Gold coins in the current financial climate are in high demand and
for good reason. Gold coins have always been a popular way to hedge
against inflation and for a balanced portfolio risk. Though coins made
with gold have been produced ever since a coinage system began, the
modern day gold coins are minted for collectors or to be used as bullion
coins. A bullion coin is bought for its investment potential rather
than its face value.
Gold can be moved around the country quite easily, and with such high value compared to its weight makes it more convenient that other commodities. Gold itself can be reduced in size without losing its overall value and is more difficult to counterfeit and above all, with the worlds stock of gold being limited, the value of gold is fairly stable on the commodities exchanges. In 1933 the United States banned the private ownership of gold coins over $100, anything above this amount that they owned had to be handed over to the Federal Reserve, in which they paid $20.67 per troy ounce. This ban remained in force until 1974 when a bill in the US parliament allowed once again private ownership of gold coins in excess of $100. The reason behind all this was down to the Worlds monetary system and the Gold standard.
The respective mints for each country produce yearly a chart with how many coins are minted for each denomination, and with these figures at hand one can see the rarity of the various coins, just one statistic to determine the value of a gold coin, the condition is another important factor to take into account. Hence why in 2002 the auction house, Sotherby's sold a 1933 $20 double eagle for £7.5 million, at the time the US treasury had begun producing the $20 Double Eagle gold coin, but then the ban of private ownership came into force so they had to melt them and the ones handed in all down, though some did manage to get into the public domain, so as a collector coin it is the ones dated prior to 1933 that are more of collectors item, though they still have some investment attributes.
Modern day gold coins are bought for investment purposes rather than their numismatic interest, and are bought and sold depending on the current market value gold, this makes a choice of investors as a way to have some gold in their portfolio as a hedge against the world economic ups and downs. South Africa began the modern trend when in 1967 it introduced the Kruggerrand, which fortunately contained one troy ounce of gold, these were conveniently priced just above the bullion prices of gold, though gold coins have a face value associated with the coin which is far less than its true value this is done to give the coin some status in law and they are technically legal tender, but as coinage can be easily moved across the national borders. The gold bullion gold coins value is determined by its troy weight and the current price of gold on the commodities market.
Produces of Gold Bullion
Gold bullion coins are now minted by various countries and are sold by the troy ounce or a multiple of a troy ounce, like 1/20 oz., 1/10 oz., 1/4 oz., 1/2 oz., 1 oz. Some of the countries producing the gold coins are Australia, Austria, Canada, Mexico, Poland South Africa, United Kingdom and the United States. It has been reported that the United Nations will be issuing gold bullion coins at some date in the future.