Many gold coins minted around the world are 22-karat gold, which means they are made up of 91.67% gold and 8.33% of other metals, usually copper or silver, to make the coins more enduring for circulation.
The British Gold Sovereign, minted since 1817, is one of the most widely circulated 22k gold coins in the world.
Many 22-karat gold coins are favored by investors because the addition of other metals, like copper, provides added durability, making them less prone to scratches and dents compared to 24-karat gold coins.
- American Gold Eagle: Introduced in 1986, the American Gold Eagle is the official gold bullion coin of the United States. It’s alloyed with copper and silver.
- South African Krugerrand: One of the most recognized gold bullion coins worldwide, the Krugerrand was first minted in 1967 and was the dominant choice for gold investors until the 1980s. It’s alloyed with copper.
- British Sovereign: A historic coin that has been minted since 1817, the Sovereign has been used across the British Empire as a circulating coin. It’s made from a gold and copper alloy.
- British Gold Britannia (pre-2013): The Britannia is the UK’s official bullion coin. While the coin was originally produced in 22k gold, since 2013, it has been minted in 24k (or .9999 fine) gold.
What Are the Pros and Cons of 24k vs. 22k Gold Coins?
Many investors who are learning about gold coins often wonder whether or not there is a difference when considering 24k or 22k gold coins. Each contains the same 1 troy ounce of pure gold.
Modern 22k gold coins, like the Krugerrand and Gold Eagle, each have a gross weight of 33.93 grams or 1.09 troy ounces. In addition to the one ounce of gold, each of these coins contains small amounts of copper and silver to provide rigidity and strength that helps to protect the coins from scratches and nicks that can occur when handling. The addition of the alloy also gives these coins an orangish hue.
Pure 24k coins contain only the gold. Pure gold is soft and malleable, making these coins more susceptible to scratches, dents, and dings. Due to their high gold content, they often have a brighter, more distinct yellow color.
In deciding between 24k and 22k gold coins, investors should consider their own preferences and priorities, whether they value durability over purity, historical significance over modern appeal, or vice versa. Both types offer the same intrinsic gold value and can be excellent additions to an investment or holdings.
