Product Summary
Precious Metal Content:
7.32 (g)
Monarch:
Elizabeth II (1952- present)
Capital Gains Tax Status:
Exempt
Condition:
Bullion. Uncirculated
Investment in gold coins can take two main paths. Coin collectors (known as numismatists) like coins that are in as close to perfect condition as possible, and they tend to love coins that are rare. Coin collectors don't necessarily want to sell their collections, but if they do its fair to say the longer they keep the coins the better the return. Sometimes spectacularly so.
The second group are not really coin collectors; they are investors in gold. All they need to know is the weight of the gold and what it's going to cost them. Gold has got the reputation of being a 'safe haven' investment and it has proved that time and time again. Governments and Banks keep gold. And in recent times, gold has been a lucrative investment for many.
Gold Bullion Sovereigns have low markup over the gold spot price making them a strong contender for gold investment.
There are other advantages that the 2020 Bullion Gold Sovereign may offer to UK investors:
- The 2020 Gold Bullion Sovereign is exempt from Capital Gains Tax (CGT). You should ask your advisor of the implications of this, but only coins that are legal tender in the UK qualify for this. The 2020 Bullion Gold Sovereign is legal tender for £1 so meets this criteria.
- The 2020 Gold Bullion Sovereign is exempt from VAT. Note than bullion silver coins are subject to VAT.
- Gold coins are a physical, tangible asset. You can touch it, hold it, keep it wherever you like.
- It's near-cash. If you do need the money, you can sell gold sovereigns almost instantly, virtually anywhere in the World, often on the high street or by post. You usually get very close to the spot price of gold. You don't need any middleman or special process.
- Gold Sovereigns are smaller (at 0.2354 oz) than one-ounce gold coins like Krugerrands so are more affordable as an entry level investment.
Always consult an accountant or legal/tax advisor for the current legislation regarding gold investments.
Specifications of the 2020 Bullion Gold Sovereign
- Monarch: Elizabeth II
- Dated: 2020
- Type: Gold Bullion
- Mint: The Royal Mint
- Obverse: Jody Clark
- Reverse: Benedetto Pistrucci
- Weight: 7.98805g
- Diameter: 22.05 mm
- Thickness: 1.52 mm
- Gold Content: 7.3224g = 0.2354 troy ounce
- Face value: £1 = 20 shillings
- Purity: 22 carat = 91.67% gold or 0.9167
General Description: Gold Bullion Sovereign
Gold Sovereigns are maybe the most famous of all gold coins and much sought after by both coin collectors and bullion investors. Sovereigns have a long history, but the modern gold sovereign has been minted since 1817 and then in Britain 1817-1917, 1925 and 1957 onwards.
Gold Sovereigns are 22 carat, which means the coins have a gold content of 91.67%. This is composed of 11/12ths gold and 1/12th copper. Adding the copper makes a gold alloy that is far more harder wearing than pure gold, so the coin will last longer in circulation. Remember, the sovereign was designed as a working coin, it was handled, it was THE one-pound coin.
You may be wondering why the gold sovereign is such a strange weight. Nowadays, 0.2354 troy ounce or 7.9881g may not make much sense, but it did once. In 1816 there was the "Great Recoinage". The main gold one-pound coin was changed from the gold Guinea (which was actually no longer valued at one pound) to the new 'Gold Sovereign'. At that time standard (22 carat) gold was fixed at £46 14s 6d per troy pound, so a little maths meant a £1 coin needed to weigh 123.2744783 grains or 7.988030269g. The weight was the same for the 2020 Bullion Gold Sovereign, and will almost certainly be the same on future gold sovereigns.
The Monarch's head is almost always depicted on the Obverse of the sovereign and on the 2020 Gold Bullion Sovereign it is Elizabeth II. Queen Elizabeth II is the current and longest reigning monarch ever. Born on 21 April 1926 to King George VI and Elizabeth Bowes-Lyon, she became Queen in 1952 and her Coronation was on 2 June 1953.
The Reverse ("tail") of most contemporary sovereigns has been of St George and the Dragon, which was actually created quite a long time ago by Benedetto Pistrucci (1783-1855). Some early Victorian sovereigns had ornate shields so many collectors refer to them as 'Shield Backs'. There has also been a number of commemorative issues.
The first of the modern sovereigns carried the head of King George III and the George and the Dragon design by Benedetto Pistrucci (who was an Italian engraver who became chief medallist at the Royal Mint). Very similar to the Reverse of the 2020 Bullion Gold Sovereign.
The Royal Mint
This 2020 Bullion Gold Sovereign was minted at The Royal Mint which is the designated place for the UK to mint coins. It dates back well over 1000 years and is a Government-owned company.
Formed in the reign of Alfred the Great about the year 886, it moved to the Tower of London in 1279 and remained there for over 500 years. The Master of The Royal Mint has included famous figures such as Sir Isaac Newton. Since 2010 it has operated as Royal Mint Ltd, a company owned by HM Treasury, under an exclusive contract to supply all coinage for the UK although it also produces medals and coins for other countries.
If you would like to see where the 2020 Bullion Gold Sovereign set was created, the Royal Mint is currently located at Llantrisant, Wales, and it has an excellent visitor centre if you want to see what they do.
Buy from Us
With high value coins and investments such as the 2020 Bullion Gold Sovereign, collectors and bullion investors often worry about counterfeits, but actually gold coins are very difficult to forge due to gold's unique properties of density and colour.
Gold is extremely dense and to use another metal and gold-plate it would result in a coin that is under-weight, over-diameter or half-again as thick, something that would be spotted very easily by a expert. You should always use reputable dealers like ourselves.
