Photo Credit: APMEX
1985 British Gold Sovereign Proof Set
Buy It Now Price: $2,987.50 (price as of 2017; item no longer available)
Pros:
-This impressive British gold sovereign proof set from 1985 contains four different coins: a 1/2 sovereign, 1 sovereign, 2 sovereign and 5 sovereign piece.
-All of the coins in this British gold sovereign proof set are struck from solid 22 karat (91.67% fine) gold. A sovereign, or one pound, gold coin contains 0.2354 troy ounces (7.32 grams) of pure gold. The 5 sovereign coin, in particular, is a monstrously large coin, weighing in at a hefty 1.2841 troy ounces, or 39.94 grams, of gross weight!
-This 1985 British gold sovereign proof set comes with its original Royal Mint presentation case and certificate of authenticity, which boosts its desirability.
-The original issue price of this British gold sovereign proof set was £1,150 back in 1985. This would be an extravagant £3,404 in 2017, once adjusted for U.K. inflation.
-Although it had a medieval predecessor, the British gold sovereign as we know it today was first coined in 1817, during the waning years of the reign of George III. The obverse has a portrait of the ruling British king or queen, in this case Queen Elizabeth II. The reverse has the iconic rendering of St. George on horseback slaying a dragon, designed by the famous engraver Benedetto Pistrucci.
-Gold sovereigns were incredibly popular as trade coins throughout the 19th and early 20th centuries. They were renowned for their consistent weight and fineness, so much so that imitation sovereigns (often with full gold content) were sometimes struck by private goldsmiths in far-flung British colonies to supplement the existing supply. In fact, gold sovereigns continue to be used for jewelry and trade to this day in the Middle East and Indian subcontinent.
-The gold sovereign is one of the only coins to have made the jump from circulating coinage (before 1931, when Great Britain abandoned the gold standard) to modern bullion coin.
-Although 12,500 British gold sovereign proof sets were authorized in 1985, only 5,849 were actually minted. This is an exceedingly low mintage, even for modern proof bullion coins.
-The total set contains 2.001 troy ounces (62.24 grams) of fine gold. With gold currently trading at around $1,243, this British gold sovereign proof set has a bullion value of $2,488. With a buy-it-now price of $2,987.50, this magnificent proof set has a premium of just 20% over its intrinsic value, which I find very reasonable.
Cons:
-If you just want to invest in gold bullion, it is possible to buy generic gold bars or American gold eagle coins for lower premiums, generally on the order of 3% to 5% over spot. However, I like the optionality value that numismatically-oriented gold coins give the intelligent hard asset investor, provided you don’t pay too much additional premium.