The spot price of gold rocketed past $2,400 per ounce in Asia this morning, topping out at $2,429.70 before the tamp down by the Wall Street after the New York opening bell. By afternoon, the price had settled down to around $2,342, $87 lower.
While consumers in China have been buying up small gold beans, the People’s Bank of China (PBOC), the country’s central bank, has been buying vast quantities of gold over the last couple of years while simultaneously dumping US Treasury Bonds and dollars.
Even though gold prices continue to trend upwards, consumers demand for gold in the United States keeps getting stronger.
An analyst from Wells Fargo estimates that Costco is likely selling between $100 to $200 million worth of gold each month. Based on the typical premiums that Costco prices their gold products, that’s somewhere in the range of 43,500 to 86,000 troy ounces per month.
By comparison, APMEX, one of the largest online bullion dealers has annual sales of around $2.4 billion, which is also around $200 million per month. A-Mark, one of the largest precious metals wholesalers, which owns JM Bullion, Provident Metals, BGASC and others, reported $9.3 billion in sales in its 2023 annual report.
Some industry analysts have speculated that China has taken over control of the gold price since the middle of 2022. In 2023, the PBOC bought roughly 735 tonnes of gold, a 23% increase over the record breaking buying of 597 tonnes in 2022.
Costco has limited their precious metals products to mostly 1 troy ounce coins and bars. With prices continuing to test record highs almost weekly, a more affordable investment option that many investors turn to is fractional gold bars and coins.
The US Mint issues the American Eagle Gold coin in three fractional denominations of 1/2 oz, 1/4 oz and 1/10 oz. Each of these fractional Gold Eagles shares the same design, purity, recognition and trust as the 1 oz coin, but are minted in smaller denominations that are more accessible to a wider range of investors.
These coins are minted in mass quantities by the Mint and are extremely liquid with an expansive amount of bullion dealers and others paying cash for gold.
Fractional gold bars are available in many different increments. With available sizes as small as 1/2 gram. However, the premiums for the smallest sizes can be relatively high. While denominations containing 5 grams or 10 grams of gold per bar can offer significantly lower premiums.
Fractional gold coins are one of the easiest and most affordable ways to buy gold coins. However, fractional gold coin premiums can seem extremely high relative to their full troy ounce counterparts.
When considering an investment in gold coins it is important to consider the premiums that you will pay over the gold spot price. For many investors it is more reasonable and affordable to purchase fractional gold coins more often rather than saving up to purchase larger gold coins.
The 1/10th oz American Gold Eagle coin is an excellent investment choice. However, dealer premiums on the 1/10 oz American Gold Eagle can often exceed 10-15%, sometimes even higher. Comparing premiums with the 1 oz Gold Eagle which you can often find with a much lower premium of 1% to 2% over gold spot price.
Fractional gold coins have been circulated as currency for hundreds of years. As a result there are many different vintage fractional gold coins available that carry a lower premium than their modern equivalents.
Latin Monetary Union Gold Coins
The Latin Monetary Union (LMU) was an early attempt at unifying Europe under a single currency standard during the early 19th century. LMU coins were developed around the French Franc standard under Napoleon I beginning around 1803. The most common gold coin of the time was the 20 Francs Gold Coin.
20 Francs Gold Coins
The 20 Francs Gold Coin is one of the most popular fractional gold bullion coins that you can buy at a low premium.
Each 20 Francs Gold Coin contains 6.45161 grams of .900 fine gold struck on a 21mm planchet. The 20 Francs Gold coin contains .1867 troy ounces of gold. The diameter of the coin is similar to that of a US Nickel coin.
20 Francs Napoleon III
The most common 20 Francs Gold coins were minted in France during the 19th century. They come with a variety of designs that feature portraits of various rulers of France. Popular designs of French 20 Francs Coins include Napoleon I, Louis XVIII, Napoleon III, “Lucky Angel” and the Rooster.
Throughout the time of the Latin Monetary Union (LMU), 20 Francs gold coins were minted and circulated in a number of different countries throughout Europe and other parts of the world. Other common variations of the 20 Francs Gold Coin include the Swiss Helvetia/Vreneli 20 Francs from Switzerland, 20 Lire Gold Coins from Italy, Belgian 20 Francs and many others.
10 Francs Coins
The 10 Francs Gold Coin contains half the amount of gold as the 20 Franc, 3.2258 grams of .900 fine gold. The 10 Francs Gold Coin contains .0933 troy ounces of gold, which is slightly less than 1/10th troy ounce.
When looking for vintage counterparts to modern American gold bullion, the 10 Francs Gold coin is comparable to the 1/10th oz American Gold Eagle.
