The latter were desighed by Augustus Saint-Gaudens and weighed at 33.43 grams. They contain 0.9675 oz of gold or a 90% gold composition. The $20 Saint-Gaudens gold coins were the most popular and most wanted by collectors during the time of the US Industrial revolution from the 19th to the early parts of the 20th century. There are two types of $20 Saint-Gaudens gold coins, the ones with a motto and the ones without a motto. These coins depict on one side the image of the Lady Liberty bearing her torch and on the opposite side is the $20 sign and an eagle in flight. The coins minted towards the end of 1908 and later were inscribed with the phrase “In God We Trust”.

$10 Liberty Head Gold Coins

These gold coins were minted for the first time in 1938. The inspiration for the design of these rare coins was from the famous painting of the goddess Venus. Each gold coin has ½ oz of 24-karat gold. One side shows the bust of the Lady Liberty with the word “Liberty” on her coronet. On the opposite side is the American Eagle with the words “United States of America” surrounding it. On the bottom part of this side is the $10 sign. The words “In God We Trust” were also written on the coins minted later than 1866. After 1860 these rare coins were manufactured in Philadelphia. From 1841 to 1860 they were minted in New Orleans.

$10 Indian Gold Coins

The Indian Gold Coins were commissioned by Theodore Roosevelt in 1905. They were designed by Augustus Saint-Gaudens who created an image of the Lady Liberty wearing an Indian headpiece on one side. The edge of that side was also embellished with 46 stars to symbolize the 46 states of the United States. After 1912, two stars were added to the Indian gold coins with the addition of New Mexico and Arizona to the Union. The opposite side of the coin depicted a perched Eagle atop some arrows.

$5 Indian Gold Coins

This $5 denomination coins were created with a raised design by Bela Lyon Pratt, a famous sculptor during that time. One side of the coin depicted a regal Indian dressed in ceremonial attire with an eagle on the other side. These coins were minted from the year 1908 to 1929. Each coin had a gold composition of 0.2419 oz of pure gold.

There are exceptions where the dollar and gold have behaved in the same manner in that they were both weak and in the same direction but because of many unrelated factors. Also, there are those periods when the two have gained value at the same time although it is very rare to experience this kind of a phenomenon.
Gold – real money

The reason as to why gold is the counterweight to the dollar is that it has been the monetary system of the world for centuries. The world developed into paper currency back in 20th century with the US emerging tops in military power and economy; hence the regarding of the dollar as safe for institutions and investors all over the world.

Amazing track record

Gold has set a remarkable track record as a trusted medium of exchange and a value store. It also came back into its safe mode when fiscal policies and monetary policies eroded the dollar value, especially during the weak times of the dollar. There are several episodes in which gold has proven to be a real store of value and a medium of exchange.

The other reason making gold a counterweight is that it is normally priced in dollars and more so, US dollars. This means that the moment dollar value goes down, gold prices rise and when dollar value increases, gold price is likely to go down. However, this holds a small market proportion with the rest relying on the selling and buying of gold.

It is true that dollar value drops can affect an entire country as well as have a negative effect on the investor whether an official, institution or individual, provided he holds a dollar asset. Dollar declines may also bring lots of gains to the very same holders making them much wealthier.

When looking into buying gold coins, it helps to make a point of understanding the markets, the pros and cons and everything that appertains to to it.

A common mistake made by new or novice investors trading gold is referring to the futures price of gold rather than the spot price. The futures price refers to the market’s price quote generated for a certain quantity of gold delivery which normally is about 100 ounces at some point in the future. The futures price of gold is usually higher than the current spot price as storage, delivery and finance charges are to be included because there is no payment until delivery is done.

Another common mistake with gold trading by investors is the neglected transaction size. The more the number of transactions, the more time, effort and expense incurred by the broker compared to one transaction of a larger gold quantities.
Consistency in Spot Price

There is the ‘morning gold fix’ and ‘afternoon gold fix’ which refer to the spot prices of gold at different times of the day. An inexperienced investor may misunderstand that the terms refer to the same spot price which is untrue unless the gold investor is an important client of the major gold trading institutions.

