Krugerrands Or Sovereigns

Author: Ian Davis - Bullion Manager

Published: 29 Mar 2018

Last Updated: 21 Aug 2019

Click here to compare and buy Krugerrands or Sovereigns with low premiums. 

Krugerrands Or Sovereigns – Which Are The Best Buy?

One of the most common questions that customers ask us is “Krugerrands or Sovereigns – which are the best buy?”.

KrugerrandVSovereign

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 the other factors may swing your decision away from the Krugerrand towards the British Sovereign.

Krugerrands versus Sovereigns

Krugerrands 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
1 4.24
5 21.24
10 42.48
25 106.20

Compare The Prices Of Krugerrand Against Sovereigns

The easiest way to compare the prices of Krugerrands and sovereigns is to compare the premiums.

Bullion Sovereign Best Value - Secondary Market

ourchoicesecondarymarketsilver500-B-1

Stock Status - Available

Quantity Premium % Total
1
3.5
£282.23

Price Per Item:
£282.23
5
2.8
£1,401.65

Price Per Item:
£280.33
10
2.7
£2,800.50

Price Per Item:
£280.05
25
2.6
£6,994.50

Price Per Item:
£279.78
50
2.55
£13,982.00

Price Per Item:
£279.64
100
2.5
£27,951.00

Price Per Item:
£279.51
250
2.45
£69,842.50

Price Per Item:
£279.37
500
2.4
£139,615.00

Price Per Item:
£279.23
1000+
2.35
£279,100.00

Price Per Item:
£279.10

1 oz Gold Coin Krugerrand Bullion Best Value Secondary Market

Stock Status - Available

Quantity Premium % Total
1
2.7
£1,189.92

Price Per Item:
£1,189.92
2
2.6
£2,377.52

Price Per Item:
£1,188.76
5
2.4
£5,932.25

Price Per Item:
£1,186.45
10
2.3
£11,852.90

Price Per Item:
£1,185.29
25+
2
£29,545.25

Price Per Item:
£1,181.81


 

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 Newly Minted Krugerrands.

OurChoiceSecKrug500-B-1

Our Choice Secondary Market 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.

bullionourchoicesovereignssecondarymarket400

Our Choice Secondary Market Sovereigns

If you want a new sovereign, choose Our Choice Newly Minted Sovereigns which can range from 2000 to present day.

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.

If you are not liable for Capital Gains Tax or simply want to buy the cheapest gold coin, buy Krugerrands or even save a couple of pounds more and buy Our Choice Secondary Market 1oz Gold Coins.

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.

Dated coins in both proof and uncirculated finishes are available for both Krugerrands and Sovereigns, these are ideal for anniversaries/birthdays and collectors but you will pay more.

If you are looking for best value investment gold, choose bullion sovereigns or our choice Krugerrands. You can even compare the types of bullion sovereigns we have available, here

 

* 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. 

This guide and its content is copyright of Chard (1964) Ltd - © Chard (1964) Ltd 2019. All rights reserved. Any redistribution or reproduction of part or all of the contents in any form is prohibited.

We are not financial advisers and we would always recommend that you consult with one prior to making any investment decision.

You can read more about copyright or our advice disclaimer on these links.