Gold Sovereign vs 1oz Gold Britannia bullion coin (Royal Mint) Best way to invest in gold in the UK?

My latest Metal Head video, today - reviewing the pricing differences between investing in a Gold Sovereign vs a Gold Britannia in the UK. I have lifted data directly from the Royal Mint and Bullionbypost.
As a Silver Stacker (and gold) it is important to have an understanding of this so you know what you are paying for and have confidence over your investment in your precious metals.
Please do consider subscribing if you would like to see more content like this. Happy stacking!
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[@MetalHeadMoney]

Another video on how I make money from gold/silver - kzbin.info/www/bejne/e5eun2ysl9N9nZI

[@lordnookes]

This is a fantastic quantitative illustration! Very useful thank you. Keep up these informative videos.

[@MetalHeadMoney]

Glad you enjoyed it Nick - I have a couple more like this. There’s one comparing a gold Britannia vs silver Britannia if you check out this link - kzbin.info/www/bejne/mmTFkmaXZ6qgpq8 all the best, Metal Head.

[@lordnookes]

@@MetalHeadMoney Many thanks for the link, and the time you put into making these very informative clips.

[@jduff59]

We like both of these coins over here in The Colonies, too. I budget for a Sov or a 1/4th Gold coin each month. It's hard to beat the Britannia, and the deals have been excellent this year. I find the pinkish color of newer Sovs particularly nice.

[@MetalHeadMoney]

Agreed on the pink shade! The Britannia’s really are fantastic though, especially the silver coin in my opinion. Thanks for checking in! Metal Head

[@sourwes0001]

I live in the US, but my favorite low premium fractional is the Sovereign. You can get a 100 year old coin for a couple percent over spot. I buy the random dates on sales, and am usually pleasantly surprised by the near uncirculated conditions I get regularly🙂

[@MetalHeadMoney]

Yeah I agree with you, especially after comparing premiums - there’s not much in it. Like you say to, on the secondary market, them premiums can be even tighter. Thanks for checking in and wishing you a Happy New Year! Metal Head.

[@goodtexture]

Most minted gold coin ever to my knowledge. Between 700 mil and 1 bil minted

[@VerbilKint]

I agree 100%. I've had people tell they're difficult to liquidate. Bah I doubt it. Plus I've already spoken to my LCS. He loves them.

[@emjay7587]

Metal head, as a first time buyer. Which would you recommend for this year?

[@MENSA.lady2]

I'm not surprised you get almost UNC condition. From 1901 onwards sovereigns were rarely used. Paper notes took their place, so don't be fooled into paying a high price just because it looks nice. The Sovereigns spent many years stored in a bank vault and went nowhere.

[@kabirconsiders]

Way closer than I thought! The Sovereign is excellent value. Great video mate :)

[@MetalHeadMoney]

I know! Genuinely I was surprised too! Similar story on this 1kg silver bar vs 500g bar too - kzbin.info/www/bejne/gYTEZ4FsrdmtopI

[@MetalHeadMoney]

Thanks for checking in too Kabir, big respect for your channel. You’ve smashed it. Metal Head

[@mothballjim]

Loving these comparison videos. Keep em coming mate. I really thought the 1oz would be much less, as like you said it’s more gold.

[@adm58]

Thanks. Useful to know. I had wondered about that myself and also expected the larger coin would be more cost effective. Given this information, I think I'll stick with my usual sovereigns as they have the great advantage of being more flexible, as smaller units, in terms of selling for cash.

[@MetalHeadMoney]

Hello DP LG. Thanks for checking in and yes I agree, it wasn’t what I was expecting actually. I wonder how fractional Britannia’s stack up vs 1oz full Britannia’s - I will probably do this next. Merry Christmas and Happy New Year to you. Metal Head.

[@FaridHerrera]

Brilliant vids sir, keep them coming!

[@MetalHeadMoney]

Thank you very much :) got some more coming up.

[@asheland_numismatics]

I’m a coin nerd in general, I like the Britannias and the sovereigns very much! Of course I love pre33 US gold as well. Great video!

[@MetalHeadMoney]

kzbin.info/www/bejne/paubimljbcl9oZI - my latest video taking a closer look at the 2022 Gold Sovereign (a bit different to a usual Sovereign!)

[@TyroneBeiron]

24 kt (Britannia bullion) or 22 kt (Sovereign coin) is the key difference, apart from that the latter tends to exact a higher premium over spot. So an ordinary Sovereign tends to be not worth stacking unless there is something unique to it. The Britannias now have enhanced security features but otherwise seems bland to the historicity of the Sovereigns.

