Gold Sovereigns have been around for more than two centuries and have an important place in any investor’s portfolio. Gold Sovereigns enjoy tremendous liquidity, as it is one of the best-known British coins in the world. Many collectors and investors are keen to invest in this coin. There are also many different years of issue associated with the Sovereign, at different price points. Older Sovereigns may command more value due to their rarity. However, newer Sovereigns are easily available at low premiums. The decision to invest in gold Sovereigns need to be based on certain factors.
Divisibility and balance
Sovereigns are available as a bullion coin, but a unique quality is their gold content. Most bullion coins typically weigh an ounce. However, Gold Sovereigns weigh a quarter of an ounce. Therefore, investors can explore a wonderful opportunity to build a portfolio with a variety of coins. Buying Sovereigns of different denominations can enhance the divisibility of your portfolio. This simply means that you have greater flexibility when selling. This is a better option than selling a 1-ounce bullion coin at a certain price point in the market. Owning Sovereigns of different dimensions and different years of issue can also help create a balance for your portfolio.
Queen Victoria Young Head Sovereign
Better affordability
The Sovereign is a more affordable coin due to its smaller size. As an investor, the coin allows you access to the gold market with a lower investment. As a mass-produced coin, Sovereigns are a lot cheaper when compared to the Gold Britannia. Therefore, a great investment strategy is to buy Gold Sovereigns every month. Sovereign bullion coins, present an opportunity to acquire gold at a cheaper price per gram, due to their lower manufacturing costs.
A rare King George IV Sovereign depicted with Roman laurels
Creating variety for your portfolio
So far, we have covered some important points that will help you select the right gold Sovereign. We have established that gold bullion coins are better for investment. Since the Sovereign is available in smaller denominations, we have also discussed that having a variety of sizes can create an advantage for your gold portfolio.
When buying a Sovereign bullion coin, always look for the current year of issue. These are available in plentiful, at rock bottom prices and low premiums. Apart from new coins, what else should you look for? Gold Sovereigns enjoy a strong supply pipeline and many modern Sovereigns from the past 10 years are easily available. You may be able to obtain some of these coins at better prices than the new ones. Spreading your investment over a variety of modern Sovereigns can be a sensible approach towards creating variety for your portfolio and making it stronger.
Buying old Sovereigns
The best old Sovereign to buy based on price is the current year of issue. Sovereign prices are based more on gold content. If seeking a combination of value and history, the George V and Elizabeth II coins provide the optimum all-round solution. If buying many Sovereigns, a combination with older Victoria coins is best.
The Sovereigns from the reign of King George V are still available at affordable prices, due to their availability. However, these coins do offer enough numismatic value and interest, making them worth collecting. Edward VII Sovereigns are more expensive to buy but worth acquiring if you can get a good deal on them. Queen Victoria have three different Sovereigns that were issued during her reign. These are called the Young Head, Jubilee Head and the Old Head. These are the most expensive coins among the modern Sovereigns, but investing in them can fetch good returns, as their value continues to rise due to rarity.
Our gold experts can advise you on the right Sovereigns to buy
Physical Gold is one of the most reputed gold dealers in the UK. We have a team of gold experts who can help you purchase the best Sovereigns for your investment portfolio. Call us today on (020) 7060 9992, or get in touch online through our website.
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Gold Sovereign (Victoria – Present)
Country: Great Britain
Face Value: £1GBP
Gold Content: 0.2354 ounce (7.3224g) – Alloyed with copper, or copper and silver
Purity: 917/1000 (22 karat)
Gross Weight: 7.9881g
Coin Diameter: 22.05mm
First year of issue: Modern Sovereign 1837
The Gold Sovereign coin was first issued in 1489 for Henry VII of England and is still in production today. Sovereign coins are arguably the most famous of all gold coins and should form a part of every gold portfolio. They are desirable to investors and collectors alike. Due to their long history of production Gold Sovereign coins are split into several types, each with their own pricing and nuances. Modern coins will be of the last 10-15 years and probably still be in their plastic blister pack. Older coins, particularly dated pre-1933 tend to exchange hands either loose or in rolls of 50. Physical Gold offers an easy way to buy and sell sovereign coins.
