Many people are now buying gold bullion coins as an investment due to the fact that gold holds its value very well. Whilst property prices have fluctuated in recent years, gold has on the whole maintained a strong price. But what if you want to spend your gold bullion coins rather than hold on to them? Are you able to use gold bullion coins as legal tender? Read on for more information.
The face value
The majority of gold bullion coins do not have any face value printed on them. However, it is possible in some countries to buy coins that do have a face value displayed on them. For example some Australian Kangaroo gold bullion coins have a face value of $100 AUD. Where a face value is printed on the coin this bestows legal tender status on it. The benefit of this is that it allows easier importing and exporting across national borders.
Selling yourself short
If your gold bullion coins have a face value then you can in theory spend them as legal tender – that is if the shop has enough change to give you. However, you would be a fool to try and do this as the face value of gold bullion coins is always set lower than the actual value of the raw material from which it is made. So rather than spend your gold coins on your groceries; you’d be much wiser to hang on to them or sell them as an investment as they are intended.
No fixed selling price
There is no set price for gold bullion coins, with the market value following the international gold price. However, some coins that have additional value due to collectability can go for much more than their material value. For example, a gold bullion coin with a face value of $10 that was made for American President Andrew Jackson in 1804 was sold for $5m in 2007.
If you would like to invest in gold bullion coins then UK Gold Bullion are the right company for you. As one of the leading providers of gold bullion products in the UK you can be sure that we provide the quality that you desire. For more information on any of our products give our helpful staff a call on 01923 856 729. Alternatively send us an email on sales@ukgoldbullion.co.uk.