Which Gold Sovereign Should Investors Buy

Choosing the best gold sovereign to buy is more than just a financial decision; it’s a journey into the rich tapestry of history, art, and craftsmanship. As professional gold dealers, we understand that every investor has unique needs and goals.

Whether you’re a seasoned investor or just starting your journey, we’re here to guide you through the labyrinth of choices and help you find the gold sovereigns that best suit your needs.

At the heart of our ethos is a commitment to providing practical, solid investment options grounded in reality. We believe in offering tangible assets that not only hold their value over time but also carry a piece of history.

Gold sovereigns, with their blend of precious metal and historical significance, perfectly embody this ethos.

In this guide, we’ll delve deep into the world of gold sovereigns, exploring the best options for different types of investors.

Whether you’re a small investor looking for affordable options, a larger investor seeking high-value coins, or someone looking for coins with the potential for significant increases in value, we’ve got you covered.

Butwhat makes a gold sovereign “the best” to buy? It’s not just about the gold content or the age of the coin. Factors like rarity, condition, historical significance, and numismatic value all play a crucial role.

And of course, the “best” coin for you will also depend on your individual needs and goals as an investor.

We understand that different Sovereign buyers will likely have diverse objectives. Because of that, we’ve broken down our recommendations into 5 categories to help you make the most suitable choice.

For collectors, the allure of gold sovereigns extends beyond their intrinsic gold value. The historical significance, unique designs, and rarity of these coins add to their appeal. Here are some of the best value sovereigns for collectors, each offering a unique slice of history:

• Victoria Young Head Sovereign (1838-1887): This coin, featuring the first portrait of Queen Victoria, marks the onset of her lengthy reign. It’s a piece of numismatic history that’s highly coveted by collectors. Despite its age, it remains relatively affordable compared to some older, rare coins, making it excellent value for collectors.
• Victoria Jubilee Head Sovereign (1887-1893): Minted to celebrate the 50th year of Queen Victoria’s reign, this coin’s unique design and historical significance make it a popular choice among collectors. Its commemorative nature adds to its value and appeal.
• Victoria Old Head Sovereign (1893-1901): The last portrait of Queen Victoria on a coin, this piece marks the end of her reign. Its historical significance and design make it a sought-after addition to any collection.

Each of these coins offers a tangible connection to the past, making them a must-have for any serious collector. They represent significant periods in Queen Victoria’s reign, each with a unique design that sets it apart.

An honourable mention also goes to Double Sovereigns (£2 coins) and Quintuple Sovereigns (£5 coins). As the names suggest, the £2 Gold coin is the size of two Sovereigns rolled into one, while the huge £5 gold coin is five Sovereigns rolled into one coin.

As well as the standard issues which feature the identical St.George and Dragon reverse emblem, many of these super-sized Sovereigns also come in limited issue commemorative versions. Examples will highlight famous event anniversaries, significant figures and historical occasions. Many of these coins can be picked up for modest premiums, but provide collectors with great satisfaction.

Investing in gold is a time-honoured strategy for wealth preservation, and for smaller investors, half sovereigns represent an excellent entry point.

Half sovereigns are British gold coins that are literally half the size of a full sovereign, containing half the gold content.

This makes them more affordable and accessible for those with a modest budget. Moreover, their smaller size offers greater divisibility, allowing investors to sell part of their holdings if needed, while retaining the rest.

Their premiums are lower than the even smaller quarter Sovereign and Tenth Britannia gold coins, making them the most cost effective option for those seeking smaller gold units than the standard full Sovereign.

Now, let’s delve into some of the best half sovereigns that offer a blend of historical significance, design, and affordability:

• Victoria Jubilee Head Shield Back Half Sovereign. This coin, minted during the Golden Jubilee of Queen Victoria’s reign, is a piece of British history. Its unique design and historical significance, coupled with its affordability, make it a great choice for investors looking to start their gold portfolio.
• Victoria Young Head Shield Back Half Sovereign. This coin, featuring the first portrait of Queen Victoria on a coin, offers a tangible connection to the past. Its age and historical significance, combined with its affordability, make it an attractive investment option. This portrait is often known as the Victoria Bun Head due to the queen’s hair being tied up in the image.
• Victoria Old Head Half Sovereign. This coin, also from Queen Victoria’s reign, is a popular choice due to its historical significance and affordability. It’s a great way to own a piece of history without breaking the bank.
• King Edward VII Half Sovereign. This coin, marking the beginning of King Edward VII’s reign, offers historical value. Its relatively low price makes it a good choice for investors looking for an affordable entry into gold investment.
• King George V Half Sovereign. This coin, from the reign of King George V, combines historical significance with affordability. It’s a popular choice among investors looking for value and history.
• Best Value Half Sovereign. This coin is a pre-owned gold half sovereign coin of various years and portraits, depending on stock levels. Despite having a higher degree of history, scarcity, and desirability, these pre-owned coins often offer better value than the latest issue, making them an excellent choice for smaller investors.

When considering gold sovereigns for inheritance or gifting purposes, brand new sovereigns represent an excellent choice. These coins, in mint condition, offer the usual gold value and are perfect for giving as a gift or passing down as inheritance.