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These British coins typically have a face value of £1 sterling or 20 shillings. When it was first released it was primarily an official piece of bullion with no mark of value on the actual coin itself. The coins were 23 karat gold and weighed 15.552 g, Henry VIII reduced the purity to 22 karats with a weight of 7.322 g.
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The core Full Sovereign coin has spawned several other Gold Sovereigns of varying sizes. These include the 2 Pound coin (or double Sovereign), the Five Pound Coin (you guessed it – a quintuple Sovereign, making it the largest gold content of any British coin), the Half Sovereign and the Quarter Sovereign. Generally, you’ll pay more per/oz for the smaller fractional coins than the full Sovereign or larger coins.
Sovereign coin production ceased in 1604, being replaced by Unites, and later by Laurels, and then Guineas. In 1817 production of Gold Sovereign coins restarted.
Modern Sovereigns are those minted during the reign of Victoria, Edward VII, George V, George VI And Elizabeth II. These Sovereigns feature the monarch who reigned during their production on the obverse side.
The reverse most commonly features Saint George slaying a dragon which was designed by Italian engraver Benedetto Pistrucci. A number of different shields have also featured on the reverse and often attract a higher price tag.
As a coin of the realm in the UK, buying gold sovereigns benefits from being free from Capital Gains Tax for UK residents. You can buy gold sovereign using any of the order, delivery and storage options throughout the Physical Gold website
Sovereign Coins
Alongside the Union Jack, bulldog and red telephone box, the gold sovereign coin is one of the most iconic British symbols, providing the basis of timeless gold investment as well as a treasured lifelong possession.
Another reason for their popularity amongst collectors is their worth. A fantastic way to preserve value against inflation, gold sovereign coins hold their value particularly well over time and provide an excellent all-round investment. This also makes them a popular starting point for those thinking of investing in gold.
Some choose to buy gold sovereigns from recent years, others from hundreds of years ago meaning that the value of gold sovereign coins can be hard to determine. At Physical Gold we are experts in buying and selling sovereign coins and can precisely value new and old coins.
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Gold Sovereign Coins
Those looking to sell sovereign coins often cite their flexibility as one of the motives behind their decision, allowing them to keep their investment in smaller units. Whether to sell or buy gold sovereigns, the consistency of the production quality is often still hailed as one of the finest in the world.
Gold sovereigns are made with 22-carat gold. This consists of 11 parts crown gold out of 12 and one-part copper out of 12. This composition has not changed since the issue of the 1817 sovereigns. This particular composition of the alloy used in making the sovereigns ensures the coin is more durable and protects it against scratches and dents.
With opportunity, lies danger
Gold sovereigns enjoy high demand from numismatists around the world. Due to its great demand, the coin commands a much higher price than its weight in gold. Unfortunately, this has also led to some instances of counterfeit coins appearing in the market. When buying a gold sovereign, it is therefore important to ascertain whether the coin is genuine. Gold coin dealers or brokers use a coin gauge to detect fakes, as well as checking measurements and weight. In one instance, a few fake 9-carat gold sovereigns had started circulating in the market. However, an experienced coin dealer will spot the counterfeit coin immediately due to its discrepancy in weight and thickness. Gold itself is a difficult metal to counterfeit, owing to the density and colour of the metal. Fake gold sovereigns are usually underweight or have the wrong dimensions. Today, the gold sovereign is a protected coin and enjoys protection from the UK government through the forgery and counterfeiting act 1981.
