The U.S. Mint produces the best-selling gold bullion coin in the world, the American Gold Eagle. Many people think of buying gold in ounces because it is priced in ounces. The issue many investors have with acquiring gold is the high price per ounce. The price of an ounce of gold has been over $1,000 an ounce for nearly a decade. The price of gold is often considered out of reach for many investors. As such, many precious metals investors looking to gain exposure to precious metals, opt to buy the more affordable precious metal – silver – which has been priced 50-80 times less per ounce than gold over the same time period.
For investors interested in gold but don’t want to or can’t afford to buy ounces in a single order, or would prefer to have a smaller sized bullion product for sale or barter at a future date, fractional sized American Gold Eagles are an ideal solution.
In addition to selling one ounce American Gold Eagles, the U.S. Mint also produces one tenth, one quarter and one half ounce sized American Gold Eagles. These coins are identical in appearance and metallic composition (22K gold) as their one ounce counterpart.
Another advantage of purchasing fractional American Gold Eagle coins is they are generally minted in lower quantities than the one ounce gold eagle coin. This is especially true for the one quarter and one half ounce coins. As such, fractional sized American Gold Eagle coins often sell to collectors at premiums higher than their bullion value. 2017 is shaping up to be one of the lowest mintages for the fractional American Gold Eagles as sales are near ten year lows, so this year’s coins may be much sought after in the future.
About the American Gold Eagle coin: The obverse of an American Gold Eagle coin boasts the same design as the obverse of the “Saint Gaudens” U.S. $20 gold piece, or “double eagle” that was minted from 1907 – 1933. The front of a Saint Gaudens and American Gold Eagle coin features a walking lady liberty depiction designed by famed sculptor Augustus Saint- Gaudens.
This article by BGASC is not, and should not be regarded as, investment advice or as a recommendation regarding any particular course of action.