Metals such as gold and silver have been used in trade and business for centuries. The first coins date back to the 6th century BC and were produced in ancient Turkey in Lydia and introduced by the Lydian King Croesus. The coins weighed between .2 and 17.2 grams. They featured faces of lions or bulls on one side and a punch mark or seal on the other. This production began a coinage era that has evolved in many cultures and civilizations over hundreds of years.
Gold coins were extremely popular, and as the value of the dollar began to fall in the United States in the 1920’s, many people began buying up gold coins and gold bullion as fast as possible. Due to this, Franklin D. Roosevelt signed an order in April, 1933 stating that people were no longer allowed to personally own an abundance of gold coins, gold bullion, or even gold certificates. They were required to deliver all but five ounces of their gold to the Federal Reserve, with an exchange rate of $20.67 per troy ounce. This limitation was lifted in 1974 and gold coin purchasing and collecting became popular once again.
These days, coins are collected by historians and coin enthusiasts and are used for investing in gold; these types of coins that are kept as a store of value are called bullion coins. Gold is good for exchanging value because it is easily broken down into small portions without changing the nominal value. Most people would rather have gold coins instead of silver because they weigh less but are worth more, making them easy to transport, and gold doesn’t decay as fast as other metals. Gold is more difficult to counterfeit because of its high density. Gold is also scarce, giving it a high value and making investing in gold very profitable.
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.
The American Eagle gold coin comes in four different sizes (1/10 oz, oz, oz, and 1 oz) with the price varying according to the size and are made of 22 karat or 91.67% of fine gold. They were first authorized by the United States Congress in 1985, first minted in 1986, and come in a proof or bullion coin, both known to be sound investments because of their high content of gold and guaranteed quality. The American Eagle gold coin is also available in both silver and platinum. All three are leading bullion coin investments.
The American mint introduced the first American Buffalo gold coins in 1913. They became known as simply the “gold buffalo.” Shortly after that, the United States government publicly guaranteed the quality and purity of these coins, making them the safest kind of risk free trade available on the market. They are available from a chain of authorized purchasers. The American Buffalo gold coins were designed by the widely known American sculptor James Earle Fraser; they portray a Native American Chief on the front and a buffalo on the back. Also seen on the back side of the coin is the denomination and gold content of the coin and the coin’s weight in an inscription.
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 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.
Learn more about collecting gold coins. Stop by Kevin Goldstein’s site where you can find out all about gold coins and how they can make a great investment.
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