There are many options today when it comes to purchasing and investing in gold bullion coins. However, there is only one gold coin in the world that is still minted with the intention of circulating the gold coin as a regular form of legal tender rather then just a collector’s item.
For almost 200 years, the British Gold Sovereign has been minted in the United Kingdom and is known as a gold crown. These 22 karat gold coins are composed of 92% pure gold and 8% pure copper. The resulting alloy gives the Sovereign a reddish appearance rather then the traditional yellow color commonly associated with gold. However, the use of copper as the alloying metal results in a gold coin which is hard enough to be used as a regular form of legal tender.
Gold Sovereign Prices
While there are some other great options when it comes to investing in gold coins, only the British Gold Sovereign has the ability to also be a true collector’s item. What this means is that when it comes to determining the Gold Sovereign price, not only does its weight in gold have to be taken into account, but also its rarity, minting location as well as a number of other important aspects of the coin.
Since it was first introduced back in 1817, Britain has produced more then a billion Gold Sovereigns in facilities all over the world. Some of the coins today could have been made in China, India, Australia, South Africa as well as a number of different locations. Each location only prints so many and as a result, the Gold Sovereign price can change drastically from one coin to the next.
Many investors consider the purchase of the British Gold Sovereign as a perfect way of diversifying one’s portfolio. At the same time, many collectors simply collect the coin for its beauty and rarity rather then its gold value. Regardless of the reasons why you may choose to invest in the British Gold Sovereign, it is important that you take the time to learn as much about your investment as possible.
You have to remember that the coin is a form of legal tender and therefore has a collector’s value as well as a gold value. Many people rush in and buy their first sovereigns without actually learning the ins and outs of collecting in coins. As a result, over the years countless people have been tricked into paying more for a coin based on an alleged collector’s value. Don not become a victim by learning as much as you can about collecting coins in general; not just about collecting the British Gold Sovereign.
Then you have to take into account the value of gold in every coin that you purchase. Keep in mind that every British Gold Sovereign is 22-karats which means that it is only ninety-two percent pure. Gold also weighs more then the copper because it is more dense which makes calculating the Gold Sovereign a little more difficult; but not impossible.
In most cases, the rarer coins can be found listed in coin collector books and these values already take into account not only the collectible value of the coin, but also the value of the gold. As such, it is important to make sure that your book is up to date because the value of gold is constantly on the rise. Do not let anyone trick you into paying the price that is listed in the book along with the value of the gold in the coin because this is one of the more common scams today.Dan Craig