The Philharmonic gold coin
Country: Austria
Face Value: 1989 – 2001 = 2000 Schillings, 2002 – Present = 100 Euro
Gold Content: 1 ounce (31.104g)
Purity: 99.99% (24 karat)
Gross Weight: 31.105g
Coin Diameter: 37mm
First year of issue: 1989
The Austrian bullion coin is called the Philharmonic gold coin and was fist issued by the Austrian mint in Vienna in 1989.
The Philharmonic coin is 24 karat gold and has a current face value of 100 Euros although Philharmonic’s produced between 1989-2001 had a face value of 2000 Schillings. This coin had the highest value of any gold bullion coin when it was denominated in Schillings.
The coin started trading on 10th October 1989 and two versions were made available. The first version was a one-ounce coin and the second, a quarter ounce. Subsequently, newer versions were released in 1991 and 1994. These were one-tenth and a half ounce version respectively. When we compare these coins, we can see that they are identical except for the weight and face value displayed. Then in 2014, a one twenty-fifth ounce coin was also released with a face value of 4 euros at the time.
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According to the World Gold Council, the Austrian Philharmonic was the best selling gold coin worldwide in 1992, 1995 and 1996 and has proved a popular choice for those wishing to add 24 karat coins to their portfolio. True to its reputation as one of the best-selling coins of all time, 14 million Austrian Philharmonics were sold since its release in 1989 till 2012. This incredible number actually weighs around 329 tons of gold if put together.
The obverse displays the great organ in the Golden Hall in Vienna’s Musikverein, the concert hall of the Vienna Philharmonic Orchestra, date of issue, and face value in Euros (prior to 2002 in Schillings)
The reverse of the coin features a design of musical instruments representing the Vienna Philharmonic Orchestra, as well as the text Wiener Philharmoniker.
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The Vienna Philharmonic Gold Coin has certain amazing facts to its name that have been added over time. The 15th anniversary of the coin was commemorated by the Austrian Mint by issuing a 1,000-ounce version of the coin called the ‘Big Phil’ as a limited edition. This huge coin had a face value of 100,000 euros and only 15 of them were produced. The large coin packed 31.103 kg of .999 pure gold, making it one of the most valuable coins to be released. Contrary to expectations, however, the Austrian Mint commemorated the 20th anniversary of the coin by issuing a 20-ounce version of the coin. Nevertheless, this was well received by numismatists and investors alike. Recently, an invaluable Christmas tree has been unveiled in Japan made entirely out of 2017 issues of the Vienna Philharmonic Gold Coin. The entire tree is valued at approximately 2.3 million euros!
The Austrian Mint
The Austrian Mint has a long history, first appearing in records as early as 1371, at the time referred to as the Vienna Mint. Having gained importance as the country’s principal mint in 1715, it released one of the most famous coins ever issued, as early as 1741. This was a silver coin called the Maria Theresa Thaler, named after Maria Theresa, the Holy Roman Empress who ruled till 1780. Upon her death, these coins ceased issue. The Vienna Mint rose to prominence as the national mint of the country post World War 1, as Austria became a republic. It was only in 1989 that the name formally changed over to the ‘Austrian Mint’. Around the same time, it was incorporated as a public limited company, as a subsidiary of the country’s national bank. The Mint continues to be one of the most important issuers of gold and silver coins that enthrall collectors and investors around the world.
Buy coins
With several auctions throughout the year, London Coins hold some of the most noticeable events of the coin-buying calendar. Attended by both professional coin investors and amateur enthusiasts, the auctions are often not to be missed, as you can often buy coins which are rarely seen and certainly very rarely available for purchase.
The next London Coins event runs over two days on March 5th and March 6th 2016. To help those of you who may be attending or considering a purchase for the first time, weve taken a look at the catalogue and chosen some highlights, as well as looking back at some of the notable sales made at the December 2015 auctions.
Potential bidders should be aware that the price of auctioned coin lots can vary wildly. They often finish far above the estimate, as serious collectors speculate on pricing, or show willingness to pay more than the accepted market value for a lot they have been searching for for some time.
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For those of you wishing to buy coins as a numismatic investment, a safer bet can be semi-numismatic coins, which carry a premium due to their rarity and desirability, but can be purchased outside of auction, directly from Physical Gold.
These coins bridge the gap between brand new bullion coins and very rare collectors coins. For those seeking a gold investment but lacking the knowledge to buy numismatic coins, attending the sale can offer the perfect solution. Simply contact us here if youd like to find out more.
