Types of Gold Coins Available in the US
Despite a 24% jump in the value of gold, in the third week of November 2010, three companies – Soros Fund Management LLC, Paulson & Co. and Touradji Capital Management LP – have bought the largest volumes of gold. Together, these three companies own 2,088 tons of gold; the figure representative of the volume produced by the US in a decade. According to Michael Pento, Euro Pacific Capital’s chief economist, it is not the right time to sell the precious metal, as experts believe that this uptrend will only accelerate during QE2.
Investors have various options when it comes to investing in gold, which includes gold bullion coins, stocks and futures. The US and several other countries issue different types of gold coins, which are capable of getting good returns for investors.
Types of Gold Coins
Gold coins are basically of two types: numismatic gold coins and gold bullion. While numismatics are a category of coins that have value above their gold content, gold bullion are gold coins or bars that are issued in its pure or almost pure form (of fineness between 0.90 and 0.9999).
- Numismatic gold coins: These are antique and rare gold coins. Every numismatic coin has a unique historical story that increases its valuation. However, they may be overpriced, as their age (manufacturing date), features and design add to their value over and beyond the value of their gold content. These coins can be bought in auctions or online. However, these coins must be in good condition to be able to fetch you great returns when you resell them.
- Indian Head Eagle ($10 Eagles 1907): Designed by Augustus Saint-Gaudents, the Indian Head Eagle was introduced in 1907 and remained in circulation till 1933. The coin features an Indian chief with a headgear on one side and a perched American eagle on the other.
- Liberty Head Eagle ($10 Eagles 1907): One of the most circulated coins in the US history, the coin’s design is inspired by the 1816 Coronet, Large Cent; its other side features a fearless eagle.
- Saint-Gaudens Double Eagle ($20 Double Eagles): In circulation from 1907 to 1933, this double eagle coin was named after its designer Augustus Saint-Gaudens. The coin features Lady Liberty on one side and an eagle with widespread wings on the other. As per a US Congress mandate, most of these coins were melted into gold bars in 1933.
- Gold bullion coins: Valued for their gold content, gold bullion coins are available in different weights. The American Gold Eagle, which is the US official gold bullion coin, is available in the denominations $50, $25, $10 and $5. They can be obtained from the US Mint as well as online. The coin, made of gold mined in the US, also consists of a copper-silver alloy that reduces its wear and tear. The coin features Lady Liberty on the front side and a male eagle, with an olive branch, protecting its nest on the reverse. The reverse side also has the coin’s face value and its pure gold content. The face value is included in adherence with the US coinage laws. The Mint also produces the proof version of the coin for collectors.
Regardless of the type of your gold portfolio, it is important to acquire gold coins in accordance with your goals and objectives, this is where a good precious metals firm comes in.