There are a vast variety of gold coins available  from many countries in Europe. Many of these coins are beautiful and historic yet they do not find attraction in Bulgaria where they have gone to the other side of the world to meet their demand.

Valentina Grigorova Gencheva with the Panagyurishte Treasure

Bulgaria’s First Investment Bank has commissioned a new collection of gold coins from the New Zealand Mint. The bank’s head of gold and coin collecting Valentina Grigorova Gencheva said the country is a rapidly growing market for gold coins, as they are popular as both gifts and a safe haven for investors. New Zealand-made coins are popular in her homeland because they are more vibrant than those made in Europe.

Grigorova-Gencheva, the head of gold and numismatics at Bulgaria’s First Investment Bank, said the bank had been in a partnership with coin maker New Zealand Mint (NZM) since 2007. “The coins are very beautiful and the designs are very modern,” she said. Grigorova-Gencheva said coins produced in European mints were often “very conservative”, while coins produced here incorporated a wide range of colours and designs.European mints also focused on producing coins related to their own countries, while NZM produced coins with a variety of global themes.

The coin maker released a Bulgarian-themed coin – featuring the country’s fourth-century Panagyurishte Treasure – last year which proved popular with Europeans. Grigorova-Gencheva said she was working with designers to put the final touches on two more Bulgarian-themed coins. In the last three years, Ms Gencheva said the First Investment Bank alone has imported 20,000 coins struck by the company. They are highly prized among collectors for their “avant garde” designs, she added.

NZM managing director Gary McNabb said 98 per cent of the coins produced by the privately owned company were exported. He said coin collecting was not popular in New Zealand. “The bullion side of the business is the Kiwi market.”

The company exported $20.7 million worth of coins to eastern European and Balkan countries last year. It produced a coin to mark the 60th anniversary of the Kalashnikov rifle, in 2007 which proved a hit in Russia.

McNabb said revenues had grown significantly over the past six years,

Earlier this year, a new one-ounce gold coin issued by New Zealand Post became the country’s most valuable legal tender. The coin, which is valued at NZ$2,650 (£1,173), features a depiction of a heitiki, a form of Maori art, designed by self-taught sculptor Raponi Wilson.

Its design features a depiction of a heitiki, an iconic form of Maori art, created by self-taught carver Raponi Wilson, who has created over 1,000 heitikis since the late 1960s. The coins are housed in a waka hua, or treasure box, by Warren McGrath, master carver to the Maori king.
Garry Nicholas, chief executive of Maori Arts New Zealand, said: “It’s wonderful that Mr Raponi’s art is featured on this special coin.”
The obverse of the coin features a portrait of Queen Elizabeth II by Ian Rank-Broadly.

Denomination: $10
Composition and finish: Pure gold proof (fully struck) 0.999
Weight: 1 ounce
Diameter: 40mm
Edge treatment: Milled
Obverse design: Portrait of Her Majesty Queen Elizabeth II by Ian Rank-Broadley, England
Reverse design: Heitiki with huia feathers

Maurice Hall sources NZ Herald, Reuters

Bank of Russia

Within its framework , the Bank of Russia issues commemorative coins made of precious and non precious metals as well as investment coins made of precious metals, which are distributed inside and outside the country. The Bank of Russia has been engaged in this work since its founding in 1992 (previously, in  1965 – 1991 commemorative and investment coins were issued by the State Bank of the USSR).

For the first time in 1996 Russian citizens were offered investment coins on domestic market, gold uncirculated Chervonets coins minted in 1975-1982 and the  silver “Sable” coin of 1995.  The Board of Directors of the Bank of Russia, declared on March 5, 2001, that the gold Chervonets and the silver “Sable” are legal tender in the territory of the Russian Federation.

To create conditions for gold coins to be used  as an independent instrument  for investment  the gold Chervonets, and a new 24 carat gold coin “George the Victorious” were relieved of VAT as declared in the Article 149 of the second part of the Tax Code of the Russian Federation.

The coins of the Bank of Russia are struck in the Moscow and St. Petersburg mints and have a high artistic standard and perfect striking quality. They are popular in Russia and abroad, some of them repeatedly took prizes in opinion polls  held by specialised foreign numismatic publications and organizations.

The Chervonet is gold coin that was issued both for circulation and as a trade or bullion coin. First minted in 1701 under Peter the Great. The origins of the word are derived from the word “Chervonny”, meaning in Russian literally “Red” but also “of a High Quality” and had gold composition of 0.986 and weighed 3.47 g.
The second issue was an attempt to strengthen Soviet economics with “hard” currency backed by the gold reserve but was not successful due to political reasons. These were larger and weighted 8.6 g. with a gold composition of 0.900
There was another attempt in 1925 to strike more Gold Chervonets coins, but it is believed that all but one were melted down.

From 1975 to 1982, the Soviet Union was issuing Chervonets gold coins, equal to 10 Roubles, using the old design but with the new dates in relatively modest amounts as a bullion coinage and is the only issue commonly found.

Chervonets 1976 Obverse

Chervonets – in the center – the State Emblem of the RSFSR (the abbreviation for Russian Soviet Federative Socialist Republic): the shield surrounded by a wreath of ears and bearing the picture of hammer and sickle against the background of sunbeams; the inscriptions along the rim framed by a circle of dots: at the top – “ПРОЛЕТАРИИ ВСЕХ СТРАН СОЕДИНЯЙТЕСЬ!” (WORKERS OF THE WOPLD, UNITE!), at the bottom, under the State Emblem – “Р.С.Ф.С.Р” (R.S.F.S.R.).

Chervonets 1976 Reverse

The picture of a peasant – sower against the background of a plough, the rising sun and factories. The inscriptions along the rim framed by a circle of dots: at the top – “ОДИН ЧЕРВОНЕЦ” (ONE CHERVONETS), at the bottom to the left – the year of issue (1975 – 1982).The edge is bearing the pressed inscription: “1 ЗОЛОТНИК 78,24 ДОЛИ ЧИСТОГО ЗОЛОТА” (1 ZOLOTNIK 78,24 PARTS OF PURE GOLD). The coins were struck by Moscow Mint (ММД) and Leningrad Mint (ЛМД).

