Article Sponsored By: Gold Coins
One of the oldest and most stable investments is gold. Historically, gold investing has been a method for saving value when local currency was losing value and allocating a portion of your portfolio to gold assets was similar to a financial insurance policy. There are several assets that allow you to hold this precious metal. You could buy gold itself, buy gold stocks, or buy gold derivatives such as futures and options . Whether you are a conservative investor or a daring speculator, there are abundant gold investment opportunities available to suit the unique risk tolerance of any potential gold investor.
Each year, the gold mines of the world produce about 2,500 metric tons of gold. Recently, this mined gold supply has been not been sufficient to meet the growing global demand for gold. Estimates today indicate that worldwide purchases of gold reach 4,000 to 5,000 metric tons each year. This recent imbalance in gold demand and supply has created an acute structural shortage situation and a steady increase in the price of gold bullion and related gold investments. However, prior to the past here years, gold investing faced a bear market since 1980.
Gold investments are traded in many markets around the world. Two of the most important world markets are in London and New York . At any time of the day or night a current market price is being established somewhere.
You can buy gold coins or gold bullion through a gold dealer or coin collector. I suggest you keep any gold you possess to be held in a safe deposit box in a financial institution. You can also buy gold that is held by a secure third party. Most large commercial banks will buy gold for your account. Because gold is a worldwide standard, you can find gold bullion prices on the Internet at any financial reporting web site or in any newspaper.
In an effort to eliminate some of the costs and risks of physically possessing gold investments, StreetTRACKS Gold Shares offers investors a simple opportunity to participate in gold investing. StreetTRACKSGold Shares are intended to offer investors a means of participating in the gold bullion market without the necessity of taking physical delivery of gold.
As a gold investor, you can buy and sell Gold Shares through the trading of a security on a regulated stock exchange.
Source: http://www.financial-guide-savvy.com/gold.html
Monday, June 19, 2006
Thursday, June 01, 2006
An Introduction To Gold Coins
This post was Sponsored By: gold coin
If you are looking for good investments, you might want to consider investing in gold coins.
Gold coins are easier to sell than gold bars or other gold bullion coins that may have delays and other expenses. The durable gold standards established by the US Mint are for gold coins circulating more than 350 years ago. These gold coins are minted in 91.67% fine gold, creating a durable coin that is scratch proof.
Gold bullion coin collecting is the act of amassing a variety of gold coins such as gold Eagles. Pandas, Philharmonics, Maple Leafs, Britannias, Gibraltar Dogs and Isle of Man Cats. There are also silver and platinum bullion coins such as Koalas. Kookaburas and Nobles. The United States alone mints millions of gold coins every year. Those who collect gold bullion coins do so for their scarcity, value and beauty.
Some companies that sell bullion gold coins are recommended for new gold buyers since their transactions are private and non-reportable, thereby insuring complete security, privacy and safety for investors. One example of a design is that bearing the image of Augustus Saint-Gaudens, $20 pieces minted from 1907 to 1933. The reverse design shows a nest of Eagles, symbolizing America’s familial tradition. These gold coins are US mint and guaranteed in terms of gold content and weight.
The origin of coins is not free from speculations. Some suggest that the smaller fractional pieces of the earliest coins, comprised of tiny bits of metals were issued as payment for civil servants or those working for the government and later accepted as payment for taxes. Minting of these fractional denominations quickly increased in popularity and nearly every piece in 6th century B.C was hoarded. The larger denominations on the other hand, were most probably used in expensive transactions such as purchasing mercenaries or supplies.
Article By Kent Pinkerton
Coins provides detailed information on Coins, Gold Coins, Rare Coins, Coin Dealers and more. Coins is affiliated with Antique Collectibles.
Article Source: http://EzineArticles.com/?expert=Kent_Pinkerton
Gold Coin: http://goldcoins.blogspot.com
If you are looking for good investments, you might want to consider investing in gold coins.
Gold coins are easier to sell than gold bars or other gold bullion coins that may have delays and other expenses. The durable gold standards established by the US Mint are for gold coins circulating more than 350 years ago. These gold coins are minted in 91.67% fine gold, creating a durable coin that is scratch proof.
Gold bullion coin collecting is the act of amassing a variety of gold coins such as gold Eagles. Pandas, Philharmonics, Maple Leafs, Britannias, Gibraltar Dogs and Isle of Man Cats. There are also silver and platinum bullion coins such as Koalas. Kookaburas and Nobles. The United States alone mints millions of gold coins every year. Those who collect gold bullion coins do so for their scarcity, value and beauty.
Some companies that sell bullion gold coins are recommended for new gold buyers since their transactions are private and non-reportable, thereby insuring complete security, privacy and safety for investors. One example of a design is that bearing the image of Augustus Saint-Gaudens, $20 pieces minted from 1907 to 1933. The reverse design shows a nest of Eagles, symbolizing America’s familial tradition. These gold coins are US mint and guaranteed in terms of gold content and weight.
The origin of coins is not free from speculations. Some suggest that the smaller fractional pieces of the earliest coins, comprised of tiny bits of metals were issued as payment for civil servants or those working for the government and later accepted as payment for taxes. Minting of these fractional denominations quickly increased in popularity and nearly every piece in 6th century B.C was hoarded. The larger denominations on the other hand, were most probably used in expensive transactions such as purchasing mercenaries or supplies.
Article By Kent Pinkerton
Coins provides detailed information on Coins, Gold Coins, Rare Coins, Coin Dealers and more. Coins is affiliated with Antique Collectibles.
