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New vs. Old Sovereigns: Which Are Better to Buy?

Published by honor in category Precious Metal Information Guides on 15.01.2024
Gold price (XAU-GBP)
1,831.88 GBP/oz
  
- GBP0.69
Silver price (XAG-GBP)
23.41 GBP/oz
  
+ GBP0.20

In the world of precious metals investing, gold sovereign coins have consistently stood the test of time as a reliable and enduring choice. Yet, within the realm of gold sovereigns, a significant decision often confronts investors: should they opt for new or old sovereigns?

Each of these options possesses its own set of merits and considerations, and the choice ultimately hinges on individual preferences and investment objectives.

In this comprehensive guide, we will delve into the key factors to consider when choosing between new and old sovereigns helping you with your future decisions into these precious metals.

Understanding Gold Sovereign Coins

Before we compare new and old sovereigns, let’s briefly understand what gold sovereign coins are. These coins have a rich history dating back to the early 19th century and are known for their iconic design featuring St. George and the Dragon.

Sovereigns are minted in various denominations, with the most common being the full sovereign (containing approximately 7.32 grams of gold) and the half sovereign (about half that weight). They are a popular choice among investors looking to diversify their portfolios with precious metals.

The Case for New Sovereigns

Purity and Condition

New sovereigns, often referred to as “bullion sovereigns,” are freshly minted coins that are typically in pristine condition. They are struck with the latest minting techniques, ensuring a high level of detail and purity. The gold used in new sovereigns is usually of the highest quality, with a fineness of 22 carats (91.67% pure gold), making them an excellent choice for investors who prioritise purity and condition.

Liquidity and Recognition

New sovereigns are widely recognised and accepted in the precious metals market and the London Bullion Market. They are easy to buy and sell due to their consistent design and purity. Additionally, they tend to be more liquid than older sovereigns, making them a preferred choice for those who value ease of trading and potential short term rates of return.

2023
Great Britain Sovereign King Charles III Coronation In Stock

Great Britain Sovereign King Charles III Coronation

We sell 1+ £452.12 426.84 426,84 426.84 426,84 426.84 426,84 452.12 452,12 451.69 451,69 450.83 450,83
We sell £450.83 426.84 426,84 426.84 426,84 426.84 426,84 452.12 452,12 451.69 451,69 450.83 450,83
We buy £426.84
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Lower Premiums

One of the advantages of purchasing new sovereigns is that they often come with lower premiums over the gold spot price in their market price. This lower price of gold means that investors can acquire more gold for their money, potentially increasing their overall investment value over time.

The Case for Old Sovereigns

Historical Significance

Old sovereigns, also known as “vintage” or “secondary market” sovereigns, carry historical significance and charm. These coins have been in circulation for many years and may have seen their share of history. For collectors and history enthusiasts, owning a piece of the past can be an appealing aspect of old sovereigns.

Potential Increasing Value

Old sovereigns may have value beyond their gold content. Rare or scarce dates, variations, or mint marks can significantly increase the value of an old sovereign due to lower supply and higher demand. Collectors often seek these unique pieces, making them potentially more valuable than their newer counterparts.

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Britain's Sovereign Out of stock

Great Britain Gold Sovereign George V

435.47 435,47 435.47 435,47 435.47 435,47 450.83 450,83 449.96 449,96 448.67 448,67
We buy £435.47
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Diversification

Investors looking to diversify their portfolios may find old sovereigns to be an attractive option. They can offer a different dimension to a gold investment strategy, allowing investors to balance their portfolio with both historical and modern gold coins.

Making the Decision

Gold sovereign coins

The choice between new and old sovereigns ultimately depends on your investment objectives and personal preferences. Here are some key considerations to help you decide:

  1. Investment Goals: Are you primarily interested in the gold’s intrinsic value, or do you also appreciate the historical and collector’s aspects of old sovereigns?
  2. Budget: Consider your budget and how much premium you are willing to pay over the gold spot price. New sovereigns often come with lower premiums, making them more budget-friendly.
  3. Liquidity: If you prioritise ease of buying and selling, new sovereigns may be the better choice due to their high recognition and liquidity.
  4. Diversification: Think about how old sovereigns fit into your overall investment strategy. They can add diversity to your portfolio away from other investments in the stock market, but make sure it aligns with your long-term goals.

Key Takeaways

When investing in physical gold, both new and old sovereigns have their unique advantages, and the investment decision comes down to your preferences, and investment objectives. British Sovereigns are minted by The Royal Mint therefore are renowned for high quality and lasting value in the long term.

Whether you opt for the purity and liquidity of new sovereigns or the historical charm and potential collector’s value of old sovereigns in your investment portfolio, the bottom line is that gold sovereign coins remain a solid choice for preserving and growing your wealth over time.  

Gold price (XAU-GBP)
1,831.88 GBP/oz
  
- GBP0.69
Silver price (XAG-GBP)
23.41 GBP/oz
  
+ GBP0.20

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