Gold and silver have been used to make coins for both business and trade ever since the first coins were made in Lydia, or western Turkey, in the 6th century BC. They bore faces of either a bull or a lion on the front and either a seal or a punch mark on the back. They were made from an alloy of gold and silver called electrum, which could be found in the local rivers of the region. They weighed anywhere from .2 grams to 17.2 grams. When these first coins were produced, the practice of coin collecting and investing began and has evolved in various cultures over hundreds and thousands of years.
Gold coins were popular up until the Great Depression in 1933 when the government took control of gold to restore the wealth of the nation. Because the United States was a leader in gold coin purchasing, selling, and production, this put an end to the global coinage era. Franklin D. Roosevelt signed executive order 5102, which forbid American's to hoard any kind of gold bullion, gold coin, or gold certificate. If they didn't turn in all but five ounces of their gold in to the Federal Reserve they faced a fine up to $10,000 ($166,000 inflation adjustment, 2009), ten years in prison, or both. President Gerald Ford signed a bill that made owning gold legal once again in 1974, and since then gold coins have once again gained popularity and are still popular all over the world.
Gold is the favored metal for value exchange since it can be easily broken down into small portions without having its value affected. Gold is also preferred to silver because it has a higher value but lower weight, making it easy to transport, and has a higher density, making it harder to counterfeit. It also takes longer to decay than other metals, regardless of its surroundings.
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.
Gold coins have had their ups and downs over the years, but today they are considered a profitable investment, especially since their value always stays high. Another reason they are considered an important investment is because most countries in the world use gold to back their dollar; their national wealth is assessed by the amount of gold they have. This is why gold and gold coins are profitable no matter where in the world you are located; it is highly valued globally. People who begin to doubt the value of the dollar often purchase gold coins because they know it is a financially secure investment.
Many people worry about risk when investing, but luckily the risk is minimized when investing in gold because it is a standalone investment and the value varies inversely to the stock market. After all, gold will always be in demand, and therefore it will always give good returns. It can even be owned, sold, and transferred without documentation. Once you build up your portfolio, you can either hold on to your gold coins, or you can sell them at the current market rate if you are ever in need of money. The bottom line concerning gold: it is a sound investment practice with minimal risk involved that is popular the world over, just as it has been for thousands of years.
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