Numismatic Gold Coins or Bullion Gold Coins?

After the monetary stimulus plan was announced by the Federal Reserve to boost the economy, the US bullion prices jumped to a new high at above $1,380 per ounce on November 4, 2010. During this time, investors have turned more towards gold bullion rather than numismatic gold coins. This is true despite the fact that numismatic gold coins have a rare value have sold at exceedingly high prices during auctions.

Numismatic Gold Coins

Numismatic gold coins are a collector’s joy because these are rare coins, often holding much historical significance that can enrich any coin collection. They are known for their historical background and aesthetic value, which greatly increases their price. Rare precious metal coins, which were legal tender prior to 1933, make for numismatic coins. However, Proof Gold numismatic gold coins are the ones that were never meant for circulation but were created simply for their aesthetic appeal and rarity. With gold prices reaching high prices, the value of numismatic gold coins has become even higher.

One of the most famous American numismatic gold coins is the 1933 $20 Double Eagle Gold Coin. A 1933 Double Eagle gold coin was sold to a private collector in 2002, at Sotheby’s, for over $7 million. It is one of the most valuable gold coins ever to be sold. Augustus St. Gaudens redesigned the double eagle gold coins and gave them a truly exceptional design in early 20th century. He depicted Miss Liberty on the obverse of the coins and a flying eagle on the reverse side of the coins. In 1933, President Franklin D. Roosevelt stopped its coinage and deemed it illegal.

Bullion Gold Coins

Bullion gold coins do have a face value. Although they are not used as legal tender, they are minted solely for the purpose of investment. This is unlike the numismatic gold coins, which were used as legal tender, for circulation, at some point in time. The value of bullion gold coins is impacted by the current price of gold in the market, the troy weight of the coin and consumer demand. While consumer demand impacts the price of numismatic gold coins, they are may or may not be significantly impacted by the market price of gold.

Some popular bullion gold coins:

  • American Gold Eagle: An official United States gold bullion coin, it was first introduced in 1986 by the United States Mint. It is the most popular and the best selling bullion coin in the global market. These are available in various face values ranging from $5 to $50. However, the face value does not reflect the intrinsic value of the American gold eagle bullion coin. Their intrinsic value is much higher because of the coin weight as well as the gold prices. A buyer can easily choose the preferred size, which suits the budget.
  • American Buffalo: A 24-carat gold bullion coin, it was first introduced in the market, for sale, in June 2006 by the United States Mint. It is the purest gold bullion coin in the market, because it contains no other alloys or metals apart from gold, and is available in only one ounce size. The obverse side depicts the Indian head nickel design while the reverse side displays an American Bison.

Rare or numismatic gold coins are for anyone that wants a way to protect their assets privately over the long-term, wants protection from confiscation.  Bullion gold coins are usually purchased in bulk and are, by no means, a rarity.