Sovereign (British coin)
A Gold Sovereign is a gold coin first issued in 1489 for Henry VII of England and still in production as of 2009.[1] While the coin typically had a nominal value of one pound sterling or 20 shillings, the sovereign was primarily an official piece of bullion with no mark of value anywhere on the coin itself.
The name "sovereign" comes from the large size and portraiture of the coin, the earliest of which showed the king facing, seated on a throne, while the reverse shows the Royal coat of arms on a shield surrounded by a Tudor double rose.
History
Original sovereigns were 23 carat (95.83%) gold and weighed 240 grains or one-half of a troy ounce (15.552 grams). Henry VIII reduced the purity to 22 carats (91.67%), which eventually became and remains the gold coin standard (so-called crown gold) in both England and the U.S.; the weight of the sovereign was repeatedly lowered until when it was revived after the Great Recoinage[2] law of 1816, the gold content was fixed at the present 113 grains (7.322 g), equivalent to 0.2354 Troy ounces.[3]
In addition to the sovereign, the Royal Mint also struck 10-shilling half sovereigns, two pound double sovereigns, and five pound quintuple sovereigns coins. Only the sovereign and the half sovereign were commonly struck for circulation. In 2009, The Royal Mint released a new coin in the sovereign series—the quarter-sovereign (similar in some ways to the original gold British crown).
Sovereigns were discontinued after 1604, being replaced by Unites, and later by Laurels, and then guineas. Production of sovereigns restarted in 1817. The initial reverse type for gold coins was the shield and crown motif, supplemented on the sovereign with a heraldic wreath. This was succeeded by a portrayal of Saint George killing a dragon, engraved by Benedetto Pistrucci. This same design is still in use on British gold sovereigns, although other reverse designs have also been used during the reigns of William IV, Victoria, George IV, and Elizabeth II.
In Victorian times it was the practice of the Bank of England to remove worn sovereigns and half sovereigns from circulation and have them recoined. Consequently, although a billion sovereigns have been minted in total, that figure includes gold that has been coined and recoined a number of times. In addition, when coins were sent to places such as the United States for international payments between governments, coins were frequently melted down into gold bars because of the Federal regulations then in force. When gold coins were finally withdrawn from circulation in 1933 in the US, many thousands of British gold sovereigns were consigned to the melting pot in this way.
It is estimated that in circulation, a sovereign could have a lifespan of up to 15 years before it fell below the "least current weight", that is, the minimum amount of gold below which it ceased to be legal tender.[4] English law allows a sovereign to be legal tender so long as it weighs 122.5 grains, or more; and the difference between this and the full standard weight, or 0.774 grain, represents the margin allowed for abrasion. It was actually the half-sovereign that had the most circulation in Victorian England. Many sovereigns languished in bank vaults for most of their lives. It is estimated that only 1% of all gold sovereigns that have ever been minted are still in collectable condition.[citation needed] In 1891 a proclamation was made that members of the general public could hand in any gold coins that were underweight and have them replaced by full weight coins. Any gold coin struck before 1837 also ceased to be legal tender. This recycled gold was subsequently reminted into 13,680,486 half sovereigns in 1892 and 10,846,741 sovereigns in 1900. (Both figures for the London branch of the Royal Mint).
Sovereign obverse (heads) dies were also used in the nineteenth century to create farthings once they had become worn. (An obverse die could typically produce 100,000 coins.)
Sovereigns were produced in large quantities until World War I, at which time the UK came off the gold standard. From then until 1932, sovereigns were produced only at branch mints at Melbourne, Sydney, Perth, Bombay, Ottawa, and Pretoria (except for some in 1925 produced in London as part of Winston Churchill's ill-fated attempt to return the UK to the gold standard). The last regular issue was in 1932 (at Pretoria).
