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Gold sovereign coins as we see them today have been struck since 1817 in the UK. It was legal tender at that time in the UK and elsewhere around the globe. It was only after the Napoleonic wars ended and crisis ensued that the British government changed its monetary system.
These days sovereign coins are thought of as collector’s items and secure investments. But are they really worth investing in?
Well, let’s take a brief exploration into the world of sovereign coins as a form of investment. By the end of reading this, your mind should be made up!
Why Even Invest in Gold?
The straightforward answer to this question is that gold holds its value, even through tough economic periods. Gold is a safe bet and investing in it is a great way to diversify your portfolio.
Many investors opt for gold bars or might invest in mining companies. However, gold sovereign coins are also a very viable option.
Why Choose Gold Sovereigns?
The first real gold sovereign coins date as far back as the 15th century while Henry VIII was on the throne. Then later in the 1800s onwards, Britain produced thousands of them that circulated throughout its empire and the world.
So today, one of the main reasons that many are investing coins like sovereigns is they are easy to sell and buy. They may come with the face value of one British pound. However, they have more value to them because of the gold they’re made from.
Sovereigns are 0.235 troy ounces of gold, and their small size makes them favorable to trade. Other one-ounce coins such as the Britannia are popular, but nothing close to the sovereign.
Tax Exemptions
Another favorable aspect of these gold coins is that they are Capital Gains Tax exempt if made from 1837 onwards. The reason for this is because in technical terms they are legal tender in the UK.
We should say that the Britannia coin is also exempt in the same way from tax. Furthermore, you don’t have to pay VAT on gold bullion coins, if that’s of any interest.
Collecting Coins
one great thing about investing in sovereigns is that you can enjoy collecting them too. Plus, there are many rare sovereigns out there that are worth a small fortune (learn more here).
For example, it’s possible that the King George III 1819 Sovereign is the rarest out there. In 2013, one sold for a staggering £186,000, and there may be under 25 in the world right now.
Invest in and Enjoy Sovereign Coins
So, we’ve run through a brief introduction to the world of British sovereign coins. They have a fascinating history and are an exciting way to invest in gold to round off your investment portfolio.
Thanks for reading and good luck with your future investments! If you found this article interesting, why not check out our main blog page for more informative reads?
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