For most collectors, however, modern bullion coins will hold limited appeal, "real" coins originally struck for circulation, and therefore possessing more history, will be far more attractive. In our opinion the British Gold Sovereign is one of the most collectable series of modern coins. They are quite easy to obtain, can be found in good condition, there are many different dates, mint marks, and designs, and they can also be bought for a relatively small premium over their intrinsic metal content. They were first issued in 1817 in their current form, although the sovereign was introduced in 1489.

Half Sovereigns are scarcer, more expensive, and more difficult to get in high grades.

An attractive scheme for a Gold Coin Collection might be:

• One of each date and mint mark of British Gold Sovereign in the highest grade possible.
• One of each type of British Half Sovereign
• An example of £2 and £5 piece.
• One of each type of Guinea, Half Guinea, Third and Quarter Guinea.
• One gold coin from each reign for all British Monarchs.
• One type of all other world gold coins.

By "type", is meant major variety, so this would include one of each monarch, and each different obverse (head), and reverse (tail) design or pairing, together with different weight, diameter, and possibly mint mark. The scheme outlined above would give a good balance between the focus of getting every date in the series, and the freedom to add many different designs and varieties from all over the world, more or less randomly, or as market opportunity arises.

As dealers, we often have beautiful coins on our hands which we would readily sell to interested collectors at modest profits, provided we knew we could achieve a quick sale, without too much effort or expense. Co-operation between like minded collectors and dealers can be mutually rewarding.

Typical Prices and Premiums
In the 1960's, bullion sovereigns traded for about 40% to 50% premium over their intrinsic gold value, so also did USA gold $20 Dollar pieces (Double Eagles). When the Krugerrand was first marketed, one of its selling points was that it was readily available at a premium of only 3% over bullion. This excluded dealing "spreads" and commission, so that bid and offer might be 2.5% and 4% depending on quantity. This eventually caused premiums on many other gold coins to be reduced, often as deliberate policy by their issuing country. Nowadays gold sovereigns may be bought for as little as around 10% premium depending on quantity, condition and other factors; Krugerrands and other coins issued primarily as modern bullion coins can be bought for about 2% to 10% premium; other world gold issues can also be bought for about 10% premium. High grades of condition, such as "mint" or "extremely fine", will usually cost a further premium, but this can often be in the region of £5 or £10 per coin, rising to perhaps 100% premium over bullion value. Compare this with perhaps 250,000% premium for a relatively modern base metal coin such as an 1869 penny!