"George the Victorious" slaying the dragon

In February 2006 a new 24 carat gold investment coin featuring the Saint Georges the Victorious was introduced  by the Bank of Russia. This is very similar to the reverse of the British Sovereign and should prove popular in the UK.  So far 1,500,000 coins have been minted.

Obverse – in the centre – the Emblem of the Bank of Russia [the two-headed eagle with wings down, lower – the semicircular inscription – «БАНК РОССИИ» (BANK OF RUSSIA)] framed by a circle of dots and inscriptions along the rim: at the top – «ПЯТЬДЕСЯТ РУБЛЕЙ» (FIFTY RUBLES), at the bottom – the year of issue «2006», the letters to the left indicate the metal sign and the fineness, to the right – the fine metal content and the mint trade mark.

The Reverse  depicts the image of St. George the Victorious sitting on horseback and slaying a dragon.

Future Mintage

In 2010, the Bank of Russian are planning to issue 700,000  of the 50 rouble St George the Victorious coins, and in 2011 they plan to issue a new design 24 carat gold coin with the same specifications to commemorate the XXII th Winter Olympic Games – 2014 in Sochi.  This will be a 50 Rouble denomination coin and the planned mintage is 2,000,000. So Russia apart from being one of the major modern players in the world gold market is planning to be much more active in the bullion coin investment market.

Specifications

Russia has also produced in modest quantities commemorative gold coins in 10,25,50 and 100 Rouble denominations with themes of the Russian Ballet (most common) , the 22nd Olympiad in Moscow,  anniversary of the Russian State Russian featuring architecture, monuments and Leo Tolstoy

Maurice Hall

Instruments of the Viennese Philharmonic

The Austrian Mint first began producing the Vienna Philharmonic in 1989 and it quickly became very popular. The Vienna Philharmonic coin is struck in the finest and purest gold, 999.9 fine (24 carats)  in a painstaking minting process.. It is issued every year, in four different face values, sizes and weights. It is used as an investment product (bullion coin), although it inevitably ends up in private collections. According to the World Gold Council, it was the best-selling gold coin worldwide in 1992, 1995 and 1996.

A design of musical instruments a cello, four violins, a Vienna horn, bassoon, and harp representing the Vienna Philharmonic Orchestra, as well as the text WIENER PHILHARMONIKER (”Vienna Philharmonic”), can be seen on the reverse of the coin.

The Musikverein

The subject of the obverse is the great organ in the Golden Hall in Vienna’s Musikverein, the concert hall of the Vienna Philharmonic Orchestra. The face value in Euros, the weight, alloy purity and year of issue are also inscribed on this side of the coin. At top sits the official name of the country, ‘REPUBLIK ‘STERREICH’.

Minted in 1/10, 1/4, 1/2 and 1 oz sizes, all Vienna Philharmonics are made from 99.99% pure gold. No alloyed metals are added. All coins are minted at the Austrian Mint AG, now a subsidiary of the Austrian National Bank which guarantees the weight and purity. The Mint was established in 1194. About 800 years ago, the Austrian Duke, Leopold V, took King Richard the Lionhearted of England prisoner after an argument in the Holy Land. When the King’s ransom was paid, a part of the silver was used to found the Vienna Mint and has remained in its current building since 1837.

Maurice Hall

The Giant Panda whose design changes annually

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. The official mint introduced the Panda gold bullion coins in 1982. The Panda coins come in different sizes and denominations, ranging from 1/20 troy oz. to 1 troy oz with 5 and 12oz . The Gold Chinese Panda has long been a favorite of coin collectors and jewelry designers the world over as the symbolic and cutely designed Panda is changed every year, with one exception. A freeze of the design was announced with the 2001 issues and thus the 2002 Pandas were identical to 2001. But collectors were unhappy and preferred the  annual changes, and China reverted to their original policy. At one time this gold coin was minted in seven different sizes, second only to the eight sizes of the Australian Nugget. The 5- and 12-oz. sizes were discontinued over a decade ago.

The Temple of Heaven

The main obverse design of the panda never changes. It features Beijing’s famous Temple of Heaven (Tien Tien) in the centre,  with Chinese characters on top saying “Zhonghua Renmin Gongheguo” meaning People’s Republic of China and at the bottom the year of issue. If it is is a commemorative issue, the theme will also be marked here.

The design on the reverse changes annually, but it always features the endangered Giant Panda. The reverse of the coin also features the size, gold fineness, and monetary amount.

From 1982-2000, the face values of the 1/20- through 1-oz. Gold Pandas were 5, 10, 25, 50, and 100 Yuan, respectively. Since that time, the face values of these gold coins have been raised to the denominations listed in the Coin Information shown below.

Chinese mints usually do not employ mintmarks. In certain years there are minor variations in the size of the date, style of the temple, etc. in the coin design that allow the originating mint to be determined. In some years but not all Marks and Proof Marks (signified by a ‘P’) have been added.

Maurice Hall

Nugget Reverse from which the coin got its name

The 24 carat Gold Nugget series was introduced in 1986 by the Gold Corporation, a company wholly owned by the government of Western Australia and minted by the Perth Mint. The coins enjoy legal tender status and are composed of 99.99% pure gold. This issue of coins had two unique features: a “two-tone” frosted design effect, and individual hard plastic encapsulation of each coin. These features were unusual for a standard bullion coin and gave the Nugget a unique market niche.

The coins have been minted in eight different denominations of 1/20 oz, 1/10 oz, 1/4 oz, 1/2 oz, 1 oz, 2 oz, 10 oz, and 1 kg of 24 carat gold and have legal tender status in Australia.

$100 Nugget/Kangaroo obverse designed by Ian Rank Broadley

The obverse of the coin features a profile view of the face of Queen Elizabeth II, as designed by Ian Rank Broadley. She is surrounded by her name, the denomination of the coin, and the word “AUSTRALIA”. From 1986 to 1989, the reverse of these coins pictured various Australian gold nuggets, hence they were referred to as nuggets. With the 1989 proof edition, the design was changed to feature different Kangaroos, a more world-recognized symbol of Australia. The coins are today sometimes referred to as “gold kangaroos”.

