The Benefits of Collecting Gold Coins

Posted on February 9, 2010
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The first coins ever produced were made during 6th millennium BC in Lydia, what is now western Turkey out of electrum, which is an alloy of silver and gold and could be found in the rivers in the area. The introduction of these coins is attributed to King Croesus. They were similar to coins produced today; one side had the face of a bull or lion and the other side bore a punch mark or seal. They were an important part of trade during those times and continue to be widely used in both trade and business today. Although the coins have changed, these metals still have many of the same uses they did in ancient civilizations.

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.

Gold is the favored metal for value exchange since it can be easily broken down into small portions without having its value affected. Gold is also preferred to silver because it has a higher value but lower weight, making it easy to transport, and has a higher density, making it harder to counterfeit. It also takes longer to decay than other metals, regardless of its surroundings.

There are multiple types of valuable coins available all over the world: American Eagles, UK and Australian Gold Sovereigns, South Africa Krugerrands, Canadian Maple Leafs, and Chinese Pandas are just a few of these. The South African Krugerrand was first minted in 1967 and is produced by the South African Mint Company. It was originally intended to circulate as currency and therefore was made out of a different material than most other bullion coins. Although it was legal tender, Western countries made it illegal to import these coins during the 1970′s and 1980′s because of South Africa’s policy of apartheid. The apartheid was abandoned and trade continued in 1994. During the 1980′s the Krugerrand accounted for just over 90% of the entire world’s gold coin market, which led to other countries to produce their own form of gold coin, two of these being the Canadian Maple Leaf and the American Eagle gold coin.

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 coins, often called the “gold buffalo,” were designed by the American sculptor James Earle Fraser and feature a Native American chief on one side and a buffalo on the other. Along with the buffalo, the back side contains an inscription of the coin’s denomination, weight, and gold content. They were introduced to America in 1913 by the US Mint and are offered by a large chain of authorized purchasers. They make a sound investment and are the safest form of free trade because their quality and purity is guaranteed by the American government.

Gold coins have had their ups and downs over the years, but today they are considered a profitable investment, especially since their value always stays high. Another reason they are considered an important investment is because most countries in the world use gold to back their dollar; their national wealth is assessed by the amount of gold they have. This is why gold and gold coins are profitable no matter where in the world you are located; it is highly valued globally. People who begin to doubt the value of the dollar often purchase gold coins because they know it is a financially secure investment.

Investing in gold and gold coins minimizes the available risk for investors because it is a standalone investment. The value of gold is usually inverse to the value found on the stock market. Gold is considered a commodity that is always in demand regardless of inflation, thus it will always have a good return. You even have the ability to transfer gold without any documentation. You can acquire gold coins in small amounts to build up your portfolio over a long period of time. If you find that you are in need of money, you will easily be able to sell your gold at current market rates.

The price of gold is rising. Find out more about buying gold coins at www.GoldCoinCollection.net.

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