[@andybell8887]

A good point well made. Call me thick and picky but is there such a word as historicity? If not I think there should be. Ho ho.

[@TyroneBeiron]

@@andybell8887 🤔noun, 'historic authenticity', used for example, in describing biblical narrative. 😆

[@ariel340]

The gold purity is irrelevant when compared at pure content weight. A Sovereign has a gross weight of 0.257 Oz, of which 0.235 Oz is pure gold, very close to a 1/4 Oz (0.25) Britannia. The lowest premium on a 1/4 oz Britannia is around 14%, while on a Sovereign is under 8%. So ounce by ounce, the Sovereign is a better deal. Same case with Krugerrands and Gold Eagles, both are 22K gold coins, but have the full ounce of pure gold, and have similar or higher retail value than a 24K Britannia.

[@sinesaii]

I collect Sovereigns here in the US. I love them. I only own one Britannia. I would rather stack Eagles or Maples than Britannias, but I adore Sovereigns. There is something just magical. I own coins with Queen Victoria and George and Edward and the recently departed Queen Elizabeth. Here, I can often get Sovereigns at or close to melt. For Maples I pay $100 premium. For eagles I pay more like $120-$150. Sovereigns are the better choice (my last Elizabeth was $6 ($25 per oz) over melt. So I love sovereigns. So even in the US Sovereigns are the best, but these are all used.

[@MetalHeadMoney]

Happy stacking 😊

[@CashAndCoinsYT]

New Subscriber here. Great Info. Thank You Metal Head. I really love both of these coins.

[@MetalHeadMoney]

Great to have you on board! Metal Head.

[@Basileios1974]

Nice video! For your calculation it might have probably been easier to multiply the spot price of an ounce of Gold with 0.2354 to get the spot value for the Sovereign. But the result should be pretty much the same.

[@MetalHeadMoney]

I’ll keep that in mind for next time! All my best, Metal Head.

[@CapitalCurrency]

Both beautiful coins! Very nice! 👍

[@MetalHeadMoney]

Thanks Capital Currency - very lucky to have these two!

[@JamesWilliamson-w8y]

No surprise. I hold most of my gold in Britannias with a few sovereigns in case an unexpected emergency actually happens. Even in Hatten Garden, Londen, it can take time to convert gold into cash but sovereigns are easiest to sell in a hurry, .

[@CyberCurtainTwitcher]

Yeah, I would have thought the 1oz would have had a lower premium as they are less liquid. How time flies. It doesn't seem long ago that i was buying Sovs for £170 & half Sovs for £90.

[@MetalHeadMoney]

I know right?! I was genuinely quite surprised. Sovereigns at them prices would be dreamy. Although maybe we’ll be saying that about today’s prices in a few years!?

[@mothballjim]

Can you compare a 1oz Silver Britannia and a 1oz gold Britannia. Be very interesting to see the premium difference between the 2 metals. I already know Silver will lose due to the 20% tax but be interesting to see the exact figures

[@MetalHeadMoney]

kzbin.info/www/bejne/mmTFkmaXZ6qgpq8 - I did that recently on this video! And yes the premium difference is eye-watering 🥲

[@Tensquaremetreworkshop]

The problem is that it is not just intrinsic value- there is a collector value as well. Different years have different prices. Even the most common of each will have a different collector 'add-on'. That is why 1oz gold bars are usually slightly cheaper than 1oz coins.

[@MetalHeadMoney]

Good point. I hope to compare a coin with heightened demand from factors like that vs a standard piece soon!

[@MetalHeadMoney]

Thanks for dropping in!

[@bigbill74scots]

Great video. I'm back to buying sovereigns just now, reason is thus: I can buy 4 for the price of a Brittania. However, were I to sell immediately then I would lose more selling the 1 Brittania than I would 4 sovereigns as right now I can buy sovereigns at £325 and sell them for £312 at my local dealer.

[@bobdigi500]

325? i just paid £337 on bullion by post! how do you buy them for £325?

[@bigbill74scots]

@@bobdigi500 Bullion By Post have a lovely website but are consistently the most expensive for any type of gold coin be it Brittania or Sovereign. If you hunt around you will find more competitive deals. I'm not sure of the protocol of mentioning individual dealers names on here but the one I use has a website that looks straight from 1997 but is always the most cost competitive.

[@bobdigi500]

@@bigbill74scots lol I'm new so I guess overpaying at the beginning is part of the course. I paid £110 for 100g silver, £27 1oz silver britania and 337 for the gold sovereign. I'll have a good hunt around before anymore purchases. I'd appreciate if you could tell me the website. Its KZbin, nobody would care!