Buy Gold Sovereigns
If you wish to buy gold sovereigns, ensure you purchase from a reputable dealer to ensure the lowest price. If you are looking to sell sovereign coins Physical Gold can make the process easier. As proud members of the British Numismatic Trade Association (BNTA) Physical Gold is committed to dealing coins in a legal and efficient way. In addition to this Physical Gold is a member of the National Association of Pension Funds making it possible to buy and sell gold coins as part of a wider long term investment plan.
The sovereign is an iconic British coin that is popular amongst investors and collectors. The modern sovereign has been in existence since 1817, and the coin has witnessed the reigns of several British monarchs.
One of the most common questions I hear is from keen investors wanting to know the best gold coins to buy as an investment.
The most important thing people seem to overlook is the ease in which you’ll be able to sell the coins. It sounds obvious, but so many buyers focus purely on trying to get as much gold for their money when they invest that they forget to consider the liquidity of the gold.
Liquidity makes the best gold coins
Remember that your profit is only realised on physical gold when you actually sell the coins at a profit. So when buying coins your primary focus must be on choosing well-known coins in desirable condition. So please don’t be tempted by an obscure coin just because its £10 cheaper than its globally renowned alternative. With this in mind, any of the well-known bullion coins are a safe bet. These could be Sovereigns, Britannias, Krugerrands, Eagles, etc. You can find a comprehensive list with thorough descriptions at Bullion coins.
A novice should never try to be too smart by delving into the world of numismatic or historical coins. These generally present high potential profit, but also large losses for those without market experience. Proof coins should generally be avoided by the gold investor as you won’t necessarily get the full premium back that they command.
Sovereign coins
For very modest investors it can be fun to select a variety of bullion coins for your portfolio, perhaps choosing some Sovereign coins with an interesting background or coins with beautiful designs.
Queen’s Beasts coins
For those seeking a chance to turbo charge their returns and willing to take a modest increase in risk, the Royal Mint’s Queen’s Beasts series of coins can be a clever option.
This is a series of 11 one ounce 24 carat gold coins (also produced in silver and fractional versions), which are limited in issuance. In contrast to the Britannia or Sovereign bullion coins which are unlimited and mass produced, the Queen’s Beasts coins have been released coin by coin, every 6 months. Once a particular version is all sold, they’re not produced any more.
This relative scarcity, combined with a degree of collectability, has pushed up premiums on these coins far quicker than standard bullion coins.
While the first 8 coins in the series already command high prices, the most recent 2-3 coins are still being produced, albeit not for long. Therefore, premiums on the most recent releases are still only slightly higher than the standard Britannia. While there’s no guarantee that their prices will mirror the earlier coins in the series, there’s a good chance.
Tax efficiency
However, for those UK investors considering a more sizeable investment you must consider factors such as tax. Capital Gains tax was recently increased for higher rate tax payers in the UK to 28%. That means that if you sell your gold coins at a profit exceeding your annual limit (currently around £12k) then you’ll pay away almost a third of that excess to the taxman. Any other assets you sell in that year will use up that £12k limit too. So if you sell shares or an investment property and make a profit, you’ll no doubt be paying CGT on all your gold profit!
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The great news is that with some careful planning and help from a reputable gold dealer, you can source tax free gold coins. Britannia, Sovereign and Queen’s Beasts coins are all free from Capital gains Tax for UK residents due to their status as legal tender. Quite simply the taxman cannot tax the movement of legal currency. For this reason, together with the fact that these two coins are amongst the world’s best known, most UK investors are best off investing into these tax free gold coins.
The most important rule with gold coin investing is that everyone’s situation, needs and motivations for buying differ, and so the best gold coins to buy may also vary. This is where the real value of a knowledgeable gold dealer pays dividends!
Collecting gold coins
If you’re a coin collector, numismatic scholar or just a hobbyist with an interest in gold coins, it’s likely that you already have a great deal of knowledge of the UK gold coin market. Turning that knowledge into a profitable investment for your future is a very realistic endeavour, especially given the positive state of today’s gold coin market.
