The Gold Sovereign and Britannia are definitely two standout options for investors. To assist you in making an informed decision based on your investing plan and personal inclinations, this article will examine the key elements of both coins. Checking out the ‘Gold Sovereign vs Britannia’ isn’t exactly a walk in the park, but each has its own perks, so it’s definitely worth diving into both when thinking about your investment objectives.
History and Origins
The Gold Sovereigns are a testament to longevity and consistency. Introduced in 1489 under the reign of King Henry VII, they were reintroduced as bullion in 1817 and have been struck annually ever since. This coinage has been retired, reborn, and reformed to be among the best and most trusted bullion in the contemporary market.
The Gold Britannia has a comparatively shorter history as a bullion, as it was reintroduced in 1987. However, its origins trace back to AD 119, which was inspired by the Roman Culture and imposed by them. As the Goddess of War, Athena was the identity of the City of Athens, and Britannia became the female representation of Great Britain.
These coins are not only great investments but also significant historical artifacts due to their long and storied roots. The history of both coins is necessary to clarify your purpose of purchase and, thus, your decision about Gold Sovereign vs Britannia.
Gold Content
Gold Content and purity of the coin play a significant role in this debate. Undoubtedly, the more pure, the better; however, it affects durability and maintenance.
Since 2013, the Gold Britannia coins have the purest .9999 gold content. Before 2013, these coins were struck with .9167 fine gold. This change in purity, combined with enhancements and security features, favored the Mint and its buyers extensively.
On the other hand, the Gold Sovereign has always been struck in .9167 fine gold. This consistency has significantly contributed to its reliability as a safe haven investment option.
Summary Table
We have curated all the necessary sections that you should consider before choosing between Gold Sovereigns and Britannia. Indeed, the choice depends on personal preferences, including criteria like budget, purpose, and investment or collection.
| History | Introduced in 1489 under King Henry VII, the Sovereign has a long and rich history. It was used as a circulating currency and is now a modern bullion coin. | First minted in 1987 by the Royal Mint, the Britannia is a modern bullion coin designed primarily for investment purposes. |
| Purity | 22-karat gold (91.67% purity) | 24-karat gold (99.99% purity) since 2013 |
| Weight | 7.98 grams (0.2354 troy ounces of gold) | 1 troy ounce (for the standard Britannia), but also available in fractional sizes like 1/2, 1/4, and 1/10 ounce. |
| Design | Features St. George slaying the dragon, with Queen Elizabeth II on the obverse (updated for King Charles III). | The design features the figure of Britannia holding a trident and shield, symbolizing British strength and security. It may change in some years. |
| Investment Appeal | Highly valued for its historical and numismatic appeal, it may carry premiums due to the rarity of specific years. | It has low premiums, is highly liquid, and is an excellent choice for pure gold investment. |
| Capital Gains Tax | Exempt from Capital Gains Tax in the UK USA Sales Tax |
Exempt from Capital Gains Tax in the UK USA Sales Tax |
| Security Features | Traditional coin with detailed designs to prevent counterfeiting. | Advanced security features like micro text and a latent image for added protection against counterfeiting. |
Design Features
The Gold Sovereign, as stated, is a testament to longevity and consistency, as its design has remained unchanged since its introduction. The obverse bears the effigy of the ruling monarch (King Charles III since 2023), and the reverse features an intricately detailed portrayal of a famous folklore, St. George slaying the Dragon, designed by Benedetto Pistrucci.
The Gold Britannia has changed and modified its design to keep it fresh and updated to the market standards and preferences of investors and collectors. Similar to the Sovereign, the obverse of Britannia also features the effigy of the ruling monarch. The reverse features Goddess Britannia holding a shield, a trident, and an olive branch, symbolizing strength and protection of Great Britain’s shores, designed by Philip Nathan.
Both coins have intricate designs that pay homage to the UK’s profound history and heritage and portray the quality of the Royal Mint.
Sizes and Availability
The Gold Britannia coins cater to a wide array of investors, differentiated by budget and objective. To ensure the longing market demand for these bullions, the Britannia is struck in sizes 1 oz, 1/2 oz, 1/4 oz, and 1/10 oz. The standard Gold Britannia weighs precisely one troy ounce as there are no alloys, and has a diameter of 32.69 mm.
There are considerable varieties of gold sovereigns, such as the Quarter sovereign, half Sovereign, and Double Sovereign; however, the standard Sovereign is the most common and famous. This standard Sovereign has a gold content of .9167 pure, weighs 0.235 troy ounces (~7.98 grams), and has a diameter of 22.05 mm.
The Britannia coin weighs around four times heavier than the standard Sovereigns.
Security Features
The Gold Sovereign is a standard bullion coin with security features like a detailed design, which prevents counterfeiting. The Gold Britannia, however, holds the title of the world’s most visually secure gold bullion, with four different security features.
The security features on the Britannia are:
- A Latent image that switches between a trident and a padlock when rotated.
- Micro-lettering words that spell “DECUS ET TUTAMEN.”
- A dual-tone shield created by smooth lines depicting a light and dark-tone UK flag.
- Surface animation creates a wave motion behind Britannia.
Indeed, considering the security features of Gold Sovereign vs Britannia, the Britannia coins are more secure.
Investment Potential
Indeed, both Royal Mint bullion and Britannia bullion have solid investment potential. There is no adequate difference in investment potential in the choice of gold Sovereign vs Britannia.
These coins inherit long-term investment potential due to their high purity, distinctive designs, and ability to appeal to a broader audience. Their historical depiction and significance also contribute to their collectibility, enhancing their versatility.
Furthermore, the gold content makes investors inclined towards these bullions as it is an excellent hedge against inflation, has admirable market demand, and has potential value appreciation.
Tax Considerations (For UK Buyers only)
The Gold Sovereigns and Britannia are considered legal tenders in the UK due to their purity and physical gold. Since they are legal tenders, they are exempt from Capital Gains Tax (CGT). Similarly, these coins are also VAT-free for non-VAT-registered private individuals. The Value Added Tax (VAT) is imposed on most goods and services in the United Kingdom.
Please note: These benefits are valid for UK residents only.
For USA Check: USA Sales Tax
Collectibility Vs Investment
According to market dynamics and preferences, the Britannia coins are more suitable as investment-grade coins, while gold sovereigns have more collectible potential. However, these coins are versatile and can be utilized for both purposes and objectives.
The rarity and design consistency of Gold Sovereign makes it a great collectible, and the older the coin, the more resale value it has. On the other hand, the gold Britannia coins have intricate details, weight categories, and the highest purity, making them ideal for long-term investment.
At BOLD Precious Metals, you have a choice to purchase in smaller quantities or in bulk. We provide excellent bulk deals exclusively for our esteemed customers.
Final Words
At the end of the day, the gold Sovereign and Britannia are two of the most precious, pure, and valuable bullion that validate the quality and greatness of the British Royal Mint. The debate on gold Sovereign vs Britannia will continue forever, but choosing between them depends on personal preference and individual circumstances. As the Royal Mint states, it’s a personal choice!
One solution investors and collectors have derived from the debate is to own a combination of Sovereign and Britannia. As a new investor, entering the precious metals industry is favorable with a Sovereign due to its lower price point and liquidity. Similarly, investors with larger budgets and longer investment tenure can opt for the Britannia gold coins. Both are pretty popular and liquidable.
At BOLD, you can acquire these stunning gold coins at the best market prices with fully insured delivery. Our positive customer experience will encourage you to own these esteemed coins and perhaps settle the gold sovereign vs Britannia debate!