Old British Coins vs. British Sovereign Gold Bullion

Typically there are three main players on the precious metals market, strict numismatists believing that old coins are the way to go, strict investors staying clear of rare pieces and choosing bullion over numismatics and then there are “numismatic investors” putting money not only in the metal content of the coin but the history behind it. Which is better if you want to invest in gold, the newer Sovereign gold coins offered by Britain or the old British coins which are recognized in almost every place around the world? The answer will depend on the goals you have for your gold investment, as well as the reasons that you are investing in gold bullion or numismatics in the first place. If you want to build up a nice numismatic collection with rare pieces which are valuable for their gold content then you can include a Henry VIII coin, as well as other gold bullion coins for a diverse and varied collection. For most investors these coins are an investment only though, and choosing rare or very valuable pieces is not usually a good idea in most cases.

Some old British coins can make excellent investments though. These are normally considered gold numismatic coins, and they have a higher historical and rarity value than bullion does. The British sovereigns are not in short supply in most cases, and they do not have a unique numismatic value usually. These are chosen for investment because of the quality, purity, and weight of the gold that each of them contains. With old British coins these factors can vary widely, but with sovereigns you will usually get a standard size so there is no guessing involved.

Most “numismatic investors” may enjoy admiring old British coins, but when it comes to actually investing, most individuals prefer British Crown coins and other bullions instead. The high price of gold has made precious metals very popular, but with old British coins the liquidity is lower because it may take a little while to find a buyer due to its rarity. This is not true with Sovereigns, because they are well known and widely recognized and accepted. These can be sold instantly because the demand is high, and many other investors are also interested in these coins.

The decision which options to buy is solely yours, however consider the following aspects. If you want to follow the market price of gold, choose more modern bullion products that come with lower premiums and added costs than historical choices. If you are an avid collector, going the historical numismatic route is for you.