Queen Elizabeth’s Death Driving Gold and Silver Sales

Most people alive today have only known one English monarch, Queen Elizabeth II. The longest-reigning monarch in British history, and the second-longest reigning monarch in world history (behind Louis XIV of France), Queen Elizabeth provided an anchor of stability in a world that otherwise experienced significant turmoil and change over the past several decades.

She was without a doubt the most popular living member of the Royal Family, and her death will undoubtedly hit many people hard, especially her subjects. But it will also likely drive a small industry devoted to producing mementos and collectibles celebrating her life.

Among the most tangible artifacts of Queen Elizabeth’s reign are the many coins bearing her image that remain either in circulation or in the holdings of collectors and investors. As the head of state of over a dozen nations, billions of coins have been produced bearing her effigy.

There are already indications that sales of gold and silver coins bearing her effigy are starting to increase, as investors and collectors are rushing to snap up the last coins bearing her image. But will the QE2 effect be as strong as the JFK effect?

The JFK Effect

President John F. Kennedy was a beloved President, and his assassination in 1963 plunged our nation into mourning. To honor him, the US half dollar coin, which bore the image of Benjamin Franklin on its obverse from 1949 to 1963, was changed in 1964 to bear an image of JFK.

The coins were immediately snapped up by citizens longing for a memento of their beloved President, and relatively few actually made it into circulation. The issuance of these coins, which contained 90% silver, also came at a time when silver prices were rising so much that the silver value of circulating silver coinage was periodically higher than the face value of the coins themselves.

Coin shortages had already afflicted the US in the early 1960s, and the minting of the JFK half dollars only exacerbated that, as the coins began to be hoarded. The situation became so bad that Congress had to pass the Coinage Act of 1965, which replaced silver circulating coinage with cupronickel coinage.

Even though 1964-dated silver coinage was minted after 1964 and intended to circulate side by side with the new cupronickel coinage, the inevitable and predictable result was that silver coinage soon disappeared from circulation. And the half dollar coin, which had been the workhorse of American commerce for decades, largely disappeared from circulation and never again regained its position as a coin in regular use.

Will There Be a QE2 Effect?

There probably won’t be too much danger of circulating base coinage bearing Queen Elizabeth’s image disappearing from circulation anytime soon, as so many have been produced. But once an image of Charles III is produced, and coins bearing his image begin to be minted, the Queen Elizabeth coins will undoubtedly slowly drop out of circulation.

The situation could be quite different for bullion coins bearing Queen Elizabeth’s image, of which there are also many. Many of the mints whose coins Goldco offers for sale are located in Commonwealth countries or use Queen Elizabeth’s effigy for their coins. Once supplies of these coins run out, they won’t be minted again.

There will only be a limited amount of time for investors to purchase bullion coins bearing Queen Elizabeth’s image, as King Charles’ image will eventually replace hers. Like Queen Victoria before her, Queen Elizabeth’s image on coinage changed over the years.

There are five different Queen Elizabeth effigies that have been featured on UK coinage over the decades, with different bullion coins featuring different versions of the effigies. Perhaps the best known UK bullion coin is the gold sovereign, which has been issued since 1817. Unfortunately for investors, these gold coins are not eligible for investment through a gold IRA, as they don’t contain the minimum necessary gold content required for a gold IRA to hold them.

But Goldco offers numerous gold and silver bullion coins from our mint partners that are IRA-eligible and that contain Queen Elizabeth’s effigy. Supplies of these coins are always limited, and shortages of physical gold and silver coins have already affected the precious metals industry as consumer demand for gold and silver has boomed in recent years. And as more people try to get their hands on coins of Queen Elizabeth, supplies of these coins could be depleted even quicker.

Supply Shortages of Gold and Silver

Demand for gold and silver coins has grown so much that the entire precious metals industry has suffered from shortages of physical gold and silver coinage in recent months. Purchases that used to be consummated in a matter of days now can take weeks, since physical supply is now a principal bottleneck.

Goldco has positioned itself better than some competitors by dealing directly with mints rather than going through wholesalers, allowing us to guarantee authenticity of your coins, receive guaranteed supplies, and get you your coins quicker. But if Queen Elizabeth’s death boosts demand for coins with her image, there’s no telling when the supply of these coins could run out.

If you’ve been thinking about buying gold and silver but have been on the fence, now may be the time to do it. Consumers have long been accustomed to being able to buy what they want, when they want it. Precious metals investors have expected the same. But that’s not always going to be the case.

If demand for Queen Elizabeth gold and silver bullion coins continues to grow, it could exacerbate the supply shortages that already exist. And those who waited too long to buy gold and silver coins could find that there aren’t any available when they finally decide to buy gold and silver.

Whether you want to buy coins with Queen Elizabeth’s image, or would prefer to stock up on American favorites like the American Gold Eagle and American Silver Eagle, Goldco’s representatives can help you find the coins you want. And with over $1 billion in successful precious metals placements, we’ve helped thousands of satisfied customers protect their savings with gold and silver.

Don’t wait until it’s too late to get your hands on the gold and silver coins you’ve always wanted. Call Goldco today to learn more about all the gold and silver options available to you.