British Sovereign coin
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A Gold Sovereign is a gold coin first issued in 1489 for Henry VII of England and still in production as of 2006 [1]. The coin generally has a value of one pound sterling. The name "sovereign" comes from the majestic and impressive size and portraiture of the coin, the earliest of which showed the king facing, seated on a throne, while the reverse shows the Royal coat of arms on a shield surrounded by a Tudor double rose. These original sovereigns were 23 carat (96%) gold and weighed 240 grains or one-half of a troy ounce (15.6 grams). Henry VIII reduced the purity to 22 carats (92%), which eventually became the standard; the weight of the sovereign was repeatedly lowered until when it was revived after the Great Recoinage law of 1816, the gold content was fixed at the present 113 grains (7.32 g), equivalent to 0.2354 Troy ounces [2].
Sovereigns were discontinued after 1604, being replaced by Unites, and later by Laurels, and then guineas. Production of sovereigns restarted in 1817, their reverse design being a portrayal of Saint George killing a dragon, engraved by Benedetto Pistrucci. This same design is still in use on British gold sovereigns, although other reverse designs have also been used during the reigns of William IV, Victoria, George IV, and Elizabeth II.
For a detailed description of the minting processes used by the Royal Mint in the nineteenth century to produce sovereigns, please see the following link: http://www.1911encyclopedia.org/Mint#The_Supply_of_Bullion_to_Mints
In Victorian times it was the practice of the Bank of England to remove worn sovereigns and half sovereigns from circulation and have them recoined. Consequently, although a billion sovereigns have been minted in total, that figure includes gold that has been coined and recoined a number of times. It is estimated that in circulation, a sovereign could have a lifespan of up to 14 years before it fell below the "least current weight", that is, the minimum amount of gold below which it ceased to be legal tender. It was actually the half-sovereign that had the most circulation in Victorian England. Many sovereigns languished in bank vaults for most of their lives. It is estimated that only 1% of all gold sovereigns that have ever been minted are still in collectible condition. For a discussion on how much gold a sovereign lost in ordinary circulation per year please see: http://www.econlib.org/library/YPDBooks/Jevons/jvnMME13.html.
Sovereign obverse (heads) dies were also used in the nineteenth century to create farthings once they had become worn. (An obverse die could typically produce 100,000 coins.)
Sovereigns were produced in large quantities until World War I, at which time the UK came off the gold standard. From then until 1932, sovereigns were produced only at branch mints at Melbourne, Sydney, Perth, Bombay, Ottawa, and Pretoria (except for some in 1925 produced in London as part of Winston Churchill's ill-fated attempt to return the UK to the gold standard). The last regular issue was in 1932 (at Pretoria).
Production resumed in 1957, ostensibly to prevent the coin being counterfeited in Beirut and Italy. Subsequent publication of treasury papers appear to indicate that sovereigns were widely used in pursuance of British foreign policy in the Middle East, and it was felt that the coin could not be allowed to fall into disrepute, as many individuals were receiving payments in the form of sovereigns for services rendered to the British government. For a detailed discussion of the history of fake sovereigns and the impetus for starting production again see the following link: http://www.coinauthentication.co.uk/newsletter2.html
Sovereigns were produced most years as bullion until 1982. From there to 1999, proof coinage only versions were produced, but since 2000, bullion sovereigns have been minted. Modern sovereigns are minted at the Royal Mint in Pontyclun, Mid-Glamorgan, Wales. The coins are produced in the precious metal unit which is sealed off from the rest of the Mint, the Mint itself being protected by Ministry of Defence police. Employees are not allowed to use any coins within the Mint — plastic tokens replacing coin of the realm for the staff canteen.
Sovereigns usually have a higher premium to the price of gold than some other coins, like the Krugerrand. This is due to a number of factors: the higher unit cost of the Sovereign (at under one-quarter of an ounce); the higher demand for the Sovereign from numismatists (compared to the Krugerrand which is not sought-after numismatically); and the higher costs of identifying and stocking a numismatic coin. For other ways to invest in gold, see gold as an investment.
Current sovereigns (2000 onwards) are struck in a 22 carat (92%) gold alloy, also known as Crown Gold, which contains 11/12 gold and 1/12 copper. The only time there has been a deviation from this composition was in the production of early Australian sovereigns, which used silver as part of the alloy and in London sovereigns dated 1887, when an additional 1.25% silver was added in order to make the blanks softer for new Joseph Boehm effigy of Queen Victoria. Consequently, 1887 London Mint sovereigns are more yellow in appearance than other London produced sovereigns. This additional silver affected the amount of copper in the coin, not, of course, its gold content. (Nineteenth century techniques of refining were not as advanced as today, and nineteenth century sovereigns became more accurate in terms of their gold weight as silver — which is often naturally combined with gold — was removed as an impurity from the "pure" gold used. Such minor inconsistencies would not affect either their numismatic or bullion value).
For a detailed description on how the modern proof sovereign is manufactured, please see the following link: http://www.gold.org/discover/sci_indu/GBull/2002_4/R%20Matthews.pdf
Care should be taken when purchasing the new bullion sovereigns (2000 onwards) featuring Ian Rank Broadley's portrayal of the Queen. It is not uncommon to see a weak striking on the obverse side which carries the Queen's effigy. One should look out for lack of detail in the depiction of the Queen's hair and ear. Such weak strikings appear to be relatively common and are still evident in sovereigns produced in the first half of 2006. The Royal Mint now appears to have changed the obverse die (July 2006) and the Queen's effigy is now sharp and clear.
In summary, sovereigns were produced as follows:
- London: 1817–1917, 1925, 1957 onwards
- Melbourne: 1871–1931
- Sydney: 1871–1926
- Perth: 1899–1931
- Bombay: 1918 only
- Ottawa: 1908–1919
- Pretoria: 1923–1932
For the latest report on the quality and purity of British gold coins, you should look at the official copy of the Trial of the Pyx, available from http://www.hm-treasury.gov.uk./media/FAB/4F/trial_of_the_pyx_2006.pdf
For a list of sovereign mintages since 1887, see the link below.
Half sovereigns, two pound double sovereigns, and five pound quintuple sovereigns coins were also produced.
[edit] External links
- Goldsovereigns.co.uk — Much information and many images
- Sovereign mintages and information from 1887 to present
- The Royal Mint
| Preceded by: Unknown |
One Pound 1489–1604 |
Succeeded by: Unite |
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