A History of Gold Coins and Their Value

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.

The use of gold coins waned in popularity during the Great Depression in the United States in 1933 when Franklin D. Roosevelt signed an order forbidding Americans to hoard any kind of gold. In fact, they were required to turn all but five ounces of their gold in to the Federal Reserve for a low exchange rate. It was at this time the government completely took over the gold standard to try and repair the national wealth. Since America was a leader in gold coin trading all over the world, this put an end to the global coinage era. However, the limitation was repealed by Gerald Ford in 1974 and the use of gold quickly regained popularity and many enthusiasts when the country bounced back from the horrible recession.

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.

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.

American Eagle gold coins are probably the most popular gold coins in the world; they were designed by Adolph A Weinman, authorized by Congress in 1985, and minted in 1986 and come in two different types: bullion and proof, both of which feature a walking liberty design. American Eagle gold coins are made in four different sizes: 1/10 ounce, ounce, ounce, and one ounce. The price is dependent upon the size of the coin, and because of their quality, content, and backing by the government, they make a sound investment for anyone.

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.

Nowadays gold coins are seen to be a very profitable investment because their value remains high, and because the national wealth of nearly all of the countries and civilizations in the world is measured by their total amount of gold. This also means that gold can be bought, sold, and traded all over the world without having to worry about currency exchange making it extremely profitable all over the world. If you are looking to capitalize on a price movement, gold bullion coins are the way to go. There is no timing when buying gold coins and building a portfolio like there is with the stock market, just buy one coin at a time whenever you feel that you are ready.

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.

Tags: Bullion Coins, Businessmen, Coin Enthusiasts, Coins Value, Electrum, Federal Reserve, Franklin D Roosevelt, Gerald Ford, Gold, Gold And Silver, Gold Coin, Gold Coins, Gold Standard, Great Depression, Hoard, hobbies, Hundreds And Thousands, Investing, National Wealth, Nominal Value, Punch Mark, recession, Western Turkey

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