As you may already be aware, there’s a sweet spot in the UK market at the moment for semi-numismatic coins. In particular, Victorian, Edwardian and Georgian sovereigns are trading at higher prices than brand new sovereigns. These higher prices are due to the scarcity of these coins compared to their newer compatriots. This presents a prospective opportunity for collectors, who may wish to retain their collection for now, in anticipation of a potential value rise as the coins age. The alternative is to cash in on an existing opportunity to trade the coins, at a price currently above their intrinsic gold weight.
If you’re new to collecting gold coins, it is important for you not to make mistakes when buying gold coins. One of these is purchasing from a TV infomercial. There are many TV commercials which promise collectors on the best deals on the rarest of rare coins. The problem with buying off these shows is that it will never be the best deal, no matter what they say.
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Simple logic should tell us that there are exorbitant marketing and advertising costs involved in selling coins in this manner, including the costs of producing the infomercial. These costs will be added on to the price of the coins, making them a lot dearer. Another point to consider is the rarity of the coin. If a coin is being mass marketed through advertising, it means there is a huge supply of the coins in order to meet the demand. This also means that they cannot be very rare, and often these commercials talk about the rarity of the coin in a bid to lure you into purchasing. A quick online search of the same coin will prove that it is available from other reputable sources online and offline dealers often at far more reasonable prices.
Gold Coins Investment
Gold investment research sources
It is also important to research a coin properly before purchasing it or speak to a gold investment expert. A good starting point is the Numismatic Guaranty Corporation (NGC) or the PCGS. Both of these are reputed coin certification companies and their websites contain a wealth of information about rare coins and their values. Another great source of information about which rare coins to buy are the mints around the world, like the Royal Mint. When buying a rare gold coin, one must ensure it is certified and graded by a professional grading service. If the coin is in a slab, it should have been encapsulated by the NGC or PGCS, otherwise, it may not be in a condition that the seller claims it is in. Likewise, one should never remove a coin from a certified slab as it would affect the value.
This is crucial….
Another point to note is that a rare coin should never be cleaned. Cleaning it with solutions will simply damage the coin and erode its value. Touching a coin with bare hands is yet another complete no-no. Coins should only be handled when wearing gloves. Last but not least, when a coin is sold as a low mintage, it does not mean that it is rare. The intrinsic value of a rare coin is directly proportional to its demand, not to the numbers that were minted.
Numismatic gold coins
The above scenarios are two examples of opportunities available to utilise your knowledge of coins for your benefit. The value of gold coins is based on their gold content, coupled with a further premium reflecting their historical worth and scarcity. Because numismatic coins are valued this way – both on gold weight and historical value – it’s possible to achieve greater gains than you may otherwise be able to achieve, if you were solely investing in modern coins. This can be particularly true if you begin to save now, for the longer term, or have amassed a collection already which you’re willing to start liquidating
What should I be aware of…
However, if you’re just starting out in your coin collecting and investing, it’s wise to take care when interacting with numismatic or semi-numismatic coins. As some trade significantly above their intrinsic value, it’s feasible that you’ll pay a much higher premium. And whilst you may be able to recoup this premium upon sale, you may find yourself in a situation where it’s difficult to find a specialist buyer willing to match your valuation.
Specialist collectors may also wish to add to their holding with modern gold coins. Agility is required to capitalise on semi-numismatic coins, as they need to be purchased when premiums are low and sold at times when premiums rise. However, new sovereigns can be used to add flexibility to your collection and ensure you enjoy the benefits of owning gold coins over a longer period.
Help from Physical Gold
Whether you’re a new or experienced collector of coins, Physical Gold can help with information on your collection, whatever your financial requirements. To learn more about how we help collectors and private individuals just like you, contact us here, call 020 7060 9992 or download our Guide to Investing in Gold and Silver.