Article Source: http://EzineArticles.com/?expert=Kent_Pinkerton
Gold Coin: http://goldcoins.blogspot.com
Sunday, May 28, 2006
Why gold is better than cash
Sponsored By: Gold Coin
Rightly or wrongly, investing in gold is often compared to investing in cash. This is in part because gold has been used as money for thousands of years and often it trades like a currency although it also has some of the traits of a commodity.
Rightly or wrongly, investing in gold is often compared to investing in cash. This is in part because gold has been used as money for thousands of years and often it trades like a currency although it also has some of the traits of a commodity.
Regardless of how you choose to categorize it, gold is often considered a currency. The summary below clears up some common misperceptions about gold, relative to cash, and shows that, when the concerns of the average persons with respect to cash are taken into account, well …. Gold comes out on top!
Defining Gold versus Cash
When gold is compared to cash, most people don't realize that there are two main different ways of holding gold bullion in a bank account: (1) allocated gold and (2) unallocated gold. Using this terminology, cash on deposit at a bank is technically "Unallocated Cash". Therefore, one should compare unallocated gold to cash on deposit. However, I am going to compare Allocated Gold to Cash on Deposit as most people who think of gold, think of it sitting in a vault, not being lent out and therefore not collecting a return.
Allocated gold is not lent out
One of the main reasons you keep money in the bank is that it (hopefully) pays a rate of return, the interest rate. Modern finance theory tells us that in simple terms, the greater the risk, the higher the return should be. Cash on deposit earns a rate of return because the bank lends out your cash - in effect you have loaned the bank your own cash. That is why you earn interest on it. The bank lends out this money at some multiple (in excess of 10 times) greater than its total deposits. You have just taken a risk on (1) the banks credit worthiness and (2) that the bank has made a good decision to lend out this money. The more money the bank lends out, or the higher the credit risk of the person/institution to whom the bank has lent the money, then the more risk you have taken on by depositing cash at the bank. The only control you have over this risk is by not keeping your cash on deposit with the bank. This is similar to unallocated gold: it is lent out to a 3rd party, often to a multiple of what is actually on deposit, and it earns a rate of return which is called the lease rate.
By comparison, allocated gold is not lent out, does not carry any credit risk on the bank or a 3rd party, and therefore does not earn any income. Indeed, allocated gold may bear a holding charge to cover the costs of storage and insurance.
The bank owns your cash
If you deposit allocated gold with an institution, you own the gold. You can turn up to the bank and demand your gold to be delivered to you. It is like holding it in your own safety deposit box.
Cash on deposit, on the other hand, is not owned by you. It is owned by the bank and therefore if your bank went into bankruptcy, then all cash on deposit with the bank would be shared amongst its creditors (unless it is bailed out by the government or through insurance). Having cash on deposit means that you rank as an unsecured creditor of the bank. Furthermore, if everyone demanded all their cash from the bank at the same time, there would not be enough cash to pay people. In small amounts, you can usually demand your cash, however even in modest amounts, cash cannot be paid on demand.
Gold is always accepted
Provided that gold has its authentication verified, gold has always been accepted. It has been used as a store of wealth and as a currency for many thousand years. And as Alan Greenspan said in May 1999:
"Gold still represents the ultimate form of payment in the world …..
Gold is always accepted."
In contrast, cash is not always accepted. The other day I withdrew £100 in 5 £20 notes from a banking machine. I then walked to the store to buy a sandwich for lunch. When I went to pay for my lunch I was told that the first £20 note I took from my wallet was not acceptable - I didn't know that it was an "old note"! A note which I had withdrawn from the bank five minutes earlier had not been accepted…. Yet gold is still used as a currency today. Gold is gold.
Gold is also accepted anywhere in the world. It can be a currency without borders. Cash has borders and this is most pronounced when the government is unstable, the currency is not liquid or the government is printing too much money. Upon reflection, I thought that none of these applied to the British Government yet my £20 note was still not accepted.
Gold is relatively scarce
Without getting too deep into the debate as to whether gold has scarcity value, it is worth pointing out that Gold Fields Minerals Services (GFMS) estimate that only about 150,000 tonnes of gold has ever been mined. At a gold price of US$370/oz, this values the total world gold stock at US$1.7 trillion. To put this in context, the total cash stock (M1 money - being cash & checkable deposits) in the United States is approximately US$1.3 trillion. Knowing that money exists in every country and how that money is multiplied, I would suggest that gold is scarce, relative to cash.
Gold is produced, money is printed
Gold forces discipline; gold's production process from exploration through to the minting of gold bars can take as long as 30 years, but let's say that it generally takes 10 years. Compare this to cash, which can be printed at will by each of the world's governments. On this subject, consider the famous remarks by Governor Ben S. Bernanke (of the Federal Reserve Board), before the National Economists Club, Washington, D.C., November 21, 2002:
"Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services."
Gold is subject to price risk, but so is cash
Unfortunately most people remember the years between 1980 and 2000 when gold fell from a daily high of US$800/oz to lows of US$250/oz. Gold has price risk but it can also appreciate.
People often forget that cash also has price risk. A currency's value (say the US$) is relative to other currencies or what the US$ can buy in terms of goods and services. Currently, the value of the US$ is falling against other currencies, making its value to international investors less attractive and making goods and services for US citizens more expensive. Cash has price risk too.
Gold is more secure
Investors holding gold in an allocated gold account are provided with the exact identification numbers of each gold bar they own: manufacturer, purity, and bar number. This gold is physically segregated from other gold in the vault and this gold can be insured.
Cash on deposit is not physically segregated. Your cash is mixed with other people's cash and you rely on the bank's accounting system to record details of your cash balance correctly. You are not provided with individual serial numbers of every note held on deposit for you and often the cash is not insured - do you insure your cash in the bank? Have you asked for proof (identification numbers) of your cash on deposit? And have asked the bank manager to keep your cash physically separated in an individual safety deposit box?
