The spelling of /g/ is <g> or <gg>, but we also see <gh> in ghastly. The /v/ sound is spelled <v>.
This is a contrast between a stop and a fricative, both voiced but well separated in the mouth. It does not cause any problems.
Interesting pairs include:
The figure for the mean density is 1.5%. The set makes 47 semantic contrasts, a loading of 52%.
aghast avast beggarly Beverley beleaguer believer beleaguers believers Doug dove drogue drove drogues droves dug dove dugs doves eagerly evilly eagle evil eagles evils Gael vale Gaels vales Gael vaeil Gaels veils gaggle gavel gaggles gavels gain vain gain vein gained veined gaining veining gains veins gain vane gains vanes gale vale gales vales gale veil gales veils galley valley galleys valleys gamp vamp gamps vamps garnish varnish garnished varnished garnishes varnishes garnishing varnishing gasolene vaseline gat vat gats vats gaunt vaunt gear veer geared veered gearing veering gears veers geezer visa geezers visas get vet getting vetting gets vets ghastly vastly ghee V Ghent vent gig give gigs gives goal vole goals voles goat vote goats votes golly volley guessed vest guest vest guests vests guide vied guile vile guy vie guying vying guys vies guyed vied hag have hags haves lag lav lags lavs league leave leagues leaves leaguing leaving leggy levee lug love lugged loved lugging loving lugs loves lugger lover luggers lovers ogle oval ogles ovals ogre over ogres overs rigger river riggers rivers rogue rove rogues roves
John Higgins, Shaftesbury, September 2010.