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Gold Britannia coins are popular with numismatists and investors alike. We frequently receive questions about these popular coins, so have prepared this page of gold Britannia coins FAQs with answers, which we hope helps you with your research.
What are the cheapest Britannia gold coins?
Please visit https://www.physicalgold.com/insights/what-are-the-cheapest-gold-britannia-coins to read a comprehensive answer to this question.
How do I sell Britannia gold coins?
Please refer to our detailed answer to this question by clicking this link.
Are gold Britannias legal tender?
Read our answer to this especially important question here, https://www.physicalgold.com/insights/are-gold-britannias-legal-tender.
Are gold Britannias a good investment?
Please visit https://www.physicalgold.com/insights/are-gold-britannias-a-good-investment/, for a detailed reply to this question.
Gold Britannia vs Sovereign
Please read our detailed answer to this question at this link.
Buy the Gold Britannia coin directly from Physical Gold Limited
Was Britannia on Roman coins?
Britannia has actually appeared on Roman coins since 119 AD. The practice of using the persona of an authoritative female to portray a nation has existed for hundreds of years. When the Romans invaded Britain, they used the depiction of Britannia to signify the colonised country on their coins.
Can you get Platinum Britannia coins?
We have provided a separate blog post to answer this question, please see https://www.physicalgold.com/insights/can-you-get-platinum-britannia-coins.
Should I buy old or new Britannia coins?
For a detailed reply to this question, visit this link.
What is the value of Britannia gold coins?
See https://www.physicalgold.com/insights/whats-the-value-of-gold-britannia-coins/ for a detailed answer to this question.
Which years does Britannia face left?
There is no pattern to which way Britannia faces on the reverse of UK coins and this adds to the collectability. Examples of Britannia facing to the left include the 2001 ‘Una & The Lion’ Britannia and the 2005 Philip Nathan designed coin which features a seated Britannia.
Who is Britannia on the coins?
Read our detailed answer to this question at https://www.physicalgold.com/insights/who-is-britannia-on-the-coins.
What are Britannia gold coins?
Please read our detailed answer to this question by clicking this link.
How to buy gold Britannia coins?
The best place to buy Gold Britannias is directly from a reputable bullion dealer. Most will have online stores where Britannias can be bought with a variety of payment methods and delivery is usually free, insured, and quick. These sites usually feature live pricing which updates with the spot price every 60 seconds. Bullion dealers should be members of the BNTA to ensure trustworthiness.
Do you have any more questions?
No worries, if you need any further support, please contact us at:
- By phone – 020 7060 9992
- By contact form – https://www.physicalgold.com/contact
You can’t go wrong with Sovereign coins
While most UK investors have owned property, shares, bonds and ISAs at some point, gold investment is still pretty new. If you’re a novice, what’s the best place to start a physical gold portfolio? In our opinion Gold Sovereigns provide a perfect starting point for the new gold investor!
1. Great value – Sovereign coins have existed for hundreds of years so there’s a very deep second hand market. This means that older Sovereigns provide a lower price per ounce as than any other gold coin – perhaps along with Krugerrands. Buying any asset at a low price is a great starting point!
*Pro-tip: Buy the pre-owned ‘Best value’ Sovereigns. They’re cheaper than brand new ones, but will obtain the same price when you sell.
2. Further discounts with volume – Specialist dealers like Physical Gold will generally be able to offer even lower prices if you buy 50 Sovereigns or more. In fact discounts can be achieved on a sliding scale once you look at more than a single coin. Our website has handy volume discount tables for each coin.
3. Easy to sell – Sovereign Gold Coins are arguably the most established bullion coin in the market so you’ll always be able to sell the coins at a great price. If you try to sell an obscure coin, the reduced number of buyers will be reflected in a lower price per ounce for that piece of gold
*Pro-tip: Give your dealer a week or two notice that you wish to sell, and you may achieve a slightly higher selling price if the dealer can match up your sale with a buyer.
