While all American gold coins are very much appreciated, the Liberty gold coins may be some of the most popular. The Liberty gold coins were in the forefront of US gold coinage for 7 decades, and most were lost to the melting/confiscation of 1933. Once they were America's symbol of growth to world power status from a struggling and developing nation. The Liberty gold coinage enjoyed popularity during 1838 to 1908. Now, it is estimated that less than 5% of Liberty gold coins exist today.
There are 4 coins in a Liberty gold series; these are known as the 4-piece Liberty Gold set which comprises the Quarter Eagle ($2.50), the Half Eagle ($5.00), the Eagle ($10) and the Double Eagle ($20). These are the main denominations used in gold coins mintage.
Liberty Quarter Eagle
The Liberty Quarter Eagle was minted between 1840 and 1907 at Philadelphia Mint, Dahlonega Mint, Charlotte Mint, New Orleans Mint and San Francisco Mint. This $2.50 gold coin holds 0.12094 oz. of gold in its 18 mm diameter design. The Lady Liberty bust sports its obverse, set above the date with 13 stars all around representing the first 13 states of the U.S. The American eagle sports its reverse with words "United States of America."
Liberty Half Eagle
This $5 gold piece has the longest mint history from 1839 to 1908, having been minted at 7 mints: Philadelphia, Charlotte, Dahlonega, San Francisco, New Orleans, Carson City and Denver. There are 2 varieties of this Half Eagle. The first variety, ‘No Motto’ variety, does not include ‘In God We Trust’ inscription; it was minted between 1839 and 1866. The second variety, ‘With Motto’, with the inscription was minted between 1866 and 1908. Lady Liberty’s bust sports the obverse above the date with 13 stars around while the reverse shows the American eagle clutching arrows and olive branches in its talons at its center; its perimeter is engraved with ‘United States of America Five D’ wordings.
Liberty Gold Eagle
The Liberty Gold Eagle mintage was between 1838 and 1907 at Philadelphia Mint, New Orleans Mint, San Francisco Mint, Denver Mint and Carson City Mint in 2 varieties: ‘No Motto’ (minted between 1838 and 1866) and ‘With Motto’ (minted between 1866 and 1907).
Its design is the same as the Quarter and Half Eagle coins design.
Liberty Double Eagle
The Liberty $20 gold coin was the biggest coin denomination ever issued by the US mint. Its initial design sported the Liberty motif from 1849 through 1907. It was created from the increased gold supply that resulted from the gold rush in California. This coin was minted at Philadelphia Mint, New Orleans Mint, San Francisco Mint, Denver Mint and Carson City Mint. Again, Lady Liberty bust sports its obverse while the most impressive designs of eagles sport its reverse.
Wednesday, February 9, 2011
Which US Gold Coins Are Investors Seeking?
Although the actual gold markets lie oceans apart, the gold activities in the various markets impact gold prices. Gold is normally traded in gold bullion in these markets, but investors are also interested in the common date gold coins of the U.S.
The October 2010 Financial Times report stated analysts’ opinion that gold prices are skyrocketing in the midst of the bearish economy as well as the poor level of confidence in government policies.
Bullion Gold versus Common Date Gold
Common date gold coins do not enjoy the same fanfare as gold bullion coins. The former are scarce classic gold coins known as “generics.” These were minted in the 19th and 20th centuries by the millions for circulation. But most were lost or melted and only a few hundred thousand are left for trading.
Bullion gold pieces on the other hand enjoy trading as a financial market commodity. The government minted these for investment purposes. They are valued according to the gold content within them.
But coin buyers are interested in the US common date gold coins because of their scarcity, classic nature, and they can perform better is some instances than bullion coins.
Gold coins that were minted for circulation are hard to find as most of them got lost or melted; some may be hoarded without anyone’s knowledge. Similarly for US common date gold coins; their “scarcity” increases their investment value. There is no reproduction, unlike gold bullion.
Many coin collectors want to get a piece of the US common date gold coin for its “classic” value; the coin was minted only at a certain period of time; namely, in the 19th and early 20th centuries.
US common date gold coins are of more value than what their metal is worth; their price never dips but rises even when the gold price dips.
There is no legal accountability in the purchase or sale of US common date gold coins unlike the bullion gold. Meaning they are privately traded daily without any reporting.
