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Thursday, December 15, 2005

What are Gold Sovereigns?

Gold sovereign coins first made their appearance in the UK under King Henry the VIIth in the 15th century. Such coins are now rare and can fetch over $12,000US.

Fortunately modern Gold Sovereigns are available at a much more affordable price.

There are basically two types of Gold Sovereigns today. Australian and UK Sovereigns. The UK coins were usually struck in the Royal Mint although some have been struck in Canada and Australia. The Australian Gold Sovereigns were usually struck at one of the mints either in Sydney, Melbourne, Perth or Adelaide.

Many of these have a value over and above the value of the gold content due to their rarity and the regard people have for them. Early Australian Gold Sovereigns, for example, have increased in value almost 10 fold since 1977.

Both Sovereigns have had a similar history in that they have been struck initially, then production halted for a few years before being struck again, usually with different obverse and reverse details. This has improved their investment value which yearly continues to climb.

When choosing Gold Sovereigns important factors such as the date it was struck (or made), the condition of the coin, weight and the usual factors relating to gold coins should be looked at.

Sovereigns tend to be collected more for investment value than trade. The quality of the coin has become more important here with an attractive and perfectly minted coin having a much higher value than one which has been worn or chipped. It is important to be able to ‘grade’ the condition of gold coins when seeking coins for investment purposes.

Sovereigns are a useful source of portable money. Soldiers often carry Gold Sovereigns with them when going to war. Gold Sovereigns can be cashed in and are accepted just about anywhere.

Much better than savings in the bank, Sovereigns have continued to increase over the years and a good collection of Gold Sovereign coins can be expected to improve in value very nicely over the medium to long term.

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