Gold sovereigns are coins that depict the ruling monarch of the United Kingdom. Although it has a face value of one pound sterling, its actual value varies mainly based on the current price of golds. It is a very popular coin in the UK because of its history, design, and accessibility. It has been around since 1817 and continues to be minted today. It used to be a circulating coin that enjoyed international exposure thanks to global trade. It was even struck at colonial mints. It hasn’t been in circulation since World War I but it continues to be made as a bullion coin. Here’s why you might want to buy gold sovereigns:

Diversification

Are your investments too heavy on a certain type of asset? Stocks can be fantastic tools for building wealth but they also carry a high risk of losing money. Most financial advisers tell their clients to diversify in order to prevent too much exposure to any particular asset class in case things go awry. Sure, get your stocks but make sure that you also have bonds or even commodities in your portfolio. Some might have properties to their name. Precious metals such as gold, silver, and platinum can help to further spread things out.

Trusted Coins

There are many gold coins out there but not all of them are recommended for investors. For example, many would say that collectibles are not good bets because their values are quite volatile. They might be worth a lot in a bull market when everyone is awash in cash. However, they might turn into nothing when we hit a depression as only the gold content matters. The design, rarity, and other factors no longer become relevant. Gold sovereigns are certainly beautiful but that is not their main attraction. They are trusted because they have a known quantity of gold and they are struck by a respected institution.

Rising Uncertainty

The current economic environment makes most investors anxious. There are only a few bright lights in an otherwise bleak marketplace. Many are flocking to these but the overcrowding might backfire one day so others are not quite joining the rush. Everyone is trying to position themselves as best they can for whatever might happen in the future. The rising uncertainty caused by the pandemic and what seems like a long-term fight with the virus is pushing people towards risk management. Gold has always been a safe haven in times like this.