This tradition was set over 400 years ago when London was set as the world’s center of gold trading where both big gold producers and their consumers transacted with major gold-trader banks meeting twice every business day to determine the gold price for their main clients. Bankers would agree on a ‘fixed’ price which matched their sellers’ volume to their buyers’ volume; once at 10:30 a.m. (the ‘Morning Fix’) and another at 3 p.m. (the ‘Afternoon Fix’) London time. Other gold dealers worldwide would take the latest ‘fix’ as their transaction benchmark price until the next ‘fix’. Nowadays, the fix prices are similar to the latest or most current spot price which can change at any time depending on the futures exchanges.

The Big 5

The top 5 banks which meet 2 times every business day to determine the gold ‘fix’ are Deutsche Bank, Barclays Capital, Société Généralé, Scotia Mocatta and HSBC Bank, USA.

Buy or Sell at ‘fix’ price

It is not possible for an ordinary or small investor to transact gold at the ‘fix’ prices as the gold value per ounce is extremely high which only major bank customers can deal in. Most gold investors can only handle smaller quantities and accumulate their gold collection in that manner.

Gold is as important to an individual as to the US portfolio as the demand for this shiny metal was only 11% in the US between 2004 and 2008 whereas the remaining 89% demand was not accounted for to appreciate the metal’s true worth.

There is a clear global demand for gold in different forms; jewelry made up 68% demand in the last 5 years with major players like China, Middle East and Turkey which comprise 50% demand and US, India and Europe commanded 20% of gold in the form of coins and bars while Japan picked up the balance by using the metal in its industry.

You will get a myopic view of gold’s worth if you are focused on the demand of gold as related to the United States alone. Other big players such as top countries contribute a major role in pricing gold on a worldwide platform that influences global inflation, currency supply and demand as well as the global velocity of money, which in turn direct the future worth of gold.
Money versus Gold

It has been proven that gold remains stable and not very affected by bull or bear runs in the stock market; hence the varying financial assets of the world seem to have little impact on the shiny metal.
The important factor that impacts gold prices in the short or long term is the dollar. Hence, when gold prices dip, the dollar increases in strength and vice-versa. Gold has what is termed a negative correlation to the dollar. This shiny metal can outperform bond markets, stock markets and real estate valuations as observed since the 2007 economic crisis. Gold prices have been climbing up every year since.

On the other hand, money supply is increased when the economy booms to keep inflation away or when it is necessary to stimulate the ailing economy. But this is precisely the issue that could not be resolved amicably as reflected in the 2007 financial crisis when the depth of inflation could not be pinpointed with all the monetary policies set in place. Higher inflation still sprouted.
Reality Prices

In reality, gold prices are usually on the increase whether there is any increase in the demand for money or not. When the economy is booming, more wealth leads to more demand for gold products while gold is considered an asset that hedges against inflation in an economic recession which devalues paper currencies. Gold is more than an investment; it is an asset because it is a physical possession regardless of form as gold value has never touched zero.
Market conditions may change over time; it is important to appreciate the relationship between gold and currency set in the ever changing economic situations. A focus on the entirety of gold demand will lead to a better decision on the right time to purchase some of the shiny metal.

Most Popular Gold Coins

There were many types of US $20 gold coins produced; the most popular and in high demand are the US$20 Liberty Head and US$20 St. Gaudens gold coins. These two popular types have dedicated websites where gold traders can acquire them.

Features of US$20 Gold Coins

These gold coins are popular not just because they are scarce in number but also because of their distinct features such as size and weight. These gold coins are the biggest mint coins as a US currency by our nation. The gold coins measure 34 mm wide and are made of alloys of copper and gold in ratios 10:90 respectively. Each coin weighs 33.436 grams with 9675 ounces gold weight. The Liberty coin edges are milled but the St. Gaudens coins have lettered edges.

Right Time to Purchase

The US$20 Liberty coins’ price can fluctuates with the metal gold’s spot price. Veteran traders have established trading of the US$20 Liberty gold to be best in the mint state range which typically offers the best bang for the buck.