Originally a circulating coin for the general public, the Sovereign is now one of the oldest and most formidable bullion coins in existence. The very first gold Sovereign coin was minted in 1489 by King Henry VII’s Royal Mint under his orders to produce “a new money of gold”. Henry briefly called it the double ryal before settling on the Sovereign, significant of the association with the King and his authority. While it wasn’t the first gold coin to be struck, it was certainly the largest and most valuable coin ever minted at the time. The value was so great that the coin was impractical for circulation, as very few possessed that kind of wealth. It was predominantly used as a presentation piece and every Tudor monarch that followed issued the gold Sovereign, until it fell out of favour when James I took the throne and the Jacobean era began.
It would be more than 200 years before the Sovereign would re-emerge as the coin we know today. Following the Napoleonic Wars, Britain underwent a financial reconstruction with The Great Recoinage of 1816 which saw the launch of a new coin to replace the gold Guinea in 1817, the Sovereign. While the Sovereign inherited its name from the earlier version, it was far more successful than its predecessor.
It was reintroduced as a standardised 22ct (916.7 fineness) gold coin with a weight of 7.98 grams and a diameter of 22.05 mm. This version featured Benedetto Pistrucci’s iconic design of Saint George slaying the dragon on one side, symbolising bravery and national pride, together with the portrait of the ruling monarchs head, George III in this instance, on the reverse. The design has remained largely unchanged since this revival.
The Sovereign became widely used not only within Britain but also across its colonies and beyond, establishing itself as a trusted currency for international trade. Its popularity continued into the 20th century, although it faced challenges due to economic fluctuations and changes in monetary policy.
When the first World War broke, gold and silver coins were gradually withdrawn from the market to fund the War effort. The Sovereign was replaced with a paper one pound note and never returned to circulation. Very few Sovereigns were struck in the aftermath until the Royal Mint started issuing bullion Sovereign coins for investment in 1957. Today, they are still minted by The Royal Mint, serving as both legal tender and cherished collectibles that embody centuries of British heritage.
As a currency in the UK, the Sovereign is exempt from Capital Gains Tax, and in 2000, the VAT free scheme on investment gold was introduced, making gold coins such as the Sovereign incredibly attractive to investors wishing to diversify their portfolios.
Don’t miss out on our upcoming Specialist Sale of Coins on Thursday the 20th of March!
