The Gold Sovereign

Gold Sovereign

Gold Sovereign

 

When people start to look into precious metals, I understand how gold can feel kind of prohibitive with its high price (compared to silver) and the fact that sometimes it’s hard to get it in small increments.  If you don’t have much money to spare picking up a few silver rounds or some junk silver at the end of the month seems more reasonable than looking at gold.    Plus if you’re looking at hoarding precious metals for barter potential, silver seems to make more sense due to the difficulty of getting reasonable increments of gold.  The gold sovereign from Great Britain is a good option for buying a little bit of gold at a time, along with Swiss and French 20 Franc pieces.

The coin is .23 ounce (so just about a quarter of an ounce) of 22 karat gold.   Just like the French franc there’s a bit of copper in there to make it more durable for circulation.    The front has the Queen with something in Latin and the back has St. George slaying the dragon, which is pretty sweet.    St. George is the patron saint of England and according to legend while on a crusade he slayed this dragon that was terrorizing a town and the town converted to Christianity.    There’s all kinds of depictions of this legend in religious imagery, particularly in the east (St. George is also the patron saint of Greece and Georgia, as the name suggests).

The markups on these coins aren’t too bad.  I just bought some at about 4% over spot and just recently they jumped up to 7% as physical gold is in higher demand.     You definitely get a better deal when you buy an ounce or more, but it’s not bad, all things considered.     I think looking at these coins (as well as the Francs) are a good way to build up your gold position a little bit at a time if that works best for you.

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