The premiums on 10 Francs Gold Coins are typically around 12% over the melt value.
5 Francs Gold Coins
The smallest of the LMU Franc Gold Standard coins is the 5 Francs Gold coin. Each 5 Francs Gold coin contains 0.04714 troy ounce or 1.6290 grams of gold produced on a 16.7 mm planchet.
Less Common Gold Francs Coins
There are larger denominations of the gold Franc standard available, including both the 40 Francs Gold Coin and the 100 Francs Gold Coin. However, those larger denomination gold coins have become less common and can demand a higher premium due to their collectability and numismatic value.
European Fractional Gold Coins
1 Ducat Coins
The Gold Ducat was used as a trade coin in various parts of Europe during the late middle ages into the early 20th Century. Gold Ducat coins were minted using .986 fine gold, which is particularly high for a circulating gold coin.
Austria 1 Ducat Gold coin
Popular versions of the Gold Ducat were produced in Austria, Hungary and the Netherlands. Each 1 Ducat Gold Coin contains .1106 troy ounce of gold, slightly more than 1/10th oz.
Premiums on 1 Ducat Gold Coins are generally around 5% over their melt value. Their high gold purity and low premium makes them one of the most affordable fractional gold coins for investors.
4 Ducat Gold Coin
Based on the Ducat Gold Standard, the 4 Ducat Gold Coins contains four times the amount of gold as the 1 Ducat. Like the 1 Ducat, the 4 Ducat Gold coin is also minted from .985 fine gold and contains 0.4430 troy ounce of gold.
Great Britain Gold Sovereign
Great Britain has a history of minting many beautiful gold coins. One of the most popular British Gold Coins from England is the Gold Sovereign. The Royal Mint began minting the Gold Sovereign in 1817. Each gold sovereign coin contains .2354 troy ounces of gold. The Gold Sovereign is one of the most popular vintage gold bullion coins for investors and stackers.
Gold Sovereign with a Perth Mint Mark
Millions of Gold Sovereign coins have been minted since the inception of the series. You can often buy Gold Sovereigns for as little as 3% to 4% over the melt value.
Great Britain Half Sovereign and Quarter Sovereign
Other variations of the Sovereign standard include the half sovereign and quarter sovereign. These denominations are less popular among investors and can carry premiums much higher than the Full Gold Sovereign.
Gold Peso Coins from Mexico
Mexican Gold Peso coins are some of the most beautiful vintage gold coins in the world. While Gold prices fluctuate, the popularity of the Mexican Gold Peso coins only increases with investors due to the gold peso’s outstanding gold bullion value.
Gold Peso coins from Mexico appeal to investors and collectors alike for their high Gold bullion content and rich Mexican history.
Minted at the Mexican Mint in Mexico City, the Mexican Gold Peso is minted with 90% fine Gold and 10% copper. The addition of copper during the minting process gives the Gold Peso coins a hardness that pure gold alone cannot provide. With the presence of copper, the Mexican Gold Peso coins have been able to withstand the wear of circulation.
Six different denominations of the Gold Peso were minted to commemorate the centennial of Mexico’s hard won independence from Spanish colonial rule.
2 Peso Gold Coin
The 2 Peso Gold coin (dos Pesos) is the smallest denomination of the gold peso. Each Dos Pesos contain .0482 troy ounces or roughly 1.50 grams of gold.
The 2 Peso Gold Coin is a popular choice with investors looking to start to buy gold coins because the coins are one of the most affordable.
2.5 Peso Gold Coin
The Mexican 2.5 Peso Gold Coins were produced from from 1918-1948. Most of the coins on the market that are sold as 1945 2.5 Peso Gold Coins are restrikes that were produced between 1951-1972 and again in 1996.
Each 2.5 Peso Gold Coin contains .0603 troy ounces, roughly 2.0833 grams of gold bullion.
5 Peso Gold Coin
The Mexican 5 Peso Gold Coin contains .1205 troy ounces, roughly 3.75 grams of gold bullion. The premiums on fractional gold like the Gold 5 Peso Coin are often much lower than similar coins. Having a lower premium makes them an attractive investment for bullion investors.
10 Peso Gold Coin
The Mexican 10 Peso Gold Coin contains .2411 troy ounces, roughly 7.49 grams of gold bullion. The premiums on fractional gold like the Gold 10 peso Coin are comparable to other similar weight gold fractional coins..
20 Peso Gold Coin
The Mexican 20 Peso Gold Coin contain .4823 troy ounces, roughly 15 grams of gold.