The Australian Gold Nugget is one of the few legal tender bullion gold coins to change their design every year, another being the Chinese Gold Panda This and their limited annual mintage may, unlike for many other bullion coins, raise their numismatic value over the value of gold used.Each size from 1/20th-oz. to 1-oz. receives a new design each year. New designs are introduced to the proof coins each year for sizes of 1/20th-oz to 1-oz, these designs are then used for striking the bullion coins the following year.

In 1991, 2 oz, 10 oz, and 1 kilogram sizes were introduced. These were created with the intention of using economies of scale to keep premiums low, and are some of the largest gold coins ever minted. In 1992, the face values on these large coins were lowered to keep them proportional to the 1 oz coin. The reverse of these coins does not change annually like the lower denominations; the same “red kangaroo” design is used every year.

Maurice Hall

Recently gold has taken a significant correction from a high of $1,226 an ounce it fell to $1,075 – about 12% in two weeks. It fell by more than $50 in one day the greatest fall ever.  Should we be jittery that this is the end of the dramatic rises we have seen so far in the 21^st century or is it a correction that will recover and rise above the high recorded in December 2009?

Recent History

As gold has been with us for 6 millenniums , recent history could be described as very recent but lets stick to the last 30 years, Golds previous high, where it rose to $850 per troy oz.  in 1980 was subsequent to the Russian invasion of Afghanistan. If the thought of gold rising to over $1200  made people nervous it is put into perspective by remembering that by taking inflation into consideration, the $850 in 1980 is around $2500 today so the price has to more than double to reach the previous high. In 1980 gold was in a bull market with only a few currencies. Now the bull markets contain all major currency and the new giants of India and China.

Historic correction pattern – I would suggest that the current correction follows a historic pattern as the chart below taken over the last 10 years shows.  The December  correction from high to low was 12% that has now almost halved with the current price of $1140 to 7%.  Below the chart shows four quite brutal corrections ranging from 10 to 22% from the highs to lows followed by a period of consolidation and subsequent rises usually for around 9 months .

Historic dips and recoveries are a repeated pattern (rise 6-9 months, heavy correction. Consolidation before upward trend

Current gold correction should ease and rise to + $1400 by mid year

Mechanisms for Investing

Paper Gold – 95% of the worlds gold business is unallocated in which you do not physically own your gold.

• Mining Shares – no different than speculating on the stock market
• Futures – is a way to trade gold at an amount and price decided today for a delivery at a time in the future. You do not have to pay the full amount, but the dealers margin usually anything up to 20%  and you do not own the gold. This is pure short term speculation and subject to market moves and if you do know what you are doing your investment will evaporate
• Gold backed Exchange Traded Funds (ETFs) are securities designed  to accurately track the gold price.  Under an ETF a trust owns the gold, and you are a beneficiary of a debt owed by the trust and backed by its gold. This form of investment is better than a future but  probably more appropriate for investment institutions. If there was a panic and gold ETF investors try to take delivery of gold in exchange for their paper shares, gold funds may find it difficult to meet that demand.
• Gold Certificates – are normally unallocated gold with an option to convert to allocated but at a high cost. An investor in unallocated gold does not own that gold and is subject o the insolvencies of the vendor
• Bank Gold – this is always unallocated in effect you become a bank creditor and do not own the gold so any problems with the bank and your investment is at risk or total loss

Physical Gold

• Jewellery – Not an investment mechanism
• Large Bullion Bars - The main argument is that you can buy and sell your gold for very little premium and the rising gold price is great for ROI,  at the same time you hold a tangible asset. Bullion is not subject to VAT but is subject to Capital Gains.  The main disadvantage is that a large bar has a large value to initially purchase, your asset is not mobile and has moderate liquidity. If you own a 1 kilo bar it is not easy to sell off 100 or 200 grams
• Small Bars – Similar to Large bars but require a greater premium to purchase but do not require such a large initial outlay.
• Bullion Coins – e.g. krugerrands.  These are relatively new coins that are purchased for the value of their gold content and are of defined weights, they are in effect the same as small bullion with a small premium over the same value of gold in a bullion bar. Many bullion coins are not particularly attractive so is no different from bullion and are not subject to VAT but are subject to Capital Gains Tax unless they are legal tender.
• Semi-Numismatic – Sovereigns, Napoleons etc.  These are beautiful coins that have aesthetic, historic value.  Due to supply and demand they attract a premium ( value over and above the gold value) and depending where they are bought and their condition, the premium varies. The quality of the coin is an essential aspect, those which are in poor condition ( unless extremely rare), are only worth their gold value less dealers cut and are melted down. Sovereigns which are legal tender are VAT free and also free of Capital Gains Tax. Beware of Uncirculated and Proof coins as though undoubtedly high quality the premium is such that for a proof coin you pay double the gold value and that could never be recovered on resale.
• Numismatic – collectors coins that attract high premiums due to their collectability which is subjective in the collectors eyes and can only be re sold if wanted. Rare Sovereigns can be numismatic and may be VAT free if the premium is less than 180%.

Type of Investor

• Speculator – someone who is looking for short term gains and would normally use one of the gold instruments rather than physical gold.
• Investor – Again may be looking at the longer term gold instruments but may well want to take advantage of the rise in the gold price by owning physical gold
• Saver – Will want to own physical gold, take advantage of any upturn but whose prime purpose is to insure their wealth for the future

Reasons for investing Physical Gold

• Tangible Asset - Gold cannot  be printed like money. Governments worldwide are debasing their currencies as they print money.  It’s the oldest form of wealth in the world and does not rely on any third party promises. Gold is a “currency”
• Limited Supply – Less than 2000 tonnes per year Aaron Regent, president of the Canadian gold giant, said that global output has been falling by roughly 1m ounces a year since the start of the decade. Total mine supply has dropped by 10pc as ore quality erodes, implying that the roaring bull market of the last eight years may have further to run.
• Demand greater than supply –  A World Gold Report said that investor activity had picked up strongly in the 4^th quarter of 2009. An important part of this demand is long-term in nature, likely driven by positive sentiment toward gold’s supply and demand fundamentals and the corresponding price outlook.
• Diversification – Portfolio protection -Most experts  agree that investors should be diversifying between 5-10% of their portfolio into gold
• Insurance What is the purpose of insurance? Of course, it is to protect you against the unknown and the unexpected. You can’t risk not having it in your life, even if you never have to use it. Gold is an insurance policy just like on your car or your home. Given the current financial uncertainty are you comfortable with owning gold through a paper deed, especially if there is no formal audit procedure to verify your share. The primary and most obvious advantage to owning physical gold over paper gold is that it’s yours unequivocally. Gold and particularly recognized gold coin is universally accepted as money anywhere in the world, regardless of culture, language or local currency and can be convert it to goods and services.