Below is an example of allocated gold. The photo shows a picture of actual gold bars held for an account at a major bullion bank and the table above it shows the bar identification numbers given to the customer.
Conclusion
It is not surprising that gold has been accepted as a form of payment for thousands of years: gold is indestructible, fungible, easy to store, liquid and secure. More importantly, gold is better than cash.
By
Nik Bienkowski CFA
Head of Institutional Investment
Gold Bullion Limited
www.goldbullion.com
Wednesday, May 24, 2006
Rare Coins...Secrets of the Coin Experts
Time has proven that collectors tend to make the most money in rare coins because they search out "undervalued coins" and buy during market lulls. Buying in today's market climate offers you superb upside profit potential.
Put Rare Coins in Perspective Rare coins have an extremely limited, fixed supply which has historically increased in value when demand overwhelms availability. This fact is documented in the enclosed "Dow-to-Gold Report." It clearly shows how rare coins go up as well as down in price with varying market cycles. We believe the most successful Rare Coin portfolios were built in down markets by systematically assembling a variety of choice, rare, and desirable coins, with a three to five year, or longer, holding period in mind.
Have a Precise Focus on the Coin MarketThousands of coins have been issued over the past 200 years. Very few collectors are experts on more than a few types of coins. For that reason alone, it's important to build a relationship with a firm that employs a team of knowledgeable Rare Coin Specialists and Numismatic Experts that are recognized as pillars of authority throughout the industry. Together, we can help you define your areas of interest, your investment goals, and our team of specialists can then guide you to a specific area of U.S. Coins designed to be both profitable and extremely enjoyable.
Four Factors for Success in Rare Coin Collecting To build a profitable portfolio that's balanced and diversified, you need to consider these factors before entering the U.S. Rare Coin Market:
1) Focus on Areas With Strong Collector Appeal - We recommend U.S. Rare Coins that have a broad base of both active investors and collectors. The more wealthy, sophisticated, and avid the base of buyers in an area, the more successful your portfolio should be in the long run.
2) Insist on Quality – We recommend U.S. Rare Coins of the highest quality for the date that you can afford. These are always the hardest to find, most desirable collector coins and have historically been top market performers. In our opinion, these coins are always in demand by serious collectors and investors. We feel they will be the easiest coins to liquidate and turn the best profits.
3) Look for a Strong Performance History – Take the time to review the price history of any rare coin you purchase. Rare coins that have a good history of 200% to 300% price increases during recent bull markets, usually offer you an excellent profit potential in the next hot market. While past performance is no guarantee of future value, undesirable coins are losers in any market. It is of utmost importance to remember that each rare coin must stand on the value of its own individual merit related to grade, price, eye appeal, and rarity.
4) Search Out Rarity – Finally, we recommend you acquire a selection of Genuinely Rare United States coins. There are fundamentally two ways to determine a coin's rarity. That is "Condition Rarity" and "Absolute Rarity." Condition Rarity is a coin that is rare in higher grades. Some coins are common in worn, circulated grades, yet there could be only five coins known to exist in higher mint-state grades of MS-63 to MS-65.
Absolute Rarity is a coin that is rare in any grade. These are truly desirable gold coins that are hard to locate and acquire in all grades. These few coins that are Absolutely Rare in any grade are the "Blue Chip Recommendations" of the U.S. Rare Coin Market.
We hope this overview and these guidelines will assist you building a valuable collection of United States Rare Coins that will prove to be both fun and profitable in the long run.
By Rare Coins
Tuesday, May 23, 2006
Gold Investments: A Few Helpful Tips
Sponsored by: Gold Coin
Throughout history, gold has been a highly valued substance. It's unique properties and relative scarcity caused almost every world culture to use it as a form of money, as well as a way to "store" value.
Although it has lost much of its importance as a form of currency, gold investments still provide a great way to protect your money and diversify a portfolio.
Looking for great deals on Coin Supplies?
Over the past few years, gold prices have been steadily rising. There is a very good chance this trend will continue over the long-term, making it a good idea to put some money into gold investments now. Also, buying gold is a great way to hedge against other investments.
Due to uncertainty in the stock market and the value of the US dollar, it's a good idea to put 10-20% of your money into a hedge fund in order to protect yourself.
Looking for great deals on Coin Supplies?
Gold and silver have always been considered to be among the best forms of hedge investments because they have relatively stable values (due to very small changes in supply).
How to Invest in Gold Before you buy gold, it's a good idea to get the help of an investment consultant. This is especially true if you've never invested in gold before. He or she can help you determine the best moves to make based on your own personal financial goals and risk tolerance.
If you already have a personal financial adviser, tell him or her that you'd like to use gold to hedge your portfolio.
If he or she doesn't have much experience dealing in gold investments you may want to find someone who does. If you're interested in profiting from the price movements of gold, buying gold bullion coins are an excellent option.
Looking for great deals on Coin Supplies?
The best choices are the American Eagle, the Canadian Maple Leaf, the Britannia, and the Australian Nugget coins. You can buy gold bullion coins from precious metal and coin dealers, both offline and online. Before making a gold bullion purchase, always shop around for the best prices, as the markup on coins will vary from dealer to dealer.
Also, do everything possible to make sure the dealer you're buying from has been in business for awhile and has a good reputation. If possible preserve your gold coins in the original mint packaging and protect them from scratches to maximize resale value.
Gold bars are another gold investment option you may want to look into. Smaller bars are usually more expensive (per ounce) than large bars but are often easier to sell. In general, bars carry a higher price premium than coins. As with gold bullion coins, only buy and trade with reputable dealers.
