What is the Price of a Sovereign Coin?
As with many bullion proucts there are many influencing factors that determine the final price of a gold sovereign coin, such as the intrinsic value and premium, which will all be discussed in the below.
Current Sovereign Prices
There are several prices and values a gold investor should make themselves familiar with - the spot price based on live gold price, product premiums, buy prices and selling prices. These can change based on the product as we illustrate below:
|Product Name||Intrinsic Price (Spot Price)||Premium||Buy Price||Sell Price|
|Gold Sovereign Best Value Coin - Secondary Market||£377.38||from 3.35%||from £390.14||£373.61|
|Bullion Sovereign Best Value - Newly Minted||£377.38||from 5.85%||from £399.51||£373.61|
|2019 Gold Sovereign Bullion Coin||£377.38||20%||£452.92||£373.61|
The buy and sell price forms the margin or spread that you will read about on our blogs, forums and investment pages and maximising this ratio allows you to be most profitable in your investments. Proof coins and those considered collectable pieces will carry a higher buy premium and often selling prices will be higher to. If you wish to buy or sell these, we recommend you call us on 01253 343081.
Face Value of a Sovereign
Sovereigns carry a face value of £1 (one pound) and are legal UK tender. The pound sterling had been a unit of account for centuries and in 1489 Henry VII struck the first gold sovereign assigning it a face value of £1. In modern times the gold value far outweighs the face value and gold sovereign trades are done based on actual gold weight rather than as a unit of currency. The fact the UK government still classes the sovereign as legal tender allows investors the benefit of reducing their capital gains tax liabilities. We have a page dedicated to how to avoid paying capital gains tax.
Numismatic Value of a Sovereign
The sovereign is Britain’s most popular gold coin and is probably the most famous gold bullion coin, both historically and globally. The sovereign is legal tender and is therefore Capital Gains Tax exempt which makes it a favourite with investors. The gold sovereign is not just a bullion coin, it is also one of the most collected coins by numismatists and certain years can achieve record prices. Sovereigns weigh 7.98 grams and are made of 22 carat gold (carat means 1/24) or 91.66% pure, and therefore contains 7.315 grams or 0.2353544 troy ounces of pure gold.
The sovereign is arguably Britain’s most popular gold coin. It has been issued for almost every year since 1817 when the first "modern" sovereign was struck under George III. Before this the sovereign existed in a number of different forms and you can read more about this in our sovereign guide.
Collectors can be interested in buying one of every year, collecting some or all of the different monarchs, portraits, mintmarks or even buying unusual designs such as the 2005 and 2012 sovereigns. There are also interesting variations such as Ansell sovereigns, overdates and error coins like the inverted A in GRATIA.
Advantages of a Sovereign
The great advantage of sovereigns is that they are an attractive and much-loved coin with a rich tradition and history. Single coins command premium prices for use in jewellery or as gifts for special occasions such as christenings, golden weddings, coming of age, and even just as an attractive jewellery item.
Disadvantages of a Sovereign
The only disadvantage of the sovereign as a bullion coin, is that the new breed of bullion coins, from the krugerrand which was introduced in 1968, onwards, are easier to calculate their gold content because they all contain one troy ounce or a simple fraction of an ounce.
Sovereign's for Sale
Bullion coins will be in normal acceptable condition. While some may be in near mint condition others will show considerable wear. All will be guaranteed genuine, and in reasonable condition. Please do not expect bullion coins to be in selected condition, for this you would need to buy selected grade coins.
Here are two bullion sovereigns available to buy from this page:
You may wish to view all of our articles on our gold guide.
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We are not financial advisers and we would always recommend that you consult with one prior to making any investment decision.