Guide to American Eagle Gold Coins
Gold is often the most sought-after precious metal in the world, and bullion investors can buy gold bullion in either bars or coins. We have written several blog posts explaining the pros and cons of gold bars and gold coins, so we’d like to focus in on a more specific topic: the American Eagle gold coin. As one of the World’s most popular coins from the most traded currency (the USD$), the American Eagle is definitely worth its own dedicated blog post. In this guide, we’re going to look at the U.S. Mint, its history, design, denominations, and value. And we will also look at the ins and outs of investing in American Eagle gold coins compared to other kinds of bullion investment. If this article inspires you to invest in your first American Eagle, then check out our American Eagle gold coins today.
The U.S. Mint
Just as with the United Kingdom’s Royal Mint and Canada’s Canadian Royal Mint, the U.S. Mint is the official coinage manufacturer for the USA. It is responsible for making all of the county’s coins, including its currency denominations: quarters, pennies, dimes, etc. as well as its gold, silver, platinum, and palladium coins. The U.S. Mint also designs coins to celebrate and commemorate important events in America’s history and important American people.
The U.S. Mint was established in 1792, when the United States Congress passed The Coinage Act. The Mint building was then constructed in Philadelphia, which was the capital city at the time. The official US Mint building in Philadelphia was the first ever federal building. Today, the U.S. Mint operates out of six different locations throughout the USA.
The History of the American Eagle Gold Coin
Although the U.S. Mint has been around since 1792, the world-famous American Eagle gold bullion coin was first minted in 1986. It was authorised by the U.S. Congress the previous year. Like the South African Krugerrand, the British Britannia, and the Chinese Panda, American Eagle gold coins have an official currency denomination, which we’ll go into more detail later.
The Design of the American Eagle
The 2016 American Eagle Gold Coin
The obverse of the very first American Eagle gold coin was based on the Saint-Gaudens design that was used in the $20 Double Eagle gold coin in 1907. This design features the statue of liberty, the date, and the word ‘Liberty along the top.
Image of the obverse and reverse sides of the 1907 $20 Double Eagle
The reverse of the 1986 American Eagle deviated from the Saint-Gaudens image of the single eagle, instead depicting a family of eagles along with the words ‘UNITED STATES OF AMERICA’ along the top, the coin’s weight in troy ounces along the bottom, along with its currency denomination. It also features the phrase ‘IN GOD WE TRUST’. The American Eagle gold coin is widely regarded as one of the most exquisitely designed coins in the world, and many numismatic coins collectors covet them.
American Eagle Gold Coin Denominations and Value
As we stated earlier, American Eagle gold coins have a currency denomination that has been assigned based on their different weights. No matter the currency denomination assigned to the coin, however, its weight in gold will always be worth significantly more. The various American Eagle gold coins have the following denominations:
Tenth Ounce (0.100 oz) = $5
Quarter Ounce (0.250 oz) = $10
Half Ounce (0.500 oz) = $25
One Ounce (1 oz) = $50
However, as we stated earlier, the value of each American Eagle gold coin is worth considerably more than their assigned denomination. A half-ounce American Eagle according to today’s gold price, for example, is available here at London Gold Bullion for £579.13, which is equivalent to $733.53. A one ounce American Eagle based on today’s gold price is available here at LGB for £1,033.59, which is equivalent to $ 1309.15. The big advantage of gold coins’ status as currency is that the UK’s HMRC won’t charge you any capital gains tax for income made from selling American Eagle gold coins, or any other coin that counts as official currency. It’s this feature that often attracts bullion investors to gold coins instead of gold bars.
Investing in American Eagle Gold Coins
As we stated above, American Eagle gold coins are particularly attractive to UK investors because, along with all other sovereign coins that are backed by different countries’ governments, they are exempt from capital gains tax in the UK.
Additionally, is so much more expensive than silver coins in relation to its weight, which means that you don’t need as much space with which to store it. For example, the average 1oz silver coin according to today’s silver price is available from our silver bullion coins collection for around £23. The average 1oz American Eagle gold coin according to today’s gold price is worth approximately £1,033. This means that you will need to buy 44.9 times as many silver coins as gold coins to make an equivalent investment. Safe storage space can prove problematic to some investors; in this instance, gold coins are a much better investment, as they are far more valuable in relation to their weight, meaning you don’t have to buy as many.
Another advantage of investing in American Eagle gold coins over other kinds of bullion is that they are so well regulated that it is much rarer to find a fake. Also, as their design is so intricate, fraudsters often avoid them altogether. Another advantage of American Eagle gold coins is that they are very easy to sell, as they are recognised the world over and you will never struggle to find a buyer for them.