Sovereigns As Gold Bullion
Worth their weight in gold quite literally
History
When the world's first coins were produced in the seventh century BC, they were simply a measured and guaranteed amount of precious metal, gold or silver, of a known purity.
When the world's first coins were produced in the seventh century BC, they were simply a measured and guaranteed amount of precious metal, gold or silver, of a known purity.
Almost three thousand years later, at the beginning of the 1100’s, the currency value of most coins was close to that of their intrinsic precious metal content, known as their bullion value.
Gold has almost always been the preferred security for most currencies. Governments and central banks store much of their gold bullion in the form of 400-ounce bullion bars, but also maintain stocks of gold in the form of gold coins.
1900’s
For Great Britain, the obvious choice of bullion coin is the gold sovereign, and many other central and commercial banks keep a proportion of their gold bullion in the form of British gold sovereigns.
For Great Britain, the obvious choice of bullion coin is the gold sovereign, and many other central and commercial banks keep a proportion of their gold bullion in the form of British gold sovereigns.The start of the First World War caused a major change in coins and currency over the entire world, when countries moved their currencies off the "gold standard". Within a decade, most countries converted to using paper money, and a token coinage, token meaning that the underlying bullion value would be much less than their face value.
2000’s
It is only natural that at times of uncertainty, people everywhere seek to protect their assets from potential disasters. Whether it is fears of the millennium bug, worries about the "Euro", the end of the pound sterling, the collapse of the rouble, there are sound arguments for retaining at least a small proportion of surplus wealth in an ultra secure investment form. Gold has performed this traditional role since before the first coins came into existence.
It is only natural that at times of uncertainty, people everywhere seek to protect their assets from potential disasters. Whether it is fears of the millennium bug, worries about the "Euro", the end of the pound sterling, the collapse of the rouble, there are sound arguments for retaining at least a small proportion of surplus wealth in an ultra secure investment form. Gold has performed this traditional role since before the first coins came into existence.
As one of the worlds oldest, most historic, and most recognisable gold coins, the gold sovereign makes an ideal bullion coin.
A sovereign weighs 7.98 grams and is made of 22 carat gold (carat means 1/24) or 91.66% pure, and therefore contains 7.315 grams or 0.2353544 troy ounces of pure gold.
Advantages of Sovereigns
The great advantage of sovereigns is that they are an attractive and much loved coin with a rich tradition and history. Single coins command premium prices for use in jewellery or as gifts for special occasions such as christenings, golden weddings, coming of age, and even just as an attractive jewellery item in its own right.
Disadvantages of Sovereigns
The only disadvantage of the sovereign as a bullion coin, is that the new breed of bullion coins, from the Krugerrand which was introduced in 1968, onwards, are easier to calculate their gold content because they all contain one troy ounce or a simple fraction of an ounce.
The only disadvantage of the sovereign as a bullion coin, is that the new breed of bullion coins, from the Krugerrand which was introduced in 1968, onwards, are easier to calculate their gold content because they all contain one troy ounce or a simple fraction of an ounce.
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