The History of the American Gold Eagle
First authorized under the Gold Bullion Coin Act of 1985, the American Gold Eagle has been named the official United States gold bullion coin. It became available to the public in 1986, although pre-1933 gold coins originally valued at ten dollars were also provided this official designation. To distinguish between the different coins, the weight of the coin is used in the description. This helps to ensure investors and collectors know when they are buying these coins which ones they are getting, and First Fidelity Reserve can help investors determine if the bullion coins are the right option for them.
Investors feel confident when purchasing these coins because the United States government guarantees the coin will possess its actual gold weight in terms of troy ounces. The coins are available in a variety of denominations, including 1/10 ounce, 1/2 ounce and 1 ounce. Furthermore, gold in these coins must come from within the country, and it is then alloyed with copper and silver to increase the wear resistance of the coin.
People often wonder about crown gold alloys. These alloys have not been present in American coins in more than almost two centuries, but what investors are referring to is the 22 kt gold alloy that was at one time the English standard. In 1837, the gold content of the coin was only required to be 0.900 fine for the coins. However, it has been increased to 22 karat or a gold fraction of .9167 once again. The United States Mint also backs the coins in terms of their content and weight.
Individuals new to precious metal investing or coin collecting often assume the face value of the coin is its market value. This is not the case. The market value of the gold content determines the market value of the coin, thus fluctuations in prices are expected. To determine the current selling price of a bullion coin, an investor needs to look at gold’s current spot price.
Furthermore, collectors have the option of obtaining an uncirculated or proof coin. West Point Mint, located in West Point, New York, produces these coins, and they can be easily recognized as they carry the mark of the mint below the date. Visit First Fidelity Reserve to learn more about the buying options and which is right for you.