Silver £20 coins, face value £20, cost £20

[H22observer]

New PH member here.

This will be my first post, so please be gentle.

I don't usually buy anything from the Royal Mint but i decided to make an exception for this :


http://www.royalmint.com/shop/UK_2013_20_pound_for...

Basically, the coin has a silver content of half an ounce and a face value of £20. I know that this type of thing might not be for everybody, but it might appeal to precious metals investors or coin collectors who want a risk-free investment. I know that there are a few of you out there.

[chr15b]

http://www.pistonheads.com/gassing/topic.asp?h=0&a...

[H22observer]

Thankyou sir .

[Simpo Two]

Well a quick investigation appears to have the priuce of silver at £14.40/oz. So the £20 coin contains silver to the value of £7.20.

Swap £20 for £7.20? Not biting!

[B17NNS]

To be fair though you'll really struggle to buy one ounce of .999 silver for anything like that.

http://www.bullionbypost.co.uk/silver-coins/1oz-be...

oh, and...

http://www.youtube.com/watch?v=5Z3OKE_Os1M

Edited by B17NNS on Wednesday 11th September 21:05

[ringram]

Just goes to show how many lifeforms get ripped off then doesn't it?

How much does it cost to buy a £50 note?
Whats its intrinsic value?

Sure one day the silver will be worth more than the face value. But AFAIK you cant melt down coins. Its illegal.

Under Section 10 of the 1971 Coinage Act, to 'melt down or break up any metal coin' is a criminal offence.

Therefore you are guaranteed to lose money. Why would you do this?

[Simpo Two]

So as well as not being on the Gold Standard we are not even on the Silver Standard!

I wonder what standard we are on? Polystyrene perhaps!

[ringram]

It's called Faith.

[H22observer]

As far as i'm aware, it is legal tender. Sure, your local corner shop will tell you to jog on if you attempt to buy a pint of milk with it, but what about filling up your car with fuel at a Shell garage?

You would be offering to settle a debt with legal tender. Can they refuse?
Will they inform the police that you have filled your tank and are attempting to pay with a coin that claims to be worth £20 & has a picture of the queen on it?

I may be wrong, but My understanding of "Legal Tender" is that these coins are the equivalent of paying with scottish money. They might not want it, but they have to take it.

[Mr Noble]

As crazy as it sounds, these are not going to be accepted by shops or banks as legal tender.

What the Royal Mint declares as "legal tender" doesn't tie up with what the Bank of England approves.

You currently find quite a few banks and shops who do not accept the £5 coin and certainly not all of the "commemorative" £5 coins.

I suspect these new £20 coins will be the same, and once they've all been sold, they'll be hundreds on eBay for about £8 each.


Just my 2p.

[Mr Noble]

http://www.royalmint.com/aboutus/policies-and-guid...


Bit about it here. (Well the £5 coins at least)


Seems that the Post Office currently accepts them as payment, but banks don't have to, which kind of proves that they're NOT legal tender.

[H22observer]

Those of us who have purchased these coins are protected by the distance selling regulations.

'The Distance Selling Regulations state that your right to cancel an order starts the moment you place your order and doesn’t end until seven working days from the day after you receive your goods'

These coins won't delivered until November, so nobody has been "ripped off" just yet.

[ringram]

A 180* turn within 24hrs.

A win for the PH massif

[Simpo Two]

H22observer said:

These coins won't delivered until November, so nobody has been "ripped off" just yet.

No, but it would be fairer if the sales blurb said 'Buy £7.20-worth of silver for £20' rather than waxing lyrical with assorted BS. Generally BS and value are inversely proportional - the more you have to hype something up, the worse it probably is.

[H22observer]

half an ounce of silver does not cost £7.20 retail. that's a complete exaggeration to emphasise a point that is already obvious. it is impossible for a normal person to buy silver for spot price in physical form.

that's like saying that you can buy a barrel of crude oil and get it delivered to your front door for $108.

[Simpo Two]

Well carry on sir, and report your profit if you ever make one

[fluffnik]

H22observer said:

half an ounce of silver does not cost £7.20 retail. that's a complete exaggeration to emphasise a point that is already obvious. it is impossible for a normal person to buy silver for spot price in physical form.

I bought some silver sheet and wire for a jewellery making girlfriend for IIRC spot +3%, retail, as in I walked into a metal merchant and paid cash for a small bag of silver.

It was not unlike buying a quarter of sweeties.

[TOM500]

Hi, I'm now looking for a single ticket for tomorrow if any one has one? I am in central london tonight and will be in Chichester 1st thing tomorrow morning (A third person has joined our party). If you can help I'm on 07966 562 883 and am aiming to be at the track around 10am.

[Simpo Two]

TOM500 said:

Hi, I'm now looking for a single ticket for tomorrow if any one has one? I am in central london tonight and will be in Chichester 1st thing tomorrow morning (A third person has joined our party). If you can help I'm on 07966 562 883 and am aiming to be at the track around 10am.

Well one thng's for sure; you're on the wrong track at present!

[Elderly]

Simpo Two said:

Well one thng's for sure; you're on the wrong track at present!

Maybe not ....... he probably wants to pay for the ticket with £20 coins