[@MrRawUK]

I hunted high and low and dealers are very similar price wise online. I guess you buy from a local shop ?

[@bigbill74scots]

@@MrRawUK I do, 30 year relationship. One hand washes the other I guess.

[@Silverado_UK]

Great video! That tells me to buy more sovereign coins! Awesome! 👋👋👋

[@MetalHeadMoney]

Thanks for checking in! Hope you enjoy the videos. Metal Head.

[@JosephHundeyin-t4w]

1. Do you worry about buying graded coins or it doesn’t really matter as long as you buy from a reputable dealer? 2. If buying non-graded, how best to store them? I see these lovely cases of yours and wonder where you get them from? Are they very protective long-term? Thank you.

[@silveribis55]

Good work! Thanks. Think it's difficult to get a perfect thought and math on this as also some are 22k and others be 24k...end of the day it's just important that you, as an individual know what and why one buys their choice of savings. And the more we share with each other the more we can learn and improve strategies

[@MrDisplaypilot]

I like your videos and obviously I know they’re a couple of years old now I’m thinking of buying some gold sovereigns or Britannia one of your other video seems to contradict the findings on this one and I wondered if the premiums are much different buying from the Royal Mint rather than one of the other gold retail specialist. do you have any views or advice and have you ever done the video or considered one which you show the process of selling one or 2 ounces and how much loss is made based on the premium? Plus how do you go about trying to sell something, do you just put it on eBay. How do people prove authenticity, and if I wanted to prove authenticity of some Britannia I’ve got should I own some specialist weighing scales or some kind of chemical thing that detects improves whether something is gold or not? The last thing I really want to do is break it open the capsules start rubbing things on the coins but it is something I think about. I’ve got a small amount right now but I’m considering making a hefty purchase because I’m fed up inflation reducing my savings. Best regards.

[@dalzcoins7528]

Wow very nice gold coins❤❤❤🙏🙏

[@MetalHeadMoney]

Cheers mate! 😊

[@dalzcoins7528]

@@MetalHeadMoney 👍👍👍😘😘

[@fragdad]

It's surprising because you bought from the R.mint. a lot different if you buy from and dealer.like atkinson or chard.

[@thegoldstandard721]

2.8% premum on Britannas, and 5% premum on Sovereigns on 7/4/2024 based on Atkinson's Prices, the Britannia is definitely a better deal

[@malonekenny1]

the premium is higher on the quarter oz britania , the sogv is a quarter oz . so thats why the premium is like that . if you compare the quarter brit to the sogv you will get a more honest output . premiums on oz coins are always less than the fractural coins .

[@longandshort6639]

On this basis sovereigns are better as they are easier to sell if you want to turn some of your gold back to cash

[@MetalHeadMoney]

Swings and roundabouts my friend. All my best, Metal Head.

[@MetalHeadMoney]

amzn.to/3pJHXE0 - link to the camera tripod I use for my videos

[@TheFoxOfThredneedleStreet]

No cgt on legal tender gold and only have to return income tax on £100 for every ounce i take if i sell you my goods in legal tender gold.

[@JP.708]

As of watching this a year on, anyone else noticed the premiums on sovereigns have got higher and premiums on britannias have got lower?

[@MetalHeadMoney]

JP - I’m going to be posting an updated version of this video soon so keeps your eyes peeled. I imagine there have been some adjustments. All my best, Metal Head.

[@JP.708]

@@MetalHeadMoney looking back, I possibly made a calculation error so I could be wrong. I look forward to seeing the video to find out.

[@tennerstrings]

Thank you

[@MetalHeadMoney]

You're welcome

[@coctailer]

WOW, at that percentage, I would buy 4 Sovs instead of a Brit.

[@MetalHeadMoney]

Not a bad shout! Metal Head.

[@jimmyjimmy8859]

Great video, I was once told that its better to buy coins rather then bars because coins have an old date on them so if anyone ask where you got it from you can say my grandad gave it to me 20 years ago, is that correct?

[@MetalHeadMoney]

It’s cool to see the dates isn’t it? My grandad gave me an old sovereign from the year he married my Grandma! Lots of sentimental value in them.

[@emjay7587]

Coins never go out of style but bars are the new rage now! It’s so hard especially with keeping up to date

[@AfshaFarook]

What about a coin that is rare (as the mintage is 250 or less). It would be £1150 over the spot price. In other words the coin is £2995.00 and the rate of gold on that day is £1850 gbp. Is this coin worth it?

[@soneyliston7902]

Isn't a Sovereign worth less 22 carat gold ? And a Britannia 24 carat? So the calculation is wrong?

