From the 16th century up until the early 20th century, there was arguably no greater economic powerhouse than the United Kingdom. With its vast empire controlling a large number of natural resources, this nation was in prime position to take advantage of the benefits of industrialization to further increase its international trade and industry might. As the premier economy, the gold coins minted by the British had widespread circulation and acceptance. The British Gold Sovereign was the standard of the day.
One of the most important colonies for the British was the huge island of Australia. Originally settled primarily as a penal colony, free citizens and companies soon came to exploit the vast natural resources of the Land Down Under. One of the prime motivators for increased population and economic activity occurred in the early 1850s when gold was discovered in the area of Melbourne. Founded in 1835, Melbourne claimed 29,000 residents in 1851. However, the population exploded upon the gold discovery and in less than 5 years the population had spiked to over 123,000. The aftermath of this population shock would affect the city and surrounding area for decades after the gold had dried up.
The level of gold production in Australia was striking. During its heyday in the 1850s, Australia was responsible for nearly one-third of the total world gold production.
In order to better facilitate the monetization of these gold discoveries, the British Empire soon established mints in the Australian towns of Melbourne, Perth, and Sydney. It made obvious sense to turn the gold into coins directly near the source rather than ship the raw gold all the way back to London for minting and then have to return the finished coins back to Australia. The Melbourne mint was established in 1864 and specialized in producing Gold Sovereigns. It exclusively minted the gold coins until 1916.
The 1887 series of sovereigns was special because it commemorated the Golden Jubilee of Queen Victoria. Gold coins before this time had portrayed a young Victoria on the obverse of the coin, a portrait taken at the time of her ascension at the age of 18. For the Jubilee coin, a more contemporary portrait of the now 67 year old wearing a crown and other royal decorations graced the coin.
The reverse of the sovereign is a famous pose designed by Italian engraver Benedetto Pistrucci. The figure shows St. George upon his horse slaying a dragon, based upon the historic legend. Many believe the reasoning behind this design was to remind the world of England’s defeat of French Emperor Napoleon at Waterloo.
Sovereigns have a particular reputation for being worth more than other comparable gold bullion coins. The sovereign is highly sought-after as a collectible item and collectors are willing to pay more than the worth of the actual gold content. These beautiful coins are solid investments that will only grow as the price of gold continues to rise and as the scarcity of older coins increases.