia coin was originally alloyed with Copper, but from 1990 the decision was made to alloy with Silver. This is why the earlier Gold Britannia’s have the deep Gold colour, as opposed to the lighter yellow gold colour of the Britannia since 1990. The latest 2013 coins have no alloy and are pure gold and 999.9°/oo fineness.

Sovereign Elizabeth II_averse

Sovereign Elizabeth II averse

British Gold Sovereign coin

Sovereign Elizabeth II obverse

Sovereign Elizabeth II obverse

The full British Sovereign is one of the most recognised gold coins in the world, with UK legal tender status and it can attract a healthy premium as it is always in demand, at home and abroad. Their legendary reputation comes from their use in a pilot’s survival kit by many air forces, being sewn into their jackets and used to negotiate their safe passage home if downed during a mission. The attraction was the integrity of their British origin which provided the utmost trust to their owners.

Capital Gains Tax (CGT)

Coins which are legal tender in the UK are exempt from CGT. The Britannia and Sovereign investment coins fall into this category. The UK Customs authority has issued a notice to accountants and financial advisors numbered CG12602 which deals with exemptions and in particular currency in sterling. It refers to:
– TCGA92/S21 (1)(b) which states “Currency in sterling is not an asset for capital gains purposes”. >Learn more
– Further notice from HMRC is given in CG78308 which states “Sovereigns minted in 1837 and later years and Britannia Gold coins are currency but, like all sterling currency, are exempt because of TCGA92/S21 (1)(b) >Learn more Value Added Tax (VAT)
Coins which are of investment quality do not attract VAT. Investment quality is defined as coins which contain a minimum of 900 one thousandths Gold. (900.000 ‰). Rather than being a specifically British rule, it is in fact from the European Union. See notice number 2011/C 351/07. The notice refers to all coins from various countries which would fulfill the investment quality criteria. >Learn more


Confidence in physical gold

Tuesday, December 10th, 2013

According to kingworldnews.com and also confirmed on jsmineset.com, the Shanghai Stock Exchange would have delivered more gold than Fort Knox in the States. Needless to say the strong impact that would have on the gold price in the forthcoming future.
Some people even expect tapering to happen again or at least at some point.

Shanghai stock exchange
Shanghai Stock Exchange

The dollar is being printed on such a large scale that it leads to a complete devaluation of the US currency. That may be a satisfaction to the American to have more bank notes printed out but on the other side this does not help other countries like China who is presently sitting with some $3.7 trillion of foreign exchange reserves – other countries are actually in a pretty similar case with lesser quantities but still the concern remains …

Kingworldnews visited the Shanghai Stock Exchange in 2009 and said that they had delivered some 8655 tons of gold since 2009. The Chinese bought something like 1.700 tons of gold in the first eight months of this year. It means that gold is actually feeding the Chinese’ foreign exchange reserves. We know that the renminbi is already the second largest currency used in global trade … How long before the dollar becomes fully obsolete ?

Let’s have a closer look at the dollar :

Well, one should be scared when looking at that 14 year perspective published on jsmineset.com

a 14 year perspective for the de-dollarization

a 14 year perspective for the de-dollarization

In our article published on Nov 19th 2013 – China remains the world’s largest gold consumer in Q3’13 – we were actually talking about the lack of confidence in the global financial market and systems altogether. As Jim Sinclair was saying ‘Credibility speaks to Confidence and Confidence speaks to Gold’.

Soon we may have part of our savings confiscated. How trustworthy are the banks? 

Investing in physical gold has never been so important. Making it affordable to everybody is our main concern and feasible thanks to our LSP.

For further information with regards to the confiscation in the USA, please read our article The Great Confiscation : Gold ownership was illegal in the USA from 1933 to 1975.

The Krugerrand 1 once

Monday, December 9th, 2013

The Krugerrand is probably the original Gold bullion coin. It was introduced in 1967 as a vehicle for private ownership of Gold whilst also being circulated as currency, hence being minted in a durable alloy. From 1980, further sizes were introduced. See specification table overleaf.

