What is that small difference on 1 oz coins ?

[DanTer]

Hi

I am new to sliver and have some noob question , really appreciate if someone can explain.

I want to buy some silver for loong tine stacking , was thinking about the coins and found for example coininvest website based on the price examples from them can anyone explain me for example why there is that small difference per 1 oz coin price , example comparing:

1 oz Krugerrand Silver Coin (2020) - £19.68

1 oz Britannia Silver Coin (2020) - £21.59

 

If I want to buy lets say 500 coins the overall difference on lot will be approx £1k  with same amount of silver.

I know some coins are more expensive because of "collection" value - but what is causing the above difference between 2 coins with same weight from same year - I can understand if difference is 10 or more pounds - but the question is about those small variances - what is causing them and which coin should be better to invest in ?

 

Thanks

D.

 

 

[Derv]

They are different designs minted by different companies. Most bought by dealers on varying amounts based on bulk orders.  Few and far between you'll see the same price on 1oz coins from different manufacturers.

[DanTer]

2 minutes ago, Derv said:

They are different designs minted by different companies. Most bought by dealers on varying amounts based on bulk orders.  Few and far between you'll see the same price on 1oz coins from different manufacturers.

So in case of investment - is there any difference -  should I buy the cheapest one and whatever is stamped on them is just personal preference for which buyer pays taht extra few pennies Kruggerand vs Britannia ?

 

[Martlet]

Currently this not so small difference is from dealers charging higher premiums where they see fit, due to recent shortages in supply chain.  Usually these bullion coins are pennies apart in price. For bulk the Krugerrand would be the better investment, for small numbers the Britannia might get bit more premium on secondary market, though probably not £2.

[HawkHybrid]

46 minutes ago, DanTer said:

So in case of investment - is there any difference -  should I buy the cheapest one and whatever is stamped on them is just personal preference for which buyer pays taht extra few pennies Kruggerand vs Britannia ?

 

 

in this particular example the (£2)britannia is cgt free where as the krugerrand is not.

this makes the britannia worth more to (potential)uk owners.

1 hour ago, DanTer said:

I want to buy some silver for loong tine stacking

 

1 hour ago, DanTer said:

If I want to buy lets say 500 coins the overall difference on lot will be approx £1k  with same amount of silver.

assuming you mean decade+(especially multi decade+) then the britannia is more useful

to have(cgt on a 10k silver stack on 'profit' accumulated over decades can be a sizable

amount). maybe read my wiki cgt post if you don't quite understand how the figures work.

 

they are slight different products(in practical terms). to stay relatively flexible you should

consider at least part of your stack in cgt free coins.

 

HH

[tafftoo]

While I can't be sure for sure why a given dealer would place a higher premium on a UK coin rather than a coin minted elsewhere in the world (delivery charges/etc), I would imagine it's becuase the britannias are viewed as more desirable to UK investors since they are except from CGT on any profits. and thus supply and demand would allow dealers to list them at a higher premium than non uk coins when selling to UK buyers.

 

just my 1/10 oz

[BjoScott]

8 hours ago, HawkHybrid said:

 

in this particular example the (£2)britannia is cgt free where as the krugerrand is not.

this makes the britannia worth more to (potential)uk owners.

 

assuming you mean decade+(especially multi decade+) then the britannia is more useful

to have(cgt on a 10k silver stack on 'profit' accumulated over decades can be a sizable

amount). maybe read my wiki cgt post if you don't quite understand how the figures work.

 

they are slight different products(in practical terms). to stay relatively flexible you should

consider at least part of your stack in cgt free coins.

 

HH

Not trying to hijack this thread.

I am curious however, how the UK determines the Capital Gains.  They would have to know the original purchase price of the silver.  Do UK residents self report that information or is there a governmental mechanism to determine that?

[HawkHybrid]

35 minutes ago, BjoScott said:

Not trying to hijack this thread.

I am curious however, how the UK determines the Capital Gains.  They would have to know the original purchase price of the silver.  Do UK residents self report that information or is there a governmental mechanism to determine that?

 

I'm going to guess that it's down to uk residents to self declare, if there is a

non declaration of appropriate taxes due then things would get ugly. how

this would work in practice is not something I'd like to explore. it's far easier

to know that you are holding cgt free coins and not have to keep records etc.

there's not enough hours in the day if you need to deal with paperwork.

 

HH

[Goldhooked]

11 hours ago, BjoScott said:

Not trying to hijack this thread.

I am curious however, how the UK determines the Capital Gains.  They would have to know the original purchase price of the silver.  Do UK residents self report that information or is there a governmental mechanism to determine that?

Tax returns are self declarations but you may be required to provide evidence later if the authorities decide to take a closer look.  In a tax investigation in the UK, if there is a lack of evidence from an individual, the authorities will determine how much tax they think the individual owes.  From a few anecdotal cases I have heard of, it is not always clear how they come to that figure but it would be the individual’s responsibility to prove otherwise if they don’t agree with the numbers.

The moral of the story is make sure you keep evidence of your purchases.

[tafftoo]

generally I believe the approach is to put a finger in the air and pull a figure out of their backsides.  by that point, you have to prove them wrong.  Keep records

[Goldhooked]

6 minutes ago, tafftoo said:

generally I believe the approach is to put a finger in the air and pull a figure out of their backsides.

I was avoiding being so direct in my response above but yes, that’s essentially how I believe it’s done 😄

[tafftoo]

we're all friends here

[Bimetallic]

Generally, home country bullion is in greater demand, and it often has favorable tax treatment, as is the case with the Britannia in Britain.

Also, the Krug is ugly and crude, whereas the Britannia is gorgeous and detailed...

[kimchi]

21 minutes ago, Bimetallic said:

Also, the Krug is ugly and crude, whereas the Britannia is gorgeous and detailed..

Um, have you checked the monstrosity on the obverse?

[BjoScott]

4 hours ago, kimchi said:

Um, have you checked the monstrosity on the obverse?

At least you always now what to expect on the obverse.  On this side of the pond, you never know what you are going to get! lol

[Prophecy]

On 03/06/2020 at 22:50, kimchi said:

Um, have you checked the monstrosity on the obverse?

TBH no worse than Paul Kruger and probably less racist too