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Why invest in gold sovereigns? 

The British Gold Sovereign is arguably one of the most popular and most recognised gold coins in the world. 

Gold sovereigns are often bought by investors, as British gold sovereigns are officially classed as investment gold. 

Gold sovereigns are widely considered as an excellent means to invest in gold coins, as gold sovereigns are so recognisable and are always in demand. 

History of the gold sovereign. 

The British Gold Sovereign has been produced by the Royal Mint in its modern form since 1817. The British Sovereign was based on the older English Sovereign dating back to 1489 – 1603. 

As the British Empire expanded during the 1800s, this iconic coin quickly came to be the world’s most popular and widely distributed gold coin.

Britain continued its colonial expansion which created a greater need for currency. 

This eventually led to the Royal Mint’s first overseas branch in Sydney Australia, which opened in 1854. 

This success led to the opening of the Melbourne Mint in 1872 and the Perth Mint in 1899. 

The Mints in Pretoria South Africa, Bombay India, Ottawa Canada, Melbourne, Sydney and Perth Australia, minted thousands of gold sovereigns during the late 1800s and early 1900s.

The iconic St George on horseback slaying the dragon design. 

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The St George on horseback slaying the dragon design, is common to the reverse of all variations of the coin, with some slight variations over time. 

The famous original 1817 design was by Benedetto Pistrucci, who was an Italian gem-engraver, medallist and coin engraver. The neo-classical style was particularly popular at that time.

The Half Sovereigns had a ‘Shield Back’ reverse, which was also used on Sovereigns from 1820 till 1871. From 1893 onwards, The Half Sovereign fully adopted the iconic St George slaying dragon design. 

The Gold Sovereign as an investment coin. 

The British gold sovereign has a real and permanently tangible value. 

Struck in traditional 22-carat gold, the gold sovereign’s gold content guarantees its value. Full Gold Sovereign coins weigh 7.98 grams, of which 7.3224 grams is fine gold.

An allocation of gold sovereigns can be an excellent choice in a well diversified investment portfolio. 

Not only do gold sovereigns have aesthetic, numismatic and historic appeal, they have value by being backed up by their own gold bullion content. 

Another reason why gold sovereigns are so popular with investors is that, in the UK, gold sovereigns are classed as legal tender with a face value of £1. 

This makes gold sovereigns exempt from Capital Gains Tax. Obviously the real value of a Sovereign comes from its gold content.

Not only are gold sovereigns exempt from Capital Gains Tax, they are also VAT free. VAT was abolished on investment gold as from January 1st 2000. This includes gold sovereigns.

Gold sovereigns offer excellent liquidity, most countries in the world recognise the unique and rare properties of the gold sovereign, making them easy to sell anywhere in the world. 

The Gold Sovereign is ideal for Numismatists, coin collectors, or bullion investors. 

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The British Gold sovereign ticks many boxes for all types precious metal investors. 

A numismatist can appreciate the sovereign’s history and designs. If researched and done properly, you could turn a hobby into a fantastic  investment. However, to be successful, investing in rare coins or other coins for their numismatic value, requires considerable knowledge. 

For bullion investors who choose to purchase lower grade gold sovereigns, they can offer a reliable and convenient store of gold, offering VAT free and Capital Gains Tax advantages. 

The gold sovereign is recognised and sought after all over the world, and as such can be exchanged for currency, goods or services. The gold sovereign has aesthetic value, bullion value, and also has historical significance. 

All these combined, ensure that the gold sovereign remains one of the most popular as well as one of the best investment coins you can buy. 

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By buygold

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