Why You Should Invest in Gold Eagle Coins
By | May 25, 2017

Obverse and reverse faces of the 1 Ounce Gold American Eagle $50 BU - Random Date

1 Ounce Gold American Eagle $50 BU – Random Date

People buy gold coins for a number of reasons. They’re a hedge against inflation, they’re easy to store and use, and they’re beautiful. Among the most popular gold coins is the American Gold Eagle. Here are some reasons you should consider investing in them.

Gold Coins Are a Hedge Against Inflation

While inflation is relatively low today, it’s always there. Even at 2-3%, it compounds over time, eventually taking its toll on a nation’s currency. Gold, on the other hand, has held its value, making it a perfect way to protect against the devaluation of money.

For example, when the U.S. dollar was unpegged from gold, gold was priced at $35 per ounce and a dollar was worth 1/35th of an ounce. At today’s gold prices a dollar will buy about 1/1300 of an ounce, a 37-fold loss of value over the last 45 years.

Looked at another way, a fine men’s suit cost about $20 a hundred years ago, about the same as an ounce of gold. Today, that suit might cost $1,300, about the same price as an ounce of gold. The gold held its value; the dollar didn’t.

Gold Coins as a Long-Term Investment

Today’s dollar has lost 84 cents of buying power compared to its 1971 value. With compounding interest or rising stock and real estate prices, a dollar invested 45 years ago may have gained some of that loss back by now—it may have even beat inflation. Or it may have not. One thing is certain, over that same period of time, gold has maintained its value. That’s why many people look to gold as a good long-term investment.

Of course, gold prices can fluctuate in the short term, but short-term investing is speculative, which is a polite way to say gambling. On the other hand, long-term investors look for things that have a history of holding their value, and gold is one of the best. Plus, since 1997, you can hold gold coins in a retirement account.

Gold coins are also easy to handle, store, and spend should the need arise.

Gold Coins for Collections

Gold bullion coins are made for their metal value and are not generally sought by collectors. On the other hand, many gold coins are produced with added collectible value, both actual and personal. Some have both. For instance, along with the U.S., China and Australia have several gold coins of different designs, and people are willing to pay a premium to add them to their collections. Or they may collect them as mementos of travel or special occasions. Like art or antiques, prices for collectible coins are subject to market whims, but at least a gold coin’s bullion value will always be there, unlike a Beanie Baby the dog chewed up.

Bullion Coins

These are the coins preferred by most investors. Coins made by national mints and reputable dealers like Credit Suisse and Valcambi are certified to have a precise amount of gold content and are readily transferrable. Their value is strictly their gold content rather than their collectability.

The American Gold Eagle as an Investment Coin

American Gold Eagle coins are available as both bullion coins and collectibles. Collectible coins come with special packaging and documentation and carry the West Point Mint’s “W” mark. They’re sold by the U.S. Mint and coin dealers in either proof or uncirculated conditions.

American Gold Eagle bullion coins are sold through dealers only, are in uncirculated condition, and carry no mint mark.

The design on both collectible and bullion Gold Eagles is identical, other than the mint mark. The face has the iconically beautiful Auguste Saint-Gaudens depiction of Lady Liberty striding confidently forward over a rocky outcropping with a torch of enlightenment in one hand and an olive branch in the other. The reverse shows a male eagle returning to his nest carrying an olive branch to his waiting mate and hatchlings. It’s widely acknowledged as one of the most beautiful coins ever made.

The Great American Coin Company® is pleased to offer American Gold Eagle bullion coins in 1, 1/2, 1/4, and 1/10 ounce sizes. The coins are in brilliant uncirculated condition and are offered in our choice of random dates. Demand for these beautiful coins is high, so shop now while the selection is good!

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