Sovereign Gold Coins

When it comes to buying bullion and sovereign coins, there is often a long list of questions investors have before making a decision. Weighing the differences between sellers, assessing worth over time, and the long-term investment potential are just some of the factors one must take into consideration before buying.

Below we will detail some answers to these important questions and give you a better idea of what to expect when buying sovereign bullion coins.

What are sovereign coins?

Sovereign coins are defined as bullion that is minted by (or for) a country’s government, is denominated in the local currency, and is given a legal tender face value. This essentially means that a sovereign coin’s purity and value are “backed” by the respective nation’s government.

Sovereign coins and bullion can be featured in legal tender formats. These formats are generally prescribed by sovereign minting companies that operate within a banking system. Obtaining these forms of legal tender comes at a greater cost to the consumer, but the certifications that come with these coins will outperform that of a private seller on the secondary market. This makes the legal tender a stronger option for selling and retaining long-term value than that of a private dealer. These forms of tender are also more accepted on a trade and evaluation process, making this conversion of investment a good bet for your money.

Are sovereign coins a good investment?

The value of sovereign coin will fluctuate over time just as with other bullion coins. The price of precious metals is influenced by the current state of the precious metals market which fluctuates on a minute-by-minute basis.

However, sovereign coins certainly prove to be a great investment over time. Even if the market price for a precious metal plummets, investors who remain patient will likely see the value of their sovereign coins rebound and ever surpass their purchase price.

Sovereign coins are also often easier to sell since they are backed by their respective government.

How much are sovereign coins worth?

In today’s market, sovereign coins can trade for large amounts of money, but it depends on the market at the time the coin is bought or sold as well as the precious metals it contains. The market value for precious metals fluctuates, so determining exactly how much your sovereign coin is worth will depend on the timing of your transaction.

Face value is another factor for sovereign coins since they are denominated in their respective country’s currency. However, sovereign coins are worth much more than face value due to their precious metal content.

How do I buy/sell sovereign coins?

The buying process can occur through two separate sources: directly from banks and government circulation collections, or private dealers. Government minted sovereign coins feature certifications and paperwork to back them. These certifications are highly sought after on the secondary market, with some investors dealing exclusively in these coin forms.

One option is to buy or sell through reputable private companies and dealers like Provident Metals. We offer lower prices for coins, with less risk. Reputable companies in our industry are hard to locate, leaving many scamming and other schemes to look out for.

If we can offer any piece of advice, it would be: If the deal seems too good to be true, it likely is.

You, the consumer, must do your homework. There are plenty of online dealers like us who have been selling sovereign coins for many years, leaving private options available for the consumer so long as research is done.

As far as selling your sovereign coin, there are many options to choose from. Selling to an online dealer is often one of the safest methods, and sellers can receive a fair price. If you prefer a faster selling process, local coin shops are also a viable selling option, and many enjoy receiving their money right away. However, buyers must generally be willing to accept a lower bid price. Many choose to accumulate quotes from many local coin shops and weigh the options.

If you would like to make a sovereign coin your next investment piece or are looking to sell your sovereign coins, Provident Metals can help. Check out our inventory of gold, silver and other precious metals coins to find the one that is perfect for you.