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Gold sovereign

Value of the gold sovereign as an investment: listing and prices

The history of gold sovereign dates back to 1489, when it was created and issued in England, by King Henry VII. On one side, it bore an image of the King on the throne, on the other, the rose, symbol of the Tudors, one of the most important English royal families.
Also called the English sovereign (Gold Sovereign), there are different interpretations in this regard:

  • it seems that the gold sovereign was so called because it bore the image of the King on one of the two sides;
  • it is also rumoured to have been decided by Henry VII to demonstrate the authority and the power of his country over Spain and Portugal

Initially of 24 carats, later reduced to 22.

Coined up to 1603, the gold sovereign resumed production in 1816 with a depiction of the King on one side and Saint George killing the dragon, on the other.

The Great Recoinage of 1816 established the standards of weight and quantity of gold in the sovereign still in use today:

  • Weight: 7.9881 g
  • Titolo: 22 kt (91.67%)
  • Thickness: 1.52 mm
  • Diameter: 22.05 mm

During the Victorian period, however, the Bank of England withdrew the coins that had lost weight, and melted them down to restore the exact legal value. Up until the First World War, when England abandoned the Gold Standard. From there, up until the 1930s, the sovereign was minted abroad.
There was a gap in production of the sovereign from 1932 to 1956.
It started circulating again only in 1957.

Produced as a coin-cast bar until 1982, the gold sovereign is now issued by the Royal Mint.

The price of the gold sovereign

The price of the gold sovereign depends on two factors:

  1. the quantity of gold in the coin and the relevant price of the precious metal;
  2. its numismatic value for collection.

How much is a gold sovereign worth? To find out, you need to know the price of the metal (fixing) issued daily by the London Bullion Market Association which, thus, determines the price of physical gold worldwide.

But there is another factor that should not be underestimated: the period in which the sovereign was coined. Before 1957, it is defined old coinage and after that date, it is known as new coinage and has a higher value.

Why invest in gold sovereigns

There are two ways to invest in physical gold:

  1. by buying cast bars
  2. by buying gold coins

As the quintessential safe haven asset, with a stable long-term value, investing in gold means protecting your investment from inflation.
Ten good reasons for investing in gold sovereigns:

  1. it is a safe haven asset;
  2. it is accessible to the small-medium investor given the affordable cost;
  3. the purchase is exempt from VAT (Italian Law 7/2000);
  4. it is one of the most sought-after coins in the world;
  5. it is can be easily transported;
  6. it has a high liquidity;
  7. the buying and selling procedures are simple;
  8. it allows you to split your capital investment;
  9. it keeps better than cast bars;
  10. selling benefits from it being highly sought-after.

Finally, to be considered an investment, the sovereign must meet certain characteristics:

  • a purity of 900 thousandths;
  • it must have been minted after 1800;
  • it must be included in the appropriate EU catalogue;
  • the selling price must not exceed 80% of the price of gold (spread).

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