I promised my loyal and (I’m sure) highly interested readers that we would explore some fun and exciting investment grade coins. 

That time has now come. 

Relax, sit back, make yourself a coffee or a glass of whiskey depending on the time of day you happen to be reading this and let us get into it. 

1. Proof Sovereign Set
   

The Royal Mint: King Charles III 5-coin set 

The first ever sovereign coin was minted in 1489 under King Henry VII, 4 years after Henry defeated and killed Richard III at Bosworth finally bringing an end to the War of the Roses. Henry VII consolidated his reign and the Tudor dynasty by issuing the first ever sovereign gold coin with the monarch’s portrait (hence the name ‘sovereign’). 

Whilst the coin has its roots as an actual circulating currency, the proof sovereign coins are for collectors and investors alike. They are called proof because of its high quality throughout the minting process. The coin is struck multiple times to give it a finish that acts as a spare mirror and gives it an unparalleled level of detail. 

Throughout the 1800s, proof sovereigns were struck to mark jubilees and coronations of new monarchs. In 1887, to mark Queen Victoria’s Golden Jubilee, a full set of proof sovereigns were released and in 1937 a set of proof sovereigns were struck for Edward VIII but never formally released due to his abdication. 

Today, proof sovereigns are struck annually as well as remembering special events. They are now one of the most popular coins to collect. Once you have a look at these things first hand, it’s easy to see why.

I was fortunate enough to see a Queen Elizabeth II 2022 sovereign memorial 5 coin gold proof set at Bullion House and once you hold the £5 sovereign gold coin, it takes some strength to hold the coin up giving it a strong sense of value and importance.
It is also incredibly beautiful. You look at the coin with the same demeanour as if you were trying to buy a lady a drink at the bar, or a red Ferrari drives past you on the street or a Patek Philippe Nautilus on the wrist of your favourite athlete. When you buy the set you just want to have it on display because it has the look of something that belongs in a royal palace. 

Beauty is one of the many things that drive up the value of these coins. It is also rarity.
I mentioned earlier that Edward VIII’s proof sovereign coins were never formally released but some coins were minted just before his announcement. It is thought that only 6 of these coins exist today.

Hence, in 2020 the Royal Mint sold one of these coins for £1 million. It makes it one of the most valuable coins ever. 

From an investment point of view, I like to view the proof sovereign coins as blue chip stocks.
Think of it as your Apple stock: probably going to go up in value, well-established, well-respected and generally ‘safe’. These coins essentially hedge themselves. If the gold price falls, the collectibility of the coin props up its value. Likewise if a specific sovereign proof coin has more supply, the value of the coin is protected by the gold price and you can receive a return on investment from the price of gold.

Something to keep an eye on is the Pf rating. Pf means proof and it is essentially a rating on the coin and its condition. Pf 70 is an absolutely perfect coin. For some of the older coins, Pf 66 or 65 dictates an extremely good condition for its age and a swing in Pf value of 1 can mean tens of thousands of pounds.
The coin is also capital gains tax free. 

2. Tudor Beast Graded Coin

The Greyhound of Richmond silver and gold coins. 

Henry VIII commissioned 10 beasts to be sculpted along the Moat Bridge at Hampton Court Palace to symbolise the strength of the Tudor dynasty. The  beasts are: 

• The Lion of England – the famous lion representing the English monarchy

• The Seymour Panther – the panther represents the Seymour family where Jane Seymour became Henry VIII’s third wife

• The Tudor Dragon – A symbol of Welsh heritage

• The Yale of Beaufort – A symbol of the Beaufort family

• The Bull of Clarence – Represents the House of York symbolising the unity of York and Lancaster following the War of the Roses

• The Seymour Unicorn – Represents purity and innocence thought to be associated with Jane Seymour

• The Queen’s Panther – A symbol of power and grace, another beast associated with the Tudor family
• The Greyhound of Richmond – A symbol of loyalty and speed also associated with the Tudor family. 

