The Gold Bullion Coin And Its History PDF Print E-mail
Written by Eric McMillan   
Wednesday, 01 September 2010 17:30
Investing in precious metals is a sure way of preserving the value of your wealth especially in these uncertain times. A gold bullion coin is affordable for most Americans and is readily available. While popular media make us believe that gold bullion only appear as gold bars, they are not practical as an investment considering that they weigh at least 12.4 kilos each. The 1 oz gold bullion coin is the size that is perfect for the casual investor who looks at gold as a measure against inflation.
by EricMcMillan


Investing in precious metals is a sure way of preserving the value of your wealth especially in these uncertain times. A gold bullion coin is affordable for most Americans and is readily available. While popular media make us believe that gold bullion only appear as gold bars, they are not practical as an investment considering that they weigh at least 12.4 kilos each. The 1 oz gold bullion coin is the size that is perfect for the casual investor who looks at gold as a measure against inflation.

Gold has certainly been in use ever since commerce was invented. It was King Croseus who made a decree that gold coins should contain a uniform amount of the metal and for a very long time until the 20th century, this gold was accepted as legal tender worldwide. When the Great Depression happened in the 1930s, the US government decided not to mint gold coins as a form of money because hoarders made the price of the metal artificially expensive.

Today, gold coins are making a comeback but only in the form of gold bullion coins. These are never meant to be released and circulated mainly because its face value is far less than the value of the gold it contains. For example, the Canadian Gold Maple leaf, which contains one troy ounce of gold, has a face value of 50 Canadian dollars, but as of July, 2009, the gold coin value has been estimated to be more than 1000 Canadian dollars already.

In the United States, the American Gold Eagle is the official gold bullion coin and is based on the Gold Bullion Act of 1985. These coins were released into the public in 1986. The 22 karat gold coin contains silver and copper and the impurities make the coin more durable.

Getting stuck with a gold coin means that you are lucky beyond words, because it is probably worth far more than what the coin's face value is. For instance, the Gold Maple Leaf coin of Canada is worth $50 alone, but in reality it is worth $1,000 because the coin itself actually contains a troy ounce of gold as assessed in 2009.

The gold coin can have different weights and face values. A coin that is roughly the size of a US dime can have as much as one-tenth of an ounce of gold inside it. A gold coin that has a troy ounce of gold within it is roughly the size of a US half dollar. To date, the biggest coin in the world is the Gold Nugget of Australia which has 1 kg of gold in it!

Today, most of the gold bullion coin ends up in the hands of collectors or investors. One buys bullion coin at a premium over the real value of the gold it contains. The reason for this includes cost of processing, storage and distribution, but the main force that determines how much gold is sold is good old supply and demand.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

Eric McMillan is an ex real estate guy, who currently markets on the internet and is an die hard coin collector. Visit his website for additional info about gold bullion coin. While you're there, pick up a free copy of the Gold and Silver Coins guide.