Details

pict krugerrand 1 ONCE The history of the Krugerrand begins with the South African Chamber of Mines which had the inspired idea to market South African Gold by producing a one Troy ounce bullion coin to be sold at a very low premium over the intrinsic Gold value. It was intended to be circulated as currency, hence it was minted in a more durable alloy and contained 2.826g copper to resist scratching and thus giving the coin its golden hue. At the time of launch, the Krugerrand was the only accessible Gold investment opportunity for the everyday buyer and this thought came through from the inception. It was the fi rst coin to contain exactly 1 Troy ounce of Gold.
Despite the coin’s legal tender status, economic sanctions against South Africa made the
Krugerrand an illegal import in many Western countries during the 1970s and 1980s. These sanctions ended when South Africa abandoned apartheid in 1994 and the Krugerrand once again regained its status as one of the worlds’ leading bullion coins.
In 1967, only the one ounce coin was available. From 1980, the fractions were available, namely, one half ounce, one quarter ounce and one tenth ounce. The name is derived from a combination of Paul Kruger, a well-known Boer leader and later President of the Republic and the Rand, the monetary unit of South Africa. The obverse side features the Otto Schultz image of Kruger along with the name of the country “South Africa” in the two languages, English and Afrikaans. The reverse side, designed by Coert Steynberg features the image of a Springbok Antelope, one of the national symbols of South Africa.
By 1980, the
Krugerrand accounted for 90% of the Gold investment coin market. For example, it is estimated that between 1974 and 1985, some 22 million coins were imported into the United States alone. Although it is not a beautiful coin, many millions have been sold since its introduction due to the policy of selling with a very low premium. The success of the Krugerrand led to many other Gold-producing nations minting their own bullion coins, such as the Canadian Maple Leaf in 1979, the Australian Nugget in 1981, the Chinese Panda in 1982, the US Eagle in 1987 and the British Britannia in 1987.
The
Krugerrand is interesting in that the government of South Africa has classed the coin as legal tender although it has no face value. It therefore fulfills VAT-free criteria for investment coins.

Investment Advice

There are various grading systems in use around the world. However, the British system is as follows:

investment advice krug
Essentially, the bulk of
Krugerrands are produced in a non-proof form although the South African Mint produces limited edition Proof quality Krugerrands as collector’s items. These coins in particular attract a healthy premium and are priced well above the value of the bullion alone. However, non-Proof coins also have a premium above the value of the bullion.
The Proof and non-Proof coins can be distinguished by the reeding, that is, the number of serration on the edge of the coin. Proof coins have 220, non-Proof have 180.

key facts krugerrand

Krugerrands are made of an alloy of Gold and Copper – this effect also being known as Crown Gold as it has long been used for the British Sovereign coins. Due to the popularity of the Krugerrand, there are also many fakes in existence and the investor should be wary. Copper alloy gives a much more orange appearance than silver alloy. Likewise copper is very durable and coins should be in good condition always.
The best marker of authenticity is the weight and this should be checked carefully using the table below since the Gold weight and total weight are known. Check also the reeding.

Specs

specs krugerrand
All investment coins sold by LinGOLD.com are EF quality or above.

For further information: +44 (0)203 318 5612
info@lingold.com


The Panda 1 ounce

Wednesday, December 4th, 2013

The Chinese Gold Panda is a popular series of Gold bullion coins issued by the People’s Republic
of China in Proof-like, brilliant uncirculated quality. They are issued in a range of sizes between
1/20 Oz and 1 Oz with larger 2 and 5 Oz coins being additionally issued in some years.

Details
panda 1 onceChina issued its first Gold coins bearing the Panda design in 1982. These were limited
to sizes of 1/10 Troy ounce along with 1/4 Toz, 1/2 Toz and 1 Toz. From 1983, the 1/20 Toz size was added and additionally a 2 Toz and 5 Toz coin is sometimes issued.
These strikingly beautiful coins are always issued in Proof-like brilliant uncirculated quality and prove very popular.
A different design was issued each year until the 2000. When the 2001 edition was announced, so too was a freeze of the design and thus the 2002 Panda is identical to the 2001. Collectors spoke up on behalf of the annual change and China responded by reversing their policy so that from 2003 onwards, the designs again change each year.
However, on the reverse side, it always features the endangered Giant Panda. It also features the size, Gold fi newness and monetary value.
The main design on the obverse of the coin has hardly changed, save for minor detail changes in the image. It features Beijing’s famous Temple of Heaven (Tien Tien) in the centre with Chinese characters on the top saying “Zhonghua Renmin Gongheguo” meaning People’s Republic of China and at

