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Home > Blog > 8 Reasons Why Sovereign Coins are a Good Investment

8 Reasons Why Sovereign Coins are a Good Investment

Posted by cuttingsjewellers on April 30, 2014



With its origins in Britain, the sovereign remains to be one of the most popular ways to invest in gold. Its history traces back to the 1400s, and today there are a great many varieties available to buy. But why does it make such a good investment?




1. Over the last decade, gold has not only been the most popular investment but it's also been the best performing. It has been increasing in price by 50% on average each year, even though the purchasing power of the Great British Pound has been falling by 12-15% per year.

2. As the world population increases and the mining of gold decreases, it's likely that the price of gold will continue to grow. Even through a financial crisis like the one we have just experienced, you can be sure that a gold sovereign will still keep its worth.

3. Currently, the trade of Gold Sovereigns in the UK is not subject to VAT or Capital Gains Tax, so you can make an incredible saving if you choose to invest.

4. A sovereign coin can act as insurance in case you ever hit a financial difficulty, or if you need some instant cash. Sovereigns make an ideal item to pawn, or you could sell to a trusted buyer if you don’t want to pay the money back.

5. Sovereigns are steeped in history, first dating back to King Henry VII in 1489. These original versions were last minted in the 17th Century, and a newer version of the sovereign was produced in 1817 and designed by the Italian engraver Bendetto Pistrucci. Sovereigns with great historic value are very valuable and highly sought after.

6. A sovereign is small and easy to store, and doesn't require any special cleaning. In fact, it's better if you don’t clean the coin at all, in case you cause any damage to the surface and subsequently decrease the coin's value.

7. British sovereigns are the most widely traded semi-numismatic coin in the world today, and have an international appeal which many other coins do not have.

8. All sovereigns weigh 7.98 grams, with a thickness of 1.52mm and a fineness of 22 carat gold. Couple these specifications with the intricate detailing of the sovereign, and you get a coin that is very difficult to fake.

If you think buying a sovereign coin will be a worthwhile investment, we recommend finding a reputable gold dealer you trust - somewhere with credentials and a good customer base. For more help and advice about purchasing or selling sovereign calls, feel free to give us a call or pay a visit to one our shops.