The Value of U.S. Gold Coins

US gold coins have always been very valuable both as a collector’s item and as an investment. There are basically two types of gold coins, the collectible and the bullion. Read on to find out more about the differences and similarities between the two as well as the factors affecting their value.

The Collectible Gold Coins

In 1795 the United States created its first gold coins to be used as circulating money. They came in two denominations: the $10 coin or the “Eagle” and the $5 coin or the “Half Eagle”. The Eagle had more face value and it contained almost ½ ounce of gold. The Half Eagle contained almost ¼ ounce of gold. In 1795 less than 6000 Eagles and less than 9000 Half Eagles were minted in Philadelphia. Only a few have survived through the years, mainly because the US Mint melted the old and damaged gold coins and made them into new gold coins. The US government also recalled the gold coins in circulation in the early part of the 1930s and melted them. The few existing Eagles and Half Eagles have made them very valuable for investors and collectors. The present market value for those in mint condition can reach as high as 7-figure prices.

The Increasing Demand For Gold Coins

The value of gold coins has been constantly increasing over the years. This is because the demand is rising but the supply remains the relatively the same. More and more people are investing in gold coins nowadays and transactions are made over the internet, by phone or at auctions. Over the years, the number of collectors in America has risen to over a million individuals. The active buying and selling of rare gold coins is a determining factor in the market value of gold coins.

Gold Bullion Coins

At present, the United States government mints gold coins that are sold as a bullion investment. The minting of gold coins was put into effect after the passing of the Bullion Coin Act in 1985. This law commanded the US Treasury to start the production of gold coins for non-circulation purposes. The price of these gold coins is dictated by the price trend of the gold bullion.

American Eagle Coins

American Eagle gold coins were designed by Augustus Saint-Gaudens. They were originally used as the circulating $20 coins in 1907 up until 1933. On the back of the coin is a large eagle poised above its nest and on the other side is the coin’s denomination and gold content. Each coin has a guarantee of its gold content and weight from the US Treasury. This guarantee makes these coins the most sought after coins in the entire world.

The Monetary Worth of American Eagle Coins

The market value of American Eagle coins is not based on their face value but on their bullion value which is constantly fluctuating. The value of gold bullion is based on the amount of gold they contain. The US Mint also charges an amount for each gold coin to its distributors to cover the cost of minting and distribution.