the bottom the year of issue. If it is a commerative issue, the theme will also be marked here.
There was an adjustment of the face values of the coins in 2000/2001 – please see
the table overleaf for details.
The Chinese mints usually do not employ mintmarks. In certain years, there have
been minor variations in items like the size of the date, the style of the temple and
so on. These allow the numismatist to identify the originating mint. In some years,
but not all, other marks and Proof marks (signifi ed by a ‘P’) have been added. The
four mints involved in the production of the Panda are Beijing, Shanghai, Shengyang
and Shenzhen.

Investment Advice

INVESTMENT ADVICE

All Panda coins are issued as pure Gold fineness, 999.9‰ and in theory have a low premium just above the value of the Gold.
However, their intrinsic beauty makes them very collectable and they attract good premiums.
As with any coin, the best quality grades will attract the best premiums. The early years in particular will be those with the highest premium. Although the coins were issued in Proof form, many were unpacked and have thus been damaged and are at lower gradings. The mintage figures should be carefully examined – the number originally minted is quoted but it has been found that production continues for various years, hence the total mintage may be quite a bit higher some years after.

SPECS

SPECS

KEY FACTS

All investment coins sold by LinGOLD.com

are EF quality or above.

For further information: +44 (0)203 318 5612
info@lingold.com

The Maple Leaf 1 once

Sunday, December 1st, 2013

The Canadian Gold Maple Leaf is one of the oldest bullion coins alongside the Krugerrand. It is a classically beautiful coin, internationally recognised and provides investors with a secure, quality addition to a portfolio.

Details

The Royal Canadian Mint introduced the Maple Leaf in 1979. Along with the Krugerrand, it has been in continuous production ever since. It came about because of the Krugerrand – at the time, there was an economic boycott of South Africa so Krugerrands were not widely available – and thus the Maple Leaf fi lled a gap in the market. It contains virtually no base metals at all and uses Gold exclusively mined in Canada.

MAPLE LEAF 1 ONCE GOLD COIN

The earliest years between 1979 and 1981 had a Gold fineness of 999.0‰ but 1982 onwards is 999.9‰. For those same fi rst years, only a 1 Toz coin was produced. Between 1982 and 1985, the 1/4 Toz and 1/10 Toz sizes were added. Then in 1986 the 1/2 Toz was added and in 1993 a 1/20 Toz coin joined the group. It has remained thus to date except 1994 when a 1/15 Toz coin was produced for that year only. That year, a Platinum 1/15 Toz coin was also produced, possibly for jewellery, but both the Gold and Platinum 1/15 Toz coins were not a success and were dropped. The Maple Leaf is also available in Silver and Palladium.

Each coin features the image of Queen Elizabeth II by Ian Rank-Broadley on the obverse side. It also has the denomination and year of issue. On the reverse is an image of Canada’s national symbol, the maple leaf along with the word CANADA and the Gold fi neness in both English and French. Every coin is guaranteed to contain the stated amount in Troy ounces of fi ne Gold. The coins are identical in design except for the obvious items such as weight.

All Maple Leaf coins are legal tender in Canada although are categorised as “non-circulating bullion coins”. Their Gold fi neness easily puts them into the general category of being VAT-exempt.

On 3rd May 2007, the Royal Canadian Mint unveiled a 100 Kg Gold Maple Leaf with a face value of C$ 1 million although the Gold content makes it worth much more. The coin was produced as a promotional product to give the mint a higher international profi le. However, several interested buyers came forward so the mint announced it would manufacture to order. There are believed to be five confirmed orders and/or deliveries. It held the record for the largest coin until 2011 when an Australian coin superseded it.

Investment Advice

There are various grading systems in use around the world. However, the British system is as follows:

INVEST ADVICE

All Maple Leaf coins are issued as pure Gold finewness, 999.9‰ and in theory have a low premium just above the value of the Gold.

