Are Gold Sovereigns a Good Investment?

cgi gold soverign coins

Why Invest in Gold?

Gold has historically been a stable investment, especially during times of economic uncertainty. Investing in physical gold like sovereigns allows you to hold a tangible asset that tends to maintain its value over time. Gold also provides portfolio diversification.

Why Invest in Gold Sovereigns?

Gold sovereigns have several advantages as an investment:

  • British gold sovereigns are exempt from VAT and Capital Gains Tax, allowing you to maximize returns.
  • The iconic design and long history give gold sovereigns collectible appeal, which can increase their value.
  • Smaller denomination than bars makes sovereigns more divisible and easier to sell.
  • Popular with investors worldwide so there is high demand.

Rare Sovereigns

Certain sovereigns are extremely rare and valuable to collectors:

  • 1819 George III sovereign – Only 10 exist today so they can sell for over £100,000.
  • 1859 Victoria Ansell sovereign – Fewer than 25 exist, worth over £10,000 in top condition.
  • 1937 Edward VIII sovereign – A handful of trial coins exist, one sold for £1 million in 2014.

Other key dates like 1908, 1916, 1917, and 1926 sovereigns are also highly sought after by collectors.

Gold Proof Sovereigns

Proof sovereigns are specialised collectible versions with mirror-like surfaces. Modern proofs from the Royal Mint come with certificates in presentation cases. Some earlier proofs like the 1989 500th anniversary design can sell for high premiums.

Half Sovereign & Quarter Sovereign

The half sovereign contains 0.1177 oz of gold, while the quarter sovereign contains 0.0588 oz. These smaller gold coins offer an affordable entry point for new investors.

The Different Types of Coin Investor

There are two main types of gold sovereign investors:
Numismatists: Interested in rare and historic sovereigns for their collectability. Will pay higher premiums for key dates and mint errors.
Bullion Investors: Focus on sovereigns strictly for their intrinsic gold value. Seek common dates trading at low premiums over melt value.

Which Gold Sovereign is the Most Valuable?

The 1819 George III sovereign is considered the holy grail of sovereign collecting. As mentioned, only around 10 examples are known to exist. Whenever an 1819 sovereign comes up for auction, it generates an enormous amount of attention because of its rarity. Even in poor condition, an 1819 sovereign can fetch six-figure prices.
Other extremely rare sovereigns that trade for high values include:

  • 1841 Victoria Shield reverse sovereign
  • 1844 Victoria young head sovereign
  • 1854 Victoria wyon head sovereign
  • 1855 Victoria Sydney mint sovereign
  • 1871 Victoria die number sovereign

Gold Investment Specialists

As leading specialists in gold sovereigns and rare coins, New Capital Link can assist investors in selecting gold coins that fit their objectives. We help clients build high-quality portfolios of historic sovereigns for collecting purposes as well as efficient bullion-based holdings. Get in touch today to discuss adding gold sovereigns to your investment strategy.
Other gold investment options:

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Are Gold Sovereigns a Good Investment?

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Rachel Buscall

Co-Founder & Managing Director at New Capital Link.

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New Capital Link

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