gold coins

Gold Coins
A gold coin is a coin made mostly or entirely of gold. Gold has been used for coins practically since the invention of coinage, originally because of gold's intrinsic value. In modern times, most gold coins are intended either to be sold to collectors, or to be used as bullion coins — coins whose nominal value is irrelevant and which serve primarily as a method of investing in gold.

History

The first gold coins in history were coined by Egyptian Pharaohs around 2,700 BC. These gold coins, of variable purity, were used primarily as gifts and not for commerce. Several centuries later, King Croesus, the fabulously rich ruler of Lydia (560–546 BC), began issuing gold coins, with a standardised purity, for general circulation. King Croesus' gold coins follow the first silver coins that were minted by King Pheidon of Argos around 700 BC. The Ying Yuan was another gold coin minted during this time by the Chinese in the 6th or 5th century BC. Larger units of monetary value and exchange such as the talent were the ancient equivalents of the modern 400-troy-ounce "good delivery" gold bullion bar.

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, as countries switched from the gold standard due to hoarding during the worldwide economic crisis of the Great Depression. In the United States, 1933's Executive Order 6102 forbade the hoarding of gold and was followed by a devaluation of the dollar relative to gold, although the United States did not completely uncouple the dollar from the value of gold until 1971

Gold-colored coins have made a comeback in many currencies. However, "gold coin" (in numismatic terminology) always refers to a coin that is (more or less) made of (real) gold, and does not include coins made of manganese brass or other alloys. 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.

Collector 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 Royal 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 Philharmonic 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.