The History of Gold American Eagle Coins
In 1850, the United States began to issue the $20 Liberty Gold Double Eagle coin for the first time. Contrary to what you might expect, these coins did not contain one troy ounce of gold, but rather exactly .9675 ounces of the precious metal. Why the difference? Prior to 1967, gold coins contained a specifically measured amount of gold relative to the metal’s value at the time — in 1850, $20 would get you just under one troy ounce of gold, as it was trading at exactly $20.67 at the time.
It was not until 1967 that the world’s first one-ounce gold bullion coin was produced by the South African government. The 1967 Krugerrand Gold coin quickly dominated the globe, and by 1980 it accounted for a massive 90% of the world’s coin market. At the time, however, South Africa’s government had made apartheid an official country-wide policy. Most Western nations refused to endorse the racial segregation of the African nation by purchasing gold coinage, and as a result, Krugerrands were not globally accepted.
Sensing an opportunity, the Canadian government elected to develop the one-ounce Canadian Gold Maple Leaf coin, an alternative that encouraged the circulation of gold coinage without the stigma of South African apartheid. Just years before, President Gerald Ford had signed a bill enabling Americans to purchase and trade gold coins once again. Although US citizens and markets were eager to own gold again, the Canadian Mint still dominated the global gold coin scene.
In 1985, President Ronald Reagan signed the Gold Bullion Coin Act, which allowed the first American Gold Eagle coins to be minted and distributed across the US. These coins came in a variety of forms, including coins containing anywhere from a tenth of an ounce to a full ounce of gold. The coin’s design was directly inspired by the previously minted Gold Double Eagle design from 1907. Gold American Eagle bullion coins have been in production every year since 1986, and their popularity continues to grow in both networks of bullion investors and amateur coin enthusiasts.
Investors interested in purchasing American Gold Eagle coins will find that they can be purchased with three distinct finishes. The most common coins are uncirculated and have been struck without any special handling. By contrast, proof coins are struck with highly polished blanks and receive special handling; these are generally available in higher grades than uncirculated coins. Burnished coins — coins struck on blanks that lend the surface a matte finish — are similar to proof coins in that they are both more carefully made and more difficult to find.
The Metals.com Staff
