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Will 1oz Gold Coins Become Redundant The Future Of The Britannia & Gold Coins In Question

By BackyardBullion, 01/09/23
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Will 1oz Gold Coins Become Redundant The Future Of The Britannia & Gold Coins In Question

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I wholeheartedly agree with the security features and how good the "humble" Britannia is. Take away the milk spots on silver Brits and they would be amazing coins

As for shrinkflation and 1oz gold being too big, hmm, I disagree. I don't like small gold coins, you can't see the fine detail without stressing your eyeballs. For me a sov or 1/4oz is as small as I go, you've just said the same yourself as I type

If you're talking about £2,000/oz gold and unaffordability, well, that would apply to everything in the economy, right? What about numismatics? Over the last decade gold (-0.53% per annum) and silver (-4.89%/annum) have not outperformed inflation. Gold and silver should be more expensive today and it's likely both will revert to normal (mean reversion) over the next decade to reflect price action over the last century or at least since 1971 - i.e. gold and silver will increase in value faster than inflation, especially in a tightening monetary environment

Screenshot2023-08-23121110.thumb.png.5027429d65d33aa6f908757b456a072b.png

That would make 1oz gold (or numismatics) more unaffordable but the relative unaffordability (assuming mean reversion) will only be 2-5%/annum above inflation. If we keep getting poorer then yes, over multiple decades gold will keep getting more and more unaffordable for the masses but there's a caveat - the masses do NOT buy physical gold and silver in the UK. Less than 1% of the population hold physical gold. Silver (assuming mean reversion) will accelerate in price faster than gold over the next 10-20 years but regardless, if you're talking about a luxury item (gold) that is bought by < 1% of the population and that is heavily weighted towards middle, upper-middle and upper-class households/institutions, then marginal price gains in gold relative to inflation would be meaningless to a significant portion of the population that currently own significant gold holdings

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