What are Gold Sovereigns? The sovereign is a type of British gold coin with a nominal value of one pound sterling and 0.2354 oz of pure gold inside. They have been struck since 1817 and were formerly a circulating coin accepted in Britain and around the world. Nowadays, they are generally used as bullion coins and are sometimes mounted in jewelry. If you are thinking about purchasing some for investment purposes, here are some things you should know about these coins.
Rare
Rare gold sovereigns are highly sought after and can command extremely high prices. The Law Collection Type Three Gold Sovereign, sold for $49,938, is one example of a gold sovereign that is not gradable by U.S. standards. This particular example has medium mounting and some issues with chemical cleaning. The overall condition is still very good, but the appearance is not as impressive as most large gold coins from centuries ago.
Smaller than most bullion coins
The size of gold sovereigns can be used to distinguish them from other bullion coins. While bullion coins are standardized in terms of their weight, the nominal face value of sovereigns isn’t. A sovereign is only 0.235 troy ounces in weight compared to a conventional ounce. In addition, these coins are easier to trade, so they’re cheaper to buy and sell.
More expensive than Krugerrands
The gold Krugerrand and the gold sovereign are both considered globally popular. Both coins contain 22-carat gold and are 91.7% pure. While older Krugerrands are more valuable, the Krugerrand is much newer and does not command premiums based on rarity. If you are interested in buying gold, it is worth looking at the Krugerrand.
Historically used by other monarchs
The British gold sovereign dated back to 1603 and was minted in the year 1817. The image of King George III was used on the obverse, while St. George slaying the dragon graced the reverse. This obverse design was created by the Italian engraver Benedetto Pistrucci. The design changed several times through the years, but the British gold sovereigns remained in circulation for about a century.
Value of a Sovereign
Sovereigns are attractive and a popular choice among collectors. Their rich tradition and history ensure that they command a premium price when it comes to jewelry. You can also give them as gifts for special occasions. However, as they are much smaller in size, the value of a gold sovereign will be much lower than that of a larger coin. Therefore, if you want to get the most value from your money, you’ll want to purchase a pre-owned sovereign.