Many investors consider thedesign of the Gold Mexican 20 Pesos, or “Veinte Pesos”, to be one of the most beautiful fractional gold bullion coins available. Their popularity with investors and stackers is due to their outstanding beauty and bullion value. As a fractional gold coin, 20 Pesos are an affordable way to enter into the gold market.
50 Peso Gold Coin
The 50 Peso Gold Coin was minted by the Banco de Mexico between 1921 and 1947. It is also commonly referred to as the Centenario Peso. Each 50 Pesos Gold Coin contains approximately 1.2 troy ounces of pure gold. It was first minted in 1921 to commemorate the 100th anniversary of Mexico’s independence from Spain.
Earlier this year, the US Government hit a new milestone. The amount of government debt in the United States has grown to exceed $33.88 Trillion as a result of overspending by elected officials. The growing U.S. government debt is a complex issue with significant implications for American citizens and taxpayers.
This is a significant issue effecting all American taxpayers, whether they realize it or not.
A higher national debt leads to higher taxes in the future. As the government needs to bring in more revenue to service its debt. This leads directly to increasing taxes, pushing the financial burden on citizens and businesses.
A significant portion of the government’s budget goes towards interest payments on the debt. These payments consume resources that could otherwise be used for public services, infrastructure, education, or healthcare.
To manage high levels of debt, the government has resorted to printing more money in recent years, which has directly caused the inflation that we feel today. Inflation diminishes our purchasing power, causing dramatic increase in everyday living costs.
High debt levels also hamper economic growth. Increased government borrowing leads to higher interest rates, making it more expensive for consumers and businesses to borrow and invest, potentially slowing down economic activities.
As more of the government’s budget is allocated to servicing the debt, there is less money available for other spending priorities like social security, welfare programs, infrastructure, and education.
A heavily indebted nation finds its global economic and political influence quickly diminishing. This has been happening throughout the world, as many nations join the BRICS initiative, moving towards a universal gold-backed currency and away from the dollar for international trade and oil. The US is likely to face additional constraints for defense funding, compromising national security measures.
Escalating debt also affects investor confidence. Many already see the debt as unsustainable, which has led to increased yields on government bonds, further exacerbating the debt problem.
Despite all the efforts to stimulate the economy during the last few years, the financial stability of the country has been on a downward trajectory, according to leading economists. High debt levels make the country more vulnerable to financial crises and recession. The Federal Reserve continues the struggle to reach the goal of sub-2% inflation target, while repeatedly raising interested rates to levels not seen in decades. The government’s ability to stimulate the economy through additional spending is limited if it’s already heavily indebted.
Younger generations today are already limited in their ability to buy a house, caused by a combination of the housing bubble and high interest rates. Future generations will shoulder the additional burden with the responsibility of paying off the debt incurred today.
A significant portion of U.S. debt is held by foreign entities. This dependence creates complex international dynamics and potential vulnerabilities, particularly as geopolitical relationships shift.
Personal savings rates are at an all time low, according to recent reports. The majority of American families live paycheck to paycheck
It’s a good idea to keep three to six months worth of expenses in cash, preferably in a highly liquid form, in the event of a job loss or other significant financial emergency. The way most people have stored their rainy-day fund has been with a traditional savings account.
However, banks continue to pay some of the lowest yields. Nationally, the average yield for savings accounts is 0.52 percent APY, with the largest banks like Chase, Bank of America and Wells Fargo paying out the least amount of interest.
Interest rates and the price of gold often have an inverse relationship. Low interest rates don’t keep pace with inflation and the opportunity cost of holding gold bars is more attractive as a savings vehicle.
Silicon Valley Bank and the other banks that collapsed all faced short-term bank runs by customers before regulators stepped in and bailed out the failed management. Some analysts continue to predict that the problems in the banking sector will continue unfolding as the BRICS countries lay the foundation for a gold-backed reserve currency.
The recent implementation of the FedNow program by the Federal Reserve is intended to framework for the implementation of a Central Bank Digital Currency, which will allow the government to control how you spend your money.
The price of gold can increase significantly when there are concerns about the economy, inflation, or geopolitical unrest, which is one of the reasons it is seen as a “safe haven” asset where investors turn.
The value of cash continues to be eroded due to inflation and banks are offering lower than the rate of inflation. Keeping cash in the bank will likely cause your savings to continue to lose purchasing power.
The prices of everyday goods continue to climb, rent and mortgage payments are on the rise, and the price of gas and groceries have never been higher. Gold is a hedge against inflation.
Some savvy savers have found an alternative to keeping extra cash in the bank by storing wealth in the form of physical gold bullion.