Even in a relatively stable environment but with turmoil in the stock market gold has performed very well. It can be said that gold performs well in bad conditions but stocks and shares performance rises in good times. We are now in a bad time with economies struggling to rise out of depression so gold is very attractive and safe form of investment.  According to a recent article in the Sunday times gold was the only investment that beat inflation over the last 10 years. One of the best ways to beat inflation is to own real assets

Recommendations

Gold Coins – Modern bullion coins such as Krugerrands represent good value as they can be purchased at only a little more premium or even similar to small bars; but we believe that older semi –numismatic coins such as Sovereigns, Swiss Francs, French Napoleons, American Eagles etc.  are a better buy. In the UK the coin of choice will always be the Sovereign. For small quantities these coins will cost more than bullion coins but in larger quantities the if they can be bought at 2-3%  above the premium on Krugerrands, they are the best buy.

In times of crisis when the demand increases the premium will rise under the law of supply and demand, thus on top of the gold value you may be able to sell at a higher premium.  The Sovereign is a beautiful coin, so has aesthetic and historic value, insures your wealth and has a liquidity that is recognised through world

Summary

• Gold is the best way to protect your wealth
• Gold should account for 10% of diversified portfolio
• Every one should hold some gold coins to hedge against systemic failure

Maurice Hall

There is no better time than now to invest in gold coin. Historically UK citizens have never been hoarders of gold unlike many other countries in the EU and the rest of the world as we have never suffered the trauma of invading armies, currency crash or totally destroyed economies. In countries where this has happened or threatened, people have turned to gold to protect their wealth knowing that no matter what happened they can exchange their gold coins for essential goods. E.g.  French citizens personally hold 10 times the value of gold that is currently held in the UK gold reserve. We also to not inherently have the “survivalist culture” that exist in the USA where apart from arms, food and shelter, it is seen as essential to own tangible liquid assets such as gold eagles.

Until this century the UK government had discouraged the owning of gold by making it difficult. Until 1971 it was illegal to buy more than four gold coins without a collectors license and then in 1973, VAT was applied to gold coins, which dampened any new found enthusiasm. In common with the EU, the UK removed VAT  from investment gold including  specific coins in 2000.

We have seen a steady increase in the gold price this century until the all time high of $1227 in Dec 2009  after which it dropped rapidly by more than 10%. Is this a concern?. Any downturn is bound to incline towards nervousness; but this is purely a correction as has been exhibited over the last ten years, where there have been savage corrections, followed by periods of consolidation for a few months then the upward trend continues.  Also when gold reached is last all time high in 1980 of $850, the equivalent with inflation is $2200 today.  Experts agree that the gold price still has a long way to go.

The demand for gold coins rose sharply in 2009. This was a result of investors hedging against financial failure or diversifying portfolios into gold as there is a continuing lack of confidence as economies struggle to pull out of the worst recession in most peoples living memory. They also attract a premium over the value of gold which is dependant on supply and demand and currently world mints cannot keep up with demand. The Royal Mint quadrupled production in the last quarter of 2009 and we have seen increased production in Germany, Austria and US where there was a shortage such that “Gold Eagles” were on allocated supply

It is not just panicky individuals but professional investment advisors and sophisticated traders who are purchasing 50 or more coins at a time.

Gold coins are a tangible asset that can quickly and easily be realized and many such as Gold Sovereigns have liquidity that is recognized world wide. However, the sophisticated investor should view gold coins as an insurance policy within a diversified portfolio

Experts agree that somewhere between 5-10% of an investment portfolio should be diversified into gold.

Now in the UK we now have the best environment in the world for owning gold coins and particularly gold coins of legal currency, like Sovereigns as they are now VAT free and provided they were minted after 1817, free from Capital Gains Tax.  Plus you will own beautiful coins that have historic and aesthetic value to insure your wealth and provide a tangible asset that has world wide liquidity.

Maurice Hall

The Gold Sovereign is a highly collectable investment coin.  Introduced in Britain in 1489 at the request of King Henry VII, the modern version first appeared in 1817 featuring the now iconic image of St George slaying the dragon engraved on the reverse.  Today’s sovereign contains 0.235421 ounces (7.315 grams)of gold and is sought after the world over.

History of the Sovereign from 1489 to the modern day

The first gold sovereign was struck in 1489 for the then King Henry VII.  It depicted Henry VII on the obverse and a Tudor rose and the royal shield on the reverse.  No value was shown on the coin.  Sovereigns continued to be issued by monarchs up until the end of Elizabeth I’s reign in 1603.  The name sovereign is thought to originate from the fact that the reigning sovereign always appeared on the obverse of the coin.   The name was also thought to derive from the fact that Henry VII wanted to demonstrate Britain’s power and splendour.

The first modern Sovereign

Gold sovereigns were re-introduced as legal tender in 1817 as part of a major coin reform led by the then Master of the Royal Mint, William Wellesley Pole.  A young Italian engraver, Benedetto Pistrucci, was appointed to create the reverse design of the new sovereign coming up with the beautiful image of St George slaying the dragon.  This design has seen many alterations over the years but is essentially the same.  As a testament to its greatness, it still appears on sovereigns today.  Other reverse designs have at times been used during the reigns of William IV, Victoria, George IV and Elizabeth II.  A royal shield design, as used on the first sovereign of 1489, has often been used in various different formats.  The obverse of the sovereign followed the trend established for the original sovereigns and portrayed an image of the reigning monarch which remains the case even today.

Gold sovereigns were withdrawn from circulation at the start of World War I in 1914 although production continued at the Royal Mint until 1917.  They however continued to be produced in other mints of the British Empire but at lower quantities than before.  Sovereigns not produced at the Royal Mint in London carry a mintmark to show which mint they were produced in.  Production of sovereigns in other mints stopped in 1932.

