Proof coins for my son. Are they worth it?

cherabelle

Hello. 

Following excellent advice on here, I set up a stocks and shares isa for my son which his child benefit goes into each month. He also has a Halifax savings account which has 4% interest for the next 2 years where gifted money goes as that’s his. Anyway, I wondered, Are proof coins worth buying in terms of a collectable? I am not thinking in terms of them being a massive investment/return product, but I thought it would be nice for him to have something collectable that wouldn’t be a waste of money or loose value. I know the Royal mint has just released the dinosaur range of 3 and there is also some Paddington ones. Currently they range from £10-£65 a coin, I don’t expect them to be worth £100s of pounds each in future. 

Are they a low risk, relatively safe option as more of a collectable or should I just not bother. Just thought it would be nice to have some keepsakes that would be helpful to him
in the future rather than “just cash in a bank account”. 

If I did go for them, do I go for uncirculated at £10 each which don’t seem to have a limited number or the silver proof ones at £60-65 each which are limited edition, and do I opt for standard silver or silver and colours (like painted). 

Thank you. 

veryintrigued

I used to subscribe to the Royal Mint collectables limited editions maybe thirty years ago.

More for enjoyment than an investment.

Good job really as an investment they've been appalling!

strawb_shortcake

My Husband has got some, don't think they'll ever come up worth anything but he likes them. I'd of rather had a nice holiday or two with what he's spent on them

AnotherJoe

• Collectables go in and out of fashion. Future value unknowable 
• You have no idea if your son will even be interested in these things or just sell them. 
• There is a huge premium over their intrinsic value 

conclusion; invest for your son, collect for yourself if it's  something that interests you 

JezR

Modern proof coins tend to be a poor investment. Ones in gold, silver etc carry the precious metal value but at an initial premium. As a rough guide, the base metal sets from the 1970s at most are around twice the cost they were to buy originally and the sale value only a little more. 

Old_Lifer

Generally  speaking,  many modern 'collectors ' items have little resale value.

A wide range of  different types  of item may be advertised, some in  'limited editions' (limited to the number they think they can sell), some with impressive-looking certificates of authenticity.  The acid test comes when trying to sell such an item.  It may sell for very little  and in some cases no one may wish to buy it.

Years ago,  I had a friend whose father was a stamp-dealer.  He related to me how many modern  sets of stamps and  first-day covers were,  a year or two  later ,  offered for sale in bulk within the trade  at knock-down prices.

AnotherJoe

cherabelle said:

Hello. 

Following excellent advice on here, I set up a stocks and shares isa for my son which his child benefit goes into each month. He also has a Halifax savings account which has 4% interest for the next 2 years where gifted money goes as that’s his. Anyway, I wondered, Are proof coins worth buying in terms of a collectable? I am not thinking in terms of them being a massive investment/return product, but I thought it would be nice for him to have something collectable that wouldn’t be a waste of money or loose value. I know the Royal mint has just released the dinosaur range of 3 and there is also some Paddington ones. Currently they range from £10-£65 a coin, I don’t expect them to be worth £100s of pounds each in future. 

Are they a low risk, relatively safe option as more of a collectable or should I just not bother. Just thought it would be nice to have some keepsakes that would be helpful to him
in the future rather than “just cash in a bank account”. 

If I did go for them, do I go for uncirculated at £10 each which don’t seem to have a limited number or the silver proof ones at £60-65 each which are limited edition, and do I opt for standard silver or silver and colours (like painted). 

Thank you. 

cherabelle said:

Just thought it would be nice to have some keepsakes that would be helpful to him in the future rather than “just cash in a bank account”. 

Ps how would keepsakes that most likely are worth 10% what you paid more helpful to him than cash / investments worth 10x?

Owain_Moneysaver

Which? reports indicate that some of these coins are not holding their value, at least in the short term.

You can still buy a ‘Paddington at the Station 2018’ silver proof from the Royal Mint for £60, which is the same price they were when they came out. Nine months later, in July, a second-hand silver proof of this coin sold for £31 on eBay. Similarly, a silver proof of the ‘Paddington at the Palace’ coin – originally £60 – sold for £36.35 in August. Looking at all finished eBay auctions for both of these coins, neither of them have ever sold for more than their original price.

The Paddington Limited Edition Gold Proof Coin at £945 actually contains about £594 of gold. (Lost my draft and can't remember now whether that includes the percentage conversion from 22ct to 24ct value.)

A 2020 Gold Sovereign would be £309 and contains £284 of gold. If you could afford to put one away each year ...
(prices checked at Royal Mint and gold.co.uk sites)

Magsy99

Maybe getting some sovereigns for him would be better.  Where would you buy them from?

markj113

Magsy99 said:

Maybe getting some sovereigns for him would be better.  Where would you buy them from?

https://www.hattongardenmetals.com/buy/

https://atkinsonsbullion.com/

https://www.bairdmint.com/

https://www.chards.co.uk/

Owain_Moneysaver

Check the prices - they will vary between sellers and many sellers will refresh prices every few minutes. Check for delivery cost. Take into account quality/condition; some of the sellers offer "grade C" which is fine for scrap gold but for a gift they are visibly worn.  
I'm not in a position to have personal experience of buying gold!!! but used to work with someone who was interested in the subject.