The American Gold Eagle
The US Mint started to produce the American Gold Eagle in 1986 after it was authorized under the Gold Bullion Coin Act of 1985. It immediately became the most popular gold coin in the country, overtaking the Canadian Gold Maple Leaf. The obverse design of the Gold eagle is taken from Augustus Saint Gaudens' original $20 gold piece used from 1907 - 1933 with Lady Liberty holding a torch and walking toward the viewer.
The reverse shows a male eagle with a female eagle and her hatchlings below in their nest, designed by Miley Frances Busiek. The gold eagle is stamped with its face value and fine weight. It is made in 1/10, ¼, ½, and 1 oz weights, corresponding to a face value of $5, $10, $25, and $50, which is well below the value of the gold American eagle coin in terms of the value. The value of the coin is not tied to its face value but is tied to the underlying content of gold and value of gold, which fluctuates constantly during market hours. It is one of only two popular modern gold coins that is made of a 22 karat gold alloy, comprising of 91.67% gold, 3.00% silver, and 5.33% copper.
This alloy makes these coins more durable and scratch-resistant. As such, these coins actually weigh more than one troy ounce given the added copper and silver to the gold coin. The American golden Eagle coin remains the most popular bullion coin in the United States.
What is an American Eagle coin worth?
The price of American Eagle gold coin, contrary to the face value on the coins, is dependent on the gold content. This is mainly based on the size of any given American eagle. The most popular is the one-ounce golden American eagle. This is by far the most bought and sold American gold coin, and it is one of the top three most purchased gold coins at Pacific Precious Metals.
The amount of gold is stamped on the reverse or back of the coin. However, a common misconception is that the weight stamp: 1oz 1/2oz 1/4oz or 1/10oz is the weight of the coin when actually it is the weight of pure gold content. The weight of the gold eagle is higher than the stamped amount because of the added silver and copper to make the American eagle a 22 karat gold coin. These three metals combined, make this coin much more durable than it would be if it made of pure gold.
Design of the American Eagle coins
The design of American Gold Eagles stays very true to most other American mint coins. One side features the iconic Liberty Lady and on the other a Bald eagle, the national bird, with its wings abroad above a nest with bald eagle hatchlings. On the Liberty side, you can find the year that the specific Gold Eagle was created, as well as the mintmark; this shows the location of the mint that the specific American Gold eagle was produced and on the left-hand side is a miniaturized capitol building.
The 46 stars can be found bordering the Liberty side - this is another very American element derived from the flag of the United States of America during the time period in which the Gold eagle's design was created. On the obverse side, Lady Liberty can also be found holding a torch and an olive branch. The torch symbolizes leading our nation into a brighter future and the olive branch symbolizes peace.
This is only part of the Reason why American gold eagle coins are so popular. The design of the eagle side of the American eagle coins was created by Miley Frances Busiek, and the Liberty Lady side was created by Saint Gaudens, commissioned by President Theodore Roosevelt.
Augustus Saint Gaudens was an Irish artist well known for his sculptures of President Abraham Lincoln and he was commissioned by President Roosevelt to design the obverse side of the well known American gold eagle coin. All American gold coins from the US Mint are made from metals sourced in the United States.
What are American gold eagles made of?
22 karat gold is mostly used during the creation of the American eagle coins. The term "twenty-two karat" means that 91.67% of the coin is pure gold, and the rest consists of silver and copper in very minute amounts. What really differentiates American Eagles is that they are the only bullion coins whose weight, content and purity are guaranteed by the United States Government. Investors can buy them with 100% certainty, that the coins contain their stated amount of gold.
Trading gold is also much more reliable than trading stocks as the price can move independently outside the stock market. It is said to hold value much more reliably since all of the gold mined ever can fit into a 22 by 22 yards cube.
As well as regular mint coins, they also come as proof coins which can hold additional value.
History of the Gold Eagle
The gold eagle coins were first introduced by the United States Mint in 1986 in response to the creation of the South African Krugerrand and came in 4 sizes in the series: 1 oz, 1/2oz, 1/4oz, and 1/10oz. Before the Gold Eagles came around, the South African Krugerrand was the most popular bullion coin bought and sold. This changed when in 1985, the purchase of Krugerrands became illegal.
