When it comes to investing in gold coins, two of the most popular options within the UK are Britannia and Sovereign. Both are produced by The Royal Mint, carry legal tender status, and have rich histories. But which one should you choose?
In this comprehensive guide, we’ll dive into the history of Britannia and Sovereign gold coins, compare them across several key factors, and help you decide which might be the best investment for you.
An overview of Britannia gold coins
Introduced by the Royal Mint in 1987, the Britannia gold coin quickly became a favourite among investors and collectors for its 99.99% purity and reliability. Designed as the UK’s flagship bullion coin, it was created to compete with other popular international coins like the Krugerrand and is available in various weights, including 1 ounce, 1/2 ounce, 1/4 ounce, and 1/10 ounce. While younger than the Sovereign, its striking design and global recognition make it a popular choice.
An overview of Sovereign gold coins
In contrast, the Sovereign gold coin has a much longer history, dating all the way back to 1489. Initially struck under the reign of King Henry VII, it was intended to be a grand coin representing the power and stability of the Tudor reign, until it ceased production in the 17th century. The modern Sovereign coins, first minted in 1817 as part of the Great Recoinage, are 22 carat (91.67% pure gold) and have remained a long-standing symbol of British heritage.
Gold Britannia vs Sovereign: A comparison
Whether you’re a seasoned investor, an enthusiastic collector, or just dipping your toes into the world of bullion, understanding what sets these iconic coins apart is essential. Knowing the key features and differences between Britannia gold coins and Sovereign gold coins will help you make a well-informed investment decision that suits your goals.
Price
Firstly, you’ll want to determine the price of each bullion coin before making a purchase to ensure you’re buying at a fair rate, as market conditions can shift quickly. The value of both Britannia gold coins and Sovereign gold coins is closely tied to the live gold spot price, which can fluctuate due to factors such as geopolitical tensions, inflation, and the strength of the pound (GBP).
Gold Britannia Coins: Due to their 99.99% gold purity, Britannia coins are generally more expensive in terms of the raw gold value. However, their premium can be offset by their higher purity and more recent minting.
Sovereign Coins: Sovereigns are typically less expensive per ounce compared to Britannia coins, primarily due to their lower gold purity (91.67%). However, their historical value and collector appeal can influence their price.
Always check the latest gold price before making your purchase.
Size and weight
When comparing Britannia gold coins and Sovereign gold coins, size and weight play an important role. Britannias contain a full troy ounce (31.1 grams) of pure gold, while Sovereigns are smaller — perfect for gradual investing or partial selling. Ultimately, your preferred coin size often depends on your budget.
Gold Britannia Coins: These coins are available in various weights, allowing for more flexibility depending on your investment strategy and budget. Weighing four times heavier than the gold Sovereign, a single Britannia coin offers a larger gold investment.
Sovereign Coins: In contrast, a standard Sovereign coin weighs 7.98 grams (approximately 1/4 ounce). Although they come in a single weight, their historical significance often makes them a sought-after item.
Design
Both coins are outstanding examples of British artistry, craftsmanship, and heritage. Each reflects years of minting tradition and national pride as symbols of quality and trust. Their distinctive designs not only enhance visual appeal but also increase desirability, strengthening collector interest and long-term investment value.
Gold Britannia Coins: Britannia coins are known for their elegant and evolving designs. The reverse side usually features Britannia, the female personification of British resilience and strength, in various artistic styles. Meanwhile, the obverse side features the current reigning monarch.
Sovereign Coins: Sovereign coins have a classic design featuring St. George slaying the dragon, created by the artist Benedetto Pistrucci. This design has remained largely unchanged since 1817 (except for the reigning monarch on the obverse side), making it a symbol of British numismatic heritage.
Durability and wear
The durability of a coin affects how well it holds up over time. Crafted by The Royal Mint, both coins are high-quality investment-grade products that, when kept in protective capsules, retain their condition and value exceptionally well. However, the main difference between them lies in their purity and hardness.
Sovereign Coins: Sovereign gold coins are struck in 22-carat gold, which includes a small percentage of copper alloy that often gives the coin a slightly reddish hue. This makes them more durable and less prone to scratches, so occasional handling won’t affect their condition.
Gold Britannia Coins: These are made from 24-carat (99.99% pure) gold, giving them a softer, malleable composition that is more prone to minor marks and scratches if not stored carefully. As such, Britannias are best handled as little as possible.
Liquidity
Liquidity matters when it comes to investing or selling gold. You want the reassurance that your coins can be quickly and easily converted back into cash without sacrificing value. Luckily, both coins are well-known for their strong market presence and trusted reputation worldwide.
Gold Britannia Coins: The high gold purity and 1oz size of Britannia coins make them highly liquid, as they are widely recognised and traded across global markets. Moreover, they’re a solid choice for larger transactions.
Sovereign Coins: Sovereigns are also highly liquid, especially among those who appreciate their historical value. Their denominations also offer flexibility for selling in smaller amounts, which is useful for incremental investors.
Storage
The size and purity of Britannia and Sovereign coins can impact how they are stored. To maintain their pristine appearance, they should ideally be stored in secure, dry environments such as coin capsules, protective packaging or professional vaulting facilities. This ensures they remain free from damage, oxidation, and natural wear and tear.
Gold Britannia Coins: As they are typically larger (one troy ounce each), Britannias will take up more individual space when building a portfolio of multiple coins. Plus, while fractional sizes exist, a full 1oz coin offers less flexibility for selling small amounts of holdings.
Sovereign Coins: Being smaller and lighter, Sovereigns are easier to store discreetly, and require less room in a safe or deposit box. For those with limited space or who prefer compact holdings, these coins are very practical. Additionally, their high divisibility means you can liquidate your holdings more easily.
Tax exemptions
One of the biggest advantages for investors is that both Britannia gold coins and Sovereign gold coins are exempt from Capital Gains Tax (CGT) and VAT. As legal-tender British coins, they offer exceptional tax efficiency — a major benefit over many foreign bullion options.
Gold Britannia Coins: In the UK, Britannia coins are exempt from Capital Gains Tax (CGT) due to their status as legal tender. This tax advantage can make them an attractive investment option for UK investors.
Sovereign Coins: Sovereigns also enjoy CGT exemption in the UK for the same reason. This means that, like Britannia coins, any profit from selling Sovereigns will be exempt from tax.
Should I choose Gold Britannia coins or Sovereign?
Choosing between gold Britannia coins and Sovereign coins largely depends on your investment goals and personal preferences. If you prioritise gold purity and modern minting, Britannia coins might be the better choice. They are highly liquid, offer excellent gold content, feature advanced security features, and are available in various weights.
On the other hand, if you are a new investor and value historical significance, Sovereign coins could be more appealing. Their small size and iconic design make them a cherished item among collectors and investors alike. Additionally, their historical appeal can sometimes result in higher premiums over time.
Buy 99.99% pure Britannia coins from Bullion Giant
If you decide that gold Britannia coins are the best fit for your investment strategy, consider purchasing from reputable dealers like Bullion Giant.
We offer 99.99% pure, 24-carat Britannia coins, ensuring that you get a high-quality product that aligns with your goals. With an extensive range and competitive prices, Bullion Giant is a great place to secure your gold Britannia coins. So why wait? Contact us today to learn more about our gold collection. Our friendly team of experts will be on hand to assist you with any queries.