KEY FACTS 1

However, the reality is that a 5% premium should be achieved for a quantity of coins

with higher values for individual coins. As always, the smaller value coins will have higher premiums.
The coins were never really designed to be handled due to the softness of 24 carat Gold, the milled edge and clear fi eld around the image of the Queen. With some coins supplied in tubes, this makes them susceptible to handling marks and other damage. So careful examination of coins is highly recommended.

Specs

SPECS 2

How much does 1 gram of pure gold cost ?

Thursday, November 28th, 2013

Who said that only wealthy people could afford buying gold ?

  • Save from 1 gram of gold per month
  • Secure storage in Swiss vaults – FREE*
  • No administration or signup fee
Sign up for the LSP for free

Gradually build your wealth by simply buying each month a minimum of 1 gram of physical gold, for your LinGOLD Savings Plan (LSP) and benefit from freestorage in Swiss vaults outside the banking system.

How to save with the LSP?

  • Connect to your LinGOLD account or create a new account
  • Signup free to the LSP programme
  • Buy each month a minimum of 1 gram of pure gold
  • The gold you have bought is fully referenced : bar code, photograph, certificate of ownership
  • The gold is stored in a Swiss vault outside the banking system
  • You are free at any time to increase or reduce the amount of your savings, or you can unsubscribe from the LSP with no charge or prior notice.
Minimum Purchase 1g pure gold per month*
Maximum Threshold Unlimited
Storage Charges Free*
Signup Fee None
Availability Immediate Resale
Minimum Engagement None

*The storage charges levied on your gold stored in the LSP are FREE, on the condition that you buy a minimum of 1 gram of pure gold per calendar month, before the last day of each month. If the minimum monthly purchase is not made, storage charges will be applied, currently £4 per month per 200g total weight stored.

What are the products that fall within the LSP?

  • All the fractions of pure gold (1 g, 10 g, 100 g) issued from bars or gold investment coins (Britannia, Sovereign, Napoleon 20F, Napoleon 10F, Panda, Vera Valor, etc)
  • A whole coin : Vera Valor 1 ounce
  • A 1kg bar of pure gold

For further information on the LSP.

Manipulation of financial markets ?

Wednesday, November 27th, 2013

What’s happening with the London gold fixing ?

First, Bloomberg reported that the U.K.Financial Conduct Authority (FCA) was investigating over the way gold prices were set every day in London, as the main bullion-trading centre in the world based on information from the LBMA.

Now it is the BaFin, German’s financial supervisory authority, who is actually investigating into suspected price-fixing of benchmark gold and silver prices.

images-2

One should ask ?

The facts :
It would seem that the London fix, benchmark rate used by mining companies, central banks and other companies to buy, sell and value gold, may have been subject to manipulation over the past few months.  According to some traders interviewed by Bloomberg, it seems that ‘insider trading’ around the gold fixing is potentially possible as dealers and customers exchange information. That should lead to a wider investigation into how global rates are being set.
Remember last year when the London interbank offered rate – LIBOR – was being manipulated. Would other financial markets be manipulated ?
Similar investigations would be under way in the Uk and US, no sources

actually confirmed that point.
It wouldn’t be the first time prices are being manipulated.

Ext: Mining.com


Britannia 1 ounce Gold Coin

Saturday, November 23rd, 2013

The Gold Britannia is a 1 Troy ounce investment coin. Whilst the figure of Britannia has graced coins since Roman times, it is only since 1987 that the modern Gold Britannia coin has been produced. The Gold Britannia is also available in fractions and the Silver Britannia is 1 Troy ounce of pure Silver.

It is probably Athena, the Greek goddess of wisdom and war who set the pattern for powerful maidens, like Britannia, to personify the characteristics of the nation they represent. It was the Romans who first portrayed Britannia on their coins. However, in the mists of time, it seems Britannia was depicted as resisting the invasion of the Roman Empire paying tribute to the fighting spirit of the island’s inhabitants, the Ancient Britons. In modern times, Britannia remains the universally recognised personification of Britain.

