The British Gold Sovereign was initially introduced into circulation in 1817, and has been in circulation since. The coin has a nominal face value of 1 GBP. British sovereigns were initially introduced into the market as a circulated coin, which meant that they were used as legal tender for purchases. Today, the coin is known more as a precious metal coin, and is used as a store of value instead of as currency. The gold Sovereign was designed by Benedetto Pistrucci.
The History of the Gold Sovereign
The gold sovereign that is currently manufactured was named after the English gold sovereign, which was minted until 1603. The gold Sovereign was introduced in 1817 in place of a 21 shilling guine. This gold Sovereign was minted by the Royal Mint. The gold Sovereign did not gain popularity until there were limits put on paper money in circulation. After this point, the gold Sovereign became hugely popular, both in the UK and worldwide. The Sovereign's popularity worldwide was due to it's known gold content.
Because of the recognisability of the gold sovereign and the fact that it was accepted internationally, it became a tremendous aid for the British government in terms of international trade.
From the 1850's until the early 1930's, the British sovereign gold coin was also manufacturing gold Sovereigns at colonial mints, which included locations such as Australia, India and Canada.
In the late 1970s, the British gold Sovereign was struck as a bullion coin and marketed to investors and collectors. It still maintains its legal tender status in the United Kingdom, although its value based on its gold content is much more.
About the Sovereign
The gold Sovereign features an image of the current British Monarch on the front. The reverse of the coin features an image of George slaying the dragon, with the year of minting inscribed below.
|Purity||0.917 (22 carat)|
|Gold Content||7.32 Grams|
The Sovereign gold coin is struck by the Royal Mint, located in Wales. Gold Sovereigns are struck in half Sovereign, double Sovereign and quintuple Sovereign sizes, however, the most popular were always the half Sovereign and the Sovereign. Today, bullion investors and collectors also primarily purchase the half Sovereign and the Sovereign. Each year a new coin is released.
The British Sovereign is popular with investors worldwide. Because it contains 7.3 grams of gold, it is more affordable than most government issued minted coins, which are usually produced in ounce denominations. All government issued gold coins with a legal tender value are VAT exempt in the UK and in the EU under EU law. However, the Sovereign has further benefits for British investors. British investors who purchase gold Sovereigns are not liable to pay capital gains tax on any profits they earn on the coins. This makes the Sovereign, along with the British Britannia gold coin, the most popular gold coins for British precious metals investors, due to their tax benefits.
The British Sovereign gold coin series is a great option for precious metals investors. It is recognised worldwide and easy to resell. SwissBullion.ch sell a large number of these coins to their clients, particularly those located in Europe.