This created an opportunity for the American Mint to produce a new coin and grab the market. During the Eagle's initial year the Mint only used 1 troy oz proofs for Gold eagles. The design on the gold eagle coins hasn't changed much since except for the Roman numerals being switched into Arabic numerals in 1922. The American Gold Eagle coins are also scheduled to be re-designed in 2021 to include anti-counterfeiting measures.
As a result of the Gold Bullion Coin Act of 1985, The United States Mint is legally required to only use American gold, meaning gold that is produced in the United States of America. The United States mint is also required to produce Gold eagle coins to meet demand among all investors.
Initially, the 1 oz gold eagles were the most popular, and the United States mint made gold eagle coins in the 1 oz variation in the highest quantity but in 2006, the demand shifted and the United States Mint started producing more one-tenth ounce American gold eagles than one-ounce American gold eagles. Since its initial release in 1986, the gold eagle coins have been sold in higher numbers than any other gold bullion coin in the US.
Why the American Gold Eagle is so popular?
An important measure of any investment is its liquidity: How easy is it to resell? United States Government backing means that like the dollar, these gold eagle coins are accepted in major investment markets worldwide. They are also the most widely traded bullion coins in America so there is a giant platform from which to invest.
An American Eagle’s value is based on the market value of gold, and the amount of gold metal content, plus a small premium to cover coinage and distribution costs as well as the rarity of the coin, proof grade, etc. Typically, rarity is not associated as a value point when accessing the eagle coin. It is valued for the metals of the coin only, and most evaluators ignore the value of anything other than the gold.
Things to note when buying gold
Possibly the most important terms when it comes to buying gold are premium and spread. Premium is the cost to produce and distribute gold. It is the price above the spot cost of gold you pay. Pacific Precious Metals tries to have some of the tightest spreads in the industry. When you pay a certain amount over spot for a coin, that amount is being split between 3 sides - the manufacturer/refiner, the distributor, and the retailer, and the manufacturer ends up with the majority.
Spread is the second important term you should be familiar with when buying gold bullion coins and bars. It represents the difference between the buy and sell price. Always try to buy gold coins or gold bars that have narrow spread.
It's good business always to minimize both the gold spot price and the spread.
Where to Buy American Gold Eagle coins?
The answer to the question is simple: Pacific Precious Metals. Now we fully realize that we are not the only gold dealer in the United States, and there are many other precious metals dealers that are reputable and honest as well. However, for anyone looking to buy gold in the San Francisco Bay Area, we provide the best option. In addition, we can ship anywhere in the United States and our shipments are fully insured until you sign for the package.
Our business model is predicated on the fact that if you want to buy gold and you can buy it locally for less than a big online, lifeless, inflexible only dealer, why would you go anywhere else?
Buying gold isn't like buying a set of headphones. Its thousands of dollars and you want to make sure that if you are buying precious coins that they are real. We test the gold coins you buy right in front of you with a variety of non-destructive tests.
Invest in Gold Eagle
History tells us that the value of gold will endure and we generally recommend that individuals interested in buying gold as an investment should buy the most commonly traded coins in the world. This includes the Gold American Eagle coins and the Gold American Buffalo coins.
For those that are not interested in the collecting aspect of coins and solely interested in bullion coins, it's important to think about the premium and spread for any coin.
If you want the best deal on American Eagle in the San Francisco Bay area, Pacific Precious Metals is the place to go!
We're located in Sausalito, Fremont, Palo Alto and Walnut Creek - and ready to answer all of your questions or concerns regarding American Eagle!
Visit our Top Items page and peruse the variety of gold coins. Then add them to your cart and checkout. We are looking forward to having you as a long time customer!
Pacific Precious Metals offers a variety of American Eagle Gold Coins that you can get both online and in-person
If you're in the San Francisco Bay Area, don't hesitate to visit us and get the best offer today!
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