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Highest Returning Gold Sovereigns Since 1995?

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In the last number of years records in auction has not been a rarity. It seems every year at least one category or country has a new record being set. It made me ask myself—

Which gold sovereigns has produced the best returns in the last 20 years?

We all know sovereigns are a good long-term investments, but how good and how do gold sovereign returns compare to the stock market and property?

A couple of years ago I decided to acquire a number of Spink's (previously Seaby's) 'Coins of England and the United Kingdom'. Not every year, but nearly, going back to 1965. I thought it would generally be interesting to see how prices had varied over the years, but I was most interested to compare gold coins' values to the fluctuations in gold price. More on findings in this field in another blog post. Now to the rarities—

CAGR = Compound Annual Growth Rate (price increase evenly distributed over the 21 years)

The surprise among these is 1838 which wasn't regarded as much of a rarity in 1995 but has increased over 30 % per year since. On the other hand 1874, which has always been known to be a rarity, hasn't had an impressive run.

Being rarities we do expect them to increase in value almost every year as more collectors are coming to the marketplace. What is more interesting in the graph below, which shows normal date sovereigns in average (VF) grade:

As we can see normal date sovereigns in VF grade are performing well even compared to some of the rarities. Note that FTSE All-share includes dividend payments. The fact that gold sovereigns beat bullion by such a clear margin shows that sovereign demand is increasing. Probably from investors, investor collectors and collectors.


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