Article Source: http://add-articles.com
Jamie Clark is a writer and researcher for Gold-Bullion-Guide.com. For useful, up-to-date news and information about gold bullion investments be sure to visit: www.gold-bullion-guide.com
By: Jamie Clark
Looking for great deals on Coin Supplies?
Throughout history, gold has been a highly valued substance. It's unique properties and relative scarcity caused almost every world culture to use it as a form of money, as well as a way to "store" value.
Although it has lost much of its importance as a form of currency, gold investments still provide a great way to protect your money and diversify a portfolio.
Looking for great deals on Coin Supplies?
Over the past few years, gold prices have been steadily rising. There is a very good chance this trend will continue over the long-term, making it a good idea to put some money into gold investments now. Also, buying gold is a great way to hedge against other investments.
Due to uncertainty in the stock market and the value of the US dollar, it's a good idea to put 10-20% of your money into a hedge fund in order to protect yourself.
Looking for great deals on Coin Supplies?
Gold and silver have always been considered to be among the best forms of hedge investments because they have relatively stable values (due to very small changes in supply).
How to Invest in Gold Before you buy gold, it's a good idea to get the help of an investment consultant. This is especially true if you've never invested in gold before. He or she can help you determine the best moves to make based on your own personal financial goals and risk tolerance.
If you already have a personal financial adviser, tell him or her that you'd like to use gold to hedge your portfolio.
If he or she doesn't have much experience dealing in gold investments you may want to find someone who does. If you're interested in profiting from the price movements of gold, buying gold bullion coins are an excellent option.
Looking for great deals on Coin Supplies?
The best choices are the American Eagle, the Canadian Maple Leaf, the Britannia, and the Australian Nugget coins. You can buy gold bullion coins from precious metal and coin dealers, both offline and online. Before making a gold bullion purchase, always shop around for the best prices, as the markup on coins will vary from dealer to dealer.
Also, do everything possible to make sure the dealer you're buying from has been in business for awhile and has a good reputation. If possible preserve your gold coins in the original mint packaging and protect them from scratches to maximize resale value.
Gold bars are another gold investment option you may want to look into. Smaller bars are usually more expensive (per ounce) than large bars but are often easier to sell. In general, bars carry a higher price premium than coins. As with gold bullion coins, only buy and trade with reputable dealers.
Article Source: http://add-articles.com
Jamie Clark is a writer and researcher for Gold-Bullion-Guide.com. For useful, up-to-date news and information about gold bullion investments be sure to visit: www.gold-bullion-guide.com
By: Jamie Clark
Looking for great deals on Coin Supplies?
Rare Coins
Article Sponsored by: Gold Coin
One good form of investment is to buy rare coins that over the years have grown in value. This type of coin, particularly in the United States, boasts extraordinary value presenting a wonderful opportunity for rare gold collectors. With prices at nearly five year lows, coupled with the availability of the choicest coins in the market, this it is the best time to collect rare coins.
Rare gold and silver coins are in demand especially among investors, since they provide the needed balance to stock portfolios thereby reducing over all risks and generating a large amount of profit. Financial analysts recommend placing a 10-20% of discretionary funds in precious metals like rare coins even for those who own gold mining stocks.
Rare coins are very good performing financial assets in their own right. A recent market analysis of rare gold and silver coins conducted by Coin Universe shows that $1,000 invested in U.S. rare coins during the 70’s would now be worth on the average nearly $58,000.
If we review history, paper assets like bonds, stocks and treasury bills lose value while gold, platinum and silver rare coins appreciate in value. Having rare coins in your portfolio will dramatically reduce its volatility and protect your investment from economic uncertainties such as inflation.
Rare coins that can only be traded should be certified and graded by the Professional Coin Grading Service and the Numismatic Guaranty Corporation, two leading independent grading firms. They should come with a complete money-back guarantee. Some firms specialize in finding the right rare coin to suit the buyers’ needs and budget. Others carry rare coins at an affordable price.
Coins provides detailed information on Coins, Gold Coins, Rare Coins, Coin Dealers and more. Coins is affiliated with Antique Collectibles.
By Kent Pinkerton
Article Source: http://EzineArticles.com/?expert=Kent_Pinkerton
One good form of investment is to buy rare coins that over the years have grown in value. This type of coin, particularly in the United States, boasts extraordinary value presenting a wonderful opportunity for rare gold collectors. With prices at nearly five year lows, coupled with the availability of the choicest coins in the market, this it is the best time to collect rare coins.
Rare gold and silver coins are in demand especially among investors, since they provide the needed balance to stock portfolios thereby reducing over all risks and generating a large amount of profit. Financial analysts recommend placing a 10-20% of discretionary funds in precious metals like rare coins even for those who own gold mining stocks.
Rare coins are very good performing financial assets in their own right. A recent market analysis of rare gold and silver coins conducted by Coin Universe shows that $1,000 invested in U.S. rare coins during the 70’s would now be worth on the average nearly $58,000.
If we review history, paper assets like bonds, stocks and treasury bills lose value while gold, platinum and silver rare coins appreciate in value. Having rare coins in your portfolio will dramatically reduce its volatility and protect your investment from economic uncertainties such as inflation.
Rare coins that can only be traded should be certified and graded by the Professional Coin Grading Service and the Numismatic Guaranty Corporation, two leading independent grading firms. They should come with a complete money-back guarantee. Some firms specialize in finding the right rare coin to suit the buyers’ needs and budget. Others carry rare coins at an affordable price.
Coins provides detailed information on Coins, Gold Coins, Rare Coins, Coin Dealers and more. Coins is affiliated with Antique Collectibles.
