Exploring the Role of 22K Gold and the Legacy of the Gold Sovereign
When considering gold for investment, most people turn to 24K gold—valued for its 99.9% purity and universal recognition. But what about 22K gold? While typically associated with fine jewellery, 22K gold also plays a historic and valuable role in coinage, most notably in the British Gold Sovereign.
What is 22K Gold?
22K gold, or 22 carat gold, consists of 91.6% pure gold and 8.4% alloyed metals like copper or silver. This blend offers excellent durability without compromising the rich golden hue. It is the gold of choice for traditional and bridal jewellery in South Asia and the Middle East.
Introducing the Gold Sovereign
One of the most distinguished uses of 22K gold in coin form is the British Gold Sovereign—a coin steeped in royal heritage and economic significance.
First issued in 1817, the Sovereign remains a legal tender coin produced by the Royal Mint. It features:
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The monarch’s effigy on the obverse
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The classic St. George and the Dragon design by Benedetto Pistrucci on the reverse
Each Sovereign contains 7.32 grams of pure gold within a 7.98-gram coin, thanks to the 22K composition.
Why 22K Gold is Used in Sovereigns
Unlike 24K coins, which are soft and prone to scratching, 22K gold offers increased strength—perfect for coins designed to be circulated or handled. This makes Sovereigns more durable and resistant to wear, ideal for collectors and investors alike.
Investment Value of Gold Sovereigns
Gold Sovereigns are not just beautiful—they’re valuable. Here’s why:
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Capital Gains Tax Exempt (UK): Like 24K Britannia coins, Sovereigns are exempt from CGT, making them a tax-efficient investment.
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Hallmarked and Trusted: Produced by the Royal Mint, every Sovereign carries assured weight and purity.
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Flexible Investment: Smaller than standard bullion coins, Sovereigns allow you to invest in gold incrementally.
22K vs 24K: Which Is Best for Coins and Bars?
| Feature | Gold Sovereign (22K) | Britannia Coin (24K) |
|---|---|---|
| Purity | 91.6% | 99.9% |
| Durability | High | Lower (softer) |
| Tax Exempt (UK) | Yes | Yes |
| Weight | 7.98g | 31.1g (1 oz) |
| Ideal For | Heritage, flexibility | Pure investment |
The PureJewels Perspective
At PureJewels, we celebrate the value of both 22K and 24K gold. While 24K bars and Britannia coins are perfect for high-purity investment, Gold Sovereigns offer a blend of heritage, tax-efficiency, and strength—a perfect choice for discerning investors and collectors.