[@MetalHeadMoney]

It is but if you watch the calculation part of the video, you will see I adjust for this. Metal Head.

[@Basileios1974]

Not really since he calculated in both cases with the fine Gold content.

[@tobyf5953]

£1.2k an ounce... take us all back!

[@MetalHeadMoney]

🚀

[@Zonker66]

The only real issue to take into account is VAT as they're both considered 'legal tender'. The Sovereign is 91.67% and not considered 'investment quality. Current Britannia's are 99.99% and considered investment quality (as a bar of gold would be). Saving 20% on the cost makes this a no-brainer for me. The premium would have to be through the roof in comparison for me to even look at a Sovereign. Immune from VAT for the 99.99% and immune to Capital Gains tax for being Legal Tender... how can you beat VAT and CGT free? (I live in the UK and this is true there)

[@harryzero1566]

There is not alot in it regarding premiums, the 1oz 24ct brit has about the same, but being over 4 x in size of that of a 22ct sov, it's more to initially pay out. If you compare a 1/4oz brit with a sov, maybe the sov would be the better option, more recognisable too.

[@MetalHeadMoney]

That’s a really good point and actually - I may well do exactly that in a future video. Just need to buy a 1/4 oz Britannia now! Thanks for checking in!

[@curtisglover7400]

New subscriber here. I started stacking a months ago mainly silver Britannia. But i wondering is it best to start gathering gold sov or stick to a few brits a month rather than 1 sov every 2 months im from the uk also.

[@stevenanthony5969]

Any help on what site to order gold and silver coins from please, I live in West London I tried the royal mint website the other day but my bank diddnt seem to trust it so I just left it 🤷‍♂️😄

[@MetalHeadMoney]

Steven, if you can get into central - I think Sharps Pixley is a good bet. Failing that - Baird & Co. They both sell over the counter.

[@stevenanthony5969]

@@MetalHeadMoney thank you

[@Tara-xp6ki]

Atkinsons

[@shauncorless8965]

Ive been telling family and friend's to buy gold coins ,,since they were £75 each now there struggling and today oct 2024 ,im rich 😅😅😅,£2035 ,oz 😊😊😊

[@johnbowkett80]

Subbed .

[@MetalHeadMoney]

Thank you John - hope you enjoy the videos! Metal Head.

[@johnerdelyi48]

I like the Australian sovereigns some dates increase the values go the mighty sovereigns !

[@MetalHeadMoney]

Hi John! Thanks for checking out this video and my channel! I’ve never seen the Aussie sovereigns, I will go and check them out right now! Hopefully you enjoy my videos and hope to see you again here in the comment section soon Sir. Happy stacking and happy new year. Metal Head.

[@johncruickshank7074]

1/4 brittania v sovereign is a better comparison

[@MrRawUK]

Would you say the Gold Sovereign 2022 coin is ok to buy and hold? I see prices are way up from February 2022 by around £30 ish. Everything similar is £360 min.

[@MetalHeadMoney]

I am personally holding mine for the long term. I don’t see why not if you can afford to do so but ultimately up to what you are willing and capable to allocate. Happy jubilee weekend, Metal Head.

[@ONETHUG]

FULLSUPPORT 4SHO 4DE GOLD

[@JohnJones-wo1bc]

I thought that sovereigns were 22ct, as opposed to 24ct for the Britannia , so I am not sure your maths are correct? Am I wrong?

[@MetalHeadMoney]

Hi John! Thanks for checking in - I hope you enjoy the videos. So my calculations are as follows. A sovereign weighs 7.98g but of that 7.98g - 7.32g is effectively pure gold after factoring in that it’s 22 carat and not 24 carat (like the Britannia) as you rightly point out. I have effectively adjusted for this for comparison purposes on the video. I hope that makes sense! Metal Head

[@JohnJones-wo1bc]

@@MetalHeadMoney Thank you, makes sense!

[@antonyrobinson9973]

What you didn't mention is the sovs are 22c and the Brit is 24c a much purer gold content.

[@MetalHeadMoney]

Fair point. There is some assumed knowledge regarding that but either way, I have factored it into my calculations to give a fair comparison of premium variance. Thanks for checking in! Metal Head

[@Basileios1974]

True. But he already calculated based on the fine Gold content of both coins. The total weight of the Sovereign would have been 7.98g. So for comparing prices it wouldn't matter. It only makes a difference when you want to point out that Sovereign is more forgiving due to the alloy.

[@jonathanmaragh6319]

£1290 Vs today price of £1720

[@MetalHeadMoney]

🚀

[@Paulie-276]

Atkinsons do a much better deal than Bbp.