The $20 St. Gaudens, $20 Liberty, $10 Indian and $10 Liberty, $5 Indian and $5 Liberty all have some dates that are considered to be common.
Rising Popularity of the Gold American Eagle
The American Gold Eagle coins are investors’ favorite gold coins although their sale was modest upon their introduction. The US Mint sold 165k oz. of gold eagle coins in 2000 but in 2001, the sales rose to 325k oz. despite bearish markets. When the gold price was low at $272, American gold eagles recorded $88 million sales.
The demand for American Gold Eagles soared during the 2008 summer even when a global recession was rumored. When the panic began in the later part of 2008, the American Gold Eagles were selling at an average monthly price of 111k oz compared to its earlier 33k oz. When the gold price hovered around $1350 to $1399, the American Gold Eagle Proof 1 oz. gold coins were sold at $1635 while the 1/10 oz. gold coins at $180.00 in October 2010.
The October 2010 Financial Times report stated analysts’ opinion that gold prices are skyrocketing in the midst of the bearish economy as well as the poor level of confidence in government policies.
Bullion Gold versus Common Date Gold
Common date gold coins do not enjoy the same fanfare as gold bullion coins. The former are scarce classic gold coins known as “generics.” These were minted in the 19th and 20th centuries by the millions for circulation. But most were lost or melted and only a few hundred thousand are left for trading.
Bullion gold pieces on the other hand enjoy trading as a financial market commodity. The government minted these for investment purposes. They are valued according to the gold content within them.
But coin buyers are interested in the US common date gold coins because of their scarcity, classic nature, and they can perform better is some instances than bullion coins.
Gold coins that were minted for circulation are hard to find as most of them got lost or melted; some may be hoarded without anyone’s knowledge. Similarly for US common date gold coins; their “scarcity” increases their investment value. There is no reproduction, unlike gold bullion.
Many coin collectors want to get a piece of the US common date gold coin for its “classic” value; the coin was minted only at a certain period of time; namely, in the 19th and early 20th centuries.
US common date gold coins are of more value than what their metal is worth; their price never dips but rises even when the gold price dips.
There is no legal accountability in the purchase or sale of US common date gold coins unlike the bullion gold. Meaning they are privately traded daily without any reporting.
The $20 St. Gaudens, $20 Liberty, $10 Indian and $10 Liberty, $5 Indian and $5 Liberty all have some dates that are considered to be common.
Rising Popularity of the Gold American Eagle
The American Gold Eagle coins are investors’ favorite gold coins although their sale was modest upon their introduction. The US Mint sold 165k oz. of gold eagle coins in 2000 but in 2001, the sales rose to 325k oz. despite bearish markets. When the gold price was low at $272, American gold eagles recorded $88 million sales.
The demand for American Gold Eagles soared during the 2008 summer even when a global recession was rumored. When the panic began in the later part of 2008, the American Gold Eagles were selling at an average monthly price of 111k oz compared to its earlier 33k oz. When the gold price hovered around $1350 to $1399, the American Gold Eagle Proof 1 oz. gold coins were sold at $1635 while the 1/10 oz. gold coins at $180.00 in October 2010.
Gold and the U.S. Mint
Gold in the US has grown so popular that it is synonymous to US gold mint. The US Mint has been minting gold coins since 1795 when it minted its first gold coins at the Philadelphia Mint.
The $10 Eagle was the main denomination of the mintages; later the $5 Half Eagle and $2.50 Quarter Eagle denominations came were also minted. Until 1840, the Philadelphia Mint was America’s only mint; later mints were set up at Dahlonega, Charlotte, Georgia, New Orleans and North Carolina as gold was discovered in many parts of south US and it was too difficult to transport the mined gold to Philadelphia Mint.
The transportation was fraught with danger as the journey went through desert land; it was also time consuming and costly for such a long journey. Hence, branch mints were opened to accommodate the mintage after the gold was mined. The Dahlonega, Charlotte and New Orleans branches were opened and later closed during the 1861 Civil War. Only New Orleans Mint reopened after the Civil War in 1879 to continue minting until 1909.
When the American gold rush came on in 1849, the San Francisco branch opened. There was so much excitement and gold panning activities when gold was found at Sutter's Mill, California. The years 1848 and 1849 were known as the ‘Gold Rush’ period for America.