Production resumed in 1957, ostensibly to prevent the coin being counterfeited in Syria and Italy.[5] Subsequent publication of treasury papers appear to indicate that sovereigns were widely used in pursuance of British foreign policy in the Middle East, and it was felt that the coin could not be allowed to fall into disrepute, as many individuals were receiving payments in the form of sovereigns for services rendered to the British government.
Sovereigns were produced most years as bullion until 1982. From there to 1999, proof coinage only versions were produced, but since 2000, bullion sovereigns have been minted. Modern sovereigns are minted at the Royal Mint in Llantrisant, Rhondda Cynon Taff, Wales. The coins are produced in the precious metal unit which is sealed off from the rest of the Mint, the Mint itself being protected by Ministry of Defence Police.
Mintage figures for the latest British coin production are given below. Please note: these are the actual number of coins issued, not the official issue limits often advertised. In addition, the Mint will strike extra coins for the purposes of quality control, i.e. samples of coins are submitted for the Trial of the Pyx which involves their destruction. Thus, an issue limit figure never fully reveals the true number actually created. Furthermore, the date on a bullion coin refers to the year the die was made, not necessarily the year in which it was struck. It is not unknown for the Mint to strike gold sovereigns with the date of the previous (or even older) years, e.g. bullion sovereigns struck during the reign of George VI were all dated 1925 and featured the head of George V.
File:British Gold Coins 2000 to 2005.jpg
Technical specifications
Sovereigns minted since 1817 have been produced to a standard specification:[6]
- Weight: 7.9881 grams
- Thickness: 1.52 mm
- Diameter: 22.05 mm
- Fineness: 22 carat = 91.67%
- Actual Gold Content: 7.3224 grams = 0.2354 troy ounce
NB: Well-worn or used coins may be marginally under manufactured weight[7] and size.
Counterfeiting
To modern eyes the gold sovereign appears quite a small coin, but with a face value of £1 it had, in 1895, the same purchasing power as £150 in 2007 {{citation}}: Empty citation (help). Gold is also a highly dense metal, so a small coin like a sovereign can contain nearly a quarter of an ounce of metal. Another reason for limiting the production of double sovereigns (£2) and quintuple sovereigns (£5) was the relative ease of removing gold from these larger coins — chemically, by filing, or using other techniques; for example, the drilling of small holes into the coin followed by hammering to conceal the holes,[4] or "sweating": shaking a leather bag full of coins for a long period and collecting the gold dust that was knocked off.[8]
Detection of counterfeit coins can be done either visually by comparison with known genuine coins, by using a coin gauge,[9] or by precise weighing and measurement against standard dimensions (see Specifications above).
There are many recorded fake or counterfeit gold sovereigns in circulation [10] although they are still relatively scarce in comparison to the numbers of genuine coins - due to the difficulty of accurately replicating such a small coin economically. With numismatic fakes, the counterfeiter might use the correct proportions of gold, but try to replicate an older coin with special rarity value. Such fakes only present a potential problem to the numismatic collector as they still contain standard bullion content.
Occasionally one comes across fake sovereign coins where the gold is replaced or alloyed with a substitute metal to look like gold. For example, a limited number of fake sovereigns did appear in circulation which were produced with 9ct gold instead of the correct 22 carat composition. Such fakes can be relatively easily detected by measurement and weighing using jewellers scales. Experienced coin dealers will generally detect such fakes immediately as they are obviously underweight or have incorrect size or thickness dimensions. It is more common to come across counterfeit copies of larger gold coins such as the Krugerrand which are easier and more economical to copy.
Gold is, however, a difficult material to counterfeit without detection due to its unique density and colour. Gold is one of the densest metals and therefore much heavier (for equivalent size or volume) than the common metals such as lead, brass, copper and steel that are used to make fake bullion coins. Fake gold coins are either oversize or underweight, or both. A fake made from lead to exactly the same thickness and diameter as a genuine sovereign would be 35% lighter than the genuine coin. If made the correct weight and diameter, it would be 54% too thick.
