Libertad
Also: Mexican Libertad, Onza Libertad, Plata Libertad, Oro Libertad
The Libertad is Mexico's official investment coin in gold or silver, struck by the Casa de Moneda de Mexico and recognised worldwide as a bullion coin.
The Libertad is Mexico's official precious metal investment coin and ranks among the best-known bullion coins in the world. It is issued by the Casa de Moneda de Mexico - the oldest still-active mint in the Western Hemisphere, founded in 1535. The name "Libertad" (Spanish for freedom) is also its theme: the coin bears the Mexican coat of arms on the obverse and the winged Angel of Independence before the volcanic massif of Popocatepetl and Iztaccihuatl on the reverse.
Characteristics and denominations
Both variants - silver and gold - are struck with a fineness of 999/1000 and thus meet the standard of modern bullion coins.
| Variant | Denominations (troy ounces) | Fineness |
|---|---|---|
| Plata Libertad (silver) | 1/20, 1/10, 1/4, 1/2, 1, 2, 5 oz | 999/1000 |
| Oro Libertad (gold) | 1/20, 1/10, 1/4, 1/2, 1 oz | 999/1000 (since 1991) |
The 1-ounce silver Libertad is the most common denomination and, with its value close to the silver price, appeals to investors and collectors alike. In addition, limited proof editions with a mirror finish have appeared for years, which can command premiums for collectors over the pure melt value.
Special features and market position
The Libertad is legal tender in Mexico with a symbolic face value (the 1-oz silver variant carries 10 pesos) that lies far below the metal value and plays no role in trading - similar to the American Eagle. Unlike the Krugerrand, which carries no face value at all, the Libertad thus continues the Mexican Onza tradition as a state-recognised weight coin.
Material value (silver) = weight in troy ounces x current silver price (troy oz)
= 1 oz x spot price + premium (agio)
The premium over the spot price varies for the Libertad depending on the year and condition. Years with low mintages - particularly the early 1990s - are traded among collectors at significant premiums and approach the numismatic range.
Authenticity and testing
Like all high-quality silver coins, the Libertad should be checked for weight and dimensions. The coin weight checker helps to compare the target weight with the actual weight. In cases of uncertainty, the ping test or a professional density measurement is also recommended.
Tax treatment (United Kingdom)
In the UK, investment gold is exempt from VAT (HMRC; purity ≥ 995 ‰; Directive 2006/112/EC as retained). The silver Libertad, as a silver coin, is subject to the standard 20% VAT rate, unless the dealer's margin scheme applies. On disposal, Capital Gains Tax may arise: gains on non-legal-tender bullion coins and bars are subject to CGT above the annual exempt amount, whereas UK legal-tender coins from The Royal Mint (such as the Sovereign and Britannia) are CGT-exempt. As a Mexican coin, the Libertad is not UK legal tender and therefore does not benefit from the Royal Mint CGT exemption. Gain = disposal proceeds - acquisition cost. There is no German-style one-year speculation period. This is not tax or investment advice - please discuss your individual situation with a tax adviser.
In brief
The Libertad combines Mexican cultural heritage with a solid bullion standard: 999 fineness, a state guarantee and one of the oldest mints in the world make it a serious alternative to the Krugerrand or Maple Leaf - with the special appeal of a few sought-after low-mintage years for collectors.