When more gold mines opened across California, there was an over supply of gold.
Hence, the U.S. Mint created the Double Eagle and the gold dollar pieces to absorb the excess gold. The $20 Double Eagle measures 34 mm in diameter with 0.9675 oz of gold. This became the world’s largest gold coin. The gold dollar is a small 13 mm in diameter gold coin; it was the US Mint’s smallest minted gold coin.
Another mint branch opened in San Francisco in the year 1854. At first, its primary task was to strike gold coinage; today it does not although it is still operating.
Two more mint branches were set up by the US Mint; that is at Denver, Colorado and Carson City, Nevada to mint gold and other coinage.
Later in 1933, President Franklin Roosevelt ordered all gold coins mintage to cease at all mints; the US stopped minting gold coins that would be circulated.
But the US Mint kick started the American Gold Eagle bullion program in 1986 which made the coin the world’s most popular of all gold bullion coins.
The $10 Eagle was the main denomination of the mintages; later the $5 Half Eagle and $2.50 Quarter Eagle denominations came were also minted. Until 1840, the Philadelphia Mint was America’s only mint; later mints were set up at Dahlonega, Charlotte, Georgia, New Orleans and North Carolina as gold was discovered in many parts of south US and it was too difficult to transport the mined gold to Philadelphia Mint.
The transportation was fraught with danger as the journey went through desert land; it was also time consuming and costly for such a long journey. Hence, branch mints were opened to accommodate the mintage after the gold was mined. The Dahlonega, Charlotte and New Orleans branches were opened and later closed during the 1861 Civil War. Only New Orleans Mint reopened after the Civil War in 1879 to continue minting until 1909.
When the American gold rush came on in 1849, the San Francisco branch opened. There was so much excitement and gold panning activities when gold was found at Sutter's Mill, California. The years 1848 and 1849 were known as the ‘Gold Rush’ period for America.
When more gold mines opened across California, there was an over supply of gold.
Hence, the U.S. Mint created the Double Eagle and the gold dollar pieces to absorb the excess gold. The $20 Double Eagle measures 34 mm in diameter with 0.9675 oz of gold. This became the world’s largest gold coin. The gold dollar is a small 13 mm in diameter gold coin; it was the US Mint’s smallest minted gold coin.
Another mint branch opened in San Francisco in the year 1854. At first, its primary task was to strike gold coinage; today it does not although it is still operating.
Two more mint branches were set up by the US Mint; that is at Denver, Colorado and Carson City, Nevada to mint gold and other coinage.
Later in 1933, President Franklin Roosevelt ordered all gold coins mintage to cease at all mints; the US stopped minting gold coins that would be circulated.
But the US Mint kick started the American Gold Eagle bullion program in 1986 which made the coin the world’s most popular of all gold bullion coins.
Gold Coin Options
Although many gold coins are available for an investor, only 2 main types stand out. The gold bullion coins and the rare gold coins. Gold bullion are strictly for a hedge against inflation; hence they form a good basis to own gold whereas numismatic gold coins or rare gold coins which are typically used to privately grow wealth over the long-term.
Gold Bullion Coins
The large market size for gold bullion coins makes them a favorite with many people. Gold bullion coins hold many benefits for their owners; security, safety, convenience and liquidity. But the best benefit of all is great potential profit as the coin’s value is directly related to the current gold price.
The Krugerrand from South Africa was the first modern issue gold bullion coin that surfaced in the market in 1967. This should not be surprising as South Africa has always led the pack in exporting gold; it is still the world’s leader in gold exports. The South African Krugerrand enjoyed its fame for a long time as many individuals took it as a means to possess gold. This is precisely the reason that the term ‘Krugerrand’ was interchangeably used with ‘gold coin’ during its hey days; just as one associated ‘Kleenex’ to facial tissue or ‘Xerox’ to photocopiers at the start of the respective industries.
But other countries caught on with South Africa's innovation with gold coins and started minting their own special gold bullion production. Now, the market offers the American Gold Eagle, the American Gold Buffalo, the Canadian Gold Maple Leaf, the Gold Australian Kangaroo and the Austrian Gold Vienna Philharmonic.
