For many investors, purchasing of gold bullion is considered to be the easiest way to get started in the profitable world of precious metal investing. There are countless forms of bullion out there today to choose from including bars, plates as well as coins. Not all bullion is the same. While some forms can be as pure as 99.9%, others can fall well below 90% in purity.
Out of all the forms of bullion one can invest in, the most popular option for most beginners is to purchase gold coins. There are literally hundreds of different gold coins available today.
Some of these are printed by the governments of nations all over the world while others are minted by refineries; both well-known as well as small-scale. With so many choices to choose from, picking the right one to start your investment can be a difficult task.
However, time and time again, more investors have chosen to purchase gold Sovereigns over the years. It was back in 1817 when the British Gold Sovereign first made its way onto the market.
Since this first minting, Great Britain has made more then a billion of them in locations throughout the globe including China as well as South Africa. Each and every single one of the gold Sovereigns are composed of 11 parts gold and 1 part copper. As a result, the British Gold Sovereign is 92% pure making it a 22-karat gold coin.
Shop Around For Gold Sovereign Prices
These are not just excellent to invest in but they are also beautiful to look at. Known in Britain as the gold Crown, these pieces have a reddish tint to them not found in other bullion issued throughout the world. They are also more affordable then many similar coins. Due to the collectible nature of the coin, British Gold Sovereign prices are always expected to increase with each passing year. Since it is also a collectible coin, small imperfections in the minting process as well as locations of minting can have a serious affect on the value of the bullion.
Furthermore, unlike the other gold coins that can be found throughout the world, thanks to the use of copper rather then other alloying metals, the British Gold Sovereign is stronger and harder. This means that it tends to maintain its appearance for a longer period of time and is less likely to get scratched or dented. If you accidentally drop a Krugerrand or even an American Eagle coin, they are likely to get dented or even warped.
If you are lucky enough to purchase your first British Gold Sovereign directly from the mint or through a dealer, then you are likely to get the best deal possible. However, older coins which have developed a collector’s value along with its gold value will be more expensive to purchase. However, these will also increase in value faster then a newer coin.
As a result of this collectible value of the coin, the Gold Sovereign prices vary from place to place and from coin to coin. The older coins which are considered to be rarer then the newer ones may have a very high collector’s value. Some of them may even be worth two to three times its weight in gold. This is important considering the rate of inflation.
While gold itself increases in value at a rate of almost two percent, the rate of inflation is around three percent which makes holding on to most bullion a less profitable investment. The collectible value of the British Gold Sovereign helps to not only cover for the rate of inflation, but to exceed it completely in some instances.
However, it is important to remember that when you choose to invest in Gold Sovereign coins, you have to always take into account not just the value of the gold, but also the collectible value of the coin. Take your time to learn as much as you can about collecting coins and investing in gold before you make your first purchase.Dan Craig