The first coins ever produced were made during 6th millennium BC in Lydia, what is now western Turkey out of electrum, which is an alloy of silver and gold and could be found in the rivers in the area. The introduction of these coins is attributed to King Croesus. They were similar to coins produced today; one side had the face of a bull or lion and the other side bore a punch mark or seal. They were an important part of trade during those times and continue to be widely used in both trade and business today. Although the coins have changed, these metals still have many of the same uses they did in ancient civilizations.
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.
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.
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 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.
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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