Composition
Sovereigns usually have a higher premium to the price of gold than some other coins, such as the Krugerrand. This is due to a number of factors: the higher unit cost of the Sovereign (at under one-quarter of an ounce); the higher demand for the Sovereign from numismatists (compared to the Krugerrand which is not sought-after numismatically); and the higher costs of identifying and stocking a numismatic coin.
Current sovereigns are struck in the same 22 carat (91.67%) Crown gold (22/24 gold and 2/24 copper) alloy as the first modern sovereigns of 1817.[11] Alloys are used to make gold coins harder and more durable, so they can resist scratches and dents during handling.
The only time there has been a deviation from this composition was in the production of early Australian sovereigns, which used silver as part of the alloy and in London sovereigns dated 1887, when an additional 1.25% silver was added in order to make the blanks softer for the new Joseph Boehm effigy of Queen Victoria. Consequently, 1887 London Mint sovereigns are more yellow in appearance than other London produced sovereigns. This additional silver affected the amount of copper in the coin, not, of course, its gold content. (Nineteenth century techniques of refining were not as advanced as today, and nineteenth century sovereigns became more accurate in terms of their gold weight as silver — which is often naturally combined with gold — was removed as an impurity from the "pure" gold used. Such minor inconsistencies would not affect either their numismatic or bullion value).
Modern production
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The Royal Mint created a new die for the 2007 and 2008 bullion issues. The 2007 reverse die was based on a handmade original created by Pistrucci which was reworked to make new master tools. The Mint spent time choosing what it believed was the most pertinent die (from the reign of George III) which they believed contained the most detail. Using a combination of hand engraving skills and digital technology, the Mint attempted to restore detail that had been lost over the years.
Consequently, the 2007 sovereigns have significant differences in their reverse design from the other coins produced from 2000 to 2006. In the 2007 version the shape of the horse's tail has changed, as has the left hand side of the edge of the ground. The initials B.P. (for Benedetto Pistrucci) are also a lot smaller than on previous versions. It is also possible that the folds in St. George's cloak have also been rearranged. The reverse now most closely resembles the version of St. George and the Dragon which appeared on the 1818 silver crowns of George III.
In 2008, the Royal Mint reworked the effigy of St. George further, making some details clearer which has led to the musculature of the horse appearing slightly different. Consequently, 2008 sovereigns have a slightly different appearance from the 2007 specimens. In January 2009, the Royal Mint announced in its website that sovereigns of 2009 will be produced with unmodified original tools of 19th century. Also a new denomination, quarter sovereign, was announced. Being made of 2 grams of 22 carat gold, the quarter sovereign is the smallest modern legal tender British gold coin.
Production summary
Sovereigns were produced as follows:
- London: 1817–1917, 1925, 1957 onwards
- Melbourne: 1872–1931
- Sydney: 1855–1926
- Perth: 1899–1931
- Bombay: 1918 only
- Ottawa: 1908–1919
- Pretoria: 1923–1932
See also
References
- ^ "2009 Gold Sovereign Coins". British Royal Mint.
- ^ “The so-called "Great Recoinage" that began in 1816 was principally concerned with the re-introduction of a silver coinage and a change in the gold coinage from the guinea valued at 21 shillings to the slightly lighter sovereign worth 20 shillings. The value of the shilling remained unchanged at twelve pence.” From The Coinage of Britain By Ken Elks
- ^ "Gold Sovereigns - Technical Specifications". Chard Gold Sovereigns.
- ^ a b .Jevons, William Stanley. "Money and the Mechanism of Exchange".
- ^ Matthews, Robert. "Counterfeit Coin Newsletter July 2004".
- ^ http://www.austincoins.com/gold_specs.htm
- ^ The Fisch gold coin gauge, for example, allows coins to be up to 0.7% under weight to allow for acceptable wear and tear
- ^ Encyclopædia Britannica (2008): Money
- ^ Fisch coin gauge
- ^ Fake sovereigns in circulation
- ^ Matthews, Robert. "The Production of the Proof Sovereign" (PDF).
External links