By Kent Pinkerton
Article Source: http://EzineArticles.com/?expert=Kent_Pinkerton
Basic U.S. Coin Facts Part 1
Introduction
There is approximately $8 billion worth of coins circulating in the U.S. today. In the past 30 years, the U.S. Mint, which is responsible for designing and producing the nation's coins, has minted over 300 billion coins, worth about $15 billion.
Since its creation in 1792, the U.S. Mint has grown into a large enterprise with more than $1 billion in annual revenues and 2,200 employees. It is by far the world's largest manufacturer of coins and medals, producing coins not only for the U.S. but on behalf of several other countries as well.
This article provides some basic information about U.S. coins, including how they are minted, past and current coin denominations, coin composition and coin design.
How Coins Are Made
In order to make coins, the U.S. Mint purchases strips of metal (rolled into coils) in the proper dimensions and thicknesses. Zinc metal strips (coated with a copper plating) are used to make pennies. Strips used for nickels are comprised of a 75% copper, 25% nickel metal alloy.
Dimes, quarters, half-dollars and dollar coins are produced of strips consisting of three metallic layers fused together. The outer layers of these strips are comprised of the same alloy as that used for nickels with the third (core) layer being comprised of copper.
The first step in the coin making process involves the feeding of the metal strips through what is known as a "blanking" press. This press punches out cut round discs (blanks) about the same size as the finished coin. These blanks are then heated in a furnace to soften them. Subsequently, the softened blanks are placed in rotating barrels of chemical solutions to clean and polish the metal. The cleaned and shiny blanks are then washed and dried.
Next, the blanks are sorted to remove any defective ones and the balance are put through an "upsetting" mill which raises a rim around their edges. The rimmed blanks then go to the coining or stamping press where upper and lower dies stamp the designs and inscriptions on both sides of the coin simultaneously. At this point, the blanks become genuine U.S. coins.
Finally, the finished coins are mechanically counted and placed into large canvas bags for shipment to the Federal Reserve Banks. From there they are shipped to local banks on an as-needed basis.
Coin Composition
When the U. S. Mint was established in 1792, the law required that all coins be made of gold, silver or copper. For a considerable period of time afterwards, gold was used in the $10, $5 and $2.50 pieces, silver was used to make the dollar, half-dollar, quarter, dime and half-dime while the penny and half-cent coins were made of copper.
In 1933, during the Great Depression, the U.S. Mint stopped making gold coins altogether. In 1965, as a result of a severe silver shortage, Congress dictated that silver no longer be used in making quarters and dimes. In addition, the silver content of the half-dollar (previously 90%) was reduced to 40% in 1965 and then eliminated entirely in 1971. As previously mentioned, all of these coin denominations are now composed of copper-nickel clad with an outer layer of a 75% copper, 25% nickel alloy and a pure copper core. Nickels are made of the same copper-nickel alloy but without the copper core.
The penny's composition was altered in 1982 from 95% copper 5% zinc, to the current 97.5% zinc, 2.5% copper mix. This was done as a cost cutting measure and to make the penny lighter in weight.
There is approximately $8 billion worth of coins circulating in the U.S. today. In the past 30 years, the U.S. Mint, which is responsible for designing and producing the nation's coins, has minted over 300 billion coins, worth about $15 billion.
Since its creation in 1792, the U.S. Mint has grown into a large enterprise with more than $1 billion in annual revenues and 2,200 employees. It is by far the world's largest manufacturer of coins and medals, producing coins not only for the U.S. but on behalf of several other countries as well.
This article provides some basic information about U.S. coins, including how they are minted, past and current coin denominations, coin composition and coin design.
How Coins Are Made
In order to make coins, the U.S. Mint purchases strips of metal (rolled into coils) in the proper dimensions and thicknesses. Zinc metal strips (coated with a copper plating) are used to make pennies. Strips used for nickels are comprised of a 75% copper, 25% nickel metal alloy.
Dimes, quarters, half-dollars and dollar coins are produced of strips consisting of three metallic layers fused together. The outer layers of these strips are comprised of the same alloy as that used for nickels with the third (core) layer being comprised of copper.
The first step in the coin making process involves the feeding of the metal strips through what is known as a "blanking" press. This press punches out cut round discs (blanks) about the same size as the finished coin. These blanks are then heated in a furnace to soften them. Subsequently, the softened blanks are placed in rotating barrels of chemical solutions to clean and polish the metal. The cleaned and shiny blanks are then washed and dried.
Next, the blanks are sorted to remove any defective ones and the balance are put through an "upsetting" mill which raises a rim around their edges. The rimmed blanks then go to the coining or stamping press where upper and lower dies stamp the designs and inscriptions on both sides of the coin simultaneously. At this point, the blanks become genuine U.S. coins.
Finally, the finished coins are mechanically counted and placed into large canvas bags for shipment to the Federal Reserve Banks. From there they are shipped to local banks on an as-needed basis.
Coin Composition
When the U. S. Mint was established in 1792, the law required that all coins be made of gold, silver or copper. For a considerable period of time afterwards, gold was used in the $10, $5 and $2.50 pieces, silver was used to make the dollar, half-dollar, quarter, dime and half-dime while the penny and half-cent coins were made of copper.
In 1933, during the Great Depression, the U.S. Mint stopped making gold coins altogether. In 1965, as a result of a severe silver shortage, Congress dictated that silver no longer be used in making quarters and dimes. In addition, the silver content of the half-dollar (previously 90%) was reduced to 40% in 1965 and then eliminated entirely in 1971. As previously mentioned, all of these coin denominations are now composed of copper-nickel clad with an outer layer of a 75% copper, 25% nickel alloy and a pure copper core. Nickels are made of the same copper-nickel alloy but without the copper core.
