sovereign premium %

[Nick1368]

hey guys

does anyone know what is the formula to calculate premium percentage on sovereigns?

I know how to do it on 1 oz coins but getting a bit confused with sovereigns.

sorry if it's a dumb question.

 

Nick

[Nick1368]

I think I figured it out.

price of coin  _ (7.32 x spot price by gram) / coin price  x 100

is this correct ? 🤔

[JunkBond]

Sovs are 22ct so gold weight is 7.31

[JunkBond]

The bullion value of a gold Sovereign is calculated at 7.31 x the price per gram of the prevailing gold price.

It can also be calculated at 0.235 x the gold price per troy ounce.

To calculate the percentage increase, work out the difference (increase) between the two numbers you are comparing.

Then divide the increase by the original number and multiply the answer by 100.

[HawkHybrid]

mine is

1. sov price divide by 0.2354 (this gives you the price per ounce)

2. price per ounce divide by current gold price.(this gives a number

that's something like 1.035, shows you the premium you are paying)

3. minus 1.

4. times 100.

 

HH

[Nick1368]

thanks for your help.

I didn't know how important it is to have a detailed list of your stack with all the information and figures including purchase price, date of purchase , dealer , spot price, premium price and  percentage etc.

it really does give you a clear idea of what you've been doing so far and what to look for in the future when it comes either to buy or sell.

[JunkBond]

@Nick1368There are some spreadsheets about that work out the premiums for you when you enter the weight, price paid and spot price.

I think mine came from @BackyardBullion

@Paul had one he shared also I think

[sixgun]

You compile whatever information you want on a spread sheet. Over time you may add or take as you learn more and find different information useful. It might be i have 23 full sovereigns and record only that. It might be the year of the sovereign,, it might be the grade of the sovereign, the price you paid, who you got it off and so on.

The premium is the price paid over spot. It is the price paid for the coin. Some coins have a special design, they are rarer, they are good or poor condition, they may have mint errors, they may be valuable or common variants. They may be proof with a COA or something that has been rattling round in a tin for years. There is no formula for the premium, well not a simple one like spot x 1.03%.

Look at Hatton Garden Metals and Atkinsons for an idea on what the current bullion price in retail is. Remember this is usually an unseen coin - a lucky dip. You might pick up a star or a coin simply worth spot.

Just to clarify - when i say the premium is the price paid for the coin. A gold coin's value is in two parts, the gold and the coin. Two 1 oz gold can be very different values and it is the coin component, the collector component which makes the difference. This is the premium.