The American Gold Eagle is the world’s most popular gold bullion coin with well over 40 million sold from 1986 -2017.
Here are some of the reasons for the runaway success of the American Gold Eagle:
Prior to the introduction of the American Gold Eagle coin series in 1986, the South African Krugerrand was the world’s most popular gold coin. The ownership of gold bullion by U.S. citizens was outlawed from 1933-1974. While Americans could once again own gold in 1975, there was no newly minted U.S. gold coins to buy, leaving the Krugerrand as the best-selling gold bullion coin in the United States from 1975 until 1985.
In 1981, President Reagan established a Gold Commission to examine the feasibility of bringing back the gold standard abandoned by President Nixon in 1981. As part of his work in connection with the Gold Commission, Congressman Ron Paul presented the recommendation that gold and silver coins be once again minted by the United States Mint. While the gold standard was never adopted, the idea that the U.S. Mint begin producing gold and silver coins again was. The American Gold Eagle began production in 1986 and became the first annually minted gold coin produced by the United States Mint since mintage of pre 1933 gold coins that were minted for general circulation.
$50 Face Value/Legal Tender
The one ounce American Gold Eagle has a face value of $50 and is legal tender of the United States of America and contains an ounce of pure gold. The U.S. Mint also produces 1/2 oz. ($25), 1/4 oz. ($10) and 1/10 oz. ($5) American Gold Eagle coins.
The 1/10, 1/4, 1/2 and 1 ounce size American Gold Eagle coins allow small and large investors to purchase and store them conveniently.
American Gold Eagles are 22K gold and are composed of .9167 gold, .0533 copper and .03 silver. The one ounce American Gold Eagle coin contains one ounce of pure gold but because it is 91.67% gold it weighs slightly more than one ounce (1.0909 oz.)
Because American Gold Eagles are produced by the U.S. Mint, a division of the U.S. Treasury, the most powerful Treasury in the world, U.S. and international investors are assured of the purity and authenticity of the coins.
The American Gold Eagle coin features a bold lady liberty on the obverse. Those familiar with the U.S. Saint-Gaudens Double Eagle gold coins (1907-1933) will recognize lady liberty holding a torch aloft in her right hand and an olive branch in her left as substantially the same as appears on that coin. Also on the obverse are the date and the words “Liberty”. The dates of the 1986-1991 American Gold Eagles are inscribed in Roman numerals. From 1992 on the dates are in Arabic numerals.
On the back of American Gold Eagle coins is a depiction of a bald eagle flying towards its nest where a baby eagle awaits with the words “United States of America” “e pluribus unum” and “In God We Trust”. On the one ounce gold eagle the words “1 Oz. Fine Gold” and “50 Dollars” also appear. American gold eagle coins are minted at the United States Philadelphia and West Point mints. The mint mark for West Point (W) appears on the obverse underneath the date.
The American Gold Eagle features a recycled design of Augustus Saint-Gaudens that was first used on the Saint-Gaudens twenty dollar gold piece (1907-1933). His initials can be found on the hem of lady liberty’s gown. The reverse was designed by Miley Busiek whose initials can be found on the reverse.
Because the design of the American Gold Eagle has not changed since 1986, (other than the change to Arabic numerals in 1992 for the dates) investors can remain certain that each gold eagle is fungible with other gold eagle coins in terms of size and purity.
High Annual Mintage
Because the American Gold Eagle has been minted in amounts well over 40 million in the various denominations and annually since 1986, there is a certainty of availability and high recognizability that gives comfort to gold investors.
Higher Resale Value
American Gold Eagle coins generally command a premium over other gold rounds, bars and coins as the factors above provide support for their value. Indeed, because the American Gold Eagle has a history well over thirty years, a collector community has developed in which collectors attempt to complete entire sets of American Gold Eagles in each of the various denominations from 1986-2017. As such, some rarer dates in the American Gold Eagle series command even higher premiums than the generic American Gold Eagle premium over other gold products.
All American Gold Eagle coins are IRA eligible.
The 2018 American Gold Eagle coins are available now for pre-order for shipment on January 22, 2018.
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This article by BGASC is not, and should not be regarded as, investment advice or as a recommendation regarding any particular course of action.