February 11th, 2010 | |
Posted in Hobbies
Metals such as gold and silver have been used in trade and business for centuries. The first coins date back to the 6th century BC and were produced in ancient Turkey in Lydia and introduced by the Lydian King Croesus. The coins weighed between .2 and 17.2 grams. They featured faces of lions or bulls on one side and a punch mark or seal on the other. This production began a coinage era that has evolved in many cultures and civilizations over hundreds 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.
The following coins are produced in various countries and traded all over the world: American Eagles, Chinese Pandas, South African Krugerrands, Canadian Maple Leafs, and Australian and UK Gold sovereigns. The Canadian Maple Leaf is produced by the Royal Canadian Mint and is the official gold coin of Canada. With a gold content of .9999%, it is one of the purest gold coins in circulation in the entire world. This means it contains no other base metals at all, only real gold from Canada. This coin was first introduced in 1979, and since then the Royal Canadian Mint have also produced the Maple Leaf coin in silver, platinum, palladium, and bimetallic.
American Eagle gold coins are probably the most popular gold coins in the world; they were designed by Adolph A Weinman, authorized by Congress in 1985, and minted in 1986 and come in two different types: bullion and proof, both of which feature a walking liberty design. American Eagle gold coins are made in four different sizes: 1/10 ounce, ounce, ounce, and one ounce. The price is dependent upon the size of the coin, and because of their quality, content, and backing by the government, they make a sound investment for anyone.
The American mint introduced the first American Buffalo gold coins in 1913. They became known as simply the “gold buffalo.” Shortly after that, the United States government publicly guaranteed the quality and purity of these coins, making them the safest kind of risk free trade available on the market. They are available from a chain of authorized purchasers. The American Buffalo gold coins were designed by the widely known American sculptor James Earle Fraser; they portray a Native American Chief on the front and a buffalo on the back. Also seen on the back side of the coin is the denomination and gold content of the coin and the coin’s weight in an inscription.
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.
Investing in gold coins holds minimal risk to investors, making it a good standalone investment with a value that is normally inverse to that of the stock market. Gold is considered a commodity that stays in demand and is one that always holds good returns. It is easy to purchase coins one at a time and slowly build up the size of your portfolio. If you need money, you can sell the coins you have at the current market rate.
Want to find out more about gold coins? Take a look at GoldCoinCollection.net for more information and sources to buy valuable and rare coins easily.
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