New Royal Mint £20 Coin - Second In The Series - World War One

[Danny-boy]

Better leave it in the packaging then. It might be difficult to convince future buyers in say ten years that it's silver.

I doubt it, they will do the same tests we do now, albeit more technologically I'd imagine.

They do feel great out of the packaging.

[Ares]

I'm in two minds about packaging, i've got a selection of proofs still in their original packaging and not in my case. Might just sling all the packaging in some boxes and put 'em in the case.

[Danny-boy]

Mine arrived yesterday and I picked it up today.

It's very nice, not as nice as the first but they do look nice together.

Roll on the next one.

[Ares]

Haven't got round to ordering mine yet, not sure if I'm going to either. I've found half a dozen smaller silver coins in a spare box I'd forgotten about and they're smaller than 1oz and I'm really on the fence about them so I'm not sure I'd be able to justify buying one whereas the money could be spent on other spending priorities elsewhere.

[Danny-boy]

Haven't got round to ordering mine yet, not sure if I'm going to either. I've found half a dozen smaller silver coins in a spare box I'd forgotten about and they're smaller than 1oz and I'm really on the fence about them so I'm not sure I'd be able to justify buying one whereas the money could be spent on other spending priorities elsewhere.

£20 face value though, so should be worth about £18 next year lol.

They are lovely coins, I'm just going to get one of each that is released for the daughter's stack.

[HighlandTiger]

£20 face value though, so should be worth about £18 next year lol.

 

The problem is, that the amount of silver in the coins would need the silver spot price to beat the record historical high by additional 35% to make it worth more than £20 in silver. But by that time, if it ever happens, inflation would have made that £20 less than it is worth today

 

Do I think Silver will treble in price in the next 20 odd years, maybe, but if you add on inflation, I just can't see these coins EVER being worth more than the £20 they are worth today. I think in real terms their value will be less and less as the years go by, no matter what the silver price does. And then you are entirely reliant on the coin collectors to keep the premiums up to ensure you don't lose money. I just don't fancy putting my money on the whims of collectors 

 

. 

[Danny-boy]

To be fair, they are selling on eBay now for more than £20 so your point is moot.

The silver content may never be £20, but if people are buying them for £25 then who cares?

[Ares]

The more solid gains are off the backs of the collective appeal IMO rather than silver price alone which is far more volatile.

Plus it's not as though the golden egg of explosive silver prices don't carry over to collectable too. Everyone is a collector at heart at some degree otherwise you'd own stacks and stacks of Phillys or whatever.

Horses for courses though, whatever's your game, but don't believe it's any more risky buying collectable PMs than PMs in general.

[HelpingHands]

Some people stack a bit of cash in case of deflation so why not stack that cash in the form of £20 coins.

[garthy]

True HH, these coins are a hedge against inflation and deflation, personally I feel they're worth owning.

[Ares]

The main value of this coin will be its collectable value in the short - medium turn. In the long term that £20 face value will be worth less than the £20 spent today and the price of silver would need to go up significantly to make it back. Which ain't a bad thing really

That bring said, you can't put a price on your own pleasure at owning a beautiful piece of silver.

[Cornishfarmer]

Face value will still always be higher than silver Britannia

[Ares]

True, but who buys a Britannia and cares about the face value?

[Cornishfarmer]

This coin will always have face value of £20 Brits will only have spot/collectors value

[Danny-boy]

This coin will always have face value of £20 Brits will only have spot/collectors value

Which, in most cases, is significantly more than £20.

You also have to take into account the mintage figures, britannias are much lower mintage and 1oz.

[HawkHybrid]

does anyone think that as people slowly recognise these £20 coins

it'll be gradually accepted as normal payment should that be required?

 

anyone spent a £5 coin at the shops before?

 

HH

[Danny-boy]

does anyone think that as people slowly recognise these £20 coins

it'll be gradually accepted as normal payment should that be required?

anyone spent a £5 coin at the shops before?

HH

I doubt it, there aren't enough of them and they have more value than face at present.