Bullion is a physical asset that you can hold in your hand with no counter-party risk. Once you own bullion, you don’t depend on anyone else’s ability to pay, as you do with a bank savings account.
The price of precious metals are on the rise and the price of 1 oz gold bar continues being the benchmark by which many other commodities are measured.
For those who have difficulty saving money, adopting the practice of using precious metals can provide you with the discipline needed to build a larger savings. While bullion can be sold fairly easily, it may take more time than transferring money from a savings account.
Storing Gold Bars at Home
Storing gold bars at home is a practical idea to keep control of your investments. Having possession of your investment eliminates the need for recurring storage fees and provides you with direct control over your bullion.
Many precious metals investors also own firearms and adding precious metals to your gun safe is one of the most logical options.
Gun safes are specifically designed to be secure and tamper-resistant. Many are designed with compartments and shelving options and are built with thick, durable materials and equipped with heavy-duty locking mechanisms.
Having your bullion stored in a safe at home allows for immediate access to your assets and can be beneficial in emergencies or times when you want to quickly liquidate or utilize your precious metals.
Compared to third-party storage options, using a gun safe at home can be a cost-effective solution.
China’s central bank has been on a buying spree that has so far spanning six months. In April, the bank added an additional 8.09 tons of gold to its reserves, now topping 2,076.47 tons.
As a reference, that much gold is the equivalent to 8,090 kilo gold bars.
During the first quarter of the year reserves at central banks increased by a whopping 228.4 tons as backlash against the dollar continues.
Announcements are expected during the upcoming BRICS summit this summer regarding the formation of a new basket currency.
There’s been lots of rumor and speculation with a few official leaks of small bits of information.
Here’s a few things that we know:
A new basket currency is being created that will be a combination of five currencies: Chinese RMB Yuan, the Russian Ruble, the Indian Rupee, the Brazilian Real and the South African Rand.
Pavel Knyazev, Deputy Director of the Russian Foreign Ministry’s Foreign Policy Planning Department stated that member states are “actively studying mechanisms” to exchange financial information to develop a reliable alternative for international payments.
Recent central bank gold holdings by BRICS members:
Brazil: CEIC Data reports that Brazil is currently holding 7,602 tons, down from 8,036 tons reported in January. A significant drop 434 tons. Speculation is that some of this gold may have gone to China in exchange for yuan currency to hold in its reserves following the recent local currency trade agreement.
Russia: Trending Economics reports that Russia’s reserves are currently at 2326.52 tons, up from 2298.53, currently the highest ever reported by the country. Last year’s sanctions placed by the Biden Admin included Russia being booted from the LBMA. Some of the gold that would’ve been sold at the market exchange likely ended up being stacked in the country’s reserves. Additionally, Russia responded to the sanctions by exchanging gold for rubles within Russia, helping to keep the economy prosperous.
India: Recent news reports show that RBI added 34.22 metric tonnes of gold in the fiscal year that ended March 31, 2023, taking the total gold reserves up to 794.64 metric tonnes.
China: According to the World Gold Council, the PBoC reports that as of April they have added a whopping 120 tons since November 2022. The most recent reports show 2,076.47 metric tons in holding.
Fractional gold coins are a great way to invest and provide a less expensive and practical way to accrue and stack gold.
Having a portion of savings set aside in precious metals can help provide a stable safety net or hedge against inflation and other investments.
Most countries throughout the world utilized currency coinage that was minted of silver and gold throughout the 1800s and into the early 1900s. The French Franc currency played an extensive role throughout the era and around the world.
The Latin Monetary Union (LMU) was a trade treaty signed by numerous European countries in 1865 that established the franc as a unified common currency based on the gold standard that helped to shape global trade for many decades. The treaty thrust the 20 francs gold coins into a role as a fundamental coin of merchant trade. A role it played for nearly one hundred years.
Each member nation began minting gold coins to the same standards to circulate for international merchant trade. All 20 francs gold coins are minted with planchets created from an alloy of 90% gold and 10% copper. The coins are each 21 mm in diameter with an overall gross weight of 6.45 grams.
The actual gold weight in each 20 francs coin is 5.80 grams, the equivalent of .1867 troy ounces. A stack of five of these coins is almost an ounce of gold.
These are one of the most popular gold bullion coins for investors. Vintage gold 20 francs are government minted coins that are today sold as bullion for their intrinsic value. These are often the cheapest gold coins available and are perfect for stacking.
Below is a brief description of some of the coins that were minted by France from the early 1800s until the early 1900s.
