Common Customer Questions About Gold Sovereign Coins and our Expert Answers

Over the years we are regularly asked questions about sovereign gold coins. So, we decided to provide these handy FAQs with answers, which hopefully will provide you with all the answers you will need!

Based on price, the cheapest Sovereigns are pre-owned coins which are not yet old enough to have a historical value. Gold dealers generally call these coins ‘best value’.

For collectors, older Sovereigns offer historical interest and an element of scarcity. New Sovereigns are perfect for those seeking mint condition coins.

Please read our dedicated answer to this question at https://www.physicalgold.com/insights/is-it-best-to-buy-old-or-new-sovereigns/.

SGBs are an alternative to holding physical gold. Paper bonds denominated in gold grams are issued by The Reserve Bank of India and offer a fixed maturity date whereby the investor receives back an amount based on the underlying gold price.

We have written a detailed answer to this question. Please visit https://www.physicalgold.com/insights/what-are-gold-sovereign-coins/ for a detailed explanation.

The best way to clean dirty gold Sovereign coins is in a mix of warm water and liquid soap. Let the coins soak for 15 minutes before carefully wiping dry with a cloth. Boiling water from a kettle can be added into the bowl for stubborn grime. Avoid using a brush or strong chemicals.

The main value will come from the Sovereign itself. If the coin is in good condition and features a previous monarch, it will be worth more than an Elizabeth Head coin. The value of the coin itself is £200 – £300 depending on age and condition. The ring is likely to be lower purity so will only add a marginal value of 10-15%.

The primary reasons to buy Gold Sovereigns are either as an investment or as a coin collector. Sovereigns make an ideal investment as they are small enough to be affordable and move up and down in value in line with the gold price. As legal tender coins, any profits made from trading Gold Sovereigns are tax free for UK residents. The coins appeal to collectors as many were minted more than a century ago and represent a piece of scarce history.

Visit https://www.physicalgold.com/insights/why-buy-gold-sovereigns to read a detailed answer to this question about buying gold sovereigns.

The value will depend on its condition and age. Brand new coins are worth around £400 each while Young Head Victoria coins can be worth over £500 due to their age and rarity. Selling privately on an individual basis may yield higher prices if you can find a keen buyer. If selling in bulk, a gold dealer is best.

Gold Sovereigns are 22 carat purity, the same they’ve been for over 200 years. This works out around 916/1000 parts gold. The other two carats are a mix of copper and silver alloy. The exact mix can vary from year to year. This alloy mix ensures the coins are more resilient to scratched than 24 carat coins.

The most valuable Sovereign coin is a 1937 coin from the reign of Edward VIII and sold at auction for over £1 million. Coins from this reign were never released as he abdicated in 1938. The value of a Sovereign depends on three factors. The year of issuance, the number of that particular coin in existence and its collectability.

Click https://www.physicalgold.com/insights/which-gold-sovereign-coin-is-the-most-valuable for a detailed answer to this topic.

The best type of Sovereign for investors will depend on the objectives of the individual buyer, their budget and existing gold portfolio. New Sovereigns can be cheap, easy to buy in volume and in mint condition. Older coins can provide balance to a gold investment portfolio due to their additional collectible value.

We have answered this question in detail a separate blog article, access this by clicking https://www.physicalgold.com/insights/which-gold-sovereign-should-investors-buy.

Our Portfolio Creator tool will suggest 4 options based on your budget and objectives. Give it a try below.

Under the 1971 UK Coinage Act, it’s illegal to melt down any UK coin with a face value. Which covers Sovereigns. More importantly, melting a Sovereign will devalue the gold, which is worth more minted as a Sovereign due to its tax efficiency as legal tender and recognisable trading format.

Click https://www.physicalgold.com/insights/how-do-i-find-out-where-to-buy-gold-sovereign-coins for a comprehensive answer to this question.

No. Gold Sovereigns are classed as legal tender in the UK due to their face value. However, only legal tender coins still in circulation have to be accepted by law in a UK shop.  But with the gold content alone, pushing the value above £400, it would be foolish to use a Sovereign to buy goods as its face value is only £1!

A Gold Sovereign is classed as legal tender in the UK due to it having an official face value of £1 and meeting the requirements as set out under the Coinage Act 1971.

Click https://www.physicalgold.com/insights/is-a-gold-sovereign-legal-tender to read a separate article, which answers this question.

Gold Britannias are slightly cheaper per gram to buy than Gold Sovereigns due to their larger size. Sovereigns offer a more affordable coin, being around a quarter of the Britannias overall price.

Read our comprehensive article about gold Sovereigns and gold Britannias to this question at – https://www.physicalgold.com/insights/gold-sovereigns-or-britannias-which-are-the-best-to-buy.

Click https://www.physicalgold.com/insights/how-much-gold-is-there-in-a-gold-sovereign-vs-a-half-sovereign for a detailed answer to this topic.

We have provided a detailed response to this question at this link – https://www.physicalgold.com/insights/what-is-the-difference-between-a-gold-sovereign-and-a-half-sovereign/.

We always love to hear from customers, new and old and are always here to answer questions about all precious metal topics including ones about gold sovereign coins. Why not call Physical Gold Limited now on 020 7060 9992 or complete our contact form. We look forward to hearing from you soon!