Gold Britannia vs Gold Sovereign
When it comes to investing in gold, two of the most popular and iconic choices are the Gold Sovereign and the Gold Britannia. Each coin has its own rich history, unique characteristics, and benefits, making them excellent options for investors and collectors alike. But how do you decide which coin is best for your portfolio?
In this article, we’ll compare the Gold Sovereign and the Gold Britannia, diving into their key differences and why each could be a valuable addition to your investment strategy.
The Gold Sovereign
The Gold Sovereign holds a special place in the hearts of collectors and investors due to its long-standing heritage. First minted in 1817, the Sovereign is steeped in history, and its name has become synonymous with quality, accuracy, and trust.
Key features of the Gold Sovereign
- Size & Weight: A Gold Sovereign contains 7.32 grams of fine gold (22-carat, 91.67% pure), with the remaining weight made up of copper, giving the coin extra durability.
- Legal Tender: The Sovereign has a face value of £1, but its true worth is far more, as it tracks the current price of gold.
- Historical Significance: The Sovereign has been produced for over 200 years and is not just minted in the UK, but also in Australia, South Africa, and India in the past. Its worldwide reputation has earned it trust across global markets.
- CGT Exempt: UK Sovereigns are Capital Gains Tax (CGT) exempt, making them a tax-efficient choice for UK investors.
Additionally, the Gold Sovereign’s Shield Design and St. George and the Dragon imagery add to its appeal as a collector’s item. It’s a symbol of British strength and has been a popular form of currency for centuries, including during historic events like World War II.
Read 'The Definitive Guide to Buying Gold Sovereigns'
The Gold Britannia
While the Sovereign represents tradition, the Gold Britannia offers a more modern and practical approach to investing in gold. Introduced in 1987, the Britannia has quickly become a favourite among investors due to its high gold content and liquidity.
Key features of the Gold Britannia
- Size & Weight: The 1oz Gold Britannia is 24-carat gold, with 31.1 grams of 99.99% pure gold, making it a larger and purer option than the Sovereign.
- Legal Tender: The Britannia has a face value of £100, though, like the Sovereign, its actual value is based on the gold spot price.
- Design: The Britannia showcases the image of the iconic British figure, Britannia, representing strength and resilience. It has also incorporated advanced security features, making it highly resistant to counterfeiting.
- Tax Efficiency: Like the Sovereign, Gold Britannias are CGT exempt for UK investors, meaning any profits made from selling them are not liable for Capital Gains Tax.
The Britannia’s higher purity makes it particularly attractive to those looking for more gold content per coin, while its larger size provides a strong presence in any portfolio.
Read 'The Definitive Guide to Buying Gold Britannia Coins'
Britannia vs Sovereign Coins
Gold Content & Size
The most immediate difference between these two coins is their size and gold content. The Gold Sovereign contains 7.32 grams of pure gold (about 1/4 of an ounce), while the Gold Britannia contains a full troy ounce of 24-carat gold.
If you’re looking to accumulate more gold per coin, the Britannia offers a higher gold content, but the Sovereign’s smaller size can make it easier to trade or sell in portions.
Historical Value vs. Modern Investment
For those drawn to history, the Gold Sovereign offers centuries of British heritage and historical significance. The Sovereign is often seen as a collector’s piece as well as an investment vehicle.
On the other hand, the Gold Britannia is more of a modern bullion coin, designed with a focus on pure gold investment and ease of trade in today’s market.
Read 'Are Britannia Coins a Good Investment?'
Britannia vs Sovereign: Liquidity & Global Recognition
Both the Sovereign and the Britannia are highly liquid and widely recognised around the world. However, the Gold Britannia, with its higher gold content and modern design, is particularly favoured for global trading.
The Gold Sovereign, with its historical prestige, is also easily sold, but tends to appeal more to collectors and history enthusiasts.
Read 'Are Gold Sovereigns a Good Investment?'
Britannia vs Sovereign: Durability & Handling
The Gold Sovereign’s 22-carat composition, with a mix of copper, makes it a more durable coin. This added strength makes the Sovereign more resistant to wear and tear, which can be important for coins that are handled regularly or stored long-term.
The Gold Britannia, being 24-carat gold, is softer and more prone to scratches, which is something to consider for those who may be concerned about preserving the coin’s pristine condition.
Britannia vs Sovereign: Which Should You Invest In?
Both the Gold Sovereign and the Gold Britannia offer unique advantages, so the decision ultimately depends on your personal investment goals.
Gold Sovereigns may be the right choice if you’re drawn to their rich history, smaller size, and durability. They’re also ideal if you want to invest in smaller increments of gold or appreciate the collector’s value of a coin with centuries of heritage.
Gold Britannias are perfect for investors seeking pure gold with maximum efficiency. The 1oz Britannia offers the highest gold content per coin, making it an attractive choice for serious gold investors, particularly those interested in liquidity and ease of trade on the global market.
At the end of the day, both coins provide excellent opportunities to invest in gold. Whether you’re investing for heritage, efficiency, or tax benefits, adding either or both coins to your portfolio can diversify your holdings, hedge against inflation, and offer long-term financial security.
Browse Gold Sovereigns & Britannias
Here To Help
If you’re still unsure about which coin is best suited to your needs, don’t hesitate to get in touch with our expert team at Bleyer Bullion. We’re always here to help you make informed decisions about your precious metal investments.
We offer expert consultancy and welcome appointments with customers looking for a personal service either face-to-face, by phone or online. Give our expert team a call at 01769 618618 or email sales@bleyer.co.uk.
