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Commemorative coins released by The Royal Mint to honor pop star George Michael may be good collector’s items for fans, but should not be treated as investments, coin experts warn.
On Monday, The Royal Mint released collectible coins honoring the former Wham! star, who died at the age of 53 in 2016.
The coins are part of a Music Legends series, which previously paid tribute to David Bowie, Elton John and Queen.
George Michael’s selection starts with a collectible £5 coin that costs £15.50 and goes up to a two-ounce gold piece that will set you back £5,305.
But while fans may be tempted to snap up a collectible memorabilia of the singer-songwriter, dealers warn that money could be lost on the coins.
Out of Touch: The value of most Royal Mint Music Legends series coins are now typically worth less than when they were first released.
Coins that have made you lose money
The value of most Music Legends series coins is now typically lower than when they were first released.
A boxed 2020 Elton John half-ounce proof silver coin that originally sold for £65 at The Royal Mint can be purchased from dealers such as Crawley Coins for £50.
A 2020 half-ounce silver case-proof Queen coin that sold for £65 at The Royal Mint can now be purchased for £45.
Even the most sought-after pieces, such as a 2020 two-ounce silver David Bowie (limited to 550 coins) that originally sold for £195, can now be purchased with its original box from dealers such as Britannia Coin Company for £150. the box sells for less than £100.
Gregory Edmund, coin specialist at dealer Spink, says: “While George Michael is undoubtedly one of our greatest musicians, this does not necessarily translate into the value of his commemorative coins.”
Don’t be fooled by all the fancy packaging and cultural icons: these coins are little more than gimmicks. They have no real influence in the world of professional coin collecting, known as numismatics.
“And while this should not stop fans from enjoying these memorabilia, in many cases the coins may not be worth more than their face value or precious metal content.”
Edmund suggests that those considering purchasing these types of coins should opt for lower denomination ones, so that if they lose value they will lose less money.
“Lower value coins can also be easier to market because they are more affordable for collectors,” he adds.
For example, if you buy a George Michael £5 coin for £15.50, it means that, in the worst case scenario, you will only have to pay £10.50 out of pocket.
Rocket Man: Elton John coins were originally sold for £65 but can now be purchased from dealers such as Crawley Coins for £50
However, if you buy a two-ounce piece of gold for £5,305, if in the worst case it ends up being worth no more than the value of the gold that makes it up (currently £3,204), you could be up to £2,101 worse off. off.
Coins are more likely to hold their value if their theme remains popular with collectors for years to come and if they are scarce. Edmund suggests that buyers consider how collectors’ tastes might change.
“Ask yourself how popular George Michael will be in 70 years,” he says. “I think it is unlikely that he will be remembered as fondly as he is today.”
He adds that a commemorative five shilling note issued to commemorate the wartime death of Prime Minister Winston Churchill was very popular when it was issued in 1965. But there was just one problem: a whopping 19 million were minted.
“Everyone loved it at the time and thought it was a great buy, but now, almost 70 years later, they could sell for around 25p,” says Edmund.
A more recent example is the Royal Mint’s Completer Medallion, issued for the London Olympics in 2012. A total of 29 Olympic-themed 50p coins were put into circulation.
Fans who collected all 29 were encouraged to purchase the Completer Medallion, a souvenir in coin form, to celebrate the fact that they had the complete collection. At that time it could cost £196. But today, even with the original packaging, it only costs £80.
Coins that have risen in value
But not all commemorative coins are a bad investment.
Dominic Chorney, an expert at coin specialist AH Baldwin & Sons, says: “The Royal Mint’s commemorations can provide an affordable introduction to coin collecting and can sometimes increase in value if you are lucky.”
Chorney points to the 15,000 colored Peter Rabbit 50p coins released by The Royal Mint in 2016 to mark the 150th anniversary of author Beatrix Potter’s birth.
They were originally sold in a presentation pack for £55 and now change hands for £350 or more. The coins should not be confused with the standard colorless Peter Rabbit 50p coins which can sell for little more than their face value.
Bunny Money: Peter Rabbit 50p coins were originally sold in a presentation pack for £55 and now change hands for £350. Kew Gardens Pagoda 50p entered normal circulation
Another recent success is a 50p piece released in 2009 to commemorate the 250th anniversary of Kew Gardens, which featured the image of a pagoda.
Unlike the Music Legends and Peter Rabbit commemorative coins, which were put on sale, the Kew Gardens Pagoda 50p went into normal circulation.
Therefore, they may appear from time to time on loose coins, and are traded by collectors who find them. The reason for its value is its scarcity.
Chorney says: ‘If you have one of the 50p coins in better condition, it could be worth £300. Only a couple of years after they came into circulation, people discovered that only 210,000 had been minted, and this increased their value.’
Real coins hold their value better
To address fickle changes in fashion, numismatists are often most interested in commemorative coins related to the Royal Family, as they have a history and fan base that continues to capture each new generation.
One of the most sought after is a 1989 gold sovereign released to commemorate the 500th anniversary of the first incarnation of this historic coin. A standard gold sovereign is valued at almost £400, but if you own one of these pieces from 1989, it can sell for £2,100.
Holy money is also a highly sought after commemorative coin. Traditionally, the monarch gives this money to about a hundred people in a special ceremony held on Maundy Thursday, to mark the day on which Christians believe that Jesus Christ washed the disciples’ feet before the Last Supper.
This year, Maundy Thursday falls on March 28 and fears for the health of King Charles III are expected to increase the appeal of the collections. The coins are traditionally made of sterling silver and are issued in a set: a four-cent piece, a three-cent piece, a two-cent piece, and a penny piece.
In 2002, Maundy coin was minted in gold to commemorate the golden jubilee of Queen Elizabeth II.
A set of 13 coins, including Maundy gold coins plus 1p, 2p, 5p, 10p, 20p, 50p, £1, £2 and £5 coins, could be purchased at the time for £2,700. It can now sell for £14,000.
Rebecca Morgan, head of commemorative coins at The Royal Mint, says: ‘We cannot comment on investment values. Ultimately, a coin is worth what a collector is willing to pay for it.
But before committing to a price, you should also consider the condition of the piece, its design, the mintage figure and what the coin is actually made of.’
What to keep in mind if you buy
Condition
Gregory Edmund says: ‘Despite having a display case that might look good, collectors are usually much more interested in its condition.
They may also want their coins to be professionally graded and coated in plastic to ensure they are not damaged, in a process known as slabbing.’
The slab process can cost £45 and is carried out by a company such as Numismatic Guaranty Company.
Only coins graded ’70’ (considered new or proof) are worth collecting for modern commemorations.
Test coins
A proof coin is one that has been struck with a highly polished die.
It should have a sharper mirror-like surface compared to other coins that have been put into circulation and have a higher value.
toby.walne@dailymail.co.uk
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