Selling Gold Sovereigns
Gold is an almost cartoonish asset whose value has been well documented in stories and legends throughout the ages. The precious metal remains one of the most important forms of wealth in today's market and is one which many investors still flock to in times of economic uncertainty.
However, deciding to invest in gold is far from straightforward and there are many decisions to make, such as whether to simply follow the price as in futures and options or whether to own a physical asset.
Why Collect Sovereigns?
For those who opt for the latter, gold sovereigns are a popular choice especially since all those minted post-1837 are legal tender and as such, are exempt from capital gains tax, unlike other profits gained from gold. But the value of a gold sovereign goes far beyond the face value; it belongs to a group of coins known collectively as numismatics. These coins are valued, not just according to their gold content and legal tender value but also for their historical significance and aesthetic appeal.
Because their value is only loosely connected to the monetary value, numismatic coins are recommended by many experts as a smart way to diversify investments and protect against recession and economic depressions. The British sovereign is widely recognised to be one of the most sought after coins due to its history and also relative rarity.
It has been estimated that only approximately 1% of gold sovereigns produced now remain in a collectible condition, a factor that helps to perpetuate the value of the coin. Compared to modern bullion, this represents a scarcity and means that sovereign values will track the price of gold but will rise faster than other coins.
An International Choice
Even during a recession, gold sovereigns will hold their value relatively well compared to other forms of investment and are far more popular globally than many other coins. This is in part due to the design of George and the Dragon, which has been displayed on the coin since 1816. Various versions of this legend have been immortalised in local legends all over the world and with George as the patron saint of Canada, England, Catalonia, Ethiopia, Montenegro, Greece, Georgia, Serbia and Portugal, the coin has an appeal not found anywhere else.
How To Sell Sovereigns
If you decide to cash in on your investment, you will find a very large market for your coins and there are several different ways to sell them. One way, which is increasing in popularity, is via auction sites such as Ebay. Although it is possible to buy and sell coins through this outlet, it can be fraught with difficulties, especially as there has been an onslaught of counterfeit goods cropping up over recent years, making buyers far more suspicious.
Even if you don't want to sell your coins on an auction site, you may still wish to find a buyer online, such as a professional coin dealer. As long as you ensure the goods are properly insured before you mail them and the dealer appears to be reputable, this is a perfectly valid way to sell your goods. However, some dealers will only accept coins in excess of a certain quantity or weight, so if the amount you are selling is small, you may find you have fewer buyers to pick from.
If you opt to go on this route, it is essential to ascertain what price will be used to value your sovereigns. An important question to ask is whether the buyer fixes the price when you offer the sale of the coins or whether it can continue to fluctuate until the day the goods are actually received.
It is also possible to simply sell your coins locally. Looking in your local telephone directory should turn up specialist collectors that you could approach, or simply visit a high-end jeweller who should be able to value your coins upon your arrival.
Of course, the above choices will really only be possible if your gold sovereigns are in a good condition. Any that have suffered heavy cosmetic damage are unlikely to be of interest to a dealer and will be returned if you offer them for sale. In these cases, as the coin is made up from just under a quarter of a troy ounce of gold, it can be offered to a scrap gold firm for smelting.
Gold sovereigns are a worthwhile investment option, which are far more liquid than other assets and offer a great deal of protection against a volatile market. A highly collectible coin that is unlikely to fall out of favour with enthusiasts, experts recommend sovereigns as an extremely viable alternative to traditional investments and savings.
