## Are Gold Sovereigns a Good Investment in 2019?
### Introduction
Gold sovereigns are a type of gold coin that was first minted in the United Kingdom in 1489. They are made of 22-karat gold and weigh 7.98 grams. Sovereigns are legal tender in the United Kingdom, but they are also popular as investments.
### Factors to Consider When Investing in Gold Sovereigns
There are several factors to consider when investing in gold sovereigns:
* **The price of gold:** The price of gold is the most important factor to consider when investing in sovereigns. The price of gold is determined by a number of factors, including supply and demand, economic conditions, and geopolitical events.
* **The premium over the spot price:** The premium over the spot price is the amount of money that you pay for a sovereign above the spot price of gold. The premium varies depending on the dealer, the condition of the coin, and the rarity of the coin.
* **The liquidity of sovereigns:** Sovereigns are relatively liquid, meaning that they can be bought and sold easily. However, the liquidity of sovereigns may vary depending on the market conditions.
### Advantages of Investing in Gold Sovereigns
There are several advantages to investing in gold sovereigns:
* **Sovereigns are a tangible asset:** Sovereigns are a physical asset that you can hold in your hand. This can be important in times of economic uncertainty, when the value of paper assets may decline.
* **Sovereigns are a hedge against inflation:** Gold has historically been a good hedge against inflation. This is because the price of gold tends to rise when the prices of other goods and services are rising.
* **Sovereigns are a store of value:** Sovereigns are a store of value that can be passed down from generation to generation. This can be important for protecting your wealth over the long term.
### Disadvantages of Investing in Gold Sovereigns
There are also some disadvantages to investing in gold sovereigns:
* **Sovereigns can be expensive:** Sovereigns can be expensive to purchase, especially if you are buying them at a premium over the spot price of gold.
* **Sovereigns can be difficult to store:** Sovereigns are a valuable asset, so it is important to store them securely. This can be expensive, especially if you need to rent a safe deposit box.
* **Sovereigns can be difficult to sell:** Sovereigns may be difficult to sell, especially if you are trying to sell them at a profit. This is because the market for sovereigns is relatively small.
### Conclusion
Gold sovereigns can be a good investment for some people, but they are not suitable for everyone. If you are considering investing in sovereigns, it is important to weigh the advantages and disadvantages carefully. You should also consider your own financial goals and risk tolerance before making a decision.
### How to Invest in Gold Sovereigns
If you decide that you want to invest in gold sovereigns, there are several ways to do so:
* **You can buy sovereigns from a coin dealer:** Coin dealers are the most common place to buy sovereigns. They will typically charge a premium over the spot price of gold, but they can also provide you with advice on which coins to buy.
* **You can buy sovereigns online:** There are a number of online dealers that sell sovereigns. These dealers typically offer competitive prices, but you need to be careful to choose a reputable dealer.
* **You can buy sovereigns through a bank:** Some banks sell sovereigns. However, banks typically charge a higher premium over the spot price of gold than coin dealers.
### How to Store Gold Sovereigns
Once you have purchased gold sovereigns, it is important to store them securely. Here are some tips for storing sovereigns:
* **Store sovereigns in a safe place:** Sovereigns are a valuable asset, so it is important to store them in a safe place where they will not be stolen or damaged.
* **Store sovereigns in a sealed container:** Sovereigns can be damaged by exposure to air and moisture. To protect them, store them in a sealed container.
* **Store sovereigns in a cool, dry place:** Sovereigns should be stored in a cool, dry place. This will help to prevent them from tarnishing.
### How to Sell Gold Sovereigns
If you decide to sell your gold sovereigns, there are several ways to do so:
* **You can sell sovereigns to a coin dealer:** Coin dealers are the most common place to sell sovereigns. They will typically offer you a price that is based on the spot price of gold and the condition of the coins.
* **You can sell sovereigns online:** There are a number of online dealers that buy sovereigns. These dealers typically offer competitive prices, but you need to be careful to choose a reputable dealer.
* **You can sell sovereigns through a bank:** Some banks buy sovereigns. However, banks typically pay a lower price for sovereigns than coin dealers.
### Additional Tips for Investing in Gold Sovereigns
Here are some additional tips for investing in gold sovereigns:
* **Do your research:** Before you invest in gold sovereigns, it is important to do your research. This will help you to understand the market and to make informed decisions.
* **Buy high-quality sovereigns:** When you are buying gold sovereigns, it is important to buy high-quality coins. This will help to ensure that your coins retain their value over time.
* **Buy sovereigns from a reputable dealer:** When you are buying gold sovereigns, it is important to buy from a reputable dealer. This will help to ensure that you are getting genuine coins.
* **Store your sovereigns securely:** Once you have purchased gold sovereigns, it is important to store them securely. This will help to protect your investment.
* **Sell your sovereigns when the price is right:** When you are ready to sell your gold sovereigns, it is important to sell them when the price is right. This will help you to maximize your profits.