When the private ownership of gold was outlawed in 1933, the Gold Reserve Act was passed in 1934 to transfer the seized gold to the US Treasury. The law also prohibited the Treasury and financial institutions from redeeming gold for dollars and halted the new production of gold coins.
The American Gold Eagle Coin is an official gold bullion series that is issued annually by the United States Mint. It was first released in 1986 as authorized under the Gold Bullion Coin Act of 1985.
The Act reconstituted gold and silver coins as legal tender and ordered the US Mint to create the coins from only newly mined domestic sourced metal.
The coins are minted from a 22k alloy that is historically referred to as “crown gold” which contains 91.67% pure gold. The remainder is a mix of copper and silver which provide added hardness to resist the wear and tear that can be caused by circulation.
Gold Eagle coins are available in four denominations. Each denomination has a nominal face value which is far below its intrinsic value.
| Gold Eagle Denomination | Face Value | AGW |
|---|---|---|
| 1 oz American Gold Eagle Coin | $50 | 1 troy ounce |
| 1/2 oz American Gold Eagle Coin | $25 | 1/2 troy ounce |
| 1/4 oz American Gold Eagle Coin | $10 | 1/4 troy ounce |
| 1/10 oz American Gold Eagle Coin | $5 | 1/10 troy ounce |
The American Gold Eagle is one of the two official US Mint gold coins, the other being the Gold Buffalo series which debuted in 2006.
Composed of 1 troy ounce in 22 karat gold form, Gold American Eagles include small amounts of silver and copper to provide the soft metal with some rigidity. That gives the coin with great wear-resistance against blemishes and scratches that are possible on pure gold coins.
The obverse of the coin features a modernized rendition of the Augustus Saint Gauden’s design that graced the $20 double eagle which was minted primarily for international trade from 1907 until 1933. The rendering shows Lady Liberty with long flowing hair. Her right arm is raised and holding her torch proudly, a symbol of enlightenment, shining a path to freedom and liberty. Her left is extended out to her side and holds an olive branch, a symbol of peace.
From 1986-1991, the year-dates were shown on the front of the coins using Roman numerals for dates. In 1992, a switch was made to using traditional Arabic numbers for year-dates.
From 1986 until 2001, the reverse design portrayed a male eagle holding an olive branch flying above a nesting female eagle and a baby eagle. This is sometimes referred to as the Type-1 design by coin collectors.
The reverse of the coin was updated with a new design in 2021. The Type-2 design was introduced partway through the year that shows just the head of an eagle with a piercing eye gazing forward.
Both the Type-1 and Type-2 reverse design include inscriptions for the weight, face value and the mottos commonly found on US currency, “In God We Trust” and the latin phrase “E Pluribus Unum” which means “Out of Many, One”.
American Gold Eagles are available in four weight denomination (1/10 oz, 1/4 oz, 1/2 oz, and 1 oz). Each is guaranteed for gold content and purity by the United States Government and carries the designation as legal tender currency.
The fractional denominations of the American Gold Eagles are identical in design to the 1 troy oz coin except for the markings that indicate weight and face value.
While Gold Eagle coins are legal tender in the United States at their face values, the true worth lies in the intrinsic value of the gold from which they are minted.
The US Mint also creates commemorative gold coins that highlight culturally significant people and events.
