Commodity Futures Trader

The first coins ever produced were made during 6th millennium BC in Lydia, what is now western Turkey out of electrum, which is an alloy of silver and gold and could be found in the rivers in the area. The introduction of these coins is attributed to King Croesus. They were similar to coins produced today; one side had the face of a bull or lion and the other side bore a punch mark or seal. They were an important part of trade during those times and continue to be widely used in both trade and business today. Although the coins have changed, these metals still have many of the same uses they did in ancient civilizations.

The use of gold coins waned in popularity during the Great Depression in the United States in 1933 when Franklin D. Roosevelt signed an order forbidding Americans to hoard any kind of gold. In fact, they were required to turn all but five ounces of their gold in to the Federal Reserve for a low exchange rate. It was at this time the government completely took over the gold standard to try and repair the national wealth. Since America was a leader in gold coin trading all over the world, this put an end to the global coinage era. However, the limitation was repealed by Gerald Ford in 1974 and the use of gold quickly regained popularity and many enthusiasts when the country bounced back from the horrible recession.

These days, coins are collected by historians and coin enthusiasts and are used for investing in gold; these types of coins that are kept as a store of value are called bullion coins. Gold is good for exchanging value because it is easily broken down into small portions without changing the nominal value. Most people would rather have gold coins instead of silver because they weigh less but are worth more, making them easy to transport, and gold doesn’t decay as fast as other metals. Gold is more difficult to counterfeit because of its high density. Gold is also scarce, giving it a high value and making investing in gold very profitable.

The following coins are produced in various countries and traded all over the world: American Eagles, Chinese Pandas, South African Krugerrands, Canadian Maple Leafs, and Australian and UK Gold sovereigns. The Canadian Maple Leaf is produced by the Royal Canadian Mint and is the official gold coin of Canada. With a gold content of .9999%, it is one of the purest gold coins in circulation in the entire world. This means it contains no other base metals at all, only real gold from Canada. This coin was first introduced in 1979, and since then the Royal Canadian Mint have also produced the Maple Leaf coin in silver, platinum, palladium, and bimetallic.

The American Eagle gold coin comes in four different sizes (1/10 oz, oz, oz, and 1 oz) with the price varying according to the size and are made of 22 karat or 91.67% of fine gold. They were first authorized by the United States Congress in 1985, first minted in 1986, and come in a proof or bullion coin, both known to be sound investments because of their high content of gold and guaranteed quality. The American Eagle gold coin is also available in both silver and platinum. All three are leading bullion coin investments.

The American mint introduced the first American Buffalo gold coins in 1913. They became known as simply the “gold buffalo.” Shortly after that, the United States government publicly guaranteed the quality and purity of these coins, making them the safest kind of risk free trade available on the market. They are available from a chain of authorized purchasers. The American Buffalo gold coins were designed by the widely known American sculptor James Earle Fraser; they portray a Native American Chief on the front and a buffalo on the back. Also seen on the back side of the coin is the denomination and gold content of the coin and the coin’s weight in an inscription.

Nowadays gold coins are seen to be a very profitable investment because their value remains high, and because the national wealth of nearly all of the countries and civilizations in the world is measured by their total amount of gold. This also means that gold can be bought, sold, and traded all over the world without having to worry about currency exchange making it extremely profitable all over the world. If you are looking to capitalize on a price movement, gold bullion coins are the way to go. There is no timing when buying gold coins and building a portfolio like there is with the stock market, just buy one coin at a time whenever you feel that you are ready.

Many people worry about risk when investing, but luckily the risk is minimized when investing in gold because it is a standalone investment and the value varies inversely to the stock market. After all, gold will always be in demand, and therefore it will always give good returns. It can even be owned, sold, and transferred without documentation. Once you build up your portfolio, you can either hold on to your gold coins, or you can sell them at the current market rate if you are ever in need of money. The bottom line concerning gold: it is a sound investment practice with minimal risk involved that is popular the world over, just as it has been for thousands of years.

Want to find out more about gold coins? Take a look at GoldCoinCollection.net for more information and sources to buy valuable and rare coins easily.

Tweet This Post