The Benefits of Collecting Gold Coins

Gold and silver have been used to make coins for both business and trade ever since the first coins were made in Lydia, or western Turkey, in the 6th century BC. They bore faces of either a bull or a lion on the front and either a seal or a punch mark on the back. They were made from an alloy of gold and silver called electrum, which could be found in the local rivers of the region. They weighed anywhere from .2 grams to 17.2 grams. When these first coins were produced, the practice of coin collecting and investing began and has evolved in various cultures over hundreds and thousands of years.

Gold coins were popular up until the Great Depression in 1933 when the government took control of gold to restore the wealth of the nation. Because the United States was a leader in gold coin purchasing, selling, and production, this put an end to the global coinage era. Franklin D. Roosevelt signed executive order 5102, which forbid American’s to hoard any kind of gold bullion, gold coin, or gold certificate. If they didn’t turn in all but five ounces of their gold in to the Federal Reserve they faced a fine up to $10,000 ($166,000 inflation adjustment, 2009), ten years in prison, or both. President Gerald Ford signed a bill that made owning gold legal once again in 1974, and since then gold coins have once again gained popularity and are still popular all over the world.

Today coins are collected and traded by coin enthusiasts, historians, and even businessmen. Gold coins used in business that are kept as an investment or store of value are called bullion coins, and are used to invest gold without considering the actual coins nominal value of the coin. This particular type of coin is not used in day to day commerce and is available in various weights. Gold is considered to be an excellent way of exchanging value because it is easily broken down without having its value affected. Gold is preferred to silver because it has a higher density, higher value, lesser weight, is easily transported, and takes longer to decay than nearly all other metals. It is also much more difficult to counterfeit.

The following coins are produced in various countries and traded all over the world: American Eagles, Chinese Pandas, South African Krugerrands, Canadian Maple Leafs, and Australian and UK Gold sovereigns. The Canadian Maple Leaf is produced by the Royal Canadian Mint and is the official gold coin of Canada. With a gold content of .9999%, it is one of the purest gold coins in circulation in the entire world. This means it contains no other base metals at all, only real gold from Canada. This coin was first introduced in 1979, and since then the Royal Canadian Mint have also produced the Maple Leaf coin in silver, platinum, palladium, and bimetallic.

Of all the different coins in the world, the American Eagle gold coin, designed by Adolph A. Weinman and featuring a walking liberty design, is probably the most popular gold coins. They were minted for the first time in 1986 and authorized by US Congress in 1985. They are available in four different sizes: 1/10 ounce, ounce, ounce, and 1 ounce. Their prices depend on their size and they are available in proof and bullion coins. They are understood to be a very sound investment due to their quality and gold content; they are also produced in platinum and silver as well, with all three being leading bullion coin investments.

The American Buffalo gold coin, designed by the well-known, American sculptor James Earl Frasier and commonly referred to as the “gold buffalo,” was introduced to the United States in 1913 by the US Mint, and is still offered by many authorized purchasers. The coin features a Native American Chief on the front side and a buffalo on the back. The back also contains an inscription of the coin’s weight, the gold content, and the denomination of the coin. The US government has guaranteed the purity and quality of the American Buffalo gold coin, making it the safest and most risk free trade opportunity.

Investing in gold coins can be a very profitable investment. The value of the coin stays high, making it an extremely profitable asset. Investing in gold is not something that is restricted to the United States; it is profitable in all cultures and countries because the national wealth of nearly all countries is measured by the amount of gold they possess. This is the main reason why many people that have doubts about their country’s currency will buy gold coins. In a situation like this, the bullion coins will work well; however older gold coins (pre-1930′s) have an even greater degree of safety.

Investing in gold coins holds minimal risk to investors, making it a good standalone investment with a value that is normally inverse to that of the stock market. Gold is considered a commodity that stays in demand and is one that always holds good returns. It is easy to purchase coins one at a time and slowly build up the size of your portfolio. If you need money, you can sell the coins you have at the current market rate.

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