- Krugerrand Or Sovereign – Which is the Best Buy?
- Krugerrands versus Sovereigns
- Compare The Prices Of Krugerrand Against Sovereigns
- What Type of Krugerrand or Sovereign Will I Get?
- Are Krugerrands and Sovereigns Capital Gains Tax Free?
- What Is Our Choice?
- Best Value Bullion - Get More Gold For Your Money
- Why Pay More for Gold Coins?
Krugerrands Or Sovereigns
Here, we compare two of the most recognisable bullion coins: the British Sovereign and the South African Krugerrand.
Click here to compare and buy Krugerrands or Sovereigns with low premiums.
Krugerrand Or Sovereign – Which is the Best Buy?
One of the most common questions that customers ask us is “Krugerrand or Sovereign – which is the best buy?”.
Our easiest and quickest answer would be Krugerrands, as they are usually sold at a slightly lower premium than gold sovereigns. However, depending on your budget, you may find that there is very little difference in price and that other factors may swing your decision away from the Krugerrand towards the British sovereign.
Krugerrands versus Sovereigns
|1 troy ounce||0.2354 troy ounce|
|Low premiums||Low premiums|
|Easily Recognised||Easily Recognised|
|Not CGT Exempt||CGT Exempt|
|Same annual design||Different monarchs, some different reverse designs|
Both the Krugerrand and the sovereign are struck in 22 carat gold (0.917 fineness). The Krugerrand contains 1 troy ounce of gold and the sovereign contains 0.2354 troy ounce of gold. You get 4.248 sovereigns in 1 troy ounce of gold. Take a look at the table below – we have compared the number of sovereigns that you would get for the same quantity of Krugerrands.
|Troy Ounce||Number of Sovereigns per Troy Ounce|
Compare The Prices Of Krugerrand Against Sovereigns
The easiest way to compare the prices of Krugerrands and sovereigns is to compare the premiums.
What Type of Krugerrand or Sovereign Will I Get?
In this blog, we are referring to the cheapest gold Krugerrands and sovereigns that we sell. These are our choice secondary market coins. These coins are our choice of date, which are sold as gold bullion at a low premium above the live gold price and are chosen at random from stock.
The bullion one ounce Krugerrand features the same design on both the obverse and the reverse that it has done since it was introduced in 1967. Your Krugerrand could range from 1967* to present day depending on whether you choose pre-owned Our Choice Secondary Market Krugerrands or Our Choice Minty Krugerrands.
The bullion British sovereigns could be any monarch from Victoria to Elizabeth II. Although they may have some light wear, they will not be damaged coins. In this blog, we are comparing Krugerrands to our most popular sovereigns - Our Choice Secondary Market Sovereigns.
If you want a sovereign close to mint condition, choose Our Choice Minty Sovereigns.
Are Krugerrands and Sovereigns Capital Gains Tax Free?
Krugerrands are not exempt from capital gains tax (CGT) but Sovereigns are.
If you are resident in the UK, you may want gold coins which are CGT free. Remember though, you will only be liable for CGT if the profit on the assets that you sell in a tax year exceed £11,300**. If you sell CGT free coins such as sovereigns, Britannias or British Lunar, you will not be liable for CGT even if your profit exceeds the annual allowance.
What Is Our Choice?
Our choice is a term that we use to describe coins which are picked at random from our stock which are sold at the lowest premiums. These coins can be our choice of date, or refiner or in the instance of sovereigns, it could be our choice of monarch.
Best Value Bullion - Get More Gold For Your Money
The premium is the margin over the intrinsic metal value that dealers charge when selling coins. The lower the premium, the more gold that you get for your money. As the premium is low over the price of gold, sometimes these items can revert to a "sourced to order" status. For more information on this, please read our blog.
Why Pay More for Gold Coins?
Some people like to collect a particular type of coin, size or even monarch. As soon as you start to narrow your requirements, you will find that the premium/price of the coin starts to creep up.
* It is more likely that Our Choice Secondary Market Krugerrands will range from 1970 onwards. 1967 - 1969 Krugerrands were issued with low mintages and are not often available for sale.
** Correct at time of publishing.