Are Royal Mint Gold collectors coins classed as savings?

danjackson2021

huckster said:

It is a bit of a grey area really.  But as always, if in any doubt about what is counted as capital savings, it is always best to delcare the value or ask the question of any benefits agency.

US eagles have value of $1 on them, so you could declare that if you so wish, even though they cost over £30 each to buy

danjackson2021

Welcome to the darkside 

welcome to the jungle 

https://youtu.be/C1iBHnJUtAU

HollyNW

I see a lot of comments saying they’re mostly worthless .

a family member bought a gold coin last year, around £3000.

They had a limited run if around 100 coins, they are currently selling for around £60K.

I dont have any of these sadly ha. But some coins do take off if they’re popular Far East for example,

I still can’t see why a collectable coin would be classed as savings? It’s not something you can easily sell, it is a collectable like wine, antiques, stamps so etc. So what in the DWP rulings will class this as savings as opposed to private possessions. Other collectable are not classed as savings,

If you arguing it is legal tender, these gold con s have a face value of £5 only.

HollyNW

I’m well under the £6K limit. But I do want to collect more coins, I wouldn’t do anything wrong, but If in a year or two these coins took me over the £6K, I don’t want to start declaring them when I don’t have to. I’ll have my benefits reduced when I actually don’t need to,

It’s not like I can pop down Poundland and buy some socks with these £5 coins, they have to be sold at auctions and the amount of buyers is very limited.

HollyNW

I can’t post links but the ones I like usually cost around £200, for a silver collectible coin. Their fave value is only £5. The actual value of the silver is possibly only around £30.

But if I got to the point where I’d collected an entire set of say 10 coins, that’s £2000 I’d have paid out. 

noitsnotme

Buyers are not that limited as the coins can always easily be sold to a dealer  for just under spot price of the precious metal.  In most cases that value will be higher than the face value.  In many cases you could even sell them to most scrap dealers for more than the face value based on the value of the metal.

Give an example of one of your coins and we can give you some values.

HollyNW

That’s not right noitsnotme.

a five ounce silver coin in for example The Queens Beasts range, costs £455. It comes with its own presentation box as it’s a collectible.

silver costs £19 an ounce. The coins silver value will only be £100.

A dealer won’t give you £100 as the coin needs to be melted down, they need to take a percentage cut etc etc.

You can’t say collectors coins can easily be sold to silver dealers when you would only receive 10-15% of the cost of the coin. Sure, anything easily sellable if you make a 90% loss. Your car is easily sellable if you put it on the market for 10% of its value.

What is it in the DWP regulations that states collectors coins are in fact savings and it’s the auction price that you need to declare?

HollyNW

If anyone can be specific and point to references in the DWP rulings..

Its all very well saying declare it, don’t declare it, it’s the value of the silver that’s to be declared, it’s the face value, it’s the auction value, it’s a personal possession, it’s has no use and isn’t a personal possession, and so on and so on..

And as helpful as all that is, they’re personal opinions. What part of the DWP ruling states collectible coins are different to other personal possessions, jewellery etc and must be declared at their auction price?

HollyNW

And if we accept your point that they can be sold to silver dealers for a fifth of the coins retail price at Royal Mint, then what you’re saying is the auction price is irrelevant, I need to declare the value of the silver itself…It would take many coins to take me over the £6K limit in that case..

But if you were to say they had a value of £455, then a few coins can push you over the limit.

noitsnotme

HollyNW said:

That’s not right noitsnotme.

a five ounce silver coin in for example The Queens Beasts range, costs £455. It comes with its own presentation box as it’s a collectible.

silver costs £19 an ounce. The coins silver value will only be £100.

A dealer won’t give you £100 as the coin needs to be melted down, they need to take a percentage cut etc etc.

You can’t say collectors coins can easily be sold to silver dealers when you would only receive 10-15% of the cost of the coin.

On the contrary, Chards will currently pay you £98.18 for your 5 ounce coin - https://www.chards.co.uk/blog/selling-silver-coins/273

They will probably give you more for a Queens Beast in good condition.  They won’t melt it down because they can resell it for for close to what you paid for it.

The point I was making was that most precious metal coins are not as difficult to sell as you think.

Take a gold sovereign for example.  Face value of £1 but Chards will pay you up to £314 for it -  https://www.chards.co.uk/sellgoldandsilver