These coins should be bought graded. The proof version looks something like this:

To get a coin graded means to get its authenticity established by a third party. The two most popular and well-respected grading firms are NGC and PCGS from the US. Grading is so important because it protects the value of the coin. Protecting its value is paramount with these coins because the value is in the gold content as opposed to its collectibility. It also makes the coin easier to sell since its authenticity is verified. Series like the Tudor Beasts can come in Bullion form which is rated in MS (Mint State). Bullion coins were traditionally struck purely for their weight in gold. However, today these Bullion coins can still grow in their collectible value. I wouldn’t recommend buying modern coins like these below a MS 68 because at that point you may as well buy the loose change from my pocket. Although the Tudor Beast coins are beautiful, they haven’t quite cemented themselves as high collectible items. YET!

I mentioned that proof sovereign coins were like blue chip stocks. To continue with this analogy, these coins are like your freshly IPO’d tech company that has the potential to be the next Apple and Microsoft. Perhaps, not as risky in terms of an investment because the coin is backed by its gold content but the potential upside is all the same. 

From a pricing point of view, because this coin is so new, it comfortably sits in between bullion bars and other premium coins making it a more affordable investment which has the potential to reward those who are patient. Property is seen as one of those textbook investments but it has a lot of outgoings before you can get started. You have agent fees, restoration costs, and you might have a difficult tenant so it prices out those who are not especially “liquid”. This coin is far far more affordable than property but just as legitimate as an investment all while being capital gains tax free. Coins are exempt from capital gains tax because they are ‘technically’ legal tender. So you could pay for your grocery shopping with this but I certainly wouldn’t advise that unless you’re feeling philanthropic.

Also, if you’re a bit of a history nerd (like me) this coin is just quite cool. It’s regal and just screams Tudor dynasty, which is one of the most famous lineages (dare I say) in all of history, where some of the most important English events took place. I saw the Bull of Clarence at Bullion House once and the coin just transports you back in time. 

3. 1839 Queen Victoria coin “Una and the Lion”
   
   
   

   The highest and only known PF 66 “Una and the Lion” 5 pound coin

   So, this coin is a bit of fun. I’ve decided to include this coin to showcase how powerful storylines are and how supply drives up prices. This specific coin was sold at an auction in Monaco for an eye watering sum of $1.148 million.  A grade lower, at this level, could result in hundreds of thousands less. 

   For many of us, this is outside our budget but the auction price highlights how much sentimentality and tradition are priced into these coins. The original coin celebrates Queen Victoria’s coronation at 18 years old to start the beginning of her 63-year reign. The heads (obverse) side shows a young Queen Victoria and the other side (reverse) depicts her as Lady Una guiding a lion, which is a symbol of England. Una is a character from the iconic Romantic poem “The Faerie Queene” written by the English poet Edmund Spenser. Una is depicted as a guiding force with a strong moral compass and acts as an anchor to the Redcrosse Knight, the protagonist of the poem. She symbolises integrity, modesty, and beauty. 

   “Be bold, dear knight, and of thy former fate

    Forgetful now, thyself to hope apply;

    Lift up thy heart, and now awake thy late

    Infused spirit to new recovery…”

   
   

   Here Una is encouraging the Redcrosse Knight to persevere and believe in himself. 

   Only 400 were minted at the time and only 100 are thought to still exist today. The fact that it is the Royal Mint who makes the coins is also hugely relevant. The Royal Mint has the heritage from the 1400s and is thus abundant in quality and reputation. The same way central banks around the world are buying gold to preserve their nation’s wealth and de-risking from the dollar, international money floods into British coins which is also driving up the price. 

   This coin was engraved by the legendary engraver William Wyon and is described by collectors around the world as the most beautiful British coin ever struck. Wyon’s coins have a unique beauty and elegance to them that is not so easily replicated by other coin engravers. The well balanced nature of the head, almost a Roman-like portrait, and the life-like softness of Queen Victoria’s  portrait. Much classier and richer than the AI generative images these days. When Wyon engraves a coin, it no longer is just its weight in gold but a piece of art. The way the robes flow off of Uma’s figure and the detail in the lion’s mane is an unparalleled level of beauty and it no longer becomes a mystery as to why this coin is valued so highly. 

   This coin highlights the power of collectibility, the marriage of gold value and art. It also shows the attraction of rare, historical coins and its international interest. The story is so powerful that the modern 2019 re-release of this two-ounce coin in Pf 70 condition, bought for £4,370, is now worth upwards of £70,000. Only 225 re-releases were made and quite literally only a handful of people hold the coin at that Pf 70 condition. This is what truly makes this coin a fun and exciting investment piece.