Elizabeth II Sovereign

In 1957 the Royal Mint began producing gold sovereigns again to meet world demand and stop counterfeit production which had become rife since the Royal Mint had stopped production in 1917.  They were not however reintroduced into everyday circulation.  Prior to 1979 only gold bullion coins had been issued and it was in this year that the first gold proof sovereigns were issued.  Between the years of 1983 and 1999 the Royal mint ceased producing gold bullion sovereigns and only minted gold proof sovereigns.  Gold bullion sovereigns were re-introduced in 2000.

1989
To celebrate the 500th anniversary  a special 500 commemorative design was produced, showing Queen Elizabeth II seated facing on a throne. This was only issued as a proof and demand  has grown steadily over the past few years, because as a single-date type coin, it is in demand by both date collectors and type collectors.

2005 – New Modernistic design
In 2005, the Royal Mint issued another new sovereign designed by Timothy Noad a herald painter at the Royal College of Arms actually a modernistic version of Saint George slaying the dragon with the shield as a focal point. This coin was issued in both normal circulation (bullion) and proof versions for 2005 only

2007 – 2010

The Royal Mint have used re-cut dies to take the design  back almost two centuries to portray Pistrucci’s St. George and the dragon in its neo-Classical glory

Types of Sovereign

Aside from the full sovereign, the Royal Mint today produces the following sovereigns in gold proof and gold bullion versions for general sale: quintuple (£5) sovereign, double (£2) sovereign, half sovereign and for the first time ever, 2009 saw the general release of a quarter sovereign.

Sovereign designs and dates

Technical specifications of modern sovereigns (post 1817)

Gold sovereigns, to invest or not to invest?

As one of the oldest coins in the world the British gold sovereign is highly sought after by both investors and numismatists alike.  As with all gold coins, the price of sovereigns fluctuates with the price of gold due to the gold content of the coin.  However the price of sovereigns is not entirely based on its gold content alone.  British gold sovereigns generally fetch a higher premium than the price of gold for the same gold content.  For example the 2009 gold proof sovereign retails at about £299 for 0.23 ounces of gold.  The current price of an ounce of gold is around £680 therefore the price for 0.235 ounces is around the £160 mark.  Therefore the 2009 sovereign is worth almost twice as much as the price of gold.

The premium of a sovereign obviously depends on its quality and whether it is easily available or not.  Some sovereigns fetch a much higher premium than others.

Whilst there is no official grading system in existence, sovereigns are generally graded in the following manner in the UK:

FDC/proof  – perfect quality

UNC – uncirculated

EF – extra fine

VF – very fine

F – fine

(see article on quality of gold coins)

Whilst older sovereigns were produced in much larger quantities than those produced today it is much more difficult to source a good quality sovereign from these times.  Sovereigns from the reigns of George III, George IV and William IV are extremely rare in good quality.  EF quality coins can be found but are quite rare and as such would fetch a high premium.  FDC and UNC coins are extremely rare for these periods and when sold fetch very high premiums.  A George IV sovereign from 1825 made £14950 in a sale in March 2004.  Early Victorian shield sovereigns are also highly sought after and therefore an EF quality coin would fetch a high premium whilst extremely rare FDC and UNC coins would fetch incredibly high premiums.  Later Victorian sovereigns are less rare than the earlier coins in good condition, however they are again fairly rare in top condition therefore sovereigns of UNC and FDC grade would fetch a high premium.

Edward VII and George V sovereigns are also fairly easy to obtain in EF condition and were produced in very large numbers so do not fetch such a high premium.  As with later Victorian sovereigns, it is more difficult to find UNC and FDC grade coins and these would therefore fetch a higher premium.  No sovereigns were issued for Edward VIII, however a few official pattern coins were produced.  If any of these were ever to be sold they would fetch an incredibly high price due to their extreme rarity.  During the reign of George VI no sovereigns were issued apart from a very limited amount of collectors sets to commemorate his coronation.  This was a gold proof set and as such can be found today in FDC condition.  This set would today fetch around double the price of a 2009 4 piece gold proof set.  When gold sovereigns were reintroduced during the reign of Elizabeth II they were produced at much lower quantities than for other monarchs as they were no longer in everyday circulation.  However despite the fact that much fewer coins were produced they were all of FDC or UNC quality.

The majority of coins were released during Queen Elizabeth II’s reign and are not difficult to find in top condition.  For this reason they fetch a lower premium than UNC or FDC coins from earlier periods, although they are still worth investing in as they do fetch a higher premium than the price of gold and are likely to become more sought after in the future.

Certain sovereigns are much rarer than others, some that are worth looking out for include:  1817 sovereign – the first modern sovereign and any other UNC or FDC coins from the reigns of George II, George IV and William IV (or even EF graded sovereigns from these periods), 1838 the first Queen Victoria sovereign, 1841 the rarest Queen Victoria sovereign, 1917 London minted sovereign (very few in existence as it was the year London stopped producing sovereigns) and out of Elizabeth II sovereigns the 1989 special commemorative 500th anniversary sovereign.   British sovereigns are an excellent investment choice and will continue to be so. For as long as Britain keeps its currency, it seems inevitable that the Royal Mint will continue issuing sovereigns every year for collectors, investors and enthusiasts.  However, if the UK joined the Euro would this signal the end for this iconic coin? If that were the case gold sovereigns would surely become more sought after than ever and consequently represent an even greater investment opportunity.

How to spot a fake

Many fake sovereigns have been produced over the years.  In order to avoid buying a fake you should always buy from a reputable source such as AuCoffer.co.uk.  We have however, created a list of key things to look out for to avoid buying a sovereign forgery:

• The feel of the coin – fakes are often very smooth or can have sharp edges
• Be wary of coins that are too shiny and where the details are blurred. It’s the sign that they have been cleaned and worn away some gold
• Dates – check for missing dates or check that sovereigns were actually produced in the year stated in the design shown
• Mintmarks – if there is no mintmark check that the London mint produced sovereigns in that year, if there is a mintmark check that the mint in question produced sovereigns in that year
• Weight, size and depth – check these correspond with official figure

Roosevelt

Have you heard of Roosevelt’s Emergency Banking Act on April 5^th 1933? This was the date on which the American president declared that it was illegal for US citizens to own gold and ordered them to return their coins, ingots and gold certificates to the federal reserve banks before May 1^st 1933 at a price of 20.67 USD per ounce. Immediately devaluing the dollar by 40 percent; and setting the price of gold at $35.00 per ounce. At a single stroke, Roosevelt increased the government’s gold assets, stabilized the monetary system and increased wholesale prices by more than 33 percent. However, he also inflicted losses of 40 percent on gold owners and stripped them of the gold that they saved to insure their financial futures.

