American Gold and Silver Eagles: With images of the bald eagle and the magnificent Lady Liberty, American gold and silver eagle coins are iconic additions to any gold or silver collection. The government argued that payments should be considered largely on the basis of intrinsic value, but lawyers acting on behalf of defendants could cite precedents where the law made no legal distinction between the face value of investment coins and the face value of paper money. In the end, the defendants were acquitted and the case turned out to be an extremely important legal step, or at least it would have been if it had not apparently been swept under the carpet. Precious metals in free form are known as bars and are traded on commodity markets. While obsolete gold coins are collected primarily for their numismatic value, gold coins today derive their value from metal (gold) content and, as such, are seen by some investors as a «hedge» against inflation or stores of value. Gold has been used as money for many reasons. It is fungible, with a small difference between buying and selling prices. Gold is also easy to transport because it has a high value-to-weight ratio compared to other commodities such as silver. Gold can be recovered, divided into smaller units or melted into larger units such as gold bars without destroying its metallic value. The density of gold is higher than that of most other metals, making it difficult for counterfeits to survive. In addition, gold is chemically extremely unreactive: it does not tarnish or corrode over time. It is rarely advisable to exchange your legal tender coin for the amount indicated on the obverse. This can be considered an advantage to owning legal tender coins if the value of the precious metal falls below this face value, but it would take a major global event to achieve this.
In most cases, the face value of your legal tender coin is always significantly lower than the value of the metal it contains. Bullion coins sometimes have a face value as legal tender, which is minted on the coin. However, their real value is measured by their fine weight, the current market price of the precious metal contained, and the prevailing premium that the market wants to pay for those particular investment coins. The face value is always significantly lower than the gold value of the coin. In early 2016, it was announced that many commemorative coins produced by the Royal Mint, often with a face value equal to their cost, could not be exchanged because banks were instructed to reject them. Many nations mint investment coins. According to the British HM Revenue & Customs, bullion coins are generally coins minted after 1800, having a purity of at least 900 thousandths, or having legal tender in their country of origin. [7] Although these coins are nominally legal tender, the face value as money is much lower than the value of their gold bars. There are well-made counterfeit gold coins in circulation. For example, the fake Double Eagle Omega from Saint-Gaudens is known for its complexity[19] and has deceived many numismatic experts. While coins and currency have been around for thousands of years, the first coins only appeared in the 7th century BC. With the Roman Empire, and coins minted by the state gained importance.
Today, all major developed countries have a state currency, and some, like the United States, have multiple facilities where coins and currencies are produced. In both cases, these coins have the following characteristics: there are two types of legal tender coins classified as «bullion coins» and those classified as «commemorative coins». The former are much more common and include everything from the maple leaf (made by the Royal Canadian Mint) to the silver eagle (made by the U.S. Mint). Purchase all government-issued legal tender coins from Scottsdale Mint. George Milling-Stanley, chief gold strategist at State Street Global Advisors, told Kitco News host David Lin that moving to Arkansas or any other state makes a big difference in terms of using gold and silver coins as legal tender. South Africa introduced Krugerrand in 1967 to serve this market. That was the reason for its practical and memorable gold content – exactly one troy ounce. It was the first modern gold coin with a low premium (i.e. only slightly above the value of gold). Bullion coins are also produced in fractions of an ounce – typically half an ounce, a quarter ounce and a tenth of an ounce. Krongold is the name for .9167 (or 22 carat) fine gold used in American sovereigns and golden eagles.
Meanwhile, the United States has historically minted .900 fine gold coins. Most bullion coins are minted from .999 or finer gold. Demand for valuable government coins is high, and Scottsdale Mint is pleased to provide high-quality gold and silver coins from the U.S. Mint, Royal Mint, and Austrian Mint. As a mint in operation, Scottsdale Mint knows how to assess the quality and value of precious metal products, which is why so many investors and collectors trust Scottsdale Mint. Those interested in learning more about government coins available from Scottsdale Mint can contact our knowledgeable and friendly customer service team, who can also assist you with information on Scottsdale Mint`s full line of precious metal products. The reason for biting a coin was the allegedly widespread use of gold-plated lead coins in the 19th century. [17] Since lead is much softer than gold, biting coins is a useful test for counterfeiting.
[17] While fine gold is softer than alloy gold and galvanized lead is softer, biting coins can only detect the coarsest counterfeits. [17] And all «gold» coins minted for circulation in Britain and America since the Tudor period (1485-1603) contained copper, making them more durable and therefore difficult to bite. [17] In July 2002, a very rare $20 1933 Double Eagle gold coin was sold at Sotheby`s for a record value of $7,590,020, making it by far the most valuable coin ever sold to date (a 1794 Flowing Hair Dollar sold for over $10 million in January 2013). In early 1933, more than 445,000 Double Eagle coins were minted by the U.S. Mint, but most of them were returned and melted down under Executive Order 6102. Only a few pieces have survived. Collectors and investors can find current coins and coin sets available for purchase in state currencies – however, there is no guarantee that coins and sets currently in production will retain their value. Scottsdale Mint offers the latest gold and silver coins from the U.S. Mint, Royal Canadian Mint and Austrian Mint, as well as valuable coins from past years, giving investors the opportunity to expand their gold and silver coin collections at their discretion. Another example is the $20 gold coin («Double Eagle»), which has lettering around its edge. When the coin is not in circulation, the letters are flat at the top. If the coin is slightly rounded and is not put into circulation, it is a fake.
There are other false double-headed eagles where the alloy of gold and copper has not been thoroughly mixed. These fakes have a slightly speckled appearance. [20] Traditionally, until about the 1930s, gold coins were circulation coins, including bracts and dinars resembling coins. However, in recent decades, gold coins are mainly produced as investment coins for investors and as commemorative coins for collectors. Although modern gold coins are still legal tender, they are not taken into account in everyday financial transactions because the value of the metal usually exceeds the face value. For example, the American Gold Eagle has a value of $10 but a metal value of more than $800 (about half an ounce). Every year, the European Commission publishes a list of gold coins that must be treated as investment gold coins in all EU Member States. The list has the force of law and complements the law. In the UK, HM Revenue and Customs has added an additional list of gold coins to the European Commission`s list. These are gold coins recognized by HM Revenue & Customs as falling under the investment gold coin exemption.
This second list has no legal value. [7] «This cliché may have its origins in the crude testing method used by American prospectors during the 19th century gold rush. They were biting into gold nuggets and were sure they were not fool`s gold. [17] Counterfeit bullion coins (of all kinds) were rare and fairly easy to spot when comparing their weights, colors, and sizes to genuine coins. This is because the cost of accurately reproducing a particular piece may exceed the market value of the originals. [10] [11] [12] [13] However, since about 2015, counterfeit coins have been «flooding the market at an astonishing rate» and «it has reached the point where even people who constantly handle coins may not be able to immediately recognize a counterfeit coin» (American Numismatic Association (ANA), 2016). [14] The coins are mainly made of finely gold-plated tungsten, have the right weight, correct or almost correct dimensions, and are professionally produced in China. [14] [15] For most of history, coins have been valued based on the precious metal they contain.