Popular American Coinage: 3 Types of Gold Coins

The US Mint and the Australian Perth Mint have reported a surge in demand for gold coins and bars. Analysts expect gold to break the previous record of $1,421 per ounce in 2011, which represents a jump of 6 percent over the previous projection. This means that those who had acquired various types of gold coins and bars a year ago may have already enjoyed increased values.

Highlighting the popularity of gold coins was a recent event in which the coins donated to The Salvation Army of Lee, Hendry and Glades Counties for its red kettle campaign were put on sale at the Fort Meyers Coin Show on January 22, 2011. Six of these coins were sold for a total amount of $12,676 and the Salvation Army is quite confident of meeting its fund raising requirements. Most of the coins were sold at their estimated worth based on their gold content. However, one of these coins was sold at an exceptional price of four times its estimated value.

Types of Gold Coins

Investors from across the globe invest in US gold coins. The three most popular gold coins are:

• American Gold Eagle: Endorsed under the Gold Bullion Coin Act of 1985, Gold Eagle was first issued by the United States Mint in 1986. Minted in $10, $5, $2.5 and other denominations, these coins contain the declared amount of actual gold weight in troy ounces. In legal terms, the gold to produce these coins must hail from some trustworthy sources in the US, with an additional alloy of silver and copper to produce a coin with minimum wear. It is certified by the United States Congress and guaranteed by the Mint for the mentioned weight and content.
• American Double Eagle: The American Double Eagle has been among the most popular US gold coins, among collectors and investors alike. Redesigned by Saint Augustus Gaudens in 1907 on command of President Theodore Roosevelt, this Double Eagle series is a depiction of marvelous Greek art. The obverse of the coin depicts a standing figure of Lady Liberty with an olive branch in one hand and a torch in the other. The reverse portrays the image of a fearless eagle that embodies the strength of the United States. The gold content of this coin is nearly an ounce.
• American Buffalo: The American Buffalo is a 24-karat gold bullion coin first issued and presented for sale by the US Mint in 2006. The design of this coin takes after the great design of the Indian Head Nickel by James Earle Fraser in early 1913. This was the first time ever in history that the United States Government has minted pure (0.9999) 24-karat gold coins for the public. The coin has a legal tender value of $50, the greatest of its times. The price of the coin issued in 2006 was set at $800 while the price of the 2007 proof coin was nearly $900. The price of the 2009 proof coin was $1,410.

Opinion leader Michael Bryant said in an article published on January 31, 2011 on Seeking Alpha that he believes that “geopolitical tensions such as the Egyptian crisis, looming debt crisis in Europe, and buying of precious metals by both the central banks and investors will keep gold and silver from falling.”

The value of gold coins depends upon a number of factors. So, it is critical to have prior knowledge of coins, their design, gold content and the purity of gold before purchasing them.