The British Gold Sovereign is a significant gold coin with a rich history and strong investment potential.
Here’s a breakdown:
- Originated in 1489: The first English gold sovereign was issued under King Henry VII and was the largest and most valuable coin of its time.
- Modern Sovereign debuted in 1817: As part of the Great Recoinage following the Napoleonic Wars, the modern sovereign, with a value of 20 shillings (£1), was reintroduced, replacing the guinea coin.
- Iconic designs:
– Obverse: Features the portrait of the reigning British monarch at the time of mintage.
– Reverse: Typically features the classic St. George and the Dragon design by Benedetto Pistrucci, a design that has been used consistently for most modern Sovereigns since 1817, [according to APMEX].
- Material: 22 carat gold (91.67% gold purity) and 8.33% copper or other metals.
- Weight: 7.98805 grams total weight, with a pure gold content of 7.3224 grams (0.2354 troy ounces).
- Diameter: 22.05 mm.
- Legal Tender: Although no longer in circulation as currency, the sovereign remains legal tender in the UK.
- Tangible asset and store of value: Gold Sovereigns represent physical gold, offering a hedge against inflation and economic uncertainty.
- Tax advantages: As British legal tender, they are exempt from Capital Gains Tax (CGT) in the UK, making them a tax-efficient investment.
- Liquidity and global recognition: The long history and consistent design of Sovereigns make them easily recognizable and liquid assets, sought after by collectors and investors worldwide.
- Collectibility: In addition to their intrinsic gold value, rare and historic sovereigns can command significant premiums due to their numismatic value (value based on their rarity, condition, and historical significance).
- Fractional Denominations: Sovereigns are available in various sizes, including Double Sovereigns, Half Sovereigns, and Quarter Sovereigns, providing flexibility for different investment levels.
In conclusion, British Gold Sovereigns offer a unique blend of historical significance, gold bullion value, and collectability, making them a compelling option for investors and collectors alike.
Are sovereigns worth money?
Old gold sovereigns can be worth more if they are rare, in excellent condition, or hold historical significance. However, the gold content remains an important factor in determining value.