December Auction sales highlights
Half Pound Elizabeth I Sold for 11,000
One of the highlights of December’s auction (and one of the most expensive sales made), was lot 2065. A Half Pound Elizabeth I gold coin, marked as only the third time London Coins had ever sold this type of coin. Carrying Standard Reference S.2543, the last sale of this sort of coin was completed in 2013, for a price of 17,000.
A mixed lot can be a good way to enter into numismatic investments. Lot 1581 from December’s auction featured 16 assorted florins in their holders and sold for 380. Whilst lot 1582 featured 18 florins, and sold for 480. The quality of mixed lots can obviously vary, so careful inspection is required before taking the plunge.
March 2016 Highlights
Half Pound Elizabeth I Estimate 10,000 12,500
Like London buses, there’s another chance to own an Elizabeth I Half Pound for those who missed out on the one offered in December. The estimate places the coin at a similar value to the December sale, but it’s worth remembering that the 2013 sale was for significantly more than this (albeit that coin did have a more detailed history).
8 Escudos 1724 Estimate 18,000 20,000
The highest estimate in the March auction goes not to the Elizabeth I coin, but to this Portuguese gold 8 Escudos, which is considered extremely rare, to the point of being unpriced by the Krause coin catalogue. Considering the rarity, this could be a case where the estimate proves to be just that. With lots like this very rarely making it to auction, a determined collector may well pay above the suggested price.
The Finchampstead Collection Estimates vary by lot
Broken down into individual lots, this collection is noted by London Coins as carrying particularly coveted examples of Victorian copper coins. Indeed, the auctioneers note that at least half the collection is comprised of the finest known examples of the respective coins. Collected over 10 years, this perhaps demonstrates what a budding coin collector can aspire to!
Sixpences, threepences and small silver Estimate 500 600
As usual, there are a number of large bulk lots, but lot 1871 is one of the largest by volume, which has a reasonably well-priced estimate. As mentioned above, bulk lots can vary in quality, which will no doubt be the case here, but for speculative or new collectors, these can be an attractive way to buy coins.
The British Pound
If you’ve been reading the Physical Gold blog recently then you may already know that the Great British pound coin unfortunately features no actual gold whatsoever. However, did you know that when it was first introduced in 760, pound sterling coins were made of pure silver? In fact, it was only in 1946 that Britain stopped using silver to make coins, switching to the current alloy system. Those facts, and more, have been collated into this great infographic about the history of the British pound – from launch, right up to the present day creation and usage of our currency.
Physical Coins and Bars
The joy of owning physical gold coins and bars lies with the enjoyment of holding it in your own hands. The sheer weight of the gold, coupled with its unparalleled beauty, reinforces the knowledge and comfort of owning something of real value. With so many ‘paper assets’ becoming worthless overnight, the tangible nature of physical gold remains one of its most compelling selling points.
However, the one danger of keeping such a valuable asset in your possession is the threat of theft. So if you’re considering investing in gold, read on.
It seems that a particularly well-organised crime ring in the Greater Manchester area is well aware of this vulnerability. They also know that gold is synonymous with the Asian market where it has been bought and kept by Indians especially for many years. This tradition has clearly flowed over to British citizens of Asian origin, as this particular crime gang realised. They’ve been targeting Asian families in Manchester and Salford for their gold coins and bars.
Show me your gold
The gangs of men have been known to smash through patio doors with a brick to enter premises, fully clad in balaclavas and wielding machetes.
As well as demanding car keys, the thieves have asked: “Where’s the gold?” Some have even asked this question in Punjabi, suggesting that their knowledge of the gold’s existence stems from some of them being Asian themselves.
The spate of attacks has been particularly frequent in the Spring and Summer months, renowned as the Indian Wedding season when many Asian families purchase gold as wedding presents.
Clearly, the thefts have left many families feeling vulnerable and considering alternative places to store their gold.
Secure stores for gold
The whole point of owning physical gold is to have peace of mind that you possess something of real value. Therefore if you’re losing sleep over a safe place to store it, then it makes sense to pay for somewhere secure. And you don’t have to resort to storing the gold in your stomach as one man did in our recent blog.
If you’re lucky then you may already have a safe deposit box with your bank. Fees are low at around £30-40/year, but space is tight and access has to be arranged during banking hours. This will certainly remove the worry from your home although if robbers targeted the bank you wouldn’t be covered for loss unless you had your own insurance. Realistically these days, such facilities are difficult to find as high street banks have experienced a rise in demand for boxes, leaving little space for new safe deposit customers.
A similar alternative is to hire a 3rd party safe deposit box. A tiny box will set you back around £130/year but you will most likely have 24-hour access to the box. Unfortunately, these facilities aren’t on every street corner so you may have to travel to gain access to your gold.
