How Much Is A Gold Eagle?

There are different ways of investing in gold and one of the more popular is buying gold coins. One such coin is the American Gold Eagle proof coin. These are versions of the official United States bullion coins. These coins have been produced since 1986 and are minted by the U.S. Mint at West Point, New York.

The American Gold Coin

The American gold eagle coin is made from gold sourced from American mines and is a great option for those investing in gold for the first time. They bear a “W” mint mark to denote they are minted at West Point.

The American eagle gold coin is available in four different sizes:

● One tenth ounce

● One-quarter ounce

● One-half ounce

● One ounce

The 1 ounce gold eagle has a face value of $50 and contains one gold troy ounce. However, its actual weight is 22.931 grams equal to 1.0909 troy ounces. This discrepancy is because these coins contain 22-carat (91.67%) gold, 3% silver, and some copper. Although they have a face value and are legal tender, their value is often calculated depending on the amount of gold they have, not accounting for the other metals used to make the alloy.

The one-half coin contains 0.500 gold troy ounce and weighs 0.544 troy ounces, the one-quarter is half that at 0.250 troy ounces of gold and 0.2727 troy ounces in weight, and the one-tenth is 0.1000 troy ounce gold and weighs 0.1091 troy ounces.

The amount of gold in a single coin is multiplied by the spot price of gold to get the value of a specific American eagle coin. For example, the value of a 1 oz gold eagle coin is between $1700 and $2000. This price accounts for its weight, gold spot price, and markup from the seller or dealer.

Because these are different coin sizes and weights, an investor with a low budget can easily start investing in gold by buying the coins that align with their budget. For example, instead of buying the 1oz gold eagle, an investor could buy the one-tenth at roughly 10% of the price depending on dealer markups.

Demand For Gold Eagle Coins

The price of gold remains active in the market meaning that it fluctuates depending on different market factors, chiefly demand and supply. While this can make how much a gold eagle fluctuates, it also means there is a lot of demand and movement in the market. This ensures liquidity and easy sales for investors who are ready to sell their coins.

Another reason why investors love these so much is that they are portable. You can take your coins with you and their high liquidity means you can sell them relatively easily. Also, experts estimate that about 80% of all gold circulating in the United States is in the form of the American Eagle which shows how prevalent they are.

Additionally, the Gold Eagle is the most traded coin around the world. The reason is thought to be that it is an American coin whose value is tied to the value of gold tied to the American Dollar. Investors from all over the world can buy the coin if they would like to add gold to their portfolios, and all agencies selling the coin are registered to minimise the chances of fraud.

Different Value-add Features

Although the value of these coins is primarily determined by their weight and the spot price of gold, certain value-add features can make them more valuble and sought after.

Limited edition proof coins are coins have an extra polish on them that makes them look more stunning and striking, especially when looking at the raised image. Their images are also of a much higher quality than those on other coins. This and their limited-edition status makes them more valuable.

There are also rare sets of uncirculated coins made using burnished moulds instead of the steel moulds used to create other coins. What makes them even more rate is that they only exist in one-ounce denominations. These coins routinely fetch 1.5 to 2 times what you would pay for a typical American Eagle coin.

Investing in The American Gold Eagle

If you are interested in buying the 1 oz gold eagle, or any other weight, you should know that the United States Mint does not sell to individuals. This is different from other mints in the world, as this mint works with wholesalers, banks, coin dealers, and precious metal dealers first, all collectively known as authorised purchasers.

You can buy Eagle gold coins from any reputable and registered authorised purchaser, but you might have to undergo additional checks and processes if you invest a large sum. Once you do this, you have to decide whether you would like the gold coins delivered to you or if you would like the dealer to store them for you.

To Hold Or Store

The American Eagle gold coin holds so much value that you might wonder whether holding it physically is better than having a professional store it. If you have a small amount of gold, there is no harm in holding it yourself. However, it is much better for a professional storage company to store it for you. They will charge a fee, and you have to know how this fee affects your overall investment.

You also need to think about what happens to the gold if the company goes under. If this happens and you do not have some form of insurance, there is a chance you could lose your investment. That said, there are a lot of reputable companies that will store your gold safely for you while also charging an affordable fee.

Conclusion

The American Gold Eagle coin is a very popular way of investing in gold. The different options available can match your budget, with even beginner investors having a few options to choose from. Since the value of gold is stable and its price keeps going up, gold eagle coins can be the perfect way to diversify your investment.

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