Although gold has been recognized as a store of value virtually since the dawn
of history, the first gold coins are believed to have been minted in 670 B.C. by
King Gyges of Lydia in Turkey. The legendary King Croesus minted 98% pure gold
coins in 550 B.C.
Half a millennium later, Julius
Caesar minted gold coins to pay the Roman Legions. Somewhat apprehensive at
first, the soldiers were happy to discover that the value of the gold in the
coins rapidly surpassed their face value.
Acquiring Modern Gold
For investors who enjoy investing in
physical bullion, owning bullion coins is both enjoyable and convenient. Gold bullion
coins are legal tender of the country of issuance, and their gold content is
guaranteed. The bullion coin bears a face value that is largely symbolic; its
true value depends on its gold content and the day-to-day changing price for
gold. In practical terms, the market price of a 1 oz gold bullion coin is equal
to the market price of an ounce of gold plus a small premium of about 4-8% to
cover the cost of the minting and distribution.
Bullion coins are minted in affordable weights such as 1/20, 1/10, 1/4, 1/2, and
one ounce (about 31 grams). The bullion coin represents an investment in pure
gold and, because it is legal tender, its authenticity is guaranteed by the
country of origin. Gold bullion coins can be easily bought and sold virtually
anywhere in the world. Prices for the most popular one ounce coins are quoted
daily in most newspapers around the world.
Gold Coins Around the World
Some of the most popular bullion coins are the American Eagle, the Australian
Kangaroo Nugget, the UK Britannia, the Canadian Maple Leaf, the Austrian
Philharmonic, and the South African Krugerrand. Gold coins are traded throughout the
world on a daily basis as an integral part of the international gold business,
so they always have a ready market.
While bullion coins are normally
purchased for their intrinsic value, they are also appreciated for their
artistic appeal and beauty. Coins make memorable and valuable gifts, are easy to
store, easy to transport, and anonymous.
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