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The British gold Sovereign coin has been in existence for more than two centuries. The current version was initially issued by the Royal Mint in 1817, having gold content purity of 22 carats for a face value of 1 pound. At the time, the coin was in circulation. But, since 1932, the circulation of these coins has stopped. Now, the Royal Mint issues them as a bullion coin. The gold Sovereign coins available today carry the famous design of St George and the Dragon, created by the Italian designer, Benedetto Pistrucci on the reverse of the coin. The British gold Sovereign has maintained its status as one of the most famous coins in the world. Its liquidity is unparalleled and therefore, very attractive to investors.
This is a question frequently asked by many investors. The value of a Gold Sovereign depends on several variables. Firstly, the gold content value can be calculated by multiplying the current gold price by 7.32g. The age and condition of the coin will also impact the worth, with Victorian gold Sovereigns being valued higher than newer coins. Finally, a private collector may pay higher for a particular Sovereign than a jeweller for instance.
Perhaps the most valuable Sovereign is a George III sovereign. These were the ones first minted in 1817 post the great re-coinage of 1816. Few were produced, as the King was deceased by 1820. As a result, these coins were struck for only three years with limited mintage. Falling demand was yet another factor that contributed to the limited production of these coins and there were only 3500 produced by 1819. Of course, today, these coins are considered to be very rare, owing to their limited availability. Recently, one of the George III Sovereigns was sold for £ 186,000 at an auction.
These are perhaps the key factors that raised the value of a British gold sovereign. The older Sovereigns go back over centuries and post the reign of King George III, Sovereigns are available from the reign of King George IV, who became the British monarch by 1820. Once again, his reign was short-lived and a new monarch – King William IV acceded to the throne in 1830 and passed away by 1837. As we can see, these frequent changes that took place in the monarchy created limited editions of the gold Sovereign through the reigns of these Kings, and these are hard to come by today, escalating their value as collectable coins
By 1838, the Victorian ‘shield back’ Sovereign was in circulation and it gained popularity, resulting in the coin being struck regularly at the Royal Mint. During this era, improvements in the quality of the coins were put in place, ensuring that the Sovereigns were produced to a much higher standard. During the start of the Victorian era, the coins featured the young head of the Queen. These Sovereigns can be sold for £300 each, making them fairly valuable.
Ordinarily, anyone will tell you that proof coins have a higher quality of finish and are extremely well presented in a polished form. However, the gold content is the same, and therefore these coins may not fetch you higher prices. But the gold Sovereign bucks this trend. For example, there is a series of proof coins that were created in anticipation of the start of King Edward VIII. Upon his abdication, the coins were never released. They are considered to be very rare and one of these coins was sold for £516,000 at an auction in 2014. Some rare modern Sovereigns can also fetch high prices.
Gold Sovereigns like gold bars can make an amazing addition to your gold portfolio. But it’s important to know which ones to invest in, and when. Call Physical Gold on (020) 7060 9992 and you could benefit from important advice regarding your gold coin investments. You can also reach out to our investment team through our website.
Daniel Fisher formed physical Gold in 2008, after working in the financial industry for 20 years. He spent much of that time working within the new issue fixed income business at a top tier US bank. In this role, he traded a large book of fixed income securities, raised capital for some of the largest government, financial, and corporate institutions in the world and advised the leading global institutional investors. Daniel is CeFA registered and is a member of the Institute of Financial Planning.