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The American Eagle gold coin was first issued in 1986 and has since been in continuous production. The United States West Point Mint is responsible for the production of the coins.
American Eagle gold coins track the price of gold. The value of American Eagle gold coins is primarily determined by their fine gold content which is linked to the prevailing price of gold.
American Eagle gold coins are money. Granted legal tender status in 1985 by the United States Congress, the gold American Eagle coin is currently the longest continuously produced US gold piece since the 1930s to have reclaimed this precious monetary stature.
American Eagle gold coins are liquid and recognised. To date, some 30 million coins have been minted and issued by the United States Mint which thus underpins the global recognition and acceptance of American Eagle gold coins.
American Eagle gold coins are durable. They are minted from a gold alloy that is 91.67 % pure (22 karats). The rest of the alloy contains silver and copper, which strengthens the coins’ surface and enhances the durability of the coin making it suitable for handling.
American Eagle gold coins are the equivalent of savings. American Eagle bullion coins are an ideal choice for any type of long-term investor who appreciates the security and stability of owning physical legal tender gold coins.
American Eagle gold coins are an excellent way to diversify your portfolio. Gold’s low correlation with other financial assets makes American Eagle coins serve as a portfolio hedge against market risk.
The obverse portrays the figure of Lady Liberty holding a torch in her right hand and an olive branch in her left. In the bottom left background the Capitol building is visible, and on the right the year of mintage accompanied by the letter “W”, which is the mint mark for West Point Mint.
The reverse portrays a male eagle carrying an olive branch flying above a nest containing a female eagle and her hatchlings. Above the flying eagle is the text “UNITED STATES OF AMERICA” and in the centre next to the female eagle is the text “E PLURIBUS UNUM”, which is Latin for “one out of many” and “IN GOD WE TRUST”. Inscribed below the eagle nest is the weight of the coin, the nominal face value of $50 and the designer’s initials “MB”, standing for Miley Busiek, in charge of sculpting the eagle nest.
With the United States in the midst of severe depression in 1930s, gold naturally became the asset of choice. With people seeking to exchange all forms of paper securities, including bank notes, for gold, the financial sector and the Government itself experienced a run on their gold reserves. To prevent this, in 1933 President Franklin D. Roosevelt issued the infamous executive order 6102 that criminalised the ownership of gold and made all government issued paper instruments non-redeemable in gold. From 1933 onwards, a new financial era began in the US, where pieces of green paper became the cornerstone of the country’s monetary system.
Roosevelt’s executive order that penalised ownership of gold was in place for 41 years before President Gerald Ford repealed the law in 1974. It would take another eleven years for the United States Congress to pass the Gold Bullion Act of 1985, which authorised the creation of legal tender gold and silver coinage. Subsequently, in 1986, the United States Mint issued the first gold American Eagle coin. Considering that this was the first legal tender gold coin released by the United States in over five decades, there were many buyers waiting on the sidelines. In fact, in its first year of release, the United States Mint had to mint 3.6 million pieces, or 62 tonnes of American Eagle gold coins, to satisfy the demand from investors and coin dealers!
With its prestigious legal tender status granted by the United States Government, American Eagle bullion coins have since 1986 been one of the most preferred gold coins of investors who wish to hedge their portfolio against falling stock markets and economic turmoil. Figures from the United State Mint related to demand for American Eagles clearly show that investors markedly increased purchases of these coins during the stock market crash of 1987, right before the peak of the dot-com bubble (also referred to as the internet bubble) of 1999 – 2000, and more recently in 2008 – 2009 when the US and other major economies plunged into severe recession. In fact, on an annual basis, demand during these periods increased on average by almost 100%, proving that in turbulent times in the market, the gold American Eagle coin becomes an asset of choice.
|1 oz American Eagle Gold Coin||Gold weight|
|Weight||Nominal||Diameter in mm||Sample||Weight in g||Grams||Ounces|
|1 oz||50 dollars||32.7||22 karats||33.95576||31.10348||1|