1933 was the year when the great depression had led to a severe shortage of gold. Anxious Americans, demanding gold, had reduced the Federal Reserve’s gold supply almost to the legal minimum, creating additional fears of an impending monetary crisis. The 1933 Emergency Banking Relief Act was approved to ‘provide relief from the national emergency for the banking sector and for other purposes’. On March 6 of 1933, the President set in motion a chain of events that ended the international gold standard once and for all. First, he closed the nation’s banks and prohibited them from paying out or exporting gold coins and bullion, using emergency powers granted by the Trading with the Enemy Act that had been enacted during World War I.

From 1933 forward, private possession and ownership of gold was illegal for U.S. citizens. Any refusal to return one’s gold was punishable by a fine of 10,000 $ and 10 years in prison.  These exceptional measures were aimed at preventing the general public from storing gold. The solution was simple: make it illegal to directly own gold.

In 1934, Roosevelt proclaimed the confiscation of the gold held by the banks (Gold Reserve Act: in exchange for gold certificates that could not be exchanged for gold!)

This law remained active in the USA until 1975, a few years after the dollar’s value had stopped being linked to that of gold.

All of this failed to prevent Americans buying and selling gold on the black market especially gold in the form of nuggets which the law had forgotten. Of course there were also all those Americans who knew all about gold and stored it in vaults in Switzerland: the reserves of wealth are immobile but the value that this wealth represents (currency) circulates.

Although private ownership of gold in the United States was legalized on August 15, 1974, the power to confiscate gold remains in the hands of the President. The President still retains the right, under the Emergency Banking Relief Act, to “investigate, regulate or prohibit… the importing, exporting, hoarding, melting or earmarking of gold” in times of a declared national emergency.

The time to act is before, not after, a crisis occurs. If you wait until gold confiscation, currency exchange controls or any other emergency measures are taken it will be too late.

As an investor, what should you do? Put some of your savings in the ultimate crisis hedge – numismatic coins. In the event of a crisis it would be better to own numismatic gold than bullion

Maurice Hall

Roosevelt sought to elevate the artistic qualities of US coinage by collaborating with friend and acclaimed sculptor Augustus Saint-Gaudens to originate a new US gold eagle coin ($10 face value), and double eagle ($20).
It became the president’s personal mission to rejuvenate the image of American coinage. Beginning in November 1905 through May 1907, Roosevelt and Saint-Gaudens exchanged frequent correspondence on the development of new US gold coinage.

At Roosevelt’s urging, Saint-Gaudens added a fictional Native American war bonnet to Liberty. Hence the name “Indian Head Eagle” is usually, but inaccurately, applied to this series of coins. The reverse featured a proud eagle astride a bundle of arrows, very similar to the Inaugural medal of 1905.
Thirteen stars are placed above the head in a semi-circle representing the first colonies; the word LIBERTY is on the front of the Indian headdress and E PLURIBUS UNUM is placed above the majestic eagle on the reverse side. The sides contains forty six stars.

Two versions were minted in 1907, on both, the words of the expression on the reverse side were separated by periods. The first Indian Head Eagles struck in 1907 were of the “wire edge” variety, characterized by a sharp rim along the coin’s circumference, rather than an elevated rounded edge, which had long been the standard for U.S. coinage. The “wire edge” variety, an example of which is shown directly above, possessed 46 raised stars on its edge, symbolizing the 46 states of the Union at the time, and had periods stamped next to the E PLURIBUS UNUM motto. Because of their inability to stack well, the “wire edge” concept was abandoned. Only 500 examples of this variety were struck.

Next, a “rolled edge” was tried, consisting of a raised, rounded edge typical of rims normally formed on coins. The periods and stars were retained, resulting in weakly defined features caused by poor metal flow during the striking process. Before calling off the effort, 31,550 of the “rolled edge” variety were produced. All but 42 of them were melted down, creating a major rarity in US numismatics. The owner of a high quality example of this variety can expect to be paid at least $400,000 at selling time.

Improved strike quality was observed after the Indian Head Eagle was retooled to remove the periods around E PLURIBUS UNUM. Mass production of the “rolled edge” no periods ten dollar eagle began in November 1907. Before the close of the year, 239,406 of them were issued by the Mint

These 10 dollar coins from 1907 and early 1908 did not have the expression IN GOD WE TRUST. This was added in 1908 in front of the eagle. Two additional stars were added on the edge in 1912. Once again, the public reception was quite negative. People were unhappy that Liberty wore an Indian headdress instead of the traditional Phrygian bonnet. President Roosevelt had to intervene himself saying: ‘It’s complete nonsense. There is no reason why an Indian is always represented with a head of feathers and the Phrygian with a bonnet. The Indian symbolises liberty in its way. Why does Liberty’s face always appear in a conventional form? The head designed by Saint Gaudens is Liberty’s head, the American Liberty, and it perfectly acceptable that she is wearing something typically American on her head.’

The USA stopped minting gold coins in 1933. Franklin Roosevelt removed the coins from circulation and ordered banks to return them to the Treasury in order to constitute a reserve to cover the paper money. This order, made on March 6^th 1933, specified that all gold imported or extracted in the USA had to be sold to the US Treasury at a price of 35 USD per ounce. However, it allowed collectors and traders to hold and exchange gold coins that had a recognised numismatic value. Read our article on this subject

The Indian Head Eagle Statistics.

Weight of gold = 16.72 x 900/1000 =15.05 grams of pure gold

A series of new and very beautiful types for the American coinage resulted from a collaboration between Theodore Roosevelt (1901-1909) and Augustus Saint Gaudens, one of America’s finest artists. Roosevelt wanted to upgrade America’s image by the appearance of the national coinage.  He also wanted them to have a beauty and high relief that was comparable to the coins of ancient Greece. Saint Gaudens accepted the challenge and created the 20 dollar coin (double eagle) first.

