The Gold Sovereign – The ultimate gold survival coin.

The British Gold Sovereign was first produced in 1489, and has been minted on and off ever since.

Its major claim to fame is that is has been used repeatedly as survival currency during times of war.

During WWII, British spies would have sovereigns sown into their clothes when dropped behind enemy lines. The sovereigns were used to make purchases and to bribe officials. Bags of sovereigns were also parachuted into Greece and other countries, to help fund the resistance.

But the use of gold sovereigns as a currency that could be used in dire circumstances didn’t end when the war ended. U.S. Special Forces used to have sovereigns included in their survival kits for decades after the war. And as recently as the war in Iraq, British soldiers were given sovereigns to use in much the same way as their grandfathers did back in WWII.

As a result, sovereigns are still recognized and accepted as an underground currency in many parts of the world.

Should you buy gold sovereigns for yourself?

By all means, but be aware that buying sovereigns isn’t the same as buying gold bullion coins.

For a start, they are not pure gold. Also, because they are collectible, you’ll pay a hefty premium for each purchase. In other words, you’ll pay a lot more for their weight in gold than you would if you were buying a bullion coin.

But as a currency, they do have advantages. They are recognized worldwide, and because they are not pure gold, they suffer less in terms of wear and tear when circulated.

As always, it’s a matter of balance. Have some of your gold in the form of bullion, and maybe buy a smaller proportion in the form of gold sovereigns.