Like many other mints, the Royal Mint issues bullion coins in precious metals, having much higher intrinsic value than their face value. The two ounce (2 oz) silver coins are denominated as Five Pounds (£5).
The coins are legal tender but are not intended for circulation. They are targeted at bullion investors or collectors who appreciate the special editions as pieces of art. The coins are typically "one-year" types usually issued in parallel with smaller denominations with the same reverse designs.
This design is the first release in a Royal Mint series dedicated to the history of British monarchy and the monarchs of England, Great Britain and the United Kingdom, and features Henry VII (1485 - 1509) of the Tudor dynasty. The reverse is based on a coin issued during his reign.
The Royal Mint says about it:
The British Monarchs Collection is a revolutionary new coin series celebrating some of the most iconic kings and queens in British history. Naturally, such a landmark collection deserves a worthy introduction and there is arguably no better place to start than with one of the most famous regal families in British history - the House of Tudor.
Beginning with the founder of the Tudor dynasty, the first coin in The British Monarchs Collection features a classic portrait of Henry VII as it would have appeared on the coinage of the time. As one of the most iconic kings in British history, this design provides a fascinating glimpse into the rarely seen coins of his reign, whilst also presenting a unique prospect for would-be collectors and history aficionados. | 
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