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The British Gold Sovereign was first minted in 1817 as a legal tender one pound coin for circulation in society. Following the economic crisis caused by the cost of the Napoleonic wars, the British government reconstructed the coinage system based around a ‘gold standard’ – a designation of how much gold each piece of currency was exchangeable for.
The one pound or 20 Shilling Sovereign coin was introduced to replace the paper pound note used during the war. It was also issued to rival the Guinea coin, named after the Guinea region in West Africa, which had a curious value of 21 Shillings. The 1817 British Sovereign was based on the older English Sovereign dating back to 1489 – 1603.
The Gold Sovereign is one of the most popular investment coins in the UK. It was a hugely popular coin, not only in the UK but around the world, as its gold content guaranteed its value, and besides the Royal Mint in England, was also struck in other British Commonwealth nations. Its use as common currency ended with the First World War as a paper one-pound note took precedence.
As a much-liked coin, and in answer to popular demand, the Royal Mint recommended minting it as a legal tender bullion coin in 1957.
Sovereign design
The Sovereign reverse shows St George on horseback slaying the dragon. This iconic design, with some slight variations, has been used almost continually ever since. Half Sovereigns had a Royal Crest or ‘Shield Back’ reverse and this was also used on Sovereigns from 1820 till 1871. The Half Sovereign finally adopted the George and Dragon design from 1893 onwards.
Italian engraver Benedetto Pistrucci’s original design for the 1817 Sovereign is in the neoclassical style which was popular at that time. It is likely to have been based on the early French ‘Angelot’ coin or the slightly later English ‘Angel’ coin, as produced during the reign of King Edward IV in 1465. These coins both showed the Archangel Michael (occasionally depicted as Saint Michael) slaying a dragon. This tale relates to Greek mythology and the tale of Perseus, but the story has inevitably evolved over the years. Michael slew a demon, then a dragon, then it was George killing the dragon.
Gold Sovereign investment
Owners of British gold sovereigns can be categorised as either numismatic, coin collectors, or financial, bullion investors. For numismatists they offer aesthetic and historical appeal. For Financial investors they offer a convenient store of gold, that, as British legal tender is exempt from Capital Gains Tax and also VAT free. Plus, a small allocation of British gold sovereigns can be a useful diversification in an investment portfolio.
Naturally, numismatists will be drawn to rarer historic coins, whilst bullion investors may choose best value, low-grade Sovereigns, priced at little over their pure gold value. Both types of investors will benefit from owning a world-renowned coin with a ready and proven market to trade in.
BuyBullion24 stock a large selection of rare collectible coins, modern bullion and best value pure investment sovereigns.
Rare Sovereigns
All Sovereigns will have a base value as pure gold bullion, but many collectible coins will far exceed this price. For example, the King George III 1819 Sovereign – of which only ten are now known to exist. As a result of their scarcity they command extraordinary prices, even when in relatively poor condition. In 2013, one of the finest examples was sold at auction for a staggering £186,000.
The 1859 Victoria ‘Ansell’ coin is another rare and sought-after Sovereign. So named after a chemist, George Ansell, who, after experimenting with rejected sovereigns, developed the stronger alloy used by the Royal Mint in their production.
Other rare examples are:
1908 Edward VII Ottawa Mint
1924 George V Pretoria Mint
1916 George V Ottawa Mint
1917 George V London Mint
1922 George V Melbourne Mint
1926 George V Sydney Mint
1921 George V Melbourne Mint
1923 George V Sydney Mint
1874 Victoria ‘Young Head’ Shield
1920 George V Sydney Mint
Half Sovereign & Quarter Sovereign
Alongside the British Sovereign, a Half Sovereign was also introduced in 1817. This 10 Shilling or half pound face value coin has basically followed the path of the one-pound sovereign.
The Half Sovereign offers a very reasonably priced way into coin and bullion investment. The Half Sovereign has been so popular that in 2009 the Royal Mint added a new Quarter Sovereign, and both have a pure gold value far exceeding the original face values!
Coin collecting
Investing in gold coins can be both a financial pursuit and a personal hobby. Investors often choose coins as they offer far more flexibility than ingots due to the ability to sell part of your investment while still keeping some. An ingot doesn’t allow you to do this as you can’t sell part of a bar.
Investors tend to pursue gold primarily for its current market price, whereas collectors are drawn to coins for reasons such as historic interest or patriotic pride. A collector’s collection is generally dictated by their financial situation and personal preferences, whereas an investor’s is influenced by the economy and their portfolio.
How to begin collecting
Starting your collection requires planning – what is it exactly that you want to collect? Some decide that they want to own every version of one type of coin, others aim to make a set, purchasing every design from a certain time period.
You also need to decide if you are looking to make a profit from your collection, or if this is simply a hobby for enjoyment, as certain coins offer more return than others.
Once you have envisioned your future coin collection, begin doing your research on which mint you wish to purchase. At BuyBullion24, we are authorized, recommended distributors of:
- The Royal Mint, UK
- Royal Australian Mint
- The Perth Mint, Australia
- United States Mint
- Royal Mint Canadian
- South African Mint
BB24 always recommends choosing coins from renowned mints to ensure you are purchasing high quality, valuable coins.
To begin your coin collection now, explore our gold coin range!