Learning About Precious Metals Archives

The U.S. Mint’s responsibility for issuing investment-grade bullion coins began with the passage of the Gold Bullion Coin Act of 1985, which led to the production and release of the American Eagle series in 1986. These coins are designed to provide a trusted store of value and wealth for investors.

Today, the Gold Eagle and Gold Buffalo are the two gold bullion coins produced by the U.S. Mint. While both coins are esteemed for their purity and craftsmanship, they have distinct features that appeal to different types of investors and collectors.

American Gold Eagle

The American Gold Eagle was established by the Gold Bullion Coin Act of 1985 to provide a trusted investment vehicle for precious metals. The first Gold Eagle was released in 1986.

The 1 oz Gold Eagle coin contains one full troy ounce of gold. The coin itself is minted with 22k, or 91.67% gold, with the remainder comprised of a mix of silver and copper. The alloyed composition makes it more resistant to scratches and dents, ideal for handling and storage.

The obverse design features Lady Liberty holding a torch and olive branch. The design was created by Augustus Saint-Gaudens and was originally used on the $20 Saint-Gaudens Double Eagle from 1907 until 1933.

The reverse of design of coins minted until the middle of 2001 depicts a family of eagles that was designed by Miley Busiek.

Partway through the 2001 mintage year, a new design featuring the head of a bald eagle that was created by designer Jennie Norris.

Gold Eagle Premiums and Liquidity

The longer history and extensive production have made it a staple in the bullion market with investors.

When buying, Gold Eagles typically carry a lower premium over the spot price of gold compared to the Gold Buffalo due to its 22k composition and wider availability.

The Gold Eagle is a highly recognized and traded globally, making it a very liquid asset. When selling, dealers will often offer a small premium over spot price during normal market conditions.

Approved for inclusion in Precious Metals IRAs.

American Gold Buffalo

The American Gold Buffalo was authorized by the Presidential $1 Coin Act of 2005 with the first issue available in 2006.

Although newer, it quickly gained popularity with investors seeking the highest quality 24k gold.

The overall design is based on the 1913 Buffalo Nickel, designed by James Earle Fraser. The obverse features a profile of a Native American chief.

While the reverse features a depiction of an American bison, also designed by Fraser.

Gold Buffalo Premiums and Liquidity

When buying a Gold Buffalo coin, it is common to find that these carry a higher premium over the spot price of gold due to its pure gold content, collectible design and lower annual mintages.

These coins are also highly recognized and traded in the secondary bullion markets, though slightly less liquid than the Gold Eagle due to its newer introduction. When selling to a bullion dealer or coin store, it is common to receive an offer that is priced slightly above melt value under normal market conditions.

Approved for inclusion in Precious Metals IRAs.

.999 vs .9999 fine

Both the American Gold Eagle and the American Gold Buffalo are excellent choices for gold investors and collectors, each with unique attributes.

Aside from the design, the primary difference between the coins is the difference in the purity of the gold.

The Gold Eagle, with its historical design and durable composition, is ideal for those seeking a robust and widely recognized investment.

While each contain a full 1 troy ounce of fine gold, due to the inclusion of the copper and silver, the American Eagle is 22k gold, or 91.67% with an overall weight of 1.0909 troy ounces.

The Gold Buffalo was created due to investor demand for 24k gold coins, such as the Canadian Maple Leaf or the British Britannia, and appeals to purists and collectors who value its 24k gold purity and classic American design.

Availability

The US Mint manufacturers bullion coins based on monthly sales demand. This just in time, mint on demand model, has become common in government minting operations as a way to keep manufacturing costs low.

The American Gold Eagle is more popular with investors due great awareness because of its long mintage history. Monthly sales figures show that more investors buy American Gold Eagle coins, with an average of 18,000 coins for the 1 oz denomination, with even larger amounts in some of the fractional sizes such as the 1/10 oz and 1/4 oz coins.

Monthly sales figures for the American Gold Buffalo average around 14,500 coins.

Both of these coins are backed by the US Mint. Current year coins are readily available from online bullion dealers and coin stores throughout the country. It is important to note that when shopping for gold coins, the dealer premiums on current year coins are typically higher than those in the secondary market, due to premium increases from the US Mint.

Ultimately, the choice between the two depends on individual preferences regarding purity, design, and investment goals. Whether you prefer the historical significance and durability of the Gold Eagle or the pure, high-quality gold of the Gold Buffalo, both coins represent a valuable addition to any investment portfolio.

The kilogram is used worldwide to measure everyday items such as food, body weight, as well as commodities like silver and gold.

The definition of a kilogram is part of the International System of Units (SI), which is widely used globally in science, industry, and everyday life.

In precious metals, a kilogram bar is a common unit used by both investors and large institutions like central banks.

Scientific Definition of a Kilogram

Scientifically, the kilogram is defined by taking the fixed numerical value of the Planck constant ℎ as 6.62607015×10−346.62607015 × 10^{-34}6.62607015×10−34 joule seconds (J·s), with the meter and the second being defined in terms of the speed of light and the cesium frequency, respectively. This definition links the kilogram to fundamental physical constants, ensuring long-term stability and precision.

In scientific research and various industries, the kilogram is crucial for precise measurements is widely used in calibrations and standards for manufacturing processes, pharmaceuticals, and materials science.

History of the Kilogram

The history of the kilogram is deeply rooted in the development of the metric system during the French Revolution and has evolved significantly over time.

Origins of the Kilogram

The kilogram was first defined in 1795 as the mass of one liter (10^-3 cubic meters) of water at the freezing point. This was part of the metric system developed during the French Revolution in order to create a uniform system of measurements based on natural constants.

In 1799, the definition was refined, and a platinum artifact known as the “Kilogramme des Archives” was created as a unit of mass and became the basis for the kilogram until the late 19th century.

The International Prototype Kilogram (IPK)

The General Conference on Weights and Measures (CGPM) established the International Prototype Kilogram (IPK) in 1889, made of a platinum-iridium alloy. This artifact was stored at the International Bureau of Weights and Measures (BIPM) in Sèvres, France.

By BIPM – https://www.nist.gov/si-redefinition/kilogram, CC BY-SA 3.0 igo, Link

The IPK was the primary standard for the kilogram for over a century, with numerous copies made and distributed to various countries for calibration purposes.

Issues with the IPK and Re-definition Efforts

Over time, it became apparent that the mass of the IPK and its copies could change due to surface contamination or material degradation, leading to inconsistencies.

This prompted the scientific community to seek a more stable and precise definition based on fundamental constants of nature.

Current Kilogram Definition

On May 20, 2019, the kilogram was redefined based on the Planck constant (h), a fundamental constant of nature. This marked a significant shift from using a physical object, to a definition based on a fundamental property of physics.

The new definition uses the fixed numerical value of the Planck constant, h=6.62607015×10−34Jsh = 6.62607015 \times 10^{-34} \text{Js}h=6.62607015×10−34Js, along with definitions of the meter and the second, to establish the kilogram. This approach ensures long-term stability and precision.

This redefinition also aligns with the broader goal of basing all SI units on fundamental constants rather than physical artifacts.

Summary

The kilogram’s history reflects the evolution of metrology from practical measurements to highly precise and stable definitions based on the fundamental constants of nature. The shift from the IPK to a constant-based definition represents a major milestone in scientific measurement, ensuring greater accuracy and consistency in scientific research and industry.

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Category: Learning About Precious Metals

Comparing the American Gold Eagle vs American Gold Buffalo