Sovereign or Krugerrand 1 oz: which is the better buy today?
Sovereign holds 7.32 g of fine gold and Krugerrand 1 oz 31.10 g: Krugerrand 1 oz holds 4.25 times the gold of Sovereign. The metal costs the same per gram in both; what differs is how much of the price is the coin rather than the gold — and the small one always carries more of it.
| coin | Sovereign | Krugerrand 1 oz |
|---|---|---|
| fine gold | 7.32 g | 31.10 g |
| gross weight | 7.99 g | 33.93 g |
| purity | 916.7 ‰ · 22 kt | 916.7 ‰ · 22 kt |
| diameter | 22.05 mm | 32.77 mm |
| thickness | 1.52 mm | 2.84 mm |
| face value | one pound | no denomination |
| struck | United Kingdom · since 1817 | South Africa · since 1967 |
The prices come from the feed, and the feed has not answered yet.
Sovereign — The small coin of the European market: struck since 1817, sold and bought everywhere, and hard alloy so it survives being handled.
Krugerrand 1 oz — The coin that invented the one-ounce bullion market in 1967. Copper in the alloy gives it its red tone and its hardness.
Both are struck in 916.7 ‰ · 22 kt: the same alloy, the same feel in the hand, and any difference on the scale is a difference in gold.
Both are modern bullion coins, struck for investors — Sovereign since 1817, Krugerrand 1 oz since 1967 — and priced on their metal and the margins above it.
What decides between them is not the gold, which costs the same per gram in both, but everything charged per coin: striking, distribution, the shop’s margin. Spread over 7.32 g the small coin carries far more of it per gram than the big one does over 31.10 g — which is why Sovereign is nearly always the dearer gold, and why it is bought anyway: it sells in smaller pieces, and sells everywhere.