The era in the history of France commonly referred to as the Napoleonic Wars and lasted from 1803 until 1815, led by Emperor Napoleon I. At the height of his power, the emperor and his vast armies had taken control of much of mainland Europe. The First French Empire spanned from the eastern shores of Spain to the southern tip of Italy, all the way to the borders of Russia.
Napoleon had an extensive impact on the lands he conquered, improving and modernizing society through liberal reforms. Along the way, the wars brought vast amounts of gold into the French Empire and most of it was minted into 20 francs gold coins.
Napoleon I 20 Francs
Napoleon I brought sweeping reforms throughout the country, and helped France win significant military victories, eventually being granted the title of Emperor of France in 1804.
There is a broad variety of 20 francs gold coins that were produced bearing portraits of Napoleon, across dozens of mints throughout the France, Italy and even as far away as the Netherlands.
The 20 francs gold coins minted from 1804 until 1814 feature a leftward facing portrait of Napoleon Bonaparte.
Bullion coins from this era can have a mix of obverse design as various portraits and titles were used throughout these years. The coins you receive when buying Napoleon I 20 Francs Gold coins are chosen at random from available inventory and could be from mix of years and mint marks.
The early coins featured a young Napoleon with hair cropped wavy and long that was carved by Pierre-Joseph Tiolier, General Coin Engraver from Paris. The first coins include the title Premier Consul inscribed surrounding the portrait. This was later updated to read “Empereur”.
Louis XVIII 20 Francs
Following Napoleon’s second exile from France, King Louis XVIII reigned from 1815 until his death in 1824. The gold coins minted during this era had a right facing effigy bust of Louis that was modified in 1816 to remove the appearance of the military dress uniform.
The coins feature inscriptions on the front that include the name of King Louis XVIII, along with his title “ROI DE FRANCE”. The mark for the artist and engraver is incorporated below the portrait.
The reverse side of these coins contains a simple wreath motif that shows the face value and year-date of minting.
Charles X 20 Francs
Charles X 20 Francs gold coin
The reign of King Charles X last from 1824 until 1830. During the short reign lasting just six years, the king lost popularity amongst the liberals of French society.
The conservative policies directed from his regime are largely responsible for leading to the July Revolution which deposed the ruler and put in place his more liberal cousin, King Louis Philippe I.
The portrait was engraved by medalist and sculptor Auguste-François Michaut with the obverse engraving bearing his name and title reading “CHARLES X ROI DE FRANCE”, which translates to “Charles X King of France”.
Roughly 1.5 million Charles X 20 francs gold coins were produced with this design across four French mints.
Louis Philippe I 20 Francs
Louis Philippe I was nicknamed the “Citizen King” and served as the King from 1830 until 1848. Under his reign, known as the July Monarchy, the French economy was dominated and largely influence by wealthy industrialists and bankers
Louis Philippe expanded relations with Great Britain and sponsored colonial expansion, most notably with the acquisition of Algeria.
This king was considered a repressive ruler following his brother’s reign and many at the time felt him to be an illegitimate king. Many uprisings occurred in France throughout the 1830s, Louis-Philippe clamped down on dissent and gained a reputation for supporting the interests of the rich.
Many of the poorer class of citizens grew resentful and Louis-Philippe escaped from eight assassination attempts before he finally fled to England.
During his 18 years in power, the more than six million Louis-Philippe 20 Francs gold coins were minted at various minting facilities throughout the country. The obverse bust portrait was created by engraver Joseph-François Domard. The reverse depicts the crowned coat of arms enwreathed with the year-date of minting and legal-tender face value of 20 Francs.
Napoleon III 20 Francs
Napoleon III was President of the Republic of France from 1848 to 1852 and remained the last monarch until he was deposed in 1870. During his time leading the country he focused on building infrastructure for the country, leading to growth in the industrial base, economic expansion and the creation of new banks.
The banks provided the funding for Napoleon III’s major projects, which included massive steamships to reach far away colonies and railways and canals to connect the country’s major cities and trade hubs, and the rebuilding of Paris. Funding from the banks was funneled into developing new neighborhoods that are among the most famous and prominent amongst the Right Bank, such as rue de Rivoli, Opéra, and place de l’Etoile.
Various styles of the Napoleon III 20 Francs Gold coin were minted under his reign with two similar, though notably different obverse designs that commonly circulated during this period that are frequently found when buying random 20 francs gold coins.
The first, issued from 1853 until 1860 featured a rightward facing Napoleon III that was created from a portrait by artist Jean-Jacques Barre. The portrait features a bare headed emperor. More than 135 million gold coins were minted with this design over the seven year period making it a popular coin with bullion investors. These 20 francs gold Napoleon III coins have maintained their intrinsic value for more than 150 years due to the underlying gold content.
