Coins made of precious metals are a profitable investment of capital

The very first precious coin was issued in the late nineteenth century in tsarist Russia. Shortly before the release, the development of a large platinum mine in Nizhny Tagil began, which is why the merchants of the Demidovs, who own the rich deposit, offered to start issuing money from platinum. Their proposal was approved by the government of tsarist Russia, hence the issue of investment coins made of precious metals. In modern Russia, transactions with investment coins for individuals were not available until 1996.

"Uncirculated" (translated from English uncirculated) are precious coins that have not yet been circulated, and therefore have no damage or scratches. Coins of this quality, as a rule, belong to the category of investment, that is, they are specially created by the bank to create a personal savings fund by the population. Coins made of precious metals are an excellent alternative to deposits in gold bars, since all transactions with coins that have technical characteristics and the status of coins made of precious metals are exempt from VAT (art. 149 part two of the Tax Code of the Russian Federation). Thus, it is possible to make deposits in precious metals without VAT.

Given that the market value of precious gold coins is almost consistent with world gold prices on the London Stock Exchange, it is therefore possible to use coins made of precious metals as a means of accumulation. Operations with precious coins have been carried out in Russia since the beginning of the present century, and only recently a permission was issued for the export of coins from precious metals for an amount equivalent to US $ 10,000. In this case, the physical circulation of coins is not limited to the territory of the Russian Federation, which significantly expands their capabilities as an investment instrument. For today in our country coins from precious metals of investment and a collection purpose (memorable) are issued. In order not to confuse these two concepts, let's try to understand their origin.

First, commemorative collector coins are always issued for a specific event, while investment copies do not have such a binding. Secondly, the cost price of commemorative coins is much higher than investment, because in this case the artistry and technological refinements of the sample are taken into account. Collective commemorative coins are created using the highest quality coinage (proof), which inevitably affects their value. The basic value of investment copies is calculated from the value of the precious metal from which they are made. And, thirdly, according to Russian laws, operations with collectible coins are subject to VAT, while this rule does not apply to transactions with investment coins.

There is as yet no single definition of investment coins in the legislation of the Russian Federation. But the Tax Code, which provides a list of transactions exempted from VAT, has a point where it is prescribed what transactions with precious coins are exempt from value added tax. According to this point, only operations with those coins from precious metals that do not belong to collectors are exempt from VAT. There is also a definition that regulates that only those specimens that are minted by special technologies providing a mirror surface are included in collector coins. Hence it follows that coins of precious metals are called investment, which, according to the method of coinage and technical parameters, meet the requirements for investment objects.