People have put their faith in American gold coins since they were first minted by the American Government, in 1795.
Back then, a mere six years after the U.S. Constitution was ratified, the American Eagle gold coins were minted. The original American Eagle gold coin was worth $10 and the Half Eagle was worth $5. The incredibly rare originals, when in good condition, have sold at auctions for prices above half a million dollars.
Over the centuries gold, a non-corroding precious metal which has been coveted, traded and hoarded since ancient times, has been favored by investors as a hedge against inflation.
Paper money can be produced in infinite quantities and when a country’s economy plummets, so does the value of the paper money; the gold supply is finite and the price has steadily gone up over the years. In fact, on March 12 2008 gold traded at an all time high of $1000 an ounce. The value of gold, currently around $900 an ounce, has more than tripled since 2001.
But there is something that makes gold even more valuable. When gold is minted into American Gold Coins, you not only have the value of gold, you have the value of patriotism and nostalgia added in there. After all, those 1795 American Eagle Gold Coins didn’t sell so high because they actually contained half a million dollars worth of gold - they were considered extremely valuable because they were a piece of history and national pride.
The American Buffalo 24 Karat Gold Coins, inspired by the Buffalo Nickel that was first minted in 1913, are American Gold Coins which takes advantage of not only the value of gold but the power of nostalgia and patriotism.
The original Buffalo Nickels, also known as Indian Head Nickels, were designed by a sculptor and modeled
The U.S. Mint began issuing the legal tender $50 American gold coins in 2005. They are manufactured at West Point, and are a modern novelty in that for many years gold coins had copper and silver mixed in with them and were 22 karat, not 24.
Each coin comes with a Certificate of Authenticity from the U.S. Mint. According to the U.S. Mint’s websie, these coins are the only “official investment-grade gold bullion coins whose weight, content and purity are guaranteed by the United States Government.”
While it’s impossible to predict future collector demand for any individual coin, in August of this year the U.S. Mint was forced to temporarily suspend sales of American Eagle bullion coins due to excessive demand.
And historically, over time, the price of gold has continued to increase. The advantage of investing in gold coins is that even if you have as little as $50 to spend on an American Buffalo coin, you can purchase an item that’s not just solid gold, it has additional value because of its appeal to nostalgia buffs and collectors.
That’s why American gold coins have always held an appeal to investors both big and small, an appeal which is likely to only grow over time.