I spent a few £5 coins a long time ago, they were actually in semi-circulation if I remember as I know I got one in change too.

They weren't silver afaik.

[Ares]

This coin will always have face value of £20 Brits will only have spot/collectors value

You're not getting what I was trying to say.

Britannia (2014) - silver value > collectable value > face value

WW1 commemorative - collectable value > face value > silver value.

You're buying one for the silver content and the other for the collectable.

People like buying a silver £20 for £20 thinking it's still the same value, like owning a twenty except it's made from silver. But the silver twenty will decline in value requiring an offset from silver price increases or collectable premiums which may or may not occur.

My point was that it being a 20/20 deal does mean that currency inflation has to have *some* consideration when face is worth more than spot with respect to what else might be 'better' if the goal is to increase profit margins rather than enjoyment alone (which is perfectly fine!). Unlike say a Britannia where spot annihilates face.

Nobody cares about the face value of a Britannia, I sure as darn don't anyway. I buy 'em for the silver value.

 

EDIT: Actually, come to think about it I don't really buy any coin with considerations about face value, so bit moot on my part really.

[HighlandTiger]

Another way to look at...If the face value of the coin was £10, I can say without a shadow of a doubt that you would not be getting £25 for them on Ebay. The coin's current value is all down to a single digit minted onto the coin 

[Ares]

Or 3 - 4 numbers, 999 or 9999

[silversword]

People like buying a silver £20 for £20 thinking it's still the same value, like owning a twenty except it's made from silver. But the silver twenty will decline in value requiring an offset from silver price increases or collectable premiums which may or may not occur.

 

No, you have got this wrong I think.

 

I have my £20 silver coin, and you have your £20 paper note. If the price of silver stays the same, I can go and buy a £20 shirt with my coin, and you can do the same with your note. If the price of silver drops to £1/oz, I can still go and buy a £20 shirt with my coin, and you can too with a note. If the pound devalues and shirts become £25, I need to spend my coin, plus a fiver to get a new shirt, and you also need to find an extra fiver, in order to buy the same shirt.

 

Of course I could choose to sell my coin to a collector, if I see a chance to profit, but maybe I won't. 

 

If the pound continues to devalue, our £20s both lose purchasing power, except the world silver price would have to decline as well, otherwise at some point in the future, continual decline of the pound means my £20 coin becomes worth equal to or more than face value because of it's silver content. your note is always £20 unless there is a massive shortage of portraits of the Queen on rumpled paper.

 

Or maybe you would care to explain why my £20 silver coin will devalue more in the same period than your paper £20. 

[Keithoil]

Put another way I think....

 

If silver goes to £100/oz (or £25, or £37.89) then your coin is still worth £20 but its silver value is worth half the value of silver spot (.5 ozs), your £20 note however is still worth only £20.

 

And there is also the collectable value of the coin.

 

For me its a win win.

[HawkHybrid]

the backup plan is to spend at face value at the post office and maybe

some branches of tescos.

 

HH

[HelpingHands]

The only downside I can see is that I could've bought a 1oz coin instead.

[Ares]

I think there are some crossed wires here.

My main point was this - You have £20, you buy this commemorative and silver doesn't go up like a rocket and it's going to stay £25ish collectable wise and the face will go down. You spend that 20 somewhere else where you know the collectable value will increase over time (PM, Panda). I figured for the long term the latter would be the "better" investment, because if it comes to nought you're left with a coin which is worth a less valuable £20 in the future than a nice kook or whatever.

 

Then if silver did rise, the kook or whatever would still end up with more intrinsic value than the commemorative anyway even when the latter broke even.

That was the guts of my first post, about what would be "better" to spend the twenty on, followed by "you can't put a price on your own pleasure at owning a beautiful bit of silver" or words to that effect.

I hope that makes some sense.

 

As an aside I can completely accept that my financial reasoning was wrong as I don't really know all the ins and outs and as i was even writing it I know it's make an arse out of myself