Gold Sovereign Coin (7.32 g)

The gold sovereign is one of the oldest bullion coins still in production. The Royal Mint has struck it in its modern form since 1817, and today it is a common way for US buyers to own gold in a smaller unit than a full ounce. This page compares live offers from US dealers so you can see who sells a standard sovereign closest to its gold value.

What is a gold sovereign?

A sovereign is a British gold coin with a face value of one pound. It is legal tender in the United Kingdom, but nobody spends it: its gold is worth far more than the face value. Most sovereigns sold by US dealers are “any year” or “common date” coins, which means the dealer picks the date and the monarch on the obverse. The reverse usually shows Saint George slaying the dragon, the design by Benedetto Pistrucci.

Key specifications:

• Fine gold content: 7.32 g (0.2354 troy ounce)
• Fineness: 22 carat, .9167 (see fineness)
• Diameter: 22.05 mm
• Face value: one British pound
• Mint: The Royal Mint, United Kingdom

Because the coin is 22 carat, it is harder than pure gold and handles wear well. That is one reason so many older sovereigns are still in circulation among dealers.

Who buys sovereigns in the US?

Why would an American buyer choose a British coin over a domestic one? A few reasons come up again and again:

• Smaller unit: with just under a quarter ounce of gold, a sovereign lets you buy or sell in smaller steps than a 1 oz coin.
• Recognition: dealers in Europe, the Middle East, India and Australia know the coin well, which helps if you ever sell abroad.
• History: some buyers like holding a coin with two centuries of continuous production behind it.
• Low premium on common dates: worn, mixed-date coins often sell close to their gold value.

What to check before you buy

How much are you really paying above the gold inside the coin? The table on this page shows each dealer’s current price, and you can compare it with the gold price chart or the gold price per gram. A few practical points:

• Premium: fractional coins carry a higher premium over spot per ounce than 1 oz coins. Compare the total cost per gram of fine gold, not just the sticker price.
• Condition and date: “any year” listings are the cheapest. Specific dates, proof coins and graded coins cost more and are priced as collectibles.
• Shipping and payment: many US dealers give a lower price for bank wire or check than for card payments, and shipping is often free only above a minimum order.
• Authenticity: the sovereign is a well known target for counterfeiters. Buy from established dealers, and check weight and diameter if you buy from a private seller.

Taxes on gold sovereigns in the US

Sales tax on bullion depends on your state. Many states exempt gold coins, some exempt only orders above a set size, and a few charge full sales tax. Our page on precious metals sales tax explains the main rules. When you sell, the IRS treats gold coins as collectibles, so long term gains can be taxed at a higher rate than stocks. Sovereigns are generally not accepted in a precious metals IRA, because IRA rules require higher fineness for gold coins, with the American Gold Eagle as the named exception. Ask your custodian before you buy for an IRA.

Sovereign vs. other fractional gold coins

The closest alternatives are quarter ounce coins:

• American Gold Eagle: also 22 carat, slightly more gold (a quarter ounce), IRA eligible, usually a higher premium.
• Krugerrand: 22 carat South African coin, widely traded, sold in 1/4 oz and other sizes.
• Britannia: the Royal Mint’s 24 carat bullion coin, if you prefer pure gold from the same mint.

If your goal is the lowest cost per ounce, a larger coin or bar will usually win. If you want flexibility and a coin known around the world, the sovereign is hard to beat. Browse all gold coins to compare.