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1911 George V

Why gold sovereign coins are a good investment

'The first gold sovereign was struck in 1489 during the reign of Henry the Seventh.'

Why gold sovereign coins are a good investment

In the world of bitcoins and digital investments, investing in physical gold coins can seem a bit old-fashioned. Gold ETFs, DG Gold, gold-backed cryptocurrencies, and other options of digital asset-backed gold are all easy and modern ways to invest in gold digitally. However, there are many advantages of choosing to invest in physical gold over digital gold. Especially when it comes to the gold sovereign. 


What is the gold sovereign?

The gold sovereign coin is a British coin that has the value of one pound sterling. The first gold sovereign was struck in 1489 during the reign of Henry the Seventh. This gold coin was originally minted until 1603 and later revived during the Great Coinage of 1816. To this day, the sovereign coins are still minted in the same shape and form they used over 200 years ago. The coin owes its name to the prominent portrait of the current monarch on its surface. The gold sovereign is one of the most collected coins in the world and a very popular gold investment for bullion coin investors.


Is the British sovereign a good investment?

The short answer to that would be yes, the gold sovereign is most certainly a good investment. A longer answer to that question can better be summed up in the four reasons below:


  • Gold sovereigns are a good investment because the coin is capital gains tax-exempt in the United Kingdom.
  • Extensive data available on the prices and auction results of sovereign coins makes the gold sovereign coin a more well-informed and less risky investment. 
  • Owning physical gold can be good protection against future inflation, currency depreciation, and global macroeconomic threats. 
  • Gold coins are one of the few objects over a hundred years old that come in such a relatively good state of preservation.


How much is the gold sovereign worth?

In general, the gold sovereign coin is worth its weight in gold. This is however just one part of its value and is known as the bullion value or the metal value of the coin.


The good state of preservation of coins also has an impact on the value of the coin and thereby on the investment. This can best be illustrated with the example of our 1911 George the Fifth sovereign coin. This 1911 George the Fifth gold sovereign only has a 62 grade, which is not the highest grade out there. However, because the coin is in mint state, a 20 to 30% premium can be added over the metal value. The coin is in mint condition because it has never been circulated and has just been stored in a bag for a hundred years. Not many other historical objects can be preserved in the same way and be in such a mint state after a long period of time. 

Gold sovereigns are the best investment option when it comes to gold. They are available at a good price at the moment, and, due to their metal value, increasing historical value and good preservation options, will most likely command a considerable premium in the future.