The Value of U.S. Gold Coins

U.S. gold coins fall into two categories: collectible and bullion. Collectible U.S. gold coins were struck in 1933 and before. Bullion gold coins have been minted by the U.S. government since 1986. This article will provide a brief overview of these two fascinating areas, and explain how their market values are set.

Collectible Gold Coins
The United States struck its first two denominations of gold coins for use as everyday circulating money more than 200 years ago -- in 1795. The higher (face) value, a $10 coin called an “Eagle,” contained nearly one-half ounce of pure gold. The lower value, a $5 coin, contained nearly one-quarter ounce of pure gold and was called a “Half Eagle.”

In 1795, fewer than 6,000 Eagles, and fewer than 9,000 Half Eagles were struck in the Philadelphia Mint. In addition to their tiny original mintages, two reasons explain why only a miniscule percentage of these coins have survived for modern collectors and investors. First, the Mint constantly melted worn and damaged circulated gold coins and recycled the gold into new coins. Second, the government recalled all U.S. gold coins from circulation in the early 1930s and melted them. As you might expect, the Eagles and Half Eagles of 1795 are avidly sought by collectors and investors. Their market value has risen rapidly into six-figure territory for well-preserved examples.

Fixed Supply & Rising Demand
The market value of all United States gold coins is set by the interaction of supply and demand. Coins with tiny supplies and massive demand, like 1795 Eagles and Half Eagles, command lofty market values.

All pre-1933 gold coins minted by our government are subject to the same laws of supply and demand as the 1795 Eagles and Half Eagles. The supply of these desirable coins is forever limited by their original mintage and subsequent governmental melting. Demand for U.S. gold coins has risen decade after decade as the number of collectors, investors, and museums interested in obtaining and owning them -– both here and around the globe -- has expanded. These two facts explain why the values of U.S. gold coins have been rising decade after decade.

In the modern marketplace, the value of any pre-1933 U.S. gold coin is determined by the daily interaction of supply and demand. A huge number of active buyers and sellers meet and make a transaction each day -- in person, on the phone, at coin conventions, on the Internet, and at auctions. The volume of buying and selling has risen sharply in the last several decades as the market for U.S. gold coins has grown well beyond a few million knowledgeable American collectors. Today’s marketplace also includes millions of domestic and international investors, currency traders, bankers, hedge fund billionaires, overseas businessmen diversifying their holdings, savers worried about currency depreciation, grandparents seeking a timeless asset for their heirs, etc.

The net effect of this widespread buying and selling of pre-1933 U.S. gold coins determines each coin’s market value.

Popular Pre-1933 U.S. Gold Coins

Face Value	Gold Content	Years Minted
$20	.967 oz.	1849-1933
$10	.483 oz.	1795-1933
$5	.241 oz.	1795-1929
$3	.145 oz.	1854-1889
$2.50	.120 oz.	1796-1929
$1	.048 oz.	1849-1889

To receive additional pricing and availability information about pre-1933 U.S. gold coins call an ITM precious metals consultant 888-OWN-GOLD.

U.S. Gold Bullion Coins
From 1795 to 1933, the U.S. government minted gold coins to be used as everyday money by Americans. Today, the United States government produces a river of gold coins – not for circulation, but for sale to bullion investors. Their values are determined by the movement of gold bullion, a commodity traded around the world and around the clock.

In 1985, Congress passed the Bullion Coin Act of 1985. The law instructed the Treasury Department to begin producing and distributing non-circulating gold coins. Produced in large numbers, the American Eagle family quickly became the investing world’s most popularly traded gold bullion coins.

American Eagle Gold Coins
The American Eagle family includes coins containing exactly 1/10, 1/4, 1/2, and 1 ounce of pure gold. Each gold coin is struck on a 22-karat (91.66 percent) pure blank.

On the front of the current American Eagle coin is the “Striding Liberty” design. Originally created by Augustus Saint-Gaudens and used on our nation’s circulating $20 gold coins from 1907 to 1933. From 1986 to 1991, the year of striking is indicated in Roman numerals. Arabic numerals have been used since in 1992.

The design on the back is dominated by a large eagle hovering above its nest. Also on the reverse are the coin’s pure gold content and its face value. The face value is included solely to meet our nation’s coinage laws.

The U.S. Treasury Department guarantees every American Eagle gold bullion coin for its weight and pure gold content. This guarantee has helped the American Eagle become the most popular gold bullion coins in the world.

Produced in virtually unlimited numbers, the American Eagle gold coins are bought and sold in many thousands of locations in the United States and around the world. Their government guarantees, widespread availability, and unrivaled worldwide acceptance have produced a deep and liquid market.

The Value of American Eagle Gold Coins
Gold bullion coins are valued primarily for their gold content. In addition to this intrinsic value, the U.S. Mint charges its distributors a premium to cover the government’s minting and distribution costs. American Eagle gold coins are never available at their face value. The denomination that appears on the coin’s reverse is used solely to indicate it is legal tender (lawful money) of the United States. When an American Eagle gold coin has entered the marketplace, it trades according to its bullion value, which fluctuates every minute of every day.