BRITANNIA 1 OUNCE

BRITANNIA 1 OUNCE

The coin history can be traced through Roman coins, those of Charles II and Elizabeth I through to today. Queen Elizabeth II came to the throne in 1952 and by that time, Britannia had been on coinage continuously for the previous 300 years. These coins were made from copper, and later bronze. In 1971, Britain adopted decimal currency and Britannia was chosen for the 50p copper/nickel alloy coin. In 1987, Britannia was finaly “promoted” to grace the Gold bullion coin which is known today as the modern Britannia. Ten years later in 1997, a Silver bullion Britannia was also issued.

In modern times, different aspects of Britannia’s history and character have been interpreted by different artists. The portrait by David Mach is the ninth to appear on both the 2011 Silver and Gold coins of Elizabeth II’s reign. The 2012 and 2013 coins were designed by Philip Nathan with the obverse continuing to show the acclaimed monarch effigy by Ian Rank-Broadley FRBS.The first Gold Britannia coins were produced in 22 carat form.

The 2013 edition is pure Gold, 24 carat. See full specifications below :

Although it is 1 Troy ounce of pure Gold, the Britannia is in fact the highest denomination coin in Britain. So as well as being free from VAT as it is investment-quality Gold, it is also free from Capital Gains Tax on any sale or transfer which is advantageous over other bullion coins and bars as an investment instrument.

There are various grading systems in use around the world. However, the British system is as follows:

BRIT 2

The Gold Britannia is issued in weights of 1 Troy ounce, half-ounce, quarter-ounce and tenth-ounce. The Silver Britannia is produced in a weight of 1 Troy ounce only and has a face value of £2.00. The large coins are those which attract the best premium. The reason for this is the costs of manufacture are approximately the same regardless of size and therefore Gold content.

The premium of Britannia coins is determined by the quality of the coin, design features, mintage and Gold content. From 1987to 1989, the coin was alloyed with Copper. From 1990 to 2012 it was alloyed with Silver. From 2013, it is pure Gold.

BRIT 3

The British Royal Mint has issued Proof editions every year and these should be sought where possible. Generally, the Britannia is not a high mintage coin. The years with the lowest numbers minted are 1990 to 2000. Coins minted in the years 1990, 1991 and 1997 are particularly sought after as their proof mintage was 262, 143 and 164 respectively. There are several design variations of the reverse, notably the year 2003 which featured Britannia’s head only as opposed to the usual full figure.

Silver Britannia tends to be sold in bulk because of the much lower value of Silver. Beware that Silver prices are much more volatile than Gold.

BRIT 4

Special Offer on LinGOLD.com

Tuesday, October 8th, 2013

We would like to make all our readers aware of a special offer that LinGOLD.com is currently running. For the low price of 89.99 GBP, it is possible to buy 1g Gold Britannia, 1g Gold Sovereign and 1g Gold Vera Valor. So 3g Gold combined into one low price. It is below the value of buying each item separately so there is a saving to be made. It is an excellent time to take advantage of such offers while the price is comparatively low before the inevitable rise as various financial crises take hold. If you want to read more about the offer, click here.

What has the Bank of England done with 1,300 tonnes of Gold?

Wednesday, August 21st, 2013

According to Goldmoney, the Bank of England recently became a major supplier of Gold, having rented out some 1,300 tonnes of Gold in just 4 months. So what happened to 100,000 Gold ingots?

While the Bank of England offers us a virtual tour of their vaults containing the UK’s Gold on their website www.bankofengland.co.uk/virtualtour app, it was announced in June that the bank had 400,000 Gold ingots. In fact, a mistake was made between this figure and the balance sheet at the February year-end which stated the Bank of England reserves were 505,000 Gold ingots.

In other words, 100,000 bars seem to have disappeared between 28th February (balance sheet date) and June. Where is the Gold? Incidentally, a wag remarked that the lovely app the BoE gives us to look at the Gold should be considered for entertainment purposes only!

It is assumed the BoE would have flooded the market giving us unsustainable prices. The Bank of England is trying to keep prices down at a time when demand for physical Gold is high – from the financial crisis in Cyprus to the frenzy for Gold in China and India.

A market influx of 1,300 tonnes would be sufficient to bring prices down!