Gold and Silver Coins Bearing the English Queen or King Grow Unpopular in the US

Queen's Beast Lion of England 1 oz. 24kt Gold, the inaugural edition of the Queen’s Beast series from the Royal Mint on May 16, 2020. FairMarketValue Gold/ Courtesy of PCGS Photograde

The American market’s infatuation with British Commonwealth coins seems to be waning, and it appears our neighbors to the north might be following suit. While Canadians once held a relatively warm sentiment toward Queen Elizabeth II, the reception of the current monarch, King Charles III, is becoming increasingly problematic, as indicated by a survey from the Angus Reid Institute.

Whether this sentiment will improve over time remains speculative. However, the pressing issue lies with the effigy of King Charles, set to debut on the Royal Canadian Mint coins this May, which is causing concern among numismatic collectors. The worry is that negative perceptions of the king might lead to decreased demand for these coins and, crucially, to a reduction in their premiums.

The Canadian Conundrum

According to the survey, most Canadians prefer not to think of King Charles as their head of state. Moreover, there’s a considerable number of Canadians opposing his image on currency, especially on coveted gold coins minted by the Royal Canadian Mint.

Fears of negative political sentiment affecting investment have happened before. Think of the Freedom Convoy debacle. In short, Prime Minister Justin Trudeau’s use of the Emergency Act was seen as blatant government overreach violating Canadians’ civil rights. Mr. Trudeau froze protesters’ bank accounts, prohibited public assembly, forced truckers and other workers to provide services, exercised government’s power to take control of property and movement, and broadly increased police powers to force citizens to comply with Trudeau’s policies. There’s no surprise that many detractors compared Mr. Trudeau to Fidel Castro.

Mr. Trudeau’s actions raised serious concerns about Canada’s reliability as a trade partner, potentially having a detrimental impact on its investment climate. It also raised concerns about the value of Canadian Royal Mint coin premiums. Fortunately, the potential disaster resulting from the intense but short-lived event was ultimately averted, causing only minor disruptions. Canadian investments soon resumed, indicating resilience in the market.

How Can King Charles’s Effigy Sink UK, Royal Canadian Mint Premiums?

The effigy of King Charles is a significant and long-term consideration. As the head of the British royal family, King Charles’s representation carries considerable weight. Recent scandals involving the royal family—ranging from connections to sex trafficking through Jeffrey Epstein and Prince Andrew to allegations of racism highlighted by Harry and Meghan, the Duke and Duchess of Sussex—might dissuade numismatic collectors, especially when there are other coins that offer a more compelling, dependable, and uncontroversial alternative.

It is important to remember that numismatic coins are treasured not only for their intrinsic metal value but also for their historical significance and aesthetic value. An effigy of a monarch who is not as revered by the public could potentially see such coins trading at lower premiums. This would affect both collectors and investors. For instance, consider the Krugerrand: the fraught historical legacy of South African President Paul Kruger (served 1893–1900) has arguably prevented the coin’s value from appreciating significantly above the spot price historically.

The Alternative: American Gold Eagle Coins

In light of recent events, numismatic collectors anticipate a significant shift—that the Royal Mint may be overshadowed and demand for coins bearing King Charles’s effigy could wane or even be excluded from a balanced investment portfolio. Consequently, many are turning their attention to American Gold Eagles.

Why American Gold Eagle coins? The market for these coins, especially the $5 denomination representing 1/10 ounce of pure gold, is robust, with premiums reaching up to 12.5 percent above the acquisition cost. This indicates a strong market appetite and potential for growth, highlighting their investment appeal in comparison to other gold coins.

Consider their status. In 1985, the U.S. Congress designated the American Gold Eagle as a numismatic item, differentiating it from other investment assets and enhancing its appeal. In addition, these coins benefit from exemption from Form 1099 reporting upon liquidation, flying well under the radar of the Internal Revenue Service. Please note, we are not tax advisors—consult with your CPA before selling anything, and refer to Investopedia for further insights on how this may impact your specific tax situation.

Another key feature is that the coins are minted by the U.S. Treasury, not the Federal Reserve, appealing to those seeking financial independence from central bank systems. This detail is particularly attractive given the impending expansion of monetary surveillance with the Fed’s introduction of central bank digital currencies (CBDCs).

Besides their tax reporting benefits and independence from the Fed, American Gold Eagle coins are highly liquid and globally recognized, giving them a practical edge. They can be likened to the Swiss Army knife in your investment toolkit—versatile and indispensable. These coins not only hedge against inflation but also can be easily converted to currency without the need for specialized dealers due to their wide recognition. Check our map for dealers in your area that hold a fond appreciation for the American Eagle in its various forms.

A Timely Opportunity

In light of current market dynamics, which include royal family stressors, Canadian sentiment, and American Gold Eagle prices, there appears to be a timely opportunity for investors with Royal Mint coins to consider rebalancing their portfolios by transitioning to American Eagles.

Moreover, incorporating American Gold Eagle coins into one’s portfolio aligns with prevailing market trends while enhancing the resilience and liquidity of one’s investments. It’s not just about keeping pace with the trend in demand but also ensuring your investments thrive and endure amid the uncertainty and volatility in the numismatic coin market.

So, why stick with the Royal Mint when American Gold Eagles can define the game with greater reliability? Perhaps it’s time to consider a pivot. After all, in the world of investments, the market punishes the least robust. And based on current Canadian sentiment, King Charles III’s effigy doesn’t quite represent the strength needed to sustain a coin’s value in a numismatic market.

As active members of the National Coin and Bullion Association, Fair Market Value Gold aims to help Americans track the value of their coins in real-time—whether they bear the image of the Queen, King, crocodile, or polar bear—https://FairMarketValue.gold.

Fair Market Value Gold designs custom dashboards allowing individuals to set price alerts and track the highest buy-back prices for positions from their extensive dealer network across the United States. To secure a complimentary 1-month membership use the promo code “EPOCH.” Alternatively, call 866-806-9475, and mention “EPOCH.”