Rare Gold Coins
Rare gold coins can be collected for either investment purposes or just to own gold; some rare gold coin owners do not even bother to make a distinction of their collection.
US gold coins that were minted from 1795 to 1933 are classified as rare gold coins because the US Mint discontinued the minting for circulation. There were many denominations of rare gold coins distributed in the 138 years when these gold coins were minted. Sometimes, the US Mint minted various denominations of gold coins for commercial circulation such as $1.00, $2.50 (also known as Quarter Eagle), $3.00, $4.00, $5.00 (also known as Half Eagle), $10.00 (also known as Eagle) and $20.00 (also known as Double Edge).
Although small in size, the US Gold Dollar came in 3 types-I, II and III; it was minted between 1849 and 1889.
The Quarter Eagle's denomination is $2.50 and was minted between 1796 and 1929 sporting 7 different motifs.
The US gold coin that is stamped with $3.00 is the Indian Princess that saw its mintage from 1854 all the way to 1889. The US $4.00 gold coin was called ‘Stella’. It was minted as an experimental piece in 1879/80; hence there are very few pieces. The Half Eagle gold or US $5.00 gold coin came in 8 varieties of designs when it was minted.
The Gold Eagle of $10.00 came in 4 unique designs during its mintage between 1795 and 1933. The Double Gold Eagle of $20.00 is the largest among the US gold coins issued; it was minted between 1849 and 1933 with 2 designs.
These gold coins are in high demand because of the gold content in them as well as their beauty, rarity and historical relevance.
Gold Bullion Coins
The large market size for gold bullion coins makes them a favorite with many people. Gold bullion coins hold many benefits for their owners; security, safety, convenience and liquidity. But the best benefit of all is great potential profit as the coin’s value is directly related to the current gold price.
The Krugerrand from South Africa was the first modern issue gold bullion coin that surfaced in the market in 1967. This should not be surprising as South Africa has always led the pack in exporting gold; it is still the world’s leader in gold exports. The South African Krugerrand enjoyed its fame for a long time as many individuals took it as a means to possess gold. This is precisely the reason that the term ‘Krugerrand’ was interchangeably used with ‘gold coin’ during its hey days; just as one associated ‘Kleenex’ to facial tissue or ‘Xerox’ to photocopiers at the start of the respective industries.
But other countries caught on with South Africa's innovation with gold coins and started minting their own special gold bullion production. Now, the market offers the American Gold Eagle, the American Gold Buffalo, the Canadian Gold Maple Leaf, the Gold Australian Kangaroo and the Austrian Gold Vienna Philharmonic.
Rare Gold Coins
Rare gold coins can be collected for either investment purposes or just to own gold; some rare gold coin owners do not even bother to make a distinction of their collection.
US gold coins that were minted from 1795 to 1933 are classified as rare gold coins because the US Mint discontinued the minting for circulation. There were many denominations of rare gold coins distributed in the 138 years when these gold coins were minted. Sometimes, the US Mint minted various denominations of gold coins for commercial circulation such as $1.00, $2.50 (also known as Quarter Eagle), $3.00, $4.00, $5.00 (also known as Half Eagle), $10.00 (also known as Eagle) and $20.00 (also known as Double Edge).
Although small in size, the US Gold Dollar came in 3 types-I, II and III; it was minted between 1849 and 1889.
The Quarter Eagle's denomination is $2.50 and was minted between 1796 and 1929 sporting 7 different motifs.
The US gold coin that is stamped with $3.00 is the Indian Princess that saw its mintage from 1854 all the way to 1889. The US $4.00 gold coin was called ‘Stella’. It was minted as an experimental piece in 1879/80; hence there are very few pieces. The Half Eagle gold or US $5.00 gold coin came in 8 varieties of designs when it was minted.
The Gold Eagle of $10.00 came in 4 unique designs during its mintage between 1795 and 1933. The Double Gold Eagle of $20.00 is the largest among the US gold coins issued; it was minted between 1849 and 1933 with 2 designs.
These gold coins are in high demand because of the gold content in them as well as their beauty, rarity and historical relevance.
Gold close to an All Time High Once More
It is good news for those who are interested in buying gold coins for the price of gold is on the rise again; this time closing on an all-time high. Its price has been steadily rising over 10 consecutive years and it is expected to continue to rise this year.
