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Buying Gold Coins for pleasure and profit?
Gold coins are one of the oldest forms of money. The
first gold coins in history were coined by the Lydian king Croesus
in about 560 BC, not long after the first silver coins were minted
by king Pheidon of Argos in about 700 BC.
Another ancient one is Chinese 6th or 5th BC Ying Yuan.
Gold coins then had a very long period as a primary form of money,
only falling into disuse in the early 20th century. Most of the
world stopped making gold coins as currency by 1933, following
Executive Order 6102.
However,
gold-coloured coins (not made of real gold) have made a comeback in
many currencies. Furthermore, many countries continue to make legal
tender gold coins, but these are primarily meant for collectors and
investment purposes and are not meant for circulation.
 Collectable Coins
Many factors determine the value of a gold coin, such as its rarity,
age, condition and the number originally minted. Gold coins coveted
by collectors include the Aureus, Solidus and Spur Ryal.
In July 2002, a very rare $20 1933 Double Eagle gold coin sold for a
record $7,590,020 at Sotheby's, making it by far the most valuable
coin ever sold to date. In early 1933, more than 445,000 Double
Eagle coins had been struck by the U.S. Mint, but most of these were
surrendered and melted down following Executive Order 6102. Only a
few coins managed to survive.
In 2007 the Canadian Mint produced a 100 kg gold coin with a face
value of $1,000,000, though the gold content was worth over $2
million at the time. It measures 50 cm in diameter and is 3 cm
thick. It was intended as a one-off to
 promote a new line of
Canadian Gold Maple Leaf coins, but after several interested buyers
came forward the mint announced it would manufacture them as ordered
and sell them for between $2.5 million and $3 million. As of May 3
2007 there were five confirmed orders. Austria had previously
produced a 37 cm diameter 31 kg gold coin with a face value of
€100,000.
 In October 4, 2007, David Albanese (president of Albanese Rare
Coins) stated that a $10 - 1804-dated Eagle coin (made for President
Andrew Jackson as a diplomatic gift) was sold to an anonymous
private collector for $5 million.
Bullion Coins
While obsolete gold coins are primarily collected for their
numismatic value, gold bullion coins today derive their value from
the metal (gold) content - and as such are viewed by some investors
as a "hedge" against inflation or a store of value. South Africa
introduced the Krugerrand in 1967 to cater to this market; this was
the reason for its convenient and memorable gold content—exactly one
troy ounce. It was the first modern, low premium (i.e. priced only
slightly above the bullion value of the gold) bullion gold coin.
 Bullion coins are also produced in fractions of an
ounce – typically half ounce, quarter ounce, and one-tenth ounce.
Bullion coins do not carry a meaningful face value, as their value
is mainly dictated by their troy weight and the current market price
of the precious metal. (If a face value is minted on the coin, it is
done for legal or other reasons and it is nearly always
significantly less than the actual value of the coin.) Gold has an
international currency code of XAU under ISO 4217.
Gold bullion coins usually come in 1 oz, 1/2 oz, 1/4 oz, 1/10 and
1/20 oz. sizes. Most countries have one design that remains constant
each year; others have variations each year, and in most cases each
coin is dated. A 1/10th oz bullion coin is about the same size as a
U.S. dime. A 1 oz. gold bullion coin is about the size of a U.S.
half dollar.
PLEASE SEEK
PROFESSIONAL ADVICE BEFORE YOU BUY OR SELL GOLD, SILVER & COINS.
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