Why Collect Sovereigns?
The collector’s crowning achievement a solid investment in Gold Sovereigns
For many collectors, the greatest appeal Gold Sovereigns have is their undeniable investment potential. Beauty, history and rarity aside, investment is clearly a strong motivating factor in the Sovereign collector market. Many a numismatist has profited from the sale of a painstakingly built Sovereign collection. A well-selected Gold Sovereign has the potential to be a very sound investment indeed.
Profiting from your coin collection is simple enough- provided you buy only those coins you are certain another collector will pay you more for when you sell them! This pleasant result is possible because collecting sovereigns is a timeless hobby, one enjoyed by Australians of all generations. As more collectors come into the market and the number of available coins diminishes, market values can do nothing but rise further.
There are three traits particular to any coin that increases in value – keep these in mind when you are evaluating a Gold Sovereign for your collection.
Rarity: A coin must obviously be of some rarity before it has any chance of increasing in value. The fewer there are, the more a collector has to pay to obtain one. This is particularly the case for historic coins in top quality.
Quality: The market has long valued attractive or perfect coins higher than those that are either slightly worn or damaged. Any new record prices paid are usually only for coins of absolute top quality. The ability to “grade”, or determine the numismatic quality of a coin is an asset here.
Demand: Inexperienced collectors often overlook the importance demand has on the investment value of their collection. The discerning collector takes advantage of trends or major events by timing their purchases (and sales) to suit ebbs and flows in the market.
The collector with an eye for investment can expect a well-selected collection to increase its value over the medium to long term. As Gold has an appeal that spans generations and even centuries, it is not unreasonable to presume that this price growth will continue.
At the same time, the collector market for Sovereigns does not rest solely upon the price of Gold. Without doubt, the market for Sovereigns does become increasingly active when the Gold price moves up. However many coins have increased in value several-fold during years when the Gold price has been less than bullish. Collectors aware of this fact are able to build a first rate collection at a time when quality Sovereigns offer superb value for money. After all, a low Gold price doesn’t reduce the value of a Gold Sovereign of which there are only three examples known!
The knowledge that these historic coins were regarded as solid wealth during the times of hardship, war and depression, only increases the value they have. The crowning achievement for any collector is to enjoy the many rewards the hobby offers for a number of years, and then sell their collection for a profit when the time comes to do so. By selecting rare and historic Gold Sovereigns in superior quality, this is not only a possibility but highly probable outcome to look forward to.