Buying Sovereigns in Australia

[ozjohn]

I was looking at the price of sovereigns on a bullion seller's site and noticed they attracted 10% GST and it gave the reason for this. Sovereigns are not pure gold and are not legal tender. The legal tender reason seemed strange to me as sovereigns were minted in Australia until 1932 and as far as I know have never been demonitized.  These sovereigns as well as ones minted in the UK, South Africa, Canada and India would have circulated togeather  as  they would else where as Australian minted sovereigns were not exclusively minted for use here .As it happens pure gold does not attract GST in Australia and maybe the real reason but if sovereigns are still legal tender it seems strange that they attract GST.

[Mr T]

Hm, I always considered sovereigns to be British coins though the early Sydney Mint sovereigns were Australian.

Not sure how that worked as in 1921 or 1922 the exchange rate changed and British coins stopped being used in Australia.

[ozjohn]

British coins were used exclusively in Australia until 1910 if you ignore proclamation coins in the early days of colonization. They continued to circulate along with Australian silver coins until the 1930s with the 50% silver being redeemed by the B of E at twice face value. The Australian pound was basically the pound sterling until 1932 when Australia devalued and I think to 15/- sterling. Also in 1932 both Australia and the UK abandoned the gold standard which led to the end of the minting of sovereigns by the Australian mints. The UK's last circulating sovereigns were minted in 1925 after a lapse during WW1. The  early Sydney mint sovereigns were Australian coins but I think they were forced to comply with the imperial designs by the B of E.

[JLS]

If sovereigns are legal tender in Australia to today, what is their nominal value ? 

[ozjohn]

One pound or two Australian dollars.