The second 20 francs Napoleon III gold coin was minted from 1861 until the end of his reign in 1870. The coin features a similar portrait, the primary difference appears to be that the monarch wearing a laurel wreath upon his head. More than 50 million of these coins were minted during this 18 year period.
It is very common to receive these as bullion coins when buying random year 20 francs gold coins, which remain incredible popular with investors. These coins were minted in mass quantities due to the establishment of the Latin Monetary Union during this period.
Lucky Angel 20 Francs
After the second exile of Napoleon III, the country turned to focus on more domestic measure starting with the Paris Commune in 1871. The Génie coin, often referred to as the Lucky Angel gold coin, was minted from 1871 until 1898.
The obverse design for the coin was created by artist and medallic sculptor Augustin Dupré who was the student of the sculptor David. The French Revolution gave him the opportunity to develop his art of engraving medals for soldiers as well as various coins. The iconic image on this coin represents the Guardian Angel Genius writing the constitution fresh on a blank tablet.
20 Francs Lucky Angel Gold Coin 1871-1898
The genie is turned to the right and is writing the word “constitution” on a table laid on a stone pillar. Other French cultural symbols are hidden in the design such as the cockerel, the lictor beam with the hand of justice above. The words “Republique Française” are written above the angel and Dupré’s signature mark can be found at the bottom.
The reverse design takes some added freedom in its departure from the previous designs. The traditional wreath and denomination value remain on the reverse in the center. In addition, inscriptions were added that instill some of the cultural values of the French people, including “Liberte”, “Egalite” and “Fraternite”.
More than 95 million 20 Francs gold Lucky Angel coins were minted from 1871 to 1898, with many surviving coins available today makes it one of the most popular fractional bullion coins for investors.
20 Francs Rooster Gold Coin
20 Francs Gold Rooster
The 20 Francs Gold Rooster was minted from 1899 until 1914. It is the last of the French 20 Francs Gold coins that was intended for circulation. Over 117,000,000 gold coins were minted. The denomination (known as the Franc Germinal) was in continual use through the 19th and 20th centuries.
The obverse of the coin has a profile of Marianne, the Goddess of Liberty who is symbolic of the French Republic. She is a symbol with origins in the 3rd French Republic and is a personification of liberty and reason. Inscribed around her are the words “République Française”.
The reverse displays a portrait of Le Coq Gaulois or Gallic Rooster, colloquially named Chantecler. The reverse includes the date and legal tender face value and is surrounded with the words “Liberté Egalité Fraternitén”, values that are still preserved in the culture of France today.
The notion of wearable wealth has been around for centuries. There is ample evidence unearthed from the valley of the kings that gold was treasured by ancient royal families.
Gold earrings bearing the cartouche hallmark of pharaoh Seti II discovered in tomb KV56 in 1908, on display in the Cairo Museum.
Many artifacts made from gold have been discovered by archaeologists from ancients lost civilizations in all corners of the globe dating back thousands of years. From Ancient Egypt in North Africa, to the Mayans, Aztecs and Incas throughout Central and South America.
Even in the United States, relics recovered from various cultures that lived throughout the American Southwest have been found to have used refined gold for jewelry and various clothing adornments.
While common throughout Asia to own high karat gold jewelry as a store of wealth, the gold jewelry in the west is typically designed and sold as a fashion accessory and is often made from 10k, 14k or at best 18k gold.
Karat
Purity
10k
41.7%
14k
58.30%
18k
75%
22k
91.7%
Most common jewelry karats and their gold purity levels.
Investors today have a variety of low premium options when looking to buy 24k gold jewelry.
One of the first to make a splash with investors a few years ago was Mené. The company is a subsidiary of Goldmoney, Inc that was founded in 2017.
In order to help fuel their growth, the company provided investors with a variety of new customer discount codes and incentives that allowed some to buy gold close to melt value.
Mené still offers a variety of modern inspired fashion bracelets, rings, necklaces, chains and pendants crafted from 24k pure gold and platinum at a fixed premium that is around 30% above melt value. When shopping for investment-grade jewelry, Mené has a track record of being a dependable choice.
Nebü 24k Gold Jewelry
Traditional online bullion dealers now offer jewelry in a variety of karat and alloy blends.
Nebü Gold is an emerging company that creates beautiful 24k pure gold jewelry from ethically mined sources.
The jewelry collections consists of a variety of rings, pendants, cuffs and bracelets inspired by vulnerable and endangered species. Nebü pledges a percentage of proceeds towards environmental and endangered species conservation.