Sovereigns in general are a very popular choice for gifting and creating an inheritance for several reasons.

• They’re far more affordable than 1oz gold coins such as Britannias. Most pockets can’t stretch to purchasing 1oz coins as a present, so Sovereigns act as a more realistic option as they’re around a quarter of the cost.
• Their mix of historical, aesthetic and investment qualities make ideal gifts
• Their small size means a larger quantity can be purchased for the same price as buying larger coins. This offers easy divisibility for parents wishing to accumulate coins for inheritance. They can be split easily amongst children and even grandchildren, as opposed to buying a large gold bar which cannot be divided.
• Sovereigns are VAT-exempt and free from Capital Gains Tax (CGT). This is a major selling point for buyers building an inheritance who are conscious of not passing on a substantial tax bill along with their asset.

New Sovereigns For Gifts

The pristine condition of brand new Sovereigns makes them the most popular option when choosing a present for friends or family. They’re often seen as a very thoughtful and practical gift as their beauty can be enjoyed while also acting as an investment.

Another option can be to purchase a Sovereign minted in the year the recipient was born, to commemorate their birthday and offer a considerate gifting option.

However, it can sometimes be difficult to source Sovereign coins from a particular year, dealers can charge a premium for this service and coins will likely be in a less perfect condition due to being pre-owned.

New Sovereigns For Inheritance

The latest edition of the Sovereign can also be ideal for parents and grandparents seeking to pass down a tangible inheritance to their family.

They will likely be the most plentiful option at the time as the Royal Mint will be producing them as part of their current production.

This means they can be bought in large quantities if desired and obtained in convenient sealed official tubes of 25 coins. This creates ideal circumstances to store the coins over a long period and ensure they’re kept in pristine condition. Older coins will generally not be offered in tubes.

New Sovereigns also tend to be cheaper than older coins. Not only are they plentiful, but they don’t currently command a historical premium.

More dealers will have stock of the latest Sovereign, meaning buyers can easily shop around for the lowest prices.

This offers a great value option to those seeking to buy gold coins to pass down the generations, whereby the coins will likely have developed more scarcity and collectibility once family members inherit them in the future.

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

It’s also important to be aware that Sovereigns are also produced to three different official levels of striking standards. When the Royal Mint launches a new Sovereign, it’s likely they will produce the coin to ‘Bullion’, ‘Brilliant Uncirculated’ and ‘Proof’ finish. Many historical Sovereigns are also still available in these various finishes.

This top-level finish also costs the most to acquire. Coins need to be struck between four and seven times in the minting process to create a stunning finish with more depth and definition. Commonly, monarch portraits and reverse designs appear to have a matt finish, while backgrounds are polished and shiny.

The Royal Mint will produce a Proof run of Sovereigns in limited numbers, usually to commemorate a new Sovereign design or portrait. Coins are usually encapsulated for protection and sold certified with its issue number in presentation boxes. Interestingly, the period between 1982 and 1999, witnessed Sovereigns being exclusively minted to proof standard.

Generally speaking, we advise against Sovereign investors purchasing these coins. Buyers will need to pay significant premiums, sometimes 30% or more, but are unlikely to receive the same premium back when sold. However, some specialised investors and Sovereign collectors like to solely purchase proof coins and hope to sell them for even larger premiums to private collectors.

Navigating the UK gold market can seem like a daunting task, but it doesn’t have to be. This market, steeped in history and prestige, is a treasure trove of opportunities for the discerning investor.

One of the shining stars of this market is the gold sovereign.

Over the past decade, the gold value of a sovereign has increased by approximately 65%. This upward trend in gold prices is a testament to the enduring appeal of gold as an asset.

It’s a clear indicator of the long-term appreciation potential that gold sovereigns offer.

For potential investors, understanding the dynamics of the UK gold market can be key to making informed investment decisions. It’s also important to keep an eye onthe current gold value of gold sovereigns.

Investing in gold sovereigns in the UK is a straightforward process. Here are the steps:

1. Research: Learn about thedifferent types of gold sovereigns and what makes them valuable. This guide is a great starting point!
2. Budget: Determine how much you’re willing to invest. Remember, it’s always best to invest money that you can afford to tie up for a while.
3. Buy: Purchase your chosen gold sovereigns from a reputable dealer. Make sure they’re members of professional bodies like the British Numismatic Trade Association.
4. Store:Store your gold sovereigns safely. You can keep them in a home safe or in a safety deposit box at a bank.

Like any investment,investing in gold sovereigns comes with its own set of risks and rewards. On the reward side, gold sovereigns can appreciate in value over time, offer a hedge against inflation, and add diversification to an investment portfolio.

It’s important to seek specialist advice however. Market fluctuations, counterfeit risks and being able to time the market are all things a professional gold dealer can help you with.

At Physical Gold, we hold leading industry accreditations and have a vast amount of 5-star ratings from people, just like you. We are based in the heart of London’s gold capital, Hatton Garden, and are available to contact via phone on 020 7060 9992, email at info@physicalgold.com or byarranging a call at a time that suits you.