Gold Bullion Coins
In today's world there are many important coins that collectors love to get their hands on. One of the most popular types of coins is the British gold sovereign.
The purity of the sovereign coin was decreased by Henry VIII from 23 carats to 22 carats. The sovereigns were substituted after 1604 with Unites, Laurels and Guineas. Their production resumed in 1817, and these new Sovereigns featured an engraving of St. George slaying a dragon on the reverse. British gold sovereigns continue to display this design, even though other designs have been used through the years. The Great Recoinage Law of 1816 fixed the gold content permanently at 113 grains. The new Sovereigns are made of Crown Gold, a gold alloy of 22 carats. The sovereign coin is much sought after as a collectible for its vintage value. Half Sovereigns are also easily available online.
Sovereigns were produced most years as bullion until 1982. From there to 1999, proof coinage only versions were produced, but since 2000, bullion Sovereigns have been minted. Modern Sovereigns are minted at the Royal Mint in Pontyclun, Mid-Glamorgan in Wales.
Sovereigns usually have a higher premium to the price of gold than some other coins, like the Krugerrand Coin. This is due to a number of factors: the higher unit cost of the Sovereign (at under one-quarter of an ounce); the higher demand for the Sovereign from numismatists compared to the Krugerrand Coins and the higher costs of identifying and stocking a numismatic coin.
Current Sovereigns (2000 onwards) are struck in the same 22 carat (92%) gold alloy as the first modern Sovereigns of 1817, which is also known as Crown Gold, which contains 11/12 gold and 1/12 copper.
If you want to invest in gold to protect your assets against the current financial turmoil and deflation, gold coins with small premiums such as Sovereign will definitely be your No.1 choice. As a matter of fact, the gold sovereign coins, especially the 1 oz sovereign, have been one of the most popular items among Gold Investors and collectors ever since they were first minted in 1489.
When trying to compare different forms of gold, compare the percentage over the gold price for each option.
This is what is referred to as the 'percentage premium'. Because prices move constantly along with the underlying gold price, it is recommended to simply look at the price as a percentage of, or above the gold content.