What is the premium on the purchase of a gold coin ?

You need to know the intrinsic value and price of gold before calculating the premium for your gold coin or gold bar. You then obtain the price based on the weight of your object, but it is not its final selling price! To this must be added the premium, which corresponds to the difference between the sales value and the price per weight. However, even with this information, your premium may vary due to the following:

• Manufacturing: gold ingot is more difficult to manufacture than ingot weighing several kilograms. This difficulty requires precision and know-how that only a few manufacturers possess;
• The state of conservation: a piece kept in a safe place, without having been handled or still under original protection will have a higher premium. Conversely, if it is in poor condition, the price of gold is higher than the value. Therefore, you will experience a high negative premium. It is better to leave the room as it is than to clean it with unsuitable products. You could permanently damage the color and details ;
• Speculation: significant demand for gold can significantly increase the premium linked to your product;
• Rarity: a reputable manufacturer, a limited edition, a particular history, are all parameters which can increase the premium.

Thus, the more the difference between the price per weight and the price of gold decreases, the lower the premium. In case of purchase or sale, you must also pay attention to:

• The basic premium: average of the premium over a given period;
• The premium differential: difference between the highest premium and the average recorded.

This differential allows you to estimate the leverage effect you can have by acquiring a gold coin. In the event of purchase and sale, you then obtain a capital gain, subject to applicable taxes.

The premium makes it possible to determine a selling price but for this, the seller must know the intrinsic value of the product. It is obtained as follows:

Price per gram of gold x weight of gold contained in the product

Once the intrinsic value is known, you can apply the following scheme to obtain the premium of your coin or bar:

Price of the coin – gold value of the coin

For example, if the market price of the coin is 300 euros while it only contains 275 euros of fine gold, the price difference (25 euros) constitutes the premium. Generally, this bonus is expressed as a percentage using the method:

[(Price of the coin – gold value of the coin) / gold value of the coin] x 100

Let’s take our example again:

[(300 – 275) / 275] x 100 = 9.09%

Your premium is then 25 euros, or 9.09%.

In other cases, gold coins are not investments. If the premium exceeds 80%, the piece is called “collectible”. Taxation is different.

In addition, the sale and purchase of investment gold coins are not subject to VAT. Regarding taxes on capital gains, they are degressive from the 3e year of ownership. From the age of 22, you are exempt.

Gold coins can be sought after for their symbolic and historical value or for their rarity. Gold coins are considered an investment if they meet these criteria:

• They contain more than 90% pure gold;
• The date of manufacture is greater than 1800;
• The premium must not exceed 80%.

The most sought-after French gold coins

The two best-known gold coins for investment are the 20 francs gold Napoleon III and the 20 francs gold Rooster. The differential on the Napoleon III coin is around 30%, but in the past the premium has been as high as 50%.

The Marianne Coq gold coins were minted until 1914. You can come across copies dating from 1915. It is important to know as much information as possible about gold coins before investing, otherwise you risk acquiring a coin in poor condition or a real gold copy.

Other gold coins were struck in series, including the Cérès and the Génies III e République. You can easily find them and their premium is relatively low. This is an opportunity to invest in products which, in the event of a crisis, may see their premiums increase.

The most sought-after international gold coins

In France and abroad, investors are looking for:

• Canadian Maple Leaf;
• American Gold Eagle ;
• Dinar Umayyad;
• Liberty 20 dollars;
• 50 Mexican Pesos: zero premium but good upside potential;
• British gold coins: George V, Elizabeth II;
• The Chinese panda.

The rarity, reputation of the founders and their heritage values ​​make them popular investment products. However, if you want to invest in precious metals for the first time, you can look into new gold coins.

At Gold Union, we offer you a wide choice of gold pieces. Our experts and professionals support you in the acquisition and sale of your gold coins. Make an appointment now at an agency or request an advisor via our e-commerce site!