Gold coins have been used as currency for thousands of years from one society to another. Of all the precious metals on the market none is so highly sought after as Gold. There are very few deposits of the ore and due to its rareness many countries no longer use it as their primary currency. However there are specialty coins made from the material every now and then for collectors that can also be used as legal currency.
Three of the most prominent Gold coins to be made in the United States are the Buffalo, the Eagle, and the Gold Eagle. These are rare collector's items that are meant primarily for coin collectors and people that want to add Gold to their portfolios. Though they can be spent the question remains as for why you would want to. After all a coin that's worth $50.00 U.S.D isn't something you can just get in change from a convenient store.
Take the American Buffalo coin for example, a gold coin that is worth $50 dollars but its rarity goes far deeper than the metal it's made out of. First off it's the first coin that the U.S. Government authorized to be made out of.9999 pure 24 karat gold. Its design resembles the old Indian Head nickel from the past which has lead many to have a nostalgic feeling for it.
The American Gold Eagle is another iconic coin that many people have in their collections. Unfortunately it's not quite pure gold as it weighs in at.9167 22 karat gold. The reason for this is the additional silver and copper added to the Gold to make it stronger and more wear resistant. It was first released by the U.S. Mint in 1986 and followed the standard for Gold Coins.
Currently there are four versions ranging in at $5.00, $10.00, $25.00, and $50.00 U.S.D. The Eagle coin was an older Gold coin that was made obsolete in 1933. They changed in their composition and value over the years and since then historical value has also added to their material value. Essentially if you have one of these in your collection you might not want to sell them.
All of the above Gold coins are part of United States history but they are also more valuable now than ever before. Due to the fact that the economy has taken a nose dive these coins are worth far more than their face value. The current price is based off the current going rate for gold bullion. As you can surmise on your own this rate fluctuates every day, but suffice to say it's usually 2 to 4 times more than face value.
For instance a $50.00 Gold coin may in fact be worth over $200.00 now. The simple fact of the matter is Gold is a real material that our currency is based upon. So when times get rough the actual material becomes more valuable than the paper it's supposed to be worth.
Throughout history Gold coins have been used as currency. Regardless of what culture or economic condition the value of Gold has always been high. Coins are a great thing to collect, and can bolster any investors portfolio. Just remember to hold on to your coins, they may be worth far more tomorrow than they are today.
By: Adam Curry
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Originally posted 2010-05-26 20:41:40. Republished by Blog Post Promoter