Peace of mind
The safest option is to utilise specialist precious metals facilities as offered by gold dealers such as ourselves. It will cost you slightly more, but it includes insurance, handling and peace of mind that the gold is being stored by experts so your coins and bars will not tarnish. Be sure to check that your gold is being stored on an allocated, segregated basis. This basically means that you have real gold allocated up to the value of your purchase, rather than electronically, and that it’s ring-fenced from the storage company, gold dealer, and other investors.
If you do wish to take custody of your gold at home, ensure that you’re insurance company is aware of its value and that you’re covered for loss. We always use Royal Mail to deliver gold so it’s discrete for our customers. So if you want to buy gold bullion, ensure a large van doesn’t turn up to your house with Gold Bullion written on the side, otherwise, you can’t blame the thieves for targeting you!
New Britannia gold coin launch
In the past couple of weeks, we’ve seen the launch of the 2013 Gold Sovereign and Britannia gold coin from the Royal Mint.
While the new Sovereign coin is pretty much the same as recent issues, the latest Britannia gold coin represents an evolution. The Royal Mint has made the bold decision this year to produce their 1oz bullion coin in 24 carats for the first time. So why have they done this, and more importantly what are the consequences to UK gold investors?
Indications are that the Mint feels they can increase the global demand for their products by producing the 24-carat coin. There can be tax advantages in some countries for investors buying 24-carat gold rather than its diluted 22-carat version. Certainly, the Far Eastern market tends to demand pure gold, known as “4 nines gold” due to it being 99.99% pure, more than gold mixed with alloys. So undoubtedly there are advantages for the global market. But how will this change affect UK investors? Is it just as positive for us?
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Let’s first of all deal with the misconception that you somehow get more gold with a 24-carat coin. You don’t! Generally, a 24-carat gold coin will weigh around 31g whereas its 22-carat cousin may weigh closer to 34g. So in both coins, you will receive around 31g of pure gold, with an additional 3g of alloy in the 22-carat coin. So there is no advantage with regards to gold quantity in 24-carat coins.
Possible scratches
How about the way the two coins resist wear and tear? Hands down, the 22-carat coin is
preferable from a resilience perspective. If your 24-carat coin is encapsulated or packaged in a way whereby it won’t be handled, then this may not prove to be too much of a problem. But the whole joy of owning physical gold is that you can touch and feel it! Gold is a very soft metal, so in its pure state, it is susceptible to scratches and damage. Regardless of whether your coin purchase is for investment or collection purposes, you now own a damaged coin that is worthless. So while I see some argument for 24-carat coins for collectors, as an investment you want to receive as much liquid gold as possible for your money, which means not paying for packaging and protection. Moreover, you’ll want gold that maintains its integrity and fetches the highest price upon disposal.
This notion is supported by history and the majority of other bullion coins on the market. The fact that most gold coins are 22 carats suggests that this is the optimum mix for this type of gold investment. Certainly, the coin needs to be resilient due to its function as money. So in my mind, one of the reasons the Sovereign coin market is so deep is because coins of 100 years old are still in decent shape and desirable. Will the market for century-old 24-carat coins also prove successful? I don’t think so. The Royal Mint also seems to have lost focus on the original Britannia concept when it launched in 1987. After all, it was developed to piggyback on the success of the South African Krugerrand. This was and still is the most successful investment coin of all time. It was the first gold coin to possess exactly 1oz of gold. The Britannia if you like, was our version or copy of the Krugerrand. What is the purity of the Kruger? Well, 22 carats of course!
Will the new coin price differently to the old one?
One interesting development to keep an eye on over the coming months is that of pricing. There will now be around 25 year’s worth of 22-carat Britannias on the secondary market, mixed with the new 24 carat coins. So how will the two coins price against each other? I guess only time will tell. The new pure coin may trade at a slight premium. There’s always a demand for the latest version of a coin, and this one is 24 carat after all! I’m not sure I would want to pay an additional premium for investment purposes for the reasons of value discussed earlier. Alternatively, we may see the older coins trading at a discount as the market may perceive these as less desirable. If this is the case, I will be snapping those up all day long as supply is limited.
So while the brand new Britannia gold coin is beautiful and will no doubt prove a huge success for the Royal Mint in opening up global demand for UK coins, the jury is still out on whether it will be as well-received on UK shores. Still, along with Sovereign gold coins, the Britannia (excluding the silver version) remains VAT exempt and Capital Gains Tax-free for UK residents so it’s certainly not worth discounting yet!
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