Gold Coins - Gold 101

Gold coins have been used as a monetary unit since the time of the Pharaohs in Egypt. These early coins were more of a gift than a means of commerce, however. It was later during the time of King Croesus that gold coins became a means of payment among the general populous.

Gold coins continued to be a common and popular form of money until the 20th century. By 1933, many countries had stopped making their money from gold and instead switched to something known as the gold standard. The change was a result of the economic crisis that resulted from the Great Depression.

The gold standard was a system that used paper money as an exchange for the gold coins of the past. Gold was held in pre-set, fixed amounts as an equivalent to the paper money that was in general circulation.

Gold coins remain popular collector items. Extremely rare coins can fetch a great deal of money. A rare coin from 1804 that was a gift to President Andrew Jackson sold to anonymous collector for $5 million.

Bullion gold coins are often collected today as a store of value for investors. Their value is based on their weight. The weight of a bullion gold coin is measured in troy ounces. The best known of these coins is probably South Africa’s Krugerrand, which was first available in 1967. It was exactly one troy ounce and offered the first modern bullion gold coin. Gold bullion coins can also be made in smaller weights. Typical sizes are half ounce, quarter ounce, and one-tenth ounce sizes. While some bullion coins may have a value minted on them, their price is most often determined by their weight and the current market price of gold.

Countries all over the world have their own gold bullion coins. Many are named for the details depicted on the coin. Popular coins include the Canadian Maple Leaf gold coin, the American Gold Eagle, the Mexican Gold Libertad, the Austrian Philharmonic, the British Britannia, the Chinese Panda, the Gold Dinar, the Russian Chervonet, and the Swiss Vreneli.

Learn More:

• Gold American Eagle Coins
• American Buffalo Coins
• Krugerrands Coins

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Gold was first discovered thousands of years ago in its natural state, in streams, which lead to mining all over the world. Its brilliance, natural beauty, great malleability and resistance to tarnish made it enjoyable to work with. Gold gave rise to the concept of money itself. Today gold is used for jewelry fabrication, industrial application, and medical uses, by governments and central banks and by private investors.