The coin features a full length image of liberty in flowing gown in front of the rising sun with the Capitol Building in the  background and walking forward as if stepping out of the coin. The word LIBERTY is written above her head.

She holds the torch of enlightenment in her right hand and an olive branch of peace in her left hand. The coin’s edge is surrounded by 46 stars and 5 branches. The date is shown in Roman numerals (MCMVII) to the right of this figure, with the engraver’s initials, ASG, below it.

The reverse features a majestic eagle  flying in the rays of the sun. In the upper part, the inscriptions: UNITED STATES OF AMERICA – TWENTY DOLLARS appear in two concentric arcs.

Twenty-two test coins were minted in very high relief which required  nine hits of the coining press; two of them were subsequently melted down. Two of the remaining examples are in the American Numismatic Association’s collection. The Smithsonian Institution and the Theodore Roosevelt Museum both have one example.  The coins needed to be reworked to lower relief but the samples in the opinion of chief engraver Charles Barber were still to complex for practical use. However, Roosevelt ordered production to begin in late 1907.  11,250 coins were minted with lower relief and these entered circulation. They had the words E PLURIBUS UNUM on their edge. There were only 13 rays of sunshine on the reverse side compared to 14 on the test pieces.

They were too complex for mass production and bankers and businessmen complained that they were difficult to stack.

The Mint replaced the dies with ones of lower relief and substituted the Roman date with Arabic numerals. The coins had a much less salient relief and some of the detail was lost but the overall beauty was intact.. They entered circulation at the end of 1907 and continued to be minted during the following years.

One thing all 1907 Saint-Gaudens Double Eagles have in common is the omission of the motto IN GOD WE TRUST ( found on every gold coin since 1866). Roosevelt wanted this left off because he considered it blasphemous to write the name of God on money, since it could be spent for immoral purposes. However, Congress took a dim view of the missing motto and passed legislation in 1908 mandating its restoration. Roosevelt decreed that the expression would be used on new coins: during 1908, it was added on the reverse side of the coin above the sun.

The Saint-Gaudens gold double eagle coin was issued every year from 1907 to 1916, and again from 1920 to 1933. Most of the “Saints” dated 1929 and later were held in government vaults to augment the federal gold reserve, and nearly of all these were melted following President Franklin Roosevelt’s Gold Order of 1933 (the great confiscation). Under this directive, gold coinage or bullion in private hands was declared illegal, and required redemption to the government in exchange for other forms of currency. Gold coins with numismatic value were not subject to the Gold Order, however. Once the gold had been consolidated under federal control, the Treasury department set the price of gold bullion at $35.00 an ounce, up from $20.67, nearly doubling the value of the gold in its possession. The price of gold was regulated by the government until January 1, 1975, when all gold ownership restrictions and price controls were ended.

The 1933 double eagle currently holds the record for the highest price ever paid for a U.S. coin when it was purchased in 2002 for $7.59 million. There were 445,500 double eagles minted in 1933, but none were ever placed into circulation and nearly every last one of them was melted down after the Gold Order was issued ( see The Great Confiscation)

The Saint-Gaudens Liberty Double Eagle Specifications

Weight of gold = 33.44 x 900/1000 =30.1gms of pure gold

The story of the California gold rush is well known. A few nuggets found in a mountain stream in Coloma 40 miles from Sutter’s Mill in 1848 triggered a global movement towards the Californian gold fields. In the single year of 1849, over two hundred thousand people arrived to look for gold and was a major event in the settlement of the American West.
The gold produced by California distorted the world market for the metal. The price of silver increased in relation to that of gold so that it became profitable to smelt silver coins for the value of their metal content. Silver coins were rapidly disappearing  so the minting of gold dollars was authorised in the Act  3^rd March 1849. The authorisation also permitted a larger coin to be minted, the gold twenty dollars or double eagle. The $20 double eagle was first designed by Mint Engraver James B. Longacre, his initial, L, appears at the cut of the bust.  The obverse featured Liberty facing left, wearing a small crown called a coronet, inscribed with the word LIBERTY and was surrounded by 13 stars. Longacre modeled Liberty from the ancient Roman sculpture, Crouching Venus.

The reverse was patterned after the Great Seal of the United States, which had been an inspiration for U.S. coinage as far back as 1797. The face value denomination was indicated as “TWENTY D”.

An analogous Liberty head, designed by Christian Gobrecht, had already started being used in 1838 when the ten dollar (eagle) coin was reintroduced; in 1839, she was represented on the five dollar coin and, in 1840, on the two and a half dollar coin..Numismatists have named the Longacre twenty dollar coin as the Coronet Double Eagle. It is often referred to as the Liberty Head type and it was minted from 1850

The $20 double eagle quickly became the preferred denomination for international transactions and bank deposit holdings. Thus, larger quantities of double eagle coins were minted than any other gold denomination.

Coronet Double Eagles are broken into three classifications. Class I was minted from 1850 through 1866. Class II originated in 1866 when the addition of the motto IN GOD WE TRUST was added above the eagle on the reverse. The motto was an appeal to the Almighty for national guidance and healing during the difficult Civil War era. In 1877, the reverse was modified by replacing the “D.” abbreviation with the full word “DOLLARS”, resulting in Class III double eagles. These were minted every year until 1907 when the Coronet twenty dollar coin series was replaced by the Saint-Gaudens Double Eagle.

More than 100 million Coronet Double Eagles were minted over a span of 58 years. Many dates are rather common today in lesser grades and experience price movements paralleling bullion market activity, and are popular for gold buyers seeking a hedge against inflation with some built-in collectible value.

The Liberty 20 dollars Specification.

Weight of gold = 33.44 x 900/1000 =30.1 grams of pure gold

Premium

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.

· 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 or if we see, as at present, an explosion in the demand all over the world, especially in France?

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. 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 and we can consider that the moral of small investors has not yet bottomed out whilst the price of gold already reflects the decline forecast by the major speculators (or the beginning of the end of the manipulations on COMEX). The future will give us the answer.

The quality of investment specific gold coins

Electronic scales are used to detect worn coins.

Electronic scales used to detect worn coins

All too often, buyers of investment gold tend to forget the quality of the coins they are buying, until they come to sell them, when they are greeted with an unpleasant surprise. In reality, when you sell gold coins they are evaluated as numismatic objects.

