History of the Gold CoinGold is a precious metal that professionals extract through the labor-intensive process of vein mining. For thousands of years, numerous cultures competed to access this commodity for their jewelry, architecture, and currency.
However, with gold becoming more accessible to industrialized societies, do modern gold bullions have similar purity levels?
How Are Gold Bullion Coins Made?While you can correctly assume a gold coin consists primarily of gold, other metals (alloys) also produce gold bullion coins.
Authorized facilities produce gold coins during the minting process. This task requires several ingredients, such as precious metals, a stamping press, and a furnace that can deliver 1,943 degrees Fahrenheit of heat.
A smelter will extract gold in its purest form from a section of ore, and they may mold this element into gold bars and sell them to minting facilities. Coin producers will then melt the gold and other alloys into a coin and stamp it with identifying markers.
Gold Coin AlloysMinting specialists may choose to add popular alloys such as copper and silver to reinforce a gold coin. For example, 22-karat gold coins use alloying gold to reduce flexibility and offset slightly lower purity levels.
How to Measure the Purity of a Gold CoinAppraisers measure the purity of gold by “karats.” Understanding that “purity” does not necessarily mean “quality.” Gold purity is simply a measurement of how much fine gold is present in the final product.
How Much Are Gold Coins Worth?The market price of a pure gold coin varies and may be difficult to determine at face value. Some factors include the coin’s age, weight, and condition. Still, most appraisers currently place the value of an ounce of gold at around $1,600.
Using an American Gold Eagle coin (one of the purest gold coins available) as an example, investors can expect to pay between $18,000 and $21,000 for this item. Gold and silver prices fluctuate over time, but these commodities tend to retain value despite economic downturns. After the COVID-19 pandemic of 2020, global markets struggled to survive.
Which Gold Coins Are Pure?Gold bullions come in different shapes, sizes, and purities. Before buying these coins, it’s prudent to know which items have the highest gold content.
Canadian Gold Maple LeafThis coin contains 99.99 percent fine gold, which makes it the purest gold coin in circulation. Investment community members respect this product and pay top dollar every year to obtain it.
American Gold BuffaloThe American Buffalo gold bullion coin contains 99.9 percent gold content. The United States Mint attempted to outcompete the Canadian Maple Leaf and other coins with this 24-karat, one-troy-ounce bullion. Though this coin’s value continues to rise yearly, it is not as popular among investors as the Maple Leaf or American Eagle.
Australian Gold NuggetIn 1986, the Perth Mint began producing Australian Gold Nuggets. These bullion coins also contain 99.9 percent gold, making them comparable to their American and Canadian gold coin counterparts.
Austrian PhilharmonicThe Austrian Mint began printing these beautiful 24-karat bullions in 1989. Each coin weighs in at half an ounce of gold. Investors started to gravitate toward this item after Austria adopted the euro just over a decade later.
The British Gold SovereignBritish Gold Sovereigns closely reflect the iconography of ancient coinage standards. These 91.67 percent gold coins bear the visage of Queen Elizabeth II on one side and St. George on the other.
American Gold EagleAmerican Gold Eagles contain 91.67 percent of the purest gold on the market. In addition, they include 5 percent copper and 3 percent silver. Unlike the American Buffalo, this bullion is popular and widely available. Manufacturers produced over 665,000 gold bullion coins throughout 2021.
South African KrugerrandThis gold bullion coin contains 90 percent gold, while copper alloy makes up the remainder. Despite having the lowest gold content on this list, investors worldwide seek this item for their portfolios.
How to Buy Pure Gold CoinsBuying gold coins can be challenging if you aren’t sure where to start. Expect to spend time researching current market trends and exploring different offers from distributors.
Ask Yourself Why You Want Gold CoinsAsk yourself some essential questions before committing to a purchase, such as:
- Am I buying gold coins as an investment?
- Am I seeking to complete a physical coin collection?
- Do I have the storage space to secure these items?
- Can I afford these items?
Buying Gold CoinsOnce you find the right distributor, explore their options. As this article proves, not all coins are the same. Ask a professional about each coin’s purity, weight, age, and spot price.
Furthermore, consider that a single gold coin can offer significant financial opportunities. Partner with an experienced advisor to learn how to invest effectively in these products in other channels.