The penny's composition was altered in 1982 from 95% copper 5% zinc, to the current 97.5% zinc, 2.5% copper mix. This was done as a cost cutting measure and to make the penny lighter in weight.
Gold Coins: Basic Facts Part 2
The U.S issued gold coins for general circulation from about 1838 to 1933. The Liberty head bust was depicted on gold coins from 1838 to 1907.
The design for gold coins was altered in 1907 to the Indian head and Saint- Gaudens motifs. These coins remained in circulation until the Great Depression in 1933 when most gold coins then in circulation were recalled by the U. S. mint and melted down. Many gold coins therefore disappeared contributing to their rarity today.
Many collectors have at least one or more gold coins in their collection. Few collectors however are aware of the actual gold content of such coins or of their current numismatic values.
The following provides information on the gold content of the most popular U.S. gold coins and a rough estimate of the current numismatic values (June, 2000) for such coins based on a coin graded XF (Extra Fine).
$1 Gold Liberty Head (1849-1854)
Weight: .0538 troy oz. Fineness: .900 or 21.6 karatsDiameter: 13mmFine Gold Content: .0483 troy oz. Estimated Value: 110
$1 Gold Indian Princess (1854-1856)
Weight: .0538 troy oz.Fineness: .900 or 21.6 karatsDiameter: 15mmFine Gold Content: .0483 troy oz. Estimated Value: 110
$1 Gold Indian Head (1856-1889)
Weight: .0538 troy oz. Fineness: .900 or 21.6 karatsDiameter: 15mmFine Gold Content: .0483 troy oz. Estimated Value: 110
$2 1/2 Liberty Quarter Eagle (1840-1907)
Weight: .1343 troy oz. Fineness: .900 or 21.6 karatsDiameter: 17mmFine Gold Content: .1209 troy oz. Estimated Value: 145
$5 Liberty Half Eagle (1866-1908)
Weight: .26875 troy oz. Fineness: .900 or 21.6 karatsDiameter: 21mmFine Gold Content: .2419 troy oz. Estimated Value: 120
$5 Indian Half Eagle (1908-1929)
Weight: .26875 troy oz. Fineness: .900 or 21.6 karatsDiameter: 21mmFine Gold Content: .2419 troy oz. Estimated Value: 170
$10 Liberty Eagle (1866-1907)
Weight: .5375 troy oz. Fineness: .900 or 21.6 karatsDiameter: 27mmFine Gold Content: .4838 troy oz. Estimated Value: 215
10 Indian Eagle (1907-1933)
Weight: .5375 troy oz. Fineness: .900 or 21.6 karatsDiameter: 27mmFine Gold Content: .4838 troy oz. Estimated Value: 210
$20 Liberty Double Eagle (1877-1907)
Weight: 1.0750 troy oz. Fineness: .900 or 21.6 karatsDiameter: 34mmFine Gold Content: .9675 troy oz.Estimated Value:360
$20 St. Gaudens Double Eagle (1907-1933)
Weight: 1.0750 troy oz. Fineness: .900 or 21.6 karatsDiameter: 34mmFine Gold Content: .9675 troy oz. Estimated Value: 380
The design for gold coins was altered in 1907 to the Indian head and Saint- Gaudens motifs. These coins remained in circulation until the Great Depression in 1933 when most gold coins then in circulation were recalled by the U. S. mint and melted down. Many gold coins therefore disappeared contributing to their rarity today.
Many collectors have at least one or more gold coins in their collection. Few collectors however are aware of the actual gold content of such coins or of their current numismatic values.
The following provides information on the gold content of the most popular U.S. gold coins and a rough estimate of the current numismatic values (June, 2000) for such coins based on a coin graded XF (Extra Fine).
$1 Gold Liberty Head (1849-1854)
Weight: .0538 troy oz. Fineness: .900 or 21.6 karatsDiameter: 13mmFine Gold Content: .0483 troy oz. Estimated Value: 110
$1 Gold Indian Princess (1854-1856)
Weight: .0538 troy oz.Fineness: .900 or 21.6 karatsDiameter: 15mmFine Gold Content: .0483 troy oz. Estimated Value: 110
$1 Gold Indian Head (1856-1889)
Weight: .0538 troy oz. Fineness: .900 or 21.6 karatsDiameter: 15mmFine Gold Content: .0483 troy oz. Estimated Value: 110
$2 1/2 Liberty Quarter Eagle (1840-1907)
Weight: .1343 troy oz. Fineness: .900 or 21.6 karatsDiameter: 17mmFine Gold Content: .1209 troy oz. Estimated Value: 145
$5 Liberty Half Eagle (1866-1908)
Weight: .26875 troy oz. Fineness: .900 or 21.6 karatsDiameter: 21mmFine Gold Content: .2419 troy oz. Estimated Value: 120
$5 Indian Half Eagle (1908-1929)
Weight: .26875 troy oz. Fineness: .900 or 21.6 karatsDiameter: 21mmFine Gold Content: .2419 troy oz. Estimated Value: 170
$10 Liberty Eagle (1866-1907)
Weight: .5375 troy oz. Fineness: .900 or 21.6 karatsDiameter: 27mmFine Gold Content: .4838 troy oz. Estimated Value: 215
10 Indian Eagle (1907-1933)
Weight: .5375 troy oz. Fineness: .900 or 21.6 karatsDiameter: 27mmFine Gold Content: .4838 troy oz. Estimated Value: 210
$20 Liberty Double Eagle (1877-1907)
Weight: 1.0750 troy oz. Fineness: .900 or 21.6 karatsDiameter: 34mmFine Gold Content: .9675 troy oz.Estimated Value:360
$20 St. Gaudens Double Eagle (1907-1933)
Weight: 1.0750 troy oz. Fineness: .900 or 21.6 karatsDiameter: 34mmFine Gold Content: .9675 troy oz. Estimated Value: 380
Saturday, May 20, 2006
Gold Coins
Sponsored By Gold Coin
On the 30th July 2002 a gold coin was sold by Sotheby's Auctions in New York for $7.59 million dollars.