Saying “it’s a Liberty Double Eagle so I can sell it with a premium of 40% in the event of a crisis” can very quickly turn to ashes if you have not taken the trouble to understand the quality that you are buying.

The dealers who buy your coins do not want to negotiate the quality of the coins that you offer them and will use any argument to reduce the premium. They will want to buy your coins by weight, less their commission and any standard reduction due to the fact that you have handled the coins. In short, at the end of the day, you have made no profit.

Obviously, the greater the rarity of a coin, the lower the quality required to get a good price. However, this is purely a numismatic argument and we are speaking about investment here. Obviously, we are not going to buy a rare coin in the same way as investment gold. In practice, a rare coin is not greatly effected by crisis or the rise and fall of gold but mainly by the supply and demand for coins of the same type.

What is the minimum condition for a coin to have a premium?

A good magnifying glass to detect defects on gold coins

A good magnifying glass to detect defects on gold coins

Usually, it’s the EF or VF quality level that is required to obtain a premium with current coins. Your purchases of investment gold should be concentrated on this type of coin. With the exception of a few rare coins, the VG and F quality coins are sold for their weight in gold. As for the UNC (uncirculated new coins), we recommend that you do not buy these as an investment because they are rare coins with a base premium (average premium over gold value) that is already high and a low premium differential( the difference between base premium and the highest actual premium). These are very good quality coins that should be reserved for the pure numismatist.

Avoid.
If, despite the following table, you are not able to judge the quality of the coins you buy, we recommend that you do not buy from private individuals and, generally, avoid on-line auction sites, such as Ebay (where you can only evaluate your purchase based on photos, which tend to mask defects). Remember that it’s the most worn side that determines the coin’s general condition. One third of coins sold by on-line auction sites are not of an adequate quality. Worse still, they are often sold by unscrupulous dealers who know that they can not sell them directly to their own clients…
Be wary of coins that are too shiny and where the details are blurred. It’s the sign that they have been cleaned with abrasive products or instruments, initially to mask defects but which has ended up removing some of the gold. The weight test is usually determinant to a standard quality. The Sovereign weighs 7.93g to 7.98g. so avoid anything that weighs less than 7.93g (0.7% from newly minted weight). Coins can be verified using a Fisch gold coin gauge which tips the balance at 0.7% of the newly minted weight or as above weighed on an accurate digital scale to detect gold loss through wear.

Table of the different conditions or degrees of conservation for coins

• UNC (Uncirculated). Coin in perfect condition (no scratches, no wear, no traces of shocks) just as it left the minter’s die. This condition assumes that the coin has not been in circulation, only the patina and oxidation indicates that the coin is old. UNC is in its mint condition with all its mint sheen. No defect is acceptable. This is a rare condition because even coins that have never entered circulation but which have been transported in bags do not have this quality due to the fact that they have had shocks during their transport. These coins are reserved for numismatists. They are not considered as part of a strategy of investing in gold because of their high base premium.
  Equivalent terms in other countries:
  - France : FDC (Fleur de Coin)
  - Germany: STG (Stempelglanz)
  - Italy: FDC
  - Spain: SC

• EF or XF (Extremely Fine). This is the condition of an almost perfect coin that has not circulated much where the defects, hardly visible to the naked eye, can only be seen clearly with a magnifying glass (slight scratches, slight wear on some reliefs such as the hair, beard, moustache, feathers…). The mint sheen has gone and there are minor shocks related to transport.
  Equivalent terms in other countries:
  - France : SUP (Superbe)
  - Germany: VZ (Vorzüglich)
  - Italy: SPL
  - Spain: EBC
• VF (Very Fine). Condition of a coin where the wear shows clearly that is has been in circulation but it still presents very well with slightly tired reliefs, a rim that may be a bit flattened but which is still net. The signs of wear are visible but the coin is still in a good condition. This is an average plus state of conservation which still allows the coin to obtain a premium.
  Equivalent terms in other countries:
  - France: TTB (Très Très Beau)
  - Germany: SS (Sehr Schön)
  - Italy: BB (Bellissimo)
  - Spain: MBC
• F (Fine). Condition of a coin that has been in circulation for a long time. Some details of the engraving start to disappear (ribbons, hair, inscriptions on the side, etc.). The metal’s surface is dull (or, in contrast, too shiny ‘to be true’), criss-crossed by little scratches and accidents may be visible (shocks to the rim, large scratches). Its appearance is still acceptable to a numismatist but investors avoid this type of coin because it is usually bought without a premium when it is a current gold coin.
  Equivalent terms in other countries:
  - France: TB (Très Beau)
  - Germany: S (Schön)
  - Italy: MB (Molto Bello)
  - Spain: BC+
• VG (Very Good). Often referred to as “Good”, the condition of these coins means they are relegated to being bought and sold for their weight in gold. These are worn or very worn coins with a mediocre appearance. You can only just determine their type. The writing is partially deleted, the effigy is no longer sharp, many accidents can be seen. This is a coin that has been in circulation for a very long time and which will end up one day soon in a smelter unless it is a rare type.
  Equivalent terms in other countries:
  - USA / UK: VG (Very Good)
  - France: B (Belle)
  - Germany: SGE (Sehr Gut Erhalten)
  - Italy: B (Bello)
  - Spain: BC

Could eggs be a useful currency?

Let’s imagine it’s 2018. The western world has gone through years of deflation then the flame returns as massive inflation repeating what happened in Germany in 1923.

John was still selling luxury yachts on the Côte d’Azur in 2008. Following the financial crash and the economic crisis that followed it, he now rears a few chickens on a farm on the outskirts of a small town in the Auvergne. In this article, he talks to us about his most recent discovery in a world where every day brings its new rules. He explains to us the characteristics of a good currency.

I arrive in the village square which is already full of people and a lay out my farm produce at my feet: pairs of chickens with their feet tied together and baskets of pats of butter wrapped in leaves, lying on a base of fresh and smooth eggs. I have some concerns because the Euros, which we usually use in the country, they have been refused by everyone since the State started issuing them willy-nilly. The screens where you enter the amount for a credit card transaction are no longer big enough to display the amounts that have to be paid for our everyday requirements. We are now a country without currency. What’s going to happen?

I think I will get the old Sovereigns out from their hiding place behind the bookcase, tomorrow…