Eric Sepanek
SBC Founder
Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.
Considering investing in American Gold Eagles? This post will help you figure out everything you need to know about them for metals investment and numismatic value. Check it out here:
If you think you’re ready to buy gold coins, the American Gold Eagle is a great opportunity to consider. But many people who invest in coins for their precious metal content are also curious about the numismatic value of the coins they’re investing in. In this article, we’ll take a look at American Gold Eagles, including their history, the differences between the eagle coins and what to look for in terms of collectible value.
History of the American Gold Eagle Coin
The original American Eagle coin was created from the Coinage Act of 1792. A gold coin with a $10 face value, it was also available in half Eagle, quarter Eagle and double Eagle denominations representing $5, $2.50 and $20 face values. The original eagle coins were produced in the British standard crown gold, or 22 karat, with the remainder in an alloy of silver and copper to make the coins harder and more durable. The gold content was adjusted twice before the coins went out of production following an executive order issued by President Franklin D. Roosevelt in 1933, in an attempt to prevent bank runs during the Great Depression.
The modern American Eagle is produced in silver, gold and platinum, though we’ll only discuss the gold coins here. Production began in 1986 following the Gold Bullion Coin Act of 1985. The act requires that the modern coins be minted of gold mined in the United States with the stamped gold content guaranteed by the U.S. government. Much like the original Eagles, they are also produced in crown gold, so every troy ounce of coin holds 91.67% pure gold content with the balance in silver and copper.
Why Different Denominations?
Much like the original Eagles, the current American Gold Eagles come in a variety of sizes. Though the original American Eagles came in a range of denominations to make change more easily, the modern Eagles provide you the opportunity to buy or sell gold coins at a range of investment points. This means based on the price of gold, you can almost always find Eagles within a reasonable price range.
The modern eagle coins are identical to each other except for size, weight and the markings for the weight and face value. The American Gold Eagles are available in a 1-ounce coin at $50 face value, a 1/2-ounce coin with a $25 face value, a 1/4-ounce coin with a $10 face value and a 1/10-ounce Eagle with a $5 face value.
What About Numismatic Value?
If you’re considering investing in American Gold Eagles for their numismatic value, it’s important to know what to look for in a collectible coin. One of the first areas to consider is purchasing a proof versus an uncirculated coin 1. A proof coin is created by hand-feeding a burnished coin blank through a machine, striking it several times and creating a coin that has a perfect blend of a mirror-like background, a raised satin-finished figure and sharp, clear details. It is then inspected and sealed in a protective case.
By comparison, an uncirculated coin is produced like any other coin, but it hasn’t been circulated in the public, where it will lose some of its numismatic quality and value. Many coin collectors will purchase proof coins as they provide the best possible retention of numismatic value, while people who want to buy and sell gold for the metal value will purchase uncirculated coins.
Now that you’ve had the opportunity to review the precious metal and numismatic value of American Gold Eagles, why not look into buying gold coins? Take your financial and collection interests into account and determine exactly which type of coin you’d like to invest in. As always, if you have any questions or need additional information that this article hasn’t covered, please feel free to contact us. We’re always happy to help you reach the right decision for your situation.
Additional Sources:
1 – http://www.usmint.gov/mint_programs/?action=american_eagles