As tangible assets, vintage gold coins can diversify an investment portfolio, reducing risk by spreading exposure across different asset types. Many investment advisors recommend precious metals as a safe haven since prices remain relatively stable to the dollar to offset the volatility that can come in the stock market. Tangible assets are an alternative investments that can diversify an existing investment portfolio and provide protection against inflation.
Gold coins can bring unique diversity to an existing investment portfolio, while expanding on an interest in numismatics or history. Beyond potential financial gains, the process of collecting, studying, and preserving historical coins can morph into a numismatic hobby.
Prior to the Great Depression, gold coins were the normal and natural form of money and in common circulation throughout the world. While the government recalled millions and melted them down, millions more were saved from the smelters due to limited personal ownership exemptions in the law, along with exemptions for coins having numismatic value.
During the era of the gold standard, gold coins were the preferred and accepted method of trade and commerce. In recent years, many well preserved Pre-1933 US Mint gold coins have been discovered in historic “hoards” from European vaults, such as the well known Rive d’Or Collection, discovered in a bank in Paris and released in 2008.
Coins having historical significance often appreciate in value, especially those in good condition, with rare mint marks, from limited mintages, those connected with special collections and other particulars. Owning some of these tangible assets can bring personal satisfaction and a sense of connection to the past, in addition to the intrinsic value of the gold.
There are known counterfeits that circulate in the market from time to time, most often from shady sellers. These are easily discovered due to the widespread industry use XRF along with the more affordable devices like the Precious Metals Verifier from Sigma. These devices have become an indispensable tool for local coin shops, pawn shops, “we buy gold” stores, jewelry stores.
As a way to reduce risk, many investors choose third-party graded gold coins from companies such as NGC and PCGS. Coins that have been graded and encapsulated by these types of services have been verified as authentic. Based on an expert analysis, a grade and unique serial number are assigned to each coin during the review process, which can later be used to verify authenticity.
In addition to the Sigma, there are a variety of other devices that assist hobbyists, numismatists and investors to verify authentic products and reduce risk.
US Mint Pre-1933 Gold Coins
American gold coins from the early 20th century and later 19th century are a favorite for many collectors, due to the connection to our history. While these coins have been held by collectors and investors for nearly 100 years, they are among the mot widely recognized throughout the world.
Pre-1933 gold coins from the US Mint were minted to standards defined by the Coinage Act of 1792. The Act defined and described three distinct denominations.
- $10 Eagles – Defined with 247 4/8 grains of pure gold or 270 grains of standard gold. The accepted
standard for coin gold during the era was 90% purity, or .900 fineness. This accounted for a significant amount of gold, while being alloyed with a small amount of more durable metals like copper for added strength for circulations. Each $10 gold eagle coin is minted with 0.4838 troy ounces of gold. - $5 Half Eagles – Defined with 123 6/8 grains of pure gold or 135 grains of standard gold. Each $5 gold eagle coin is minted with 0.2419 troy ounces of gold.
- $2.50 Quarter Eagles – Defined with 61 7/8 grains of pure gold or 67 4/8 grains of standard gold. Each $2.50 Quarter Eagle gold coin is minted with 0.121 troy ounces of gold.
The California Gold Rush created a huge increase in the inflow of gold flowing into the U.S. Treasury, creating the need for a new denominations to handle the influx. The Coinage Act of 1849 authorized the production of the $20 Double Eagle, which was the largest denomination for a regular issue U.S. gold coin at the time. The Act also established the specifications for the $1 gold coin.
The Liberty Head double eagle or Coronet double eagle was introduced as a pattern coin by the US Mint in 1849 and entered production in 1850. Each $20 Double Eagle Gold Coin is minted with 0.9675 troy ounce of gold. The Double Eagle had an overall weight of 33.436 grams and was made from 90% gold and 10% copper alloy, maintaining the standard for U.S. gold coins.
Throughout its mintage history from 1850 until 1933, more $20 Double Eagle Gold Coins were issued than all of the other denomination. Today, these coins are highly sought after by both investors and collectors, particularly those that are third-party graded and in mint state condition.
Mexican Gold Pesos
The 50 Pesos Gold Coin, or Centenario was first minted in 1921 to commemorate the 100th anniversary of Mexico’s independence from Spain. It is not only a form of currency but also a significant symbol of Mexican pride and heritage.
The coin features the iconic image of the “Winged Victory” (El Ángel de la Independencia) on the obverse, holding a laurel wreath and a broken chain, symbolizing freedom and victory.
