We buy Antiques, collectables & interesting items.

Gold is traded on international markets, and its value is constantly changing, the value at any time is called the gold “spot” and a live price can be seen here.

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https://www.bullionbypost.co.uk/gold-price/live-gold-price

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Let us say that a gold sovereign is worth £1000.00 spot in gold weight (most sovereigns are sold as bullion but some are numismatically collectable so it may be worth chatting with a coin dealer), you would have to be very lucky for a dealer to pay that (unless he had made a mistake) but The Royal Mint and some specialist dealers may pay 97% - 98% of spot.

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So, the most I am going to be able to sell it for is say £980.00.

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As with any business I have overheads and must make a profit, if I did buy it, I have two options, sell it on to a middleman or save it until I have enough gold to make it worth my while selling to one of the major dealers at circa 98%.

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If I sell it to a middleman, he also has to make a profit, let’s say £50.00, there is no point in me buying the coin unless I make £100.00 mainly due to the money I have tied up in it (circa £830.00 to make £100.00 profit).

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I could of course hold on to it until I have enough gold to take to the mint, this would tie up thousands of pounds which I could better spend on other stock and it would cost me time in organizing the sale.

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£980.00 (Mint value)
£100.00 (My profit)
£50.00 (Middlemans profit)

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This means that there is £830.00 left for the seller for a coin that is literally worth its weight in gold.

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Of course, there is an argument that this is the same with any dealing or re-selling but in my opinion it is not, to deal in antiques, cars or meat come to that the dealer needs knowledge and experience, all a dealer needs to sell gold is a set of scales – a sovereign weighs 7.98805 grams by the way.

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This is why I do not think it fair for me to buy gold, a goldsmith or jewellers  will probably be able to offer a much better deal.