[@MetalHeadMoney]

Agreed - they are very good and have used their services a few times in the past. Good shout!

[@heshamallam8829]

@@MetalHeadMoneyhave you tried to calculate the premium by comparing relatively similar weights? Let’s say 5 sovereigns ( usually less premium ) to one troy oz Britannia?

[@trojanhorse7897]

Those are some cheap gold prices you wrote their.

[@MetalHeadMoney]

There’s been a strong upwards movement since I made the video! I might do an updated version soon. Thanks for checking in. Metal Head.

[@trojanhorse7897]

@@MetalHeadMoney I was planning to buy gold for my stack. But the gold prices are skyrocket, you think they will go down after the FED announcement in march

[@donnalouise8268]

Why not put your money in an ISA and not lose your money. A 7% loss for every coin imo is barmy. What's the monetary gain in stacking or is just the notion "if you don't hold it you don't own it" which i'm guessing the phrase was created by a very savvy bullion dealer. Or does every stacker just love collecting coins in which case i totally understand. But as for saving for a nest egg a savings account even with 0% intrest rate totally trumps stacking.

[@MetalHeadMoney]

Hi Love Leeds. From experience, many stackers tend to have a few chunks of precious metal as part of their wider portfolio. You’ll often find shares, bonds and alternatives within that wider portfolio and yes - ISA wrappers as well as pension wrappers get utilised to hold them investments for most stackers I’ve met. Some people though I’m sure - as you point out - do collect simply because they like the coins and see it as a hobby!

[@donnalouise8268]

@@MetalHeadMoney Thankyou very much new sub now.

[@timwilcox960]

Hi DL, Just o add to Metal Head's comments, two reasons often cited by precious metal stackers is that 1) owning physical silver and gold is a hedge against inflation and 2) there's no counterparty risk. Remember the run on Northern Rock (NR) bank during the 2007/8 financial crash? Savers only managed to hold on to their money thanks to a government bail out - while investors who had NR shares lost everything. Many in the precious metals world think another crash is likely and want to be prepared when it does.

[@dcerise1974]

if you ever divorce.... just take all of coins and move on instead of having the court taking 1/2 of it .... you have rolls of coins just for the what if....

[@richardgiesey9951]

@@dcerise1974 you aint lying

[@JamesWilliamson-w8y]

Sadly the Royal Mint has released a 2023 dated Britannia showing the late QE!! who died in 2022. Very poor taste. The gold should have been recyched to show the new king.

[@bluedeskfan2754]

Might give it some extra collectable value

[@jgfox1983]

Sounds like a rip of to me. It doesn’t cost 4x as much to craft a Britannia than a Sovereign. The numbers (from the mint) just don’t have any logic behind them

[@MetalHeadMoney]

A Britannia is not for you it would seem James! Fair enough, I like both but know they’re not for everyone. All my best, Metal Head.

[@ianmoone2359]

Nice video, BUT, your “intrinsic value” for the sovereign in terms of pure gold content is incorrect. Sovereigns are only 22 Karat gold not 24 Karat, so the correct “intrinsic value” for the Sovereign is really only $278.50, not $303. This of course means the premium is a much higher %age. The 1 ounce Britannia’s are 24Karat .999 fine pure gold so your calculations on that one are correct. Based on this, the 1ounce Britannia’s are far better value from a premium perspective. The devil is always in the details. 😉👍🇦🇺

[@MetalHeadMoney]

Hi Ian! So my calculations are as follows. A sovereign weighs 7.98g but of that 7.98g - 7.32g is effectively pure gold after factoring in that it’s 22 carat and not 24 carat (like the Britannia) as you rightly point out. I have effectively adjusted for this for comparison purposes on the video. I hope that makes sense! Thanks got checking in Ian! Metal Head

[@ianmoone2359]

@@MetalHeadMoney All good, yes I didn’t realise you had compensated for the 22/24ths by reducing the gram weight. 👍👍👍🇦🇺

[@bobdigi500]

@@ianmoone2359 The devil is always in the detail lol!

[@johnbowkett80]

Do i detect a Brummie accent ?

[@MetalHeadMoney]

Close!

[@Doubledig]

With a Continental 7

[@aaronwhitty81]

Stumbled across this video from reddit. Great video!! I'm currently laughing at a £300 sovereign and under £1300 spot compared to current prices :-) I will say, depending on how long it takes you to save up for a full oz, with the rising prices of gold. You could end up paying more in the long run as saving up for a sovereign or smaller fractionals little and more often than a 1 oz coin would/should be cheaper.