1 oz Gold Coin | Slightly damaged

A full ounce of gold, in imperfect condition

This is a one troy ounce gold bullion coin that carries visible marks: scratches, rubbing, small dents, or a damaged capsule. None of that changes what it is made of. The coin still holds a full ounce of fine gold at its stated fineness.

It is priced below an equivalent coin in mint condition, and that is the entire proposition. If you are buying gold for the metal, this is the cheaper way to do it. If you are buying a coin to give or to keep as an object, it is not.

Specifications

Which coin you will receive

It depends on what is in stock. It may be a Krugerrand, a Vienna Philharmonic, a Maple Leaf, a Britannia or another one ounce bullion coin. The specific coin cannot be chosen.

One point worth understanding: a Krugerrand is 22 carat, so it holds a full ounce of fine gold in a coin weighing 33.93 g in total. A Philharmonic, Maple Leaf or Britannia is 999.9 fine and weighs 31.10 g. Either way you receive one troy ounce of gold.

What damage does and does not do

It does not change the mass of gold in the coin in any way that matters. Handling marks remove a negligible amount of metal, and none at all if the coin was only scratched inside its capsule.

It does affect resale. A dealer buying back a marked coin will normally pay a bullion price rather than a premium, so the discount you gain on purchase is broadly the discount you concede on sale. That is a fair trade on a long hold and a poor one on a short one.

VAT and UK capital gains tax

HMRC treats a coin minted after 1800 as investment gold if it is at least 900 thousandths fine, is or has been legal tender in its country of origin, and normally sells at no more than 180 per cent of the open market value of its gold (VAT Notice 701/21A). A one ounce bullion coin at 999.9 or 916.7 fineness is legal tender in its country of issue and sells on the gold price, so it meets all three tests.

Capital gains tax is a separate matter. The UK exemption follows sterling legal tender, so it covers Sovereigns and Britannias but not a coin issued outside the United Kingdom, which is what you will normally receive here. This is a statement of the published rule, not tax advice — your own position depends on your circumstances.

Questions buyers ask

Does the damage reduce the gold content? No. Weight and fineness are unchanged; only the appearance is affected.

Is it cheaper than a mint-state coin? Yes, that is the point of the listing. It is priced below an equivalent coin in mint condition.

Can I choose which coin I receive? No. It depends on what is in stock at the time.

Is it suitable as a gift? We would not recommend it. For a gift, a coin in mint condition is the better choice.

Authenticity checked at GoldInvest24 before dispatch. Other sizes are on the gold coins page. Live quotes on the precious metals prices page.