Investment Gold - Coins minted after 1800

[JonC]

Hi All,

I'm relatively new to the forum, and my first time posting.

I was hoping you could answer a quick question for me. 

Looking at the VAT Notice 701/21 and the definition of Investment gold, in particular:

(b) a gold coin minted after 1800 that is:

• of a purity of not less than 900 thousandths
• or has been, legal tender in its country of origin
• of a description of coin that is normally sold at a price that does not exceed 180 per cent of the open market value of the gold contained in the coin

I was wondering why 1800 was decided on as to whether a coin or could or couldn't be classed as investment gold? 

Can any of you help on this.

 

Thanks in advance.

[SilverJacks]

I'm guessing it's just a cut-off point to differentiate between investment gold and antique/numismatic gold. Along with 180% above spot, they just have to draw the line somewhere without leaving it open to subjective argument. 

Admittedly, that's just my guess. Happy to be corrected if there is more to it... 

[JonC]

1 hour ago, SilverJacks said:

I'm guessing it's just a cut-off point to differentiate between investment gold and antique/numismatic gold. Along with 180% above spot, they just have to draw the line somewhere without leaving it open to subjective argument. 

Admittedly, that's just my guess. Happy to be corrected if there is more to it... 

yeah, that was my guess. Although it does seem strange that they didn’t choose a year closer to the Recoinage of 1816. Unless there were other European coins that they wanted to classify as investment gold.