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Gold Is Money, Everything Else Is Credit

Gold Is Money, Everything Else Is Credit

"Gold is money, everything else is credit", was stated by banker J.P. Morgan in his testimony before Congress in 1912. This statement alludes to paper currency circulating at the time which was in fact a promise to bear  

The aim of many gold coin buyers may be for investment purposes however collecting and owning a piece of history is also a key motivation. Gold coins are also easily tradable, which makes them a convenient form of investment. The potential increased volume of collectors in the market, in addition to regular investors, may well boost overall coin demand at a time when supply chains are still struggling to adjust to meet the demand for bullion products following the pandemic. British gold coins are also a very popular investment or store of wealth, they are VAT-free and CGT-free on sale, thus can be viewed as a wholly tax free investment. 

Gold, particularly gold coins are often viewed as a safe-haven asset that investors turn to during times of economic and political uncertainty. Some factors that could potentially impact the price of gold include:

  1. Global economic conditions: If the global economy experiences a downturn or recession, investors may turn to gold as a safe-haven asset, which could drive up demand and the price of gold.

  2. Inflation: Gold has historically been seen as a hedge against inflation, so if inflation levels rise in 2023, it could increase the demand for gold and its price.

  3. Geopolitical events: Political tensions, conflicts, and other geopolitical events can cause investors to seek out safe-haven assets like gold, which again, could drive up its price.

  4. Supply and demand: The supply and demand dynamics of gold can also impact its price. If the supply of gold decreases while demand remains constant, its price will also increase.

Ultimately, it is difficult to predict these factors will play out in 2023 and how they will specifically impact the price of gold. What we have witnessed following the conflict in Ukraine, rising inflation and lowest ever bank interest rates is the price of gold rising by 14% just from the four month period of November 2022 to February 2023. 

Gold coins have been popular in the UK for many reasons, including their historical significance and their value as a reliable investment. The UK has a long history of producing high-quality gold coins, such as the Sovereign and the Britannia, which are sought after by collectors and investors alike. Gold coins have played an important role in the UK's monetary history, dating back to when gold was used as currency. The first gold sovereigns were minted during the reign of King Henry VII in the late 15th century, and since then gold coins have been produced consistently by the Royal Mint. 

The Sovereign, as we know it today was introduced in 1817, is one of the most popular gold coins in the UK. It features an image of the reigning monarch on the obverse and the iconic St. George slaying a dragon on the reverse. The coin's weight and purity remain unchanged to this day, over 200 years after its introduction. 

Another popular gold coin in the UK is the Britannia, which was first introduced in 1987. The coin features an image of Britannia, a symbol of British strength and resilience, on one side and the reigning monarch on the other. The Britannia coin is known for its high purity and is a popular choice for collectors and investors who are looking for a reliable store of value.

Coins in particular are also popular for reasons including:

  1. Historical significance: Coins offer a glimpse into the history and culture. Collectors are often fascinated by the stories behind the coins and the events they commemorate.

  2. Rarity: Some coins are rare, making them highly valuable. Collectors may be interested in acquiring these coins for investment purposes or to add to their collection.

  3. Aesthetics: Coins can be beautiful works of art, with intricate designs and engravings. Collectors may appreciate the aesthetic qualities of coins and enjoy displaying them.

  4. Hobby: Coin collecting can be a fun and engaging hobby that provides a sense of accomplishment and satisfaction. It can also be a social activity, with collectors trading or discussing their collections with others who share their interests.

Overall, coin collecting can be a multifaceted and engaging pursuit that offers a wealth of benefits. They are a tangible and stable asset that can provide a hedge against economic uncertainty, making them a popular choice for both investors and collectors alike. Whether motivated by their value as an investment, the historical significance of coins, the challenge of acquiring rare pieces, or the beauty and craftsmanship of the designs, investors and collectors can find many reasons to pursue their passion. 

Bath Spa Capital offers a number of gold coinage solutions for both investors and collectors alike. As mentioned above, these coins are incredibly popular due being VAT free and capital gains tax exempt. They are also encapsulated in holders from the world’s leading third-party grading companies so you can be confident that your coins are not only genuine but also have an accurate and guaranteed assessment of their condition by an industry leading professional. Click HERE to view our extensive offering of gold coinage. 

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