With the gold price at more than $1,400/oz, it is quite close to a previous high of $1,421/oz.
Though gold price may fluctuate, its recent performance is indicative of long-term prospects investment.
US Dollar weaker
The performance of gold rises steadily due to the many disappointing US economic news figures; the weakened dollar has been hurt by global statements that the U.S. currency is not as attractive or ‘appetizing’ as before.
The US dollar has been, and currently is, the world’s reserve currency but gold tends to counter its prominence all the time. Gold has set itself to be the world’s currency major competitor and it is often referred to as the only real money.
China has surpassed Japan’s economy recently to take second spot with massive reserves in foreign currencies. China's reserves over the years were built on the US dollar but now a turnaround spells bad news for the greenback.
That in turn benefits gold as its price tends to move in opposite direction of the greenback. Gold owners are the major beneficiaries in this course of event. But it is not just the dollar’s decline that has buoyed the price of gold; there are other factors affecting the US economy.
High Unemployment
The increased unemployment rate in the US is now around 10%, despite the large stimulus package announced by the US government. This rate has become the country’s highest in a long time. The financial markets are concerned over this figure which does not augur well for the economy, since much of the country’s work force is sitting idle. With persistent unemployment occurring, analysts are starting to call the situation ‘depression’. Hence people are driven towards gold, the safer haven.
The troubled real estate market also caused the gold price to rise. Real estate is traditionally regarded as an alternative to stocks and bonds which are paper assets, and a cover against inflation.
Ailing Real Estate
However, even the real estate market performed badly over the past two years; many Americans lost big bucks in real estate instead of having shelter from alternative assets. Their wealth fizzled out in the financial crisis caused by the recent subprime mortgage fiasco that rocked the stock market. Now, everyone stands alert to a paradigm shift when it comes to real estate and stocks.
It is not true anymore that real estate is independent of the stock market as both environments declined with the same factors. Hence, more people are turning to gold, especially gold coins. These are more affordable, convenient, portable and readily liquid.
Financial markets will remain a concern with Americans seeking solace and safety with the uncertain U.S. economy. Gold prices are expected to climb in such situations.
With the gold price at more than $1,400/oz, it is quite close to a previous high of $1,421/oz.
Though gold price may fluctuate, its recent performance is indicative of long-term prospects investment.
US Dollar weaker
The performance of gold rises steadily due to the many disappointing US economic news figures; the weakened dollar has been hurt by global statements that the U.S. currency is not as attractive or ‘appetizing’ as before.
The US dollar has been, and currently is, the world’s reserve currency but gold tends to counter its prominence all the time. Gold has set itself to be the world’s currency major competitor and it is often referred to as the only real money.
China has surpassed Japan’s economy recently to take second spot with massive reserves in foreign currencies. China's reserves over the years were built on the US dollar but now a turnaround spells bad news for the greenback.
That in turn benefits gold as its price tends to move in opposite direction of the greenback. Gold owners are the major beneficiaries in this course of event. But it is not just the dollar’s decline that has buoyed the price of gold; there are other factors affecting the US economy.
High Unemployment
The increased unemployment rate in the US is now around 10%, despite the large stimulus package announced by the US government. This rate has become the country’s highest in a long time. The financial markets are concerned over this figure which does not augur well for the economy, since much of the country’s work force is sitting idle. With persistent unemployment occurring, analysts are starting to call the situation ‘depression’. Hence people are driven towards gold, the safer haven.
The troubled real estate market also caused the gold price to rise. Real estate is traditionally regarded as an alternative to stocks and bonds which are paper assets, and a cover against inflation.
Ailing Real Estate
However, even the real estate market performed badly over the past two years; many Americans lost big bucks in real estate instead of having shelter from alternative assets. Their wealth fizzled out in the financial crisis caused by the recent subprime mortgage fiasco that rocked the stock market. Now, everyone stands alert to a paradigm shift when it comes to real estate and stocks.
It is not true anymore that real estate is independent of the stock market as both environments declined with the same factors. Hence, more people are turning to gold, especially gold coins. These are more affordable, convenient, portable and readily liquid.
Financial markets will remain a concern with Americans seeking solace and safety with the uncertain U.S. economy. Gold prices are expected to climb in such situations.
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