The reverse displays the national coat of arms of Mexico, with an eagle holding a serpent in its beak and talon, perched on a prickly pear cactus.
The Centenario contains 37.5 grams (1.2057 troy ounces) of pure gold.
The gold peso coins are available in various denominations, including 50, 20, 10, 5, 2.5, and 2 pesos, each containing a proportionate weight of gold. These coins are both legal tender and investment pieces.
Mexican gold peso coins are valued for their gold content as well as their numismatic value. Collectors and investors seek them out for their historical significance and beautiful design in addition to the gold content.
British Gold Sovereigns
The British sovereign gold coin has a storied history, dating back to its first introduction in 1489 during the reign of King Henry VII.
The modern version of the sovereign, as we know it today, was first minted in 1817 under King George III as part of a major coinage reform following the end of the Napoleonic Wars, with the aim to standardize Britain’s currency and improve the quality of the nation’s circulating gold coinage.
Today, the British sovereign gold coin is primarily a bullion coin for investors and collectors, valued for its historical significance, artistic design, and gold content. While it is no longer used as circulating currency, the sovereign remains a symbol of Britain’s rich numismatic heritage and is considered one of the most prestigious gold coins in the world.
With dozens of unique variations, mint marks and other details, sovereign gold coins have a well established numismatic history, a variety of interesting design variations and are widely recognized throughout the world. The British sovereign gold coin has a rich history as a medium of international trade, a store of wealth, and a symbol of stability and reliability.
Its extensive minting history and role in the gold standard era have cemented its status as a key piece in the world of numismatics and precious metal investment. As an investment, sovereigns are a naturally fractional gold coin are a popular choice among gold buyers that are looking for one of the lowest premium investment coins in the market.
20 Francs Gold Coins
The 20 francs gold coin, often known as the “Napoleon,” is one of Europe’s most famous and widely circulated gold coins with a history that extends back to the early 19th century. The coin was part of a monetary reform that began during the reign of Napoleon Bonaparte that aimed to stabilize the French currency after the turmoil of the French Revolution.
The 20 francs gold coin was designed to be a stable and reliable unit of currency that could facilitate trade and store value. Each coin contains approximately 0.1867 troy ounces (or 5.8 grams) of gold, providing a tangible and valuable asset that has historically been a reliable store of wealth. Its circulation was not limited to France; eventually becoming the standard coin across Latin Europe, playing a crucial role in international trade.
After the creation of the Latin Monetary Union in 1865, the specifications for the 20 francs gold coin became a standard that member countries adopted, leading to the production of similar coins in Belgium, Switzerland, Italy, and other nations, which made it a trustworthy and convenient medium of exchange and investment.
It is difficult to measure the number of gold coins that were minted by LMU member countries due to the extensive period of production and the number of countries that adopted the standard. However, it is clear that millions of these coins were produced over the decades to meet the needs of trade, investment, and currency stability in Europe.
Today, the 20 francs gold coin is primarily sought after as a bullion coin and a collector’s item. It is also popular among numismatists for its historical significance, artistry, and gold content. While no longer in active circulation as currency, the 20 francs gold coin remains a popular choice for those interested in gold investment and European monetary history.
As the value of paper fiat currencies continues to drop, gold coins can help protect wealth against inflation. The relatively small size of the 20 Francs gold coin makes it easy to store, transport, and trade. They are generally highly liquid assets, meaning they can be easily converted into cash when needed.
Austrian Ducat and Corona Gold Coins
The Gold Ducat originated in the Republic of Venice in the 13th century, while the Gold 100 Corona was first minted in Austria-Hungary in the 19th century. The Austria Corona was primarily used as a trade and circulation coin. It was intended to facilitate large transactions and store value in a stable and internationally recognized form. The coin played a significant role in the economic system of Austria-Hungary, serving both domestic and international trade needs.
Various denominations of Corona Gold Coins were issued throughout the long period of production until the dissolution of Austria-Hungary in 1918 following the outbreak of World War I. It is known that these coins were produced in large quantities to support the economic and financial needs of the empire.
The Ducat is another famous gold coin from Austria, which originated in the Republic of Venice in the 13th century. Ducats were widely used across Europe as trade coins beginning from the medieval period onward. The Austrian Ducat, particularly the 4 Ducat gold coin, was known for its high purity (.986 fine gold) and was minted for trade and investment purposes.