The unique and uniquely valuable gold coin was a USA 1933 Double Eagle.
The gold Double Eagle coin had been minted in 1933 but removed from circulation. This gold coin auctioned at Sotheby's was the ONLY one in the world and had previously been in the private coin collection of King Farouk of Egypt.
Gold Bullion Coins:
Gold Bullion coins are produced by many countries to allow an investment in small, easily held quantities of gold bullion.
Gold Bullion coins include gold sovereigns, gold krugerrands, maples, eagles as well as halves and fractions of these gold coins.
The first Gold Coin:
The first ever gold coin in the world was struck by King Croesus of Lydia in 560 BC.
Gold coins are avidly sought by collectors all over the world for their beauty, value and historical interest.
American Eagle Gold Bullion Coins:
Gold Coins:
On the 30th July 2002 a gold coin was sold by Sotheby's Auctions in New York for $7.59 million dollars.
The unique and uniquely valuable gold coin was a USA 1933 Double Eagle.
The gold Double Eagle coin had been minted in 1933 but removed from circulation. This gold coin auctioned at Sotheby's was the ONLY one in the world and had previously been in the private coin collection of King Farouk of Egypt.
Gold Bullion Coins:
Gold Bullion coins are produced by many countries to allow an investment in small, easily held quantities of gold bullion.
Gold Bullion coins include gold sovereigns, gold krugerrands, maples, eagles as well as halves and fractions of these gold coins.
The first Gold Coin:
The first ever gold coin in the world was struck by King Croesus of Lydia in 560 BC.
Gold coins are avidly sought by collectors all over the world for their beauty, value and historical interest.
On the 30th July 2002 a gold coin was sold by Sotheby's Auctions in New York for $7.59 million dollars.
The unique and uniquely valuable gold coin was a USA 1933 Double Eagle.
The gold Double Eagle coin had been minted in 1933 but removed from circulation. This gold coin auctioned at Sotheby's was the ONLY one in the world and had previously been in the private coin collection of King Farouk of Egypt.
Gold Bullion Coins:
Gold Bullion coins are produced by many countries to allow an investment in small, easily held quantities of gold bullion.
Gold Bullion coins include gold sovereigns, gold krugerrands, maples, eagles as well as halves and fractions of these gold coins.
The first Gold Coin:
The first ever gold coin in the world was struck by King Croesus of Lydia in 560 BC.
Gold coins are avidly sought by collectors all over the world for their beauty, value and historical interest.
American Eagle Gold Bullion Coins:
Gold Coins:
On the 30th July 2002 a gold coin was sold by Sotheby's Auctions in New York for $7.59 million dollars.
The unique and uniquely valuable gold coin was a USA 1933 Double Eagle.
The gold Double Eagle coin had been minted in 1933 but removed from circulation. This gold coin auctioned at Sotheby's was the ONLY one in the world and had previously been in the private coin collection of King Farouk of Egypt.
Gold Bullion Coins:
Gold Bullion coins are produced by many countries to allow an investment in small, easily held quantities of gold bullion.
Gold Bullion coins include gold sovereigns, gold krugerrands, maples, eagles as well as halves and fractions of these gold coins.
The first Gold Coin:
The first ever gold coin in the world was struck by King Croesus of Lydia in 560 BC.
Gold coins are avidly sought by collectors all over the world for their beauty, value and historical interest.
Monday, May 15, 2006
Favorite Gold Coins To Collect For Investment
This post was Sponsored By: gold coin
Why Gold American Eagle Coins are Popular among Collectors
Gold coins are a favorite of coin collectors with an eye toward investment. Not only are golden coins lovely to behold, but they also have a value that is guaranteed, due to their precious metal content. The value of gold coins is usually higher than the value of their weight in gold bullion, making them a better investment than the gold market alone.
Many countries produce gold coins for collectors or for commemorative purposes. These coins oftentimes emphasize unique aspects of the country’s culture. Australia reveres its national animal with the Gold Kangaroo, for example, while China has a Gold Panda with a lovely design that changes every year. Canada’s coin features a powerful national symbol with the golden Maple Leaf, and South Africa mints the Krugerrand. One of the world’s best selling coins, the Krugerrand features the South African national animal, the Springbok. Taking its place as one of the most popular gold coins among investors and collectors, however, is the American Gold Eagle. The American Gold Eagle stands out among other bullion coins because of its lovely design, and because its value is backed by the full strength of the United States government.
The Beauty of American Eagle Gold Coins
The Gold Eagle features a representation of Lady Liberty striding with torch in hand through a field of light rays on its front side. This image is inspired by a golden coin designed by Augustus Saint-Gauden and minted from 1907 to 1933. The Augustus Saint-Gauden Double Eagle is widely considered to be one of the most beautiful coins America has ever produced. On the flip side of the American Eagle gold coins is a nest full of bald eagles, the national bird of the United States. The nest represents the American dedication to unity and family. Furthermore, a special die is used when minting these coins, to bring the gold to an especially high shine and to make it easier to see small details in the design.
American Eagle Gold Coins have Guaranteed Value
American Eagle gold coins are valuable not only for their lovely appearance, but also because they are the only bullion coin whose gold content is guaranteed by the United States government. Each American Gold Eagle is stamped with its exact gold weight, as well as its face value. They are minted from 22-karat gold, which by law must be pure gold bullion mined from within the United States. This guarantee of the authenticity of the precious metals used to make American Eagle gold coins is highly valuable to investors.