Nebu 24k Gold Bracelet
Gold jewelry from Nebü is available to buy through their website and a variety of online bullion dealers and other retailers including APMEX, Money Metals Exchange, Silver Gold Bull and MintBuilder in the United States. In South Africa, Nebu has partnered with The Scoin Shop.
Precious metals investors are often looking at ways to add more practical options to their physical gold holdings can find plenty of choices that are both fashionable and offered at a low premium over melt value.
SD24k Jewelry by SD Bullion
Notable online bullion dealer SD Bullion also now carries a variety of 24k gold jewelry available alongside other precious metals investments. The pieces in the collection are all crafted using .9999 fine gold that has been refined to 24 karat.
Some of the more popular products include religious pendants such as the 24k gold cross, various bangle cuffs like the twisted barbed-wire bracelet, and the spiral double gold orb ring.
Twenty-four karat investment jewelry is a way to continue to stack gold in a discrete way that is completely wearable and practical for storing wealth.
Gold is often alloyed with other metals to provide strength, rigidity and durability because 24k gold is very malleable. Investors who intend to wear this jewelry should exercise some care to prevent scratches, dings and other wear and tear.
The notion of being charged sales tax when investing in precious metals is a contentious issue to some. It also represents a line in the sand between some legislators and investors. Despite the long history of gold and silver being recognized as money, many states continue to tax their citizens for the privilege of owning these metals.
Some states have no sales tax, a couple others have provisions specific to precious metals, others impose varying levels of taxation. Taxing the exchange of money, which includes gold and silver, has been a topic of debate for many years.
The recognition of gold and silver as money dates back to ancient civilizations. These metals have been used as a medium of exchange for centuries.
The private ownership of gold became outlawed in 1933. Under government orders, millions of circulating gold coins were seized from citizens and melted down. Jewelry and numismatic coins were exempt from the ban. Any person caught hoarding gold was investigated, prosecuted and imprisoned.
During the prohibition years, coin collecting was viewed by many simply as a hobby. Some savvy investors used coin collecting as a way to discretely hold and hoard gold.
Many of the coins, although valuable for the intrinsic nature of the precious metal content, were viewed as merely collectibles. Many states allow for the taxation of numismatic collectibles.
During this time coin collecting quickly grew in popularity with many investors turning their attention to numismatics that were generally exempt from the ban. Whitman’s Blue Book was first published in 1942, followed by the Red Book in 1946.
Pre-1933 gold coins play a huge role for collectors and investors alike. These historic coins are from a period of time when the US economy was backed by gold.
For today’s investors, the premiums on pre-1933 US Mint gold coins have fallen significantly in recent years. In some situations, premiums for NGC and PCGS graded collectible double eagle coins can be lower than raw specimens. With cycles of numismatic premiums rising and falling over time these coins represent a solid long-term investment that could potentially bring numismatic returns.
Also during this time several countries began minting restrike gold coins. They are basically modern “reproductions” produced by the official government mint to the same standards as when the gold standard was agreed upon.
At the time, restrike gold coins were recognized as collectibles even though they had no numismatic value. It was a clandestine way for many gold investors to transact real money during the several decades when the ban on private gold ownership was place.
Many state laws regarding precious metals were written prior to 1974, during the times when ownership, buying as a hedge, or investing in gold was still illegal. The numismatic items that were bought and sold were viewed by the states as collectibles, thus taxable under most regimes.
Currently, six states have no sales tax on any purchases: Alaska, Delaware, Montana, New Hampshire, Oregon and Wyoming. While Nevada, South Dakota and Washington have laws or rules that exempt sales tax on precious metals purchases. Utah and Arizona have recently passed legislation that exempts precious metals from state capital gains taxes.
There is a growing recognition among state legislatures to exempt gold and silver purchases from sales tax due to its worldwide recognition as money. Lawmakers are recognizing the fact that gold and silver are relevant as a store of value and a hedge against fiat inflation.
While some states have recognized the historical and economic value of precious metals and are working to eliminate sales tax on them, other states still impose varying levels of tax on such purchases.
It is important for investors to be aware of the specific tax laws in their state when considering buying precious metals. Even in states that require taxation of previous metals it is possible to find a friendly local coin store or pawn shop that will gladly accept cash for silver.
The rules related to charging sales tax on precious metals are complex and vary across the 50 states and even amongst localities.
While trends towards eliminating or reducing sales tax on precious metals are growing, more states are beginning to recognize the importance of metals as real money and the value it brings in diversifying portfolios, protecting against economic uncertainties and being a stable asset.
