Gold Sovereign coins
Within gold coins, the British Sovereign is widely regarded as the world's most prestigious bullion gold coin. It holds legal tender status in the U.K., which means it's free from Capital Gains Tax (CGT). The Sovereign is one of The Royal Mint's flagship coins and has been a part of British coinage for over two centuries.
A brief history of Gold Sovereign Coins
The Sovereign coin has a long and rich history in British coinage spanning several centuries. Although the Sovereign gold coin has existed in various forms for many years, The Royal Mint has produced the current version since 1817.
With a purity of 91.67%, this coin is considered one of the world’s foremost bullion coins and is quite popular in the U.K.
The production of the Sovereign gold coin began under the reign of King Henry VII, circa 1489. Its minting continued well into the reign of James I in 1603. The coin we know today finds its origin in the Great Recoinage of 1816. The coin was not particularly popular at first, as the English public preferred notes over coins. However, as soon as paper currency started to be limited by law, the coin's circulation increased, and it quickly became one of the most popular coins in England. This remains true to this day.
The specifications of the British Sovereigns
The Royal Mint gold Sovereign has maintained its design for over 200 years and is well-known worldwide. The coins depict the faces of various British monarchs, such as Queen Elizabeth II on the front and the iconic St. George and the Dragon design by Benedetto Pistrucci on the back. These coins are highly valuable and easy to sell due to their recognition.
The £1 Sovereigns are made of 22-karat gold, measuring 22.05 mm in diameter and 1.52 mm in thickness. They contain 7.315 g of pure gold and have a total weight of 7.98 g.
With such popular coins available on the international market, the Royal Mint once again proves its long and proud history of producing quality historical investment coins and bars. We are very proud to offer these coins for sale on GOLD AVENUE. Browse the different designs of the Sovereign gold coins, which can be a great choice for both investors and collectors.
What’s the value of a Gold Sovereign coin?
The price of a Sovereign gold coin depends on its weight and fineness (91.67% or 22 karats). To determine the value of a bullion asset, multiply the current spot price for gold by the weight of its fine gold content. This is what is often called the “metal value” or “metal price” of a product. Gold coins, including bullion coins, can also have an added value based on their specific design, as well as their historical and sometimes collectible value. On GOLD AVENUE, you can see the breakdown of each sovereign coin’s value by clicking on the price on their product page.
Although a regular Sovereign coin has a nominal face value of £1, its true value is much higher due to its pure precious metal content. The Quarter, Half, Double, and Quintuple Sovereigns have face values relative to the full gold Sovereign value, with the Half Sovereign being the most common.
Why invest in Gold Sovereign coins?
Investors choose to buy gold Sovereigns, as a small unit of gold, with both VAT and CGT benefits. These coins are respected, recognized, and treasured worldwide, making them an excellent choice for investment purposes. Those with a historical interest will also buy gold Sovereigns due to their part in British currency history.
As legal tender in the U.K., gold coins such as the Sovereign are exempt from Capital Gains Tax, and all forms of investment gold have been VAT-free since 2000. These tax benefits make the Sovereign an attractive financial investment. Plus, Sovereigns hold worth as pure gold bullion, and their long history and collectibility can add to their value. In fact, a 1937 Edward VIII gold Proof Sovereign holds the current record for the highest price ever paid for a British coin, selling at auction for £1 million, illustrating that the spot gold price isn’t always a determining factor to the coin’s value.
Gold, in the form of gold bullion coins or other products, has historically held its value during times of inflation or economic crisis, unlike paper money and other financial assets. If a company or bank becomes insolvent, investments in these organizations would become worthless, while allocated physical gold would not.
Sovereigns are recognized worldwide as the leading bullion coins due to their long-standing presence in British coinage.
Older variations of these coins may even hold additional value due to their collectibility. With the price of gold consistently increasing in value over the last few decades, investing in physical gold is widely seen as an effective way to preserve wealth for future generations. So, if you’re a beginner investor, placing your savings in gold could be a great starting point.
Overall, the combination of bullion value and numismatic collectibility due to its rich history make the Sovereign one of the most sought-after coins in the world.
How to buy and store Gold Sovereign coins
You can safely buy and store your Sovereign Gold coins using our intuitive website with just a few clicks. Ask for home delivery or opt for our storage solution.
Our Swiss-brand vaults are fully insured, and your stored products are kept out of the banking system and our balance sheets. This means that if GOLD AVENUE were to cease its activities, your precious metals would remain 100% yours.
We offer free storage up to £8,500 in stored value and instant resale without any commission at the current metal price, giving you the flexibility to sell your metals anytime.
If you decide to store your gold products at home, it’s a good idea to handle them with care and wear protective gear, like cotton gloves. Place your metals in a clear plastic capsule in a cool, dry place away from sunlight and other heat sources.
Gold Sovereign coin vs. other Gold Coins
The Gold Sovereign coin is a renowned piece in the world of gold coins. It's a 22-karat gold coin, which means it's not pure gold but blended with a small percentage of copper to enhance durability. This makes it similar to the South African Krugerrand.
On the other hand, other bullion coins like the Canadian Maple Leaf and the American Eagle are 99.99% pure gold coins. The Maple Leaf, in particular, stands out for its intricate and complex design, which adds a layer of security.
The American Eagle gold coin, minted by the United States, is known for its historic design and is recognized worldwide. Although it’s 22-karat like the Sovereign and the South African Krugerrand, it’s valued for its cultural significance.
In comparison, the Gold Sovereign, with its historical prestige and practical durability, can be a great addition to your coin collections. It’s smaller and lighter than these other coins, making it easy to handle and store.
Ultimately, the choice between these gold coins depends on individual preferences and objectives. Whether you value the pureness of gold, intricate design, historical significance, or durability will determine the best gold coin for you.