Collecting gold sovereigns, a solid investment in gold. 

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For many collectors, the greatest appeal gold sovereigns have is their undeniable investment potential. Beauty, history and rarity aside, investment is clearly a strong motivating factor in the sovereign collector market. Many a numismatist has profited from the sale of a painstakingly built sovereign collection. Provided certain fundamental habits are followed a well-selected gold sovereign has the potential to be a very sound investment indeed.

Profiting from your coin collection is simple enough – provided you buy only those coins you are certain another collector will pay you more for when you sell them! This pleasant result is possible because collecting sovereigns is a timeless hobby, one enjoyed by Australians of all generations. As more and more collectors come into the market and the number of available coins diminishes, market values can do nothing but rise.

There are three traits particular to any sovereign that increases in value – keep these in mind when evaluating any coin for your collection:

1. Rarity; A coin must obviously be of some rarity before it has any chance of increasing in value. The less there are, generally the more a collector has to pay to obtain one. This is particularly the case for historic coins in top quality.

2. Quality; The market has long valued attractive or perfect coins higher than those that are either slightly worn or damaged. Any record prices are usually only for coins in absolutely top quality and the ability to “grade”, or determine the numismatic quality of a coin is an asset here.

3. Demand. Inexperienced collectors often overlook the importance demand has upon the investment value of their collection. The discerning collector takes advantage of trends or major events by timing their purchases (and sales) to suit ebbs and flows in the market.

The collector with an eye for investment can expect a well-selected collection to hold its value over the medium to long term. The graphs and charts on this page clearly demonstrate the often-strong price growth gold sovereigns have enjoyed in the past. As gold has an appeal that spans generations and even centuries, it is not unreasonable to presume that this price growth will continue well into the future.

At the same time, the collector market for sovereigns does not rest solely upon the price of gold. Without doubt, the market for sovereigns does become increasingly active when the gold price moves up, however many coins have increased in value several-fold during years when the gold price has been less than bullish. Collectors aware of this fact are able to build a quality collection at a time when quality sovereigns offer superb value for money. After all, a low gold price doesn’t reduce the value of a coin of which there are only three examples known!

5 Reasons to Buy Gold Sovereigns.

  • Sovereigns are a quality investment. If you can pick up historic sovereigns at around bullion prices you cannot go wrong in the long term.
  • Because a Sovereign is 22 carats, it’s actual weight is just over a quarter of an ounce. Either way, it offers more divisibility than the typical 1oz coins.
  • Sovereigns represents excellent value and premium and overtime may even go up in value due to their numismatic value.
  • Sovereigns are recognized, trusted, bought and sold in every far-flung corner of the earth.
  • Because the premiums are low you can buy them readily for pretty close to spot price.

It must be said that there is a certain satisfaction gained in holding a portion of a person’s wealth in solid gold sovereigns. The knowledge that these historic coins were regarded as solid wealth during times of hardship, war and depression only increases the value they have. The crowning achievement for any collector is to enjoy the many rewards our hobby offers for a number of years, and to sell their collection for a profit when the time comes. By selecting rare and historic gold sovereigns in superior quality, this is not only a possibility but a probability.

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