There are many arguments against the taxation of the exchange of money into a store of value.
Double taxation: When precious metals are purchased with money that has already been taxed, it is essentially double taxation to also tax the exchange of those metals. This can make investing in precious metals less attractive, and may discourage investors from diversifying their portfolios.
Decreased competitiveness: If one state taxes the exchange of precious metals and another does not, it puts the taxed state at a competitive disadvantage. Investors may choose to purchase metals in a non-taxed state to avoid the extra cost, resulting in lost revenue for the state that taxes the exchange.
Economic impact: Taxing the exchange of precious metals can have a negative impact on local economies. Investors may choose to take their money elsewhere, and local precious metals dealers may suffer from decreased business. This can lead to job loss and a decrease in tax revenue for the state.
Encourages black market activity: High taxes on precious metals can encourage black market activity, where transactions take place off the books and taxes are not paid. This can lead to lost revenue for the state and can make it difficult for law enforcement to track the flow of money.
In the US, gold played a significant role in the economy when the country was on some form of the gold standard until 1971. During this period, the US dollar was backed by gold, which meant that the government had to hold enough gold to cover a large percentage of the value of all the dollars in circulation throughout the world.
However, the tax-free states in the US recognize the value of precious metals and the role they play in a diversified investment portfolio.
In addition to the tax-free states, several states have recently taken steps to remove or reduce sales tax on precious metals purchases.
For example, Mississippi, Kentucky, Maine, Wisconsin, Vermont, Minnesota, Alaska, Tennessee, Maine, and Idaho have all passed laws that either exempt precious metals from sales tax or reduce the tax rate.
These legislative actions reflect the growing recognition of the value of precious metals as a safe-haven asset and store of value.
These states have recognized the importance of precious metals as a store of value and have taken steps to remove barriers to their ownership. These states have made it easier for investors to protect their wealth with these assets.
Several states have recently introduced legislation to remove or change sales tax laws regarding precious metals.
For example, Mississippi, Kentucky, Maine, Wisconsin, Vermont, Minnesota, Alaska, and Tennessee have all either eliminated or reduced sales tax on precious metals in recent years.
Idaho and Maine are also considering gold reserve laws, which will allow the state to hold gold as a reserve asset.
Texas, often taking a leadership role in guiding other states, has introduced gold-backed digital currency law as an alternative to the anticipated Federal Reserve CBDC.
The state of Texas also operates a first-of-it’s kind bullion depository which allows for the segregated storage of precious metals for both individual and institutional investors in a secure and guarded facility.
Check out our at spot price deals page for more information and the growing list of spot price deals from other online retailers.
Argor-Heraeus SA is based in Switzerland as is part of the Heraeus Group and is is one of the world’s largest refiners of gold bars and other precious metals.
The selection of government mint one gram gold bars available from online bullion dealers are minted are an excellent way to stack gold in fractional increments.
The dealer premiums for 1 gram bars can seem high when comparing them against a solid full ounce, however, they remain a practical options for incremental buying fractional gold.
Investors interested in buying quantities of 1 gram gold bars should consider the Valcambi CombiBars.
Newly minted gold bars come sealed inside a manufacturers assay card. This can provide extra assurance that you are buying an authentic and genuine product. Most gold bars can be tested with SIGMA Precious Metal Verifier while remaining encapsulated in the plastic assay case.
From a practical perspective, each 1 gram gold bar is a small store of wealth. Having even a small stack of these stored at home is a good way to be prepared for uncertainty to come.
The Britannia series of gold bars is minted by the Royal Mint and shares the design motif with other bars and coins in the series. The Britannia 1 gram gold bar is an excellent choice to complement your investment in silver Britannias.
The reverse design shows the Royal Mint hallmark along the top with the same wave and familiar maritime theme along the bottom. The center is stamped with the weight 1 gram and purity, 999.9 fine gold.
The Perth Mint of Australia is well know for meticulously designed gold bars minted to the highest levels of purity. It’s hard to go wrong when considering 1 gram Perth gold bars as a new addition to your portfolio.
The layout on the front features the Perth Swan logo at the top and shows the purity and weight very prominent. The reverse of these 24k gold bars shows a diagonally repeating bounding kangaroo design that alternates between a frosted and proof-like finish.
The Royal Canadian Mint’s 1 gram gold offering comes in the form of the MapleGram coin. The MapleGram Gold Coin is a miniature version of the larger Maple Leaf.
Each 24k 1 gram gold coin comes encapsulated in a sealed assay that includes the all of the important details. MapleGram coins are also available in sheets of twenty-five 1 gram coins that are perforated for easy separation.
