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Common Customer Questions About Gold Sovereign Coins and our Expert Answers
Oct
Over the years we are regularly asked questions about gold sovereign coins. So, we decided to provide these handy FAQs with answers, which hopefully will provide you with all the answers you will need!
1) Is it best to buy old or new Sovereigns?
Please read our dedicated answer to this question at http://pglegacy.opacetempsites.com/insights/is-it-best-to-buy-old-or-new-sovereigns/.
2) What are gold Sovereign bonds (SGB)?
SGBs are an alternative to holding physical gold. Paper bonds denominated in gold grams are issued by The Reserve Bank of India and offer a fixed maturity date whereby the investor receives back an amount based on the underlying gold price.
3) What are gold Sovereign coins?
We have written a detailed answer to this question. Please visit http://pglegacy.opacetempsites.com/insights/what-are-gold-sovereign-coins/ for a detailed explanation.
4) How much are gold Sovereign coins worth?
We have provided a separate answer to this question, which can be viewed at http://pglegacy.opacetempsites.com/insights/how-much-are-gold-sovereign-coins-worth/.
5) How heavy is a gold sovereign?
The total weight of a gold Sovereign is 7.98 grams or 0.2566 ounces. However, the gold content of the coin is only 7.32g, with the remainder consisting of copper and silver alloys to toughen the coin. Care should be taken not to mistake the Full Sovereign with the smaller Half Sovereign which weighs 3.99g.
6) How to clean gold Sovereigns?
The best way to clean dirty gold Sovereign coins is in a mix of warm water and liquid soap. Let the coins soak for 15 minutes before carefully wiping dry with a cloth. Boiling water from a kettle can be added into the bowl for stubborn grime. Avoid using a brush or strong chemicals.
7) How to sell gold Sovereign coins
For our detailed reply to this question, visit http://pglegacy.opacetempsites.com/insights/how-to-sell-gold-sovereign-coins/.
8) How much are gold Sovereign rings worth?
The main value will come from the Sovereign itself. If the coin is in good condition and features a previous monarch, it will be worth more than an Elizabeth Head coin. The value of the coin itself is £200 – £300 depending on age and condition. The ring is likely to be lower purity so will only add a marginal value of 10-15%.
9) Why buy gold Sovereigns?
Old Sovereigns are small in size and therefore affordable. Having been produced for over 200 years, they’re very easy to sell on and can make a good investment if the gold price goes up. Their value generally increases with age and any profit made on their sale is completely tax-exempt in the UK.
10) What is a gold Sovereign worth in Sterling?
The value will depend on its condition and age. Brand new coins are worth around £240 each while Young Head Victoria coins are worth over £300 due to their age and rarity. Selling privately on an individual basis may yield higher prices if you can find a keen buyer. If selling in bulk, a gold dealer is best.
11) What carat is a gold Sovereign?
Gold Sovereigns are 22 carat purity, the same they’ve been for over 200 years. This works out around 916/1000 parts gold. The other two carats are a mix of copper and silver alloy. The exact mix can vary from year to year. This alloy mix ensures the coins are more resilient to scratched than 24 carat coins.
12) Which gold Sovereign coin is the most valuable?
George III Sovereigns have proved to be the most valuable due to their scarcity, with one fetching £186,000 at auction. Of the commonly traded and readily available bullion Gold Sovereigns, the Young Head Victoria tends to be the most valuable with prices around £300 each. Proof and rarer modern Sovereigns can also fetch higher prices like the Elizabeth Third Head which trades around £400.
13) Which gold Sovereign should investors buy?
The best old Sovereign to buy based on price is the current year of issue Sovereign as prices are based more on gold content. If seeking a combination of value and history, the George V and Elizabeth coins provide the optimum all-round solution. If buying a number of Sovereigns, a combination with older Victoria coins is best.
14) Where can owners sell gold Sovereign coins?
The best overall place to sell gold Sovereigns is to a specialist gold dealer who will pay you based on the sell-on value rather than just a melt value. A BNTA accredited dealer is a must if you consider trust to be a selling consideration. Selling privately is an option for rarer Sovereigns as collectors may pay a premium.
15) How do I found out where to buy gold Sovereign coins?
Its safest to buy gold Sovereigns directly from a reputable precious metals dealer. reputable precious metals dealer. If the dealer has the right credentials, it will ensure the Sovereigns are authentic, in great condition and at a competitive price. Many now have e-commerce stores, making it easy to buy online. Buying from a jeweller, an auction or privately are other options, but they pose significant risks.
16) Can you melt gold Sovereigns?
Under the 1971 UK Coinage Act, it’s illegal to melt down any UK coin with a face value. Which covers Sovereigns. More importantly, melting a Sovereign will devalue the gold, which is worth more minted as a Sovereign due to its tax efficiency as legal tender and recognisable trading format.
17) Can you spend a gold Sovereign?
Yes! Gold Sovereigns have a face value of £1, which means shopkeepers would have to accept it as legal tender. But with the gold content alone, pushing the value above £200, it would be foolish to use a Sovereign to buy goods.
18) One gold Sovereign is how many grams?
The total weight of a newly minted Sovereign is 7.98 grams. The old content itself weighs 7.32g, with the remainder consisting of a copper and silver alloy. Coins may weigh slightly less as they become older and wear on the face and edges.
19) Is a gold Sovereign legal tender?
Old Sovereigns are legal tender in the UK due to their £1 face value. In theory, you can use a Sovereign to purchase goods up to £1 in value, but the gold content of the coin is worth far more. Its legal tender status is important for gold investors as it deems any profits made from Sovereigns as tax-free.
20) Gold Sovereigns or Britannias – which are the best to buy?
Gold Sovereigns are around one quarter the size of Britannias (1oz), making them slightly more expensive per gram due to the higher relative production cost. However, their smaller size provides more flexibility for gold investors. A mix of both is preferable in a portfolio, especially as both coins are tax-free in the UK due to their legal tender status.
21) Gold Sovereigns or Krugerrands – which are the best to buy?
Gold Sovereigns can be a better purchase for UK investors than a Krugerrand as any profits are tax-free. While a Krugerrand can provide a cheaper overall purchase cost per gram due to its larger size, dealers may pay less for them and any profits are taxable. Sovereigns have been around for far longer so provide the possibility of owning more historical coins.
22) How much gold is there in a gold Sovereign vs a Half Sovereign?
Both coins are tax free when bought and sold in the UK. A full Sovereign contains 7.32g of gold, with the smaller coin containing exactly half that amount. Half Sovereigns tend to cost more per gram to buy but provide more divisibility to a coin portfolio. A mix of both types of Sovereign is preferable for a balanced collection.
23) What is the difference between a sovereign and a half sovereign?
We have provided a detailed response to this question at this link – http://pglegacy.opacetempsites.com/insights/what-is-the-difference-between-a-gold-sovereign-and-a-half-sovereign/.
Talk to our experts before buying or selling gold sovereign coins
We always love to hear from customers, new and old and are always here to answer questions about all precious metal topics including ones about gold sovereign coins. Why not call us now on 020 7060 9992 or complete our contact form. We look forward to hearing from you soon!