help settle an argument

[Guest public house argument]

Sorry to sound like a plum, and i'm not a coin buff or anything, but i've been involved in an argument concerning legal tender status of British gold sovereigns and half sovereigns..

I have been standing my ground on the point that although gold sovereigns have a higher bullion value than its actual face value (generally), I could still use the coin as it is still legal tender...

My opposition argued that it would be impossilble to use the sovereign as an everyday coin as no one would accept it, and that it was laughable to suggest it !!!!!

As no one involved in the argument has any authority in the field of British coinage or legal tender, i decided to hunt around on the net and came across this site....I hoped my argument stands up, if anyone on Predecimal can help me, i 'd be most pleased as my honour is a stake ( or a round of drinks )

P s....if anyone has any useful info. concerning sovereigns and half sovereigns that i can use to impress the gallery of Thomas' back at the drinking hole, than that would be welcome...

.Many thanks cheers

[Master Jmd]

Yes, a sovereign would probably never be accepted for buying something...it is leagal tender, but you would never (well, i doubt you would ever) find someone spending it...do you still see crowns being spent in shops...but they are still legal tender

Edited June 23, 2004 by Master Jmd

[Half Penny Jon]

It would never be accepted as legal tender because it would be worth an uncertain amount due to gold prices.

[Emperor Oli]

No, HPJ, that's the actual gold value of the coin. Its face value is £1 if I remember correctly so yes, you could spend a sovereign if you wanted to, but it would be incredibly stupid as the price a collector would pay for it would far exceed the value of goods purchased wih it.

Edit: Off the top of my head, an interesting fact is that the design on the reverse (back ) of St. George slaying thedragon was engraved by a guy called Benedetto Pistrucci.

Edited June 23, 2004 by Emperor Oli

[Master Jmd]

sorry to intrude, but did the sovereign price ever go down from 240 predecimal pennies to 100 decimal pennies, or did it follow all other coinage and go to 120 decimal pennies?

[Geoff T]

sorry to intrude, but did the sovereign price ever go down from 240 predecimal pennies to 100 decimal pennies, or did it follow all other coinage and go to 120 decimal pennies?

No, as the last sovereigns minted for circulation were 1915 here and 1931 in colonial mints (South Africa in this case).

When Britain came off the gold standard gold coins ceased to be legal tender and it actually became illegal to own them, but this was always a grey area. There is a fascinating article in this month's "Coin News" about how this grey area and various loopholes were exploited, leading to the reintroduction of bullion gold coinage for export in the late 50s to combat this. Even then loopholes remained until closed in the early 1970s, leaving the situation as it is today. It's no longer illegal to own, buy or sell gold coinage, although you'd be mad to try to spend it.

Cf. the situation regarding the ending of the gold standard in the USA and the consequent saga of the legality of the 1933 double eagle.

Geoff

[Sylvester]

Yep a sovereign is legal tender for £1 and a half for 50p.

I actually want to spend one...

[Master Jmd]

I actually want to spend one...

dont get drunk, otherwise you may end up spending one

[GDJMSP]

I actually want to spend one...

You should give it a try Sylvester - it's a good feeling

No I have never spent a sovereign - but I have spent a US $50 gold piece Yeah I know - I'm crazy Sylvester already knew that - so the rest of you may as well know it too. And if you think that's bad - I carry another in my pocket every day - just in case the urge strikes me again

The situation is the same here in the US - the gold coins are legal tender. But only for the face value of the coin - which is roughly 1/8 of the gold value.

[kuhli]

I once received a US$10 gold eagle as payment for gas at the station I worked at a few summers ago. Bought it out of the drawer (for $10) and sold it on eBay for $232.00.

[william]

Wow, I would never spend gold coins ever! I might sell them on ebay, but never spend them!!!

[Geoff T]

I actually want to spend one...

dont get drunk, otherwise you may end up spending one

On the extremely rare occasions when I've been drunk, all I've wanted to spend is a penny - albeit repeatedly...

[Sylvester]

Wow, I would never spend gold coins ever! I might sell them on ebay, but never spend them!!!

there's nothing quite like the feeling of spending real money and not this base metal junk we've got these days.

I've spent silver before i just want to spend gold now...

[william]

Well, I still don't see the point. I know you are spending proper money, but I would rather keep it!