Probate Gold Valuation

Gold and precious metals present a unique challenge in probate valuation because their value is determined by two distinct factors: the intrinsic metal content (based on weight and purity) and any additional numismatic, collectible, or craftsmanship premium. A plain gold chain is valued primarily by its gold content at the prevailing spot price, while a rare gold sovereign may be worth many times its melt value to collectors.

Probate gold valuation requires accurate weighing, precise determination of metal purity through hallmark reading or assay testing, and knowledge of the collector market for coins and specialist items. The spot price of gold fluctuates daily, so the valuation must reference the London Bullion Market Association (LBMA) fix price on the specific date of death.

Our valuers are experienced in assessing all forms of gold and precious metals, from bullion bars and investment coins to scrap jewellery and inherited coin collections. They hold NAJ, IRV, or equivalent qualifications and produce detailed HMRC-compliant reports.

Gold is frequently held in forms that executors find difficult to assess. A deceased person may have accumulated Sovereign coins, Krugerrands, or small bullion bars over many years, often without maintaining records of purchase prices. The value of these holdings at the date of death depends on the precise weight, purity, and the gold spot price on that day — information that requires specialist equipment and market knowledge to determine accurately.

The distinction between bullion value and numismatic value is critical and often misunderstood. A Victorian full Sovereign contains approximately 7.3 grams of 22-carat gold, giving it a bullion value tied to the gold price. However, certain dates, mint marks, and conditions carry a significant collector premium that can be several times the melt value. Declaring only the bullion value for such coins underreports the estate; declaring a high collector value for common-date coins in circulated condition overreports it.

HMRC is well aware that gold holdings are sometimes overlooked or underreported in estate returns. Gold kept in a home safe, a bank vault, or distributed informally among family members must all be declared. A professional valuation creates a comprehensive, auditable record.

HMRC requires professional valuation for gold holdings where any single item or cohesive collection exceeds £1,500 in Open Market Value. A modest collection of ten Sovereigns at current gold prices will typically exceed this threshold. The valuation must reference the LBMA gold fix price on the date of death for bullion items, and comparable auction or dealer results for numismatic pieces.

Certain gold coins — notably British Sovereigns and Britannias — are classified as legal tender and are therefore exempt from Capital Gains Tax, but they are not exempt from Inheritance Tax. The full Open Market Value must still be declared in the estate return. This is a common source of confusion among executors and underscores the importance of professional advice.

Each item is weighed using calibrated precision scales and its purity determined by hallmark reading, XRF (X-ray fluorescence) analysis, or acid testing where hallmarks are absent or illegible. Bullion bars are checked for manufacturer, fineness, and serial number. Coins are identified by denomination, date, mint mark, and condition, then assessed for any numismatic premium above bullion value.

The valuer references the LBMA gold, silver, platinum, and palladium fix prices for the date of death to establish the base metal value of each item. For coins and collectibles with potential numismatic value, comparable auction results from specialist numismatic sales are researched to determine the appropriate premium.

The final report itemises every piece with its weight, purity, description, and assessed Open Market Value. Bullion items are clearly separated from numismatic pieces, and the calculation methodology is transparent — showing the spot price, weight, purity, and any collector premium applied. This level of detail provides HMRC with a complete audit trail.

A typical probate gold & precious metals valuation costs £40–£100 per assessment. Fees vary depending on the complexity of the item, the level of research required, and whether a home visit is needed. Discounts are often available when multiple items are assessed in a single appointment.

Probate valuation fees are a legitimate estate expense and can be deducted before calculating Inheritance Tax. The estate, not the executor personally, bears the cost.