Gold Sovereign Coins

The history of gold sovereigns

The very first gold sovereign coin was struck at the Tower of London on the 28th of October 1489. With over five hundred years of history, the gold sovereign coin is steeped in British heritage, regarded as a symbol of quality and reliability. It is respected by collectors of precious metals worldwide.

As the flagship coin of The Royal Mint, the sovereign coin traditionally features the reigning monarch on the obverse, with Benedetto Pistrucci’s iconic St George and the dragon design on the reverse. However, commemorative designs have been issued over the years, honouring historic events like royal jubilees, the 500^th anniversary of the sovereign in 1989, and the Queen Elizabeth II memorial sovereign in 2022.

Recognised not only in the UK but globally, the gold sovereign stands as one of the world’s leading bullion coins, boasting a reputation for its quality, reliability, and collectability.

The quality of gold sovereigns

Gold sovereign coins are struck by The Royal Mint in 22ct gold, which is 91.67% pure gold.

As one of the oldest, most trusted organisations in the world, The Royal Mint rigorously checks all sovereign coins for fineness and quality. Their weight and purity are set by an Act of Parliament and the King’s Assay. This consistency in purity, alongside the coin’s strength and reliability, has made the sovereign renowned and trusted by collectors and traders worldwide.

The benefits of buying and investing in gold sovereign coins

With their intrinsic value and rich heritage, gold sovereign coins are highly popular among collectors and investors around the globe. Historically regarded as one of the most stable precious metal products on the market, these bullion coins are among the most tradable and highly liquid in the world. Gold sovereigns have long been used as a safe haven during times of economic uncertainty and inflation. When inflation rises and fiat currencies lose value, tangible assets like gold sovereign coins becoming more appealing.

Gold sovereigns also offer tax advantages. As British legal tender, sovereigns are exempt from Capital Gains Tax for UK taxpayers, allowing unlimited tax-free profits of any value on these coins. Any profits made from all other gold and silver coins and bars that are not in this category are taxable. Gold sovereign coins are also VAT free, as is all investment gold.

Their compact size and competitive premiums make gold sovereigns a convenient choice for those looking for a flexible addition their collection. They are also a perfect entry point for those starting out in their precious metals journey.

What is the face value of a sovereign?

Full sovereign coins have a face value (monetary denomination) of £1. However, this does not reflect the true value of the coin. The value of a gold sovereign coin is much higher than the face value as it is based on the pure precious metal content (fine content) within the coin.

The full sovereign gold coin is the most popular and most widely traded coin in the sovereign range; however, other sizes and weights are available. These include the quintuple sovereign £5 coin), double sovereign (£2 coin), half sovereign (£0.50p), and quarter sovereign (£0.25p).

How much is a gold sovereign coin worth?

The value of a gold sovereign coin is primarily determined by its pure fine gold content, which fluctuates based on the live gold spot price. This price is subject to constant change due to a range of factors. Influences such as economic and geopolitical uncertainties, global demand shifts, inflation levels, and alterations in interest rates. Stay up to date by referring to our real-time price chart, ensuring you are informed on the latest spot price of gold.

Some sought-after editions of gold sovereigns can carry additional collectable value, sometimes making them worth a little more than their gold content alone. These include coins such as Victorian Shield Sovereigns, Proof Gold Sovereign Coins, and Graded Coins.

When purchasing gold sovereigns, buying in larger quantities can often result in savings. At Atkinsons, we offer volume pricing - meaning that the more sovereigns you buy, the lower the premium per coin. Buying pre-owned sovereigns can also provide savings, as these bullion items are often sold at a lower premium than new ones.

How to calculate the value of a sovereign

A sovereign weighs 7.98 grams and is struck in 22ct gold (91.67%). This means the pure gold content of a sovereign is 7.32 grams. To calculate the value of the sovereign, based on its fine gold content, multiply the gold content (7.32 grams) by the current spot price per gram.

For example:

Gold content: 7.32 grams x Spot price per gram: £65 = £475.80.

How to store gold sovereigns

When storing your gold sovereigns, there are several storage options to consider. You may choose a home safe or in-home hiding spot, a safety deposit box, or allocated storage with a professional company, depending on your requirements and personal preference. However you choose to keep your sovereign coins safe and secure, it is crucial to be discreet and limit the number of people who know about your gold holdings to a minimum.