American Eagle Gold Coin Price Guide
How American Gold Eagles Differ from Currency
Beginners should learn just a few basics before investing in gold coins. American Gold Eagles can be used as legal tender but it is not the true intention of these valuable coins. They differ from everyday currency because they are made of 22 karat gold. This makes American Gold Eagles more valuable than the average coin made of silver, copper and other alloys.
A Bit about the Gold Standard
Generations ago the gold standard referred to fixing the Price of currency based on a specified weight of gold. In 1900, the Gold Standard Act was passed. In 1933, Former President Franklin D. Roosevelt ended the gold standard by outlawing private gold ownership at that time.
Then Paper Currency Came Into the Picture
A form of the gold standard returned in 1946 with the enactment of the Bretton Woods System. Exchange rates were fixed for governments to sell gold to the U.S. treasury for $35 per ounce. The final blow to gold-backed currency happened in 1971 when this system ended. Now paper money is used as a medium of exchange. This system is referred to as fiat money. American Gold Eagles are more than legal tender because they contain actual gold measured in troy ounces.
The True Value of American Gold Eagles
The face value of American Gold Eagles relates back to the weight of the coin. For example, the popular 1 ounce denomination has a face value of $50. Current rates for buying and selling 1 ounce of gold exceed that amount many times over. It would certainly be unwise to use gold coins to pay for bread and milk at the grocery store. These coveted coins are also available in ½ ounce, ¼ ounce and 1/10 ounce with face values of $25, $10 and $5 respectively.
What Is a Troy Ounce?
A troy ounce is the unit of imperial measure used to weigh precious metals such as gold and silver. One troy ounce is defined as approximately 31.1 g. The troy weights system is an indirect derivative of the Roman monetary system. American Gold Eagles are backed by the U.S. mint for content and weight. This makes them a sure investment with no speculation involved.
The Unpredictable Dollar
The value of a dollar is unpredictable, especially in the current market. Stocks can also be quite volatile and treasury bonds have very low returns. For centuries, gold has been the supreme methods of wealth preservation. Today American Gold Eagles are a patriotic representation of financial security. People buy them for investment and collectible purposes. Either way, their value is likely to remain strong over time.
