What Are Gold Sovereign Coins? Should You Buy Gold Sovereign?

Gold has been a popular and profitable investment for centuries. The precious metal provides a superb portfolio balance, protection against inflation, and security against political and economic qualms. Investment in gold happens in different ways and buy gold sovereign coin is one of the best practices for various reasons. 

What Are Gold Sovereign Coins?

The Sovereign of the United Kingdom is a gold coin with a nominal value of about one sterling pound. The coin features Queen Elizabeth II (or the then monarch at the time of minting) on the front. The obverse of the coin features an image of St. George slaying a dragon.

Because the gold sovereign coin has a long, exciting history, this remains to be a well-liked choice among the gold enthusiasts. Now sovereigns are bullion coins and also they are mounted in jewelry. They are reckoned as one of the most popular gold coins that one can find on the precious metals market.

History of Gold Sovereign Coins

The gold sovereign minting dates back over 500 years ago to 1489 during the period of King Henry VII's Tudor. The design type was introduced around 300 years later in 1816 during the reign of George III.

The minting of the sovereign coin continued steadily up to 1932 when the country went off the gold standard. The British sovereigns which were minted under Edward VII and George V are the most popular pre-1933 gold coins.

Three Reasons Gold Sovereign Coins Are a Great Investment

People who like to invest in sovereigns do so basically for their rich history, ease of trade, and tax freedom.

Historical Significance

The sovereign coin holds a vibrant history and has seen the portraits of leaders change over time. The portraits of different monarchs creating different versions of the coin encourage numismatists wishing to have fresh additions for their collections. The picture of St. George slaying a dragon is the most famous design which was engraved by Benedetto Pistrucci.

During the period of between late 1800s and early 1900s, minting of thousands of this sovereign was done in several locations around the globe, specifically in Australia and South Africa. The more modern gold sovereign coin completed 200 years in 2017, and investors value it for its rich historical legacy and the culture it characterizes.

Tax Exemption

The people of the UK enjoy tax-free gold when they make investment in gold sovereign coins. Such sovereigns are made free from Capital Gains Tax exclusively for UK residents. The country considers gold sovereign coins legal tender and its government does not tax the movement of legal currency.

People here also get to keep the whole profits when they liquidate the sovereign coins rather than remitting 28% of their earnings to the tax collector.

Easy To Acquire and Sell

The value of gold sovereign coins stands about one sterling pound whereas the true worth of the coin is much more significant since it bears 0.235 troy ounces of gold, a little higher than a conventional ounce.

Investors find the small size sovereign coins more favourable than one-ounce coins like Britannia and Krugerrand. It's simple to deal with small amounts of such coins as they are cost effective to buy and sell as compared to gold bars.

Which Sovereign Coins Are the Best for Investing?

After making up your mind to buy gold sovereign coins, you should think of the amount to invest and the coins to purchase. Many financial advisors suggest diversifying your investments.

Let's explore some of the on-demand sovereigns you should mull.

·         QUEEN ELIZABETH II GOLD SOVEREIGN – 2020

·         QUEEN ELIZABETH II GOLD HALF SOVEREIGN (MIXED DATES)

·         1OZ UK GOLD BRITANNIA (MIXED DATES)

·         1/2OZ UK GOLD BRITANNIA

·         1OZ AUSTRALIA GOLD KANGAROO (MIXED DATES)

·         1OZ CANADA GOLD MAPLE LEAF (MIXED DATES)

·         1OZ SOUTH AFRICA GOLD KRUGERRAND (MIXED DATES)

Conclusion

Gold sovereign coins have proved to be one of the best ways to make investment in gold. They, holding a rich history, are exempt from tax, only for the UK residents. They are easy to buy and sell. If one wants to invest in sovereigns, he/she must understand the various types to select the right one for the investment portfolio. Some of the sovereigns such as pre-1604 sovereigns, rare sovereigns, gold proof sovereigns, half sovereigns, and quarter sovereigns can be considered.