20-Mark Gold Coin
Also: Kaisermark, Twenty Mark, Gold Mark
The 20-Mark gold coin is a circulating coin of the German Empire (1871–1915) made of 900 gold with a fine weight of 7.168 grams. It qualifies as investment gold and is VAT-exempt at purchase.
The 20-Mark gold coin was the most important gold circulating coin of the German Empire. After the founding of the Empire in 1871 and the introduction of the Gold Mark as the unified currency, the twenty-mark pieces were struck under the Coinage Act of 1873. They served as full legal tender and formed the backbone of the German gold standard.
Specifications and Fineness
All 20-Mark pieces share the same legally defined measurements: 7.965 grams gross weight at a fineness of 900/1000 (so-called crown gold) yields a fine weight of 7.168 grams of pure gold. The diameter is 22.5 mm.
Fine weight = Gross weight × Fineness
7.168 g = 7.965 g × 0.900
You can calculate the current melt value directly from the fine weight and the daily gold price.
Minting States and Motifs
In the Empire, the individual states held the coinage prerogative. Alongside the dominant Prussia, Bavaria, Saxony, Württemberg, Baden, Hamburg, Hesse and other states struck their own 20-Mark pieces – recognisable by different ruler portraits and coats of arms. The common reverse motif was always the imperial eagle with the face value. The mint marks (A, B, D, E, F, G, J) of the respective mints help with attribution.
| State | Mint | Mint mark |
|---|---|---|
| Prussia | Berlin | A |
| Bavaria | Munich | D |
| Saxony | Dresden/Muldenhütten | E |
| Württemberg | Stuttgart | F |
| Baden | Karlsruhe | G |
| Hamburg | Hamburg | J |
Tax and Market Relevance Today
Under UK law, investment gold is exempt from VAT (HMRC): a gold coin qualifies if it has a fineness of at least 900, was minted after 1800, was or is legal tender in its country of origin, and is normally sold at a price not exceeding the open-market value of its gold content by more than 80%. The European Union publishes an annual list of investment-gold coins on which German Empire coins are included, and HMRC maintains an equivalent list for the UK. The 20-Mark coin therefore meets the criteria and its purchase is VAT-exempt (Directive 2006/112/EC; HMRC VAT Notice 701/21A).
On disposal, Capital Gains Tax (CGT) may apply. UK legal-tender coins issued by The Royal Mint (such as the Sovherign, Britannia, Lunar and Queen's Beasts) are CGT-exempt with unlimited gains, but the 20-Mark coin is a foreign coin and is therefore subject to CGT on any gain above the annual exempt amount:
Gain = disposal proceeds − acquisition cost
There is no German-style one-year speculation period in the UK. Numismatically valuable specimens – rare years, pattern strikes or varieties from small mints – can command substantial premiums over the melt value.
To check authenticity, a coin weight check and an authenticity check by density measurement are recommended, since tungsten counterfeits do occur with historical coins.
Note: This is not tax or investment advice. Specific tax questions – especially for collector items or unclear holding periods – should be clarified with a tax adviser.
In Brief
The 20-Mark gold coin combines historical collector value with a clearly measurable material value of 7.168 g of fine gold, making it one of the most accessible entry-level coins for investors who wish to combine historical and physical gold.