First created in 1489 under the authority of King Henry VII, the gold sovereign is a rare British coin made of about 0.23 ounces of gold. Its modern version was made in 1817, and it remains a valuable item in the UK. and other parts of the world. The name “sovereign” comes from the fact that this coin has the sovereign king depicted on its right as a cultural symbol. Although England ceased its production in 1914 after the onset of the first world war, it later resumed in 1957 to prevent the importation of counterfeit gold coins from other countries. Here are important facts to know about modern gold sovereigns.
Factors That Determine the Price of Gold Sovereigns
The nominal value of a gold sovereign is one pound sterling. However, its actual value depends on factors such as:
• The current price of gold — A legitimate gold sovereign contains at least 91.7% gold, which translates to about 7.32 grams of pure gold. This means that, when buying or selling a sovereign, the current market price of gold will influence the cost of the sovereign greatly.
• The numismatic value of the coin — Some sovereign designs have only been produced once, and hence, they are rare in the market. Therefore, rare sovereigns tend to have a higher numismatic value, especially if they still have a good appearance.
• Purpose of the coin — While some gold coins in the market are for investment, others are purely for numismatic purposes. This means that investment coins will most likely sell at the market price while numismatic ones may be way more expensive.
It is worth noting that the value of the gold coin fluctuates from one year to another depending on the features. For instance, the value was about €350 in 2014 and €400 in 2015.
How to Differentiate Authentic and Fake Gold Coins
The fact that the production of gold coins in England resumed in 1957 to curb the production of fake ones means that you need to verify the authenticity of a sovereign before buying it. To achieve this, check the texture, size, weight, and sound produced by the coin when used as a tuning fork, and compare these features with those of an authentic one.
Conclusion
These are some of the important facts about gold sovereigns. To date, these coins are a useful tool for business and investment, especially in the UK.
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