A Hatton Garden-based gold coin broker has reported a huge surge of investment in royal-themed gold coins since the final season of The Crown was aired on TV.
Aurum Bullion Plc has revealed that canny investors in Surrey account for a quarter of its total UK sales of coins relating to the British Royal Family in the month since the finale of the popular drama series was released.
In total, Aurum Bullion has sold £2.97m worth of royal-themed minted gold coins in the ensuing one-month period, more than £750k of which was spent by investors in Surrey.
The figure compares with just £798k in sales during the same period last year, which the company puts down to The Crown and a growing interest in Royal Family memorabilia.
Similar spikes were seen after the death of The Queen in September 2022, during her Diamond and Platinum Jubilees and following the Coronation of King Charles in May last year. But none of those spikes was as big as the one witnessed since The Crown’s final season.
Gregory Cole, founder and director of Aurum Bullion, said: “There is definitely a deep and ongoing affection for the British Royal Family which has spilled over into the gold coin collectors’ market.
“The fact The Crown TV series coincided with the run-up to Christmas and the purchasing of Christmas lasting gifts could explain some of the huge increase in investments, though sales over this Christmas period particularly have been exceptional.
“It is not totally surprising that Surrey has come so far ahead of everywhere else in the UK in terms of royal-themed coin purchases. It has one of the wealthiest demographics, and many residents in Surrey will already be pretty astute investors, a lot of them having worked in London’s financial markets.
“The older average age bracket in Surrey may also suggest that canny investors are spending their wealth on safe investment heirlooms for their children and grandchildren.
“Gold remains one of the most secure investment commodities and, similar to investment in art, collectible cars and watches, some of these gold coins are seeing significant increases in value, far outstripping returns on cash investments.”
Aurum Bullion’s most popular royal-themed products currently are a 2023 Coronation of King Charles III Gold Proof Sovereign and a 2006 Queen Elizabeth II Birthday Gold Proof Coin (Grade PF70). The term ‘Proof’ means their provenance has been certified as being in mint condition, complete with a protective, tamper-proof display pouch.
To illustrate the investment potential of collectible gold coins, the aforementioned Queen Elizabeth II Birthday coin cost £1,450 when it was released in 2006. Its current price is £5,600 – representing a 386 per cent return on investment in less than 18 years.
Similarly, the release price of a four-coin set celebrating Queen Elizabeth II’s Diamond Jubilee was £8,250 in 2012. It is now worth around £22k.
And an ultra-rare royal-themed Kew Gardens 50 pence coin that sold in 2009 for £550 was recently sold at auction for £6.8k pre-hammer, representing a return on investment of over 1,200 per cent.
“The royal coins are eminently collectible,” said Gregory. “They never seem to go out of fashion – in fact they are becoming more and more popular, especially in some of our overseas markets like China, the US and Dubai.
“The increase in investment in the gold coin market suggests that people have definitely become more informed in ways of getting a better return on their money. Another significant benefit is that any gains made on gold coin investments are exempt from capital gains tax, inheritance tax and VAT.
“Many of our clients have also indicated they’ve been forced to be more creative with their investments due to big rises in the cost of living combined with the fact that their other assets have been underperforming.”
While Surrey has claimed the top spot overall in terms of the purchase of royal-themed coins, investment with Aurum Bullion from residents in the Cotswolds has grown by 12.5 per cent during 2023, London is up by 34.6 per cent and, perhaps surprisingly, Sheffield has seen an increase of 22 per cent.
Anyone interested in the growing trend of gold coin investment should take advice to ensure they are buying from a reputable source. The safest routes to investment are typically direct with the Royal Mint, and at registered auction houses or certified dealers like Aurum Bullion Plc.
For further information, visit www.aurumbullion.co.uk.