The Russian Chervonet gold coin was once the official currency of Russia until it was replaced by the gold ruble and ultimately modern currency. The name derives from the Russian for pure gold, although these coins were made up of 3.47 grams of gold and 0.986 grams of alloy when they were originally minted. These coins were re-issued between 1976 and 1982 carrying a ten ruble value. One side of these coins features the official seal of the Russian Soviet Federative Socialist Republic and the inscription “Workers of the World Unite.” The other side features a peasant standing in front of a plough, factories and the rising sun.
History of the Chervonet
The term chervonet was originally used within Russia prior to the reign of Peter I to refer to foreign gold coins that were in circulation. In 1701, the country introduced its own gold coins with specifications that conformed with the Dutch ducat in terms of purity. Chervonets with a 3.47 gram to 0.986 gram gold-to-alloy ratio were minted until 1757 when the golden ruble became the official currency. The new coins contained more alloy and less gold.
Against the backdrop of the Soviet civil war in the 1920s, the Communist government re-introduced chervonets that were ninety percent pure and contained 7.74 grams of gold. These were minted until the government changed its economic policy in 1947. In 1937, Lenin’s image was added to the coin, but the two instances of this run of coins that remain were produced in 1923 and 1925. A small number of these coins remain in circulation as collector coins. A reproduction of the original design was minted from 1976 until 1982 with a value of ten rubles. In 1996, an uncirculated number these coins were offered as an investment vehicle. The Russian Federation adopted a new tax code that protected these coins from certain taxes. Since 2006, the Russian government has begun producing fifty ruble coins, called “George the Victorious” bullion coins. The production of this higher value coin continues today, but the ten ruble chervonet supply remain fixed. The result of the limited availability of genuine chervonets is that they tend to trade at a premium to the price of gold.
Buying Chervonets Coins
As the price of gold remains near all-time highs, investors continue to be interested in buying gold as an investment. In most cases this means buying gold bullion coins
, rather than collector’s coins or coins used for currency; bullion is valued for the mass and purity of gold it contains. Chervonets tend to fall more into the collector category, but because of their relative abundance, they can be used for investment purposes as well.
When buying gold in any form, particularly as bullion, it is vital to find a reputable dealer that can be trusted to delivery high quality at a reasonable premium. The three top gold retailers that individuals should consider are:
Each of these dealers is known for their excellent integrity and dependability. Any individual interested in investing in gold should definitely consider them. It is also possible to purchase Russian gold chervonets locally at your coin or jewelry store, but keep in mind that prices tend to be higher at the store, due to the additional fees they had to pay for transportation/customs.