4. Affordable – While 1oz gold coins are now trading around the £1,400 mark, Sovereign coins are around a quarter of the size and price. This provides a great opportunity to dip your toe in the market or even set up a regular gold savings scheme, whereby you receive a Sovereign coin every month
5. Tax free – Sovereigns are VAT exempt like all other forms of investment grade gold. However, they have the huge added benefit of also being Capital Gains Tax free due to their status as legal tender in the UK. For a novice seeking to buy gold, this provides peace of mind that you’ll never be hit with a tax bill
6. Flexible – Due to their small size, even a modest investment of say £2,000 will provide 6 Sovereign coins. This provides versatility that you can sell as little as one coin at any time of you need to realise some cash. Larger coins or bars do not offer this flexibility
7. Talking Point – The sheer variety of issue dates and Sovereign heads available means that a novice investor can own a piece of history as well as a superb investment. For anyone who’s enjoyed watching The Crown on Netflix, modern Sovereign coins date back more than 200 years, reflecting the various monarchs and periods of reigning.
So if you want get started in the world of gold, buy Gold Sovereigns and you won’t go far wrong.
Gold coins have been a source of great attraction for many individuals over the centuries. Numismatists who collect gold coins are thrilled with the idea of acquiring a precious and rare gold coin. Investors choose to buy gold bullion coins due to the returns they can make on their investments. Of course, there are certain compelling advantages to buying gold coins.
They are easy to store and often come packaged in monster boxes. They provide divisibility to an investor’s gold portfolio. Also, they have a certain aesthetic value, which many investors prefer over gold bars. However, if you’re thinking of investing in gold coins, there are certain parameters to be aware of.
Gold coins are a fascinating investment
Checking gold coin authenticity
How will you know that the gold coins, you have just invested in are authentic? You will need the services of a gold expert who can certify the authenticity of the coins. But, there are certain checks you can do at home that can help you decide whether the coins are genuine or not. Gold, like other precious metals, has a high density. Therefore, the size of the coin would depend on its weight.
If the gold content of the coin has been tampered with and a certain percentage of base metals introduced into the coin, it will be lighter than it should be. Therefore, you can measure the diameter, thickness, and weight of the coin. To do this test at home, you will require a set of Vernier callipers and a weighing scale used by jewellers. You can also use a magnet to detect the purity of gold in the coin. Since gold is non-magnetic, a pure gold coin will not be attracted by a magnet. There is also a device called the Fisch Tester that allows you to test popular gold coins like the Krugerrand or the Gold Britannia.
Gold weighing scales are often used by jewellers
Apps to test your gold coins
Yes, in 2021, there is an app to test gold coins as well. These apps emit a sound and generate a ‘ping test’ by measuring the echo your coin produces. One of these apps is called Coin Trust and there is a drop-down menu that allows you to select the particular coin you’re testing and proceed from there.
Buy your gold coins from a reputed coin dealer
If you know which coins to buy, then simply purchase them online from a trustworthy broker. If you need guidance as to which gold investment coins to buy, then any good dealer will be able to advise you. Generally, stick to bullion finish coins, rather than proof finish, and only buy really well-known coins. In the UK, Sovereigns and Britannias are best as they’re also tax-free.
The simplest way to buy authentic and genuine gold coins, without going through the hassle of testing them at home is to buy your gold from a reputed UK dealer. Most reputed dealers will provide you with a certificate of authenticity, which is stamped by a coin certification agency like the PCGS or NGC. Storing the gold coin is important and you should never remove the coin from its original packaging so that there are no doubts regarding genuineness when you want to sell the coin.
Call Physical Gold to find out more about buying gold coins
Physical Gold is one of the U.K.’s most reputed gold dealers and has a team at your service that can guide you on how to buy gold coins and advise you on the authenticity of the coins you own. Please reach out to us on (020) 7060 9992, or simply send us an email and our team will connect with you to help you purchase the right gold coins.
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