Buying American Eagle Gold Coins
Golden American Eagles were first produced in 1985 and come in a variety of sizes and values, ranging from the 1/10th oz American Eagle coin with a face value of $5, all the way up to full ounce gold coins with a face value of $50. Remember that most gold coins are worth more than their legal tender amount. Although they re not available for purchase directly from the U.S. Mint, American Eagle can be commonly found for sale in coin shops, on the internet, by gold dealers, and at coin shows. There are also variations on the American Eagle that are minted from silver or platinum instead of gold.
By: Charles Roman
http://goldcoins.blogspot.com
Why Gold American Eagle Coins are Popular among Collectors
Gold coins are a favorite of coin collectors with an eye toward investment. Not only are golden coins lovely to behold, but they also have a value that is guaranteed, due to their precious metal content. The value of gold coins is usually higher than the value of their weight in gold bullion, making them a better investment than the gold market alone.
Many countries produce gold coins for collectors or for commemorative purposes. These coins oftentimes emphasize unique aspects of the country’s culture. Australia reveres its national animal with the Gold Kangaroo, for example, while China has a Gold Panda with a lovely design that changes every year. Canada’s coin features a powerful national symbol with the golden Maple Leaf, and South Africa mints the Krugerrand. One of the world’s best selling coins, the Krugerrand features the South African national animal, the Springbok. Taking its place as one of the most popular gold coins among investors and collectors, however, is the American Gold Eagle. The American Gold Eagle stands out among other bullion coins because of its lovely design, and because its value is backed by the full strength of the United States government.
The Beauty of American Eagle Gold Coins
The Gold Eagle features a representation of Lady Liberty striding with torch in hand through a field of light rays on its front side. This image is inspired by a golden coin designed by Augustus Saint-Gauden and minted from 1907 to 1933. The Augustus Saint-Gauden Double Eagle is widely considered to be one of the most beautiful coins America has ever produced. On the flip side of the American Eagle gold coins is a nest full of bald eagles, the national bird of the United States. The nest represents the American dedication to unity and family. Furthermore, a special die is used when minting these coins, to bring the gold to an especially high shine and to make it easier to see small details in the design.
American Eagle Gold Coins have Guaranteed Value
American Eagle gold coins are valuable not only for their lovely appearance, but also because they are the only bullion coin whose gold content is guaranteed by the United States government. Each American Gold Eagle is stamped with its exact gold weight, as well as its face value. They are minted from 22-karat gold, which by law must be pure gold bullion mined from within the United States. This guarantee of the authenticity of the precious metals used to make American Eagle gold coins is highly valuable to investors.
Buying American Eagle Gold Coins
Golden American Eagles were first produced in 1985 and come in a variety of sizes and values, ranging from the 1/10th oz American Eagle coin with a face value of $5, all the way up to full ounce gold coins with a face value of $50. Remember that most gold coins are worth more than their legal tender amount. Although they re not available for purchase directly from the U.S. Mint, American Eagle can be commonly found for sale in coin shops, on the internet, by gold dealers, and at coin shows. There are also variations on the American Eagle that are minted from silver or platinum instead of gold.
By: Charles Roman
Article Source: http://www.articledashboard.com
This post was Sponsored By: gold coinhttp://goldcoins.blogspot.com
Coins and Coin Collecting www.coinsandcoincollecting.com : your guide to getting the very best from your coin collection.
Gold Coin Buying - The Logic
This post was Sponsored By: gold coin
Humans have been fascinated by gold for thousands of years, by the way it never tarnishes and by its unique color.
Sadly, gold is useless in engineering terms, except for plating electrical contacts, to ensure they never tarnish and lose their conductivity. The metal is too soft, with too low a tensile strength to be used for much besides necklaces and rings.
As an investment though, gold is a different story altogether. Why do people buy gold? It has zero intrinsic value.
Gold prices fall and rise, according largely to the degree of fear that people have about the future. When war is imminent gold prices soar.
When economic conditions are good, inflation low and employment rate high, gold prices fall. Under these conditions there are investments that are probably going to produce a better return than holding gold bars.
People buy gold because they fear the inflation and catastrophic share price collapse that normally accompanies war and political uncertainty. They buy gold because they think gold will hold its value.
Historically gold holds some value, whereas shares can lose all of their value overnight. However, anyone who buys gold at the high price associated with war will almost certainly lose money, when they sell at a lower price.
Conclusion - buy gold when everyone is saying to invest in the stock market. Sell gold when things are looking grim and there are lots of buyers out there.
If you do buy gold you need to appreciate that this investment has risk. The price of gold may fall. It may be years before you can sell your gold at a profit.
Until recently many countries made it illegal for individuals to hold gold bars or bullion. Individuals could buy gold coins and other items however. The South African Krugerrand was minted to exploit this opportunity and to earn much needed foreign exchange for that country during the years of economic sanctions.
Nowadays you can buy gold, silver and platinum coins in many denominations, including Canadian and US dollars, sterling crowns and sovereigns.
http://goldcoins.blogspot.com
This post was Sponsored By: gold coin
Article Source: http://www.articledashboard.com
Humans have been fascinated by gold for thousands of years, by the way it never tarnishes and by its unique color.
Sadly, gold is useless in engineering terms, except for plating electrical contacts, to ensure they never tarnish and lose their conductivity. The metal is too soft, with too low a tensile strength to be used for much besides necklaces and rings.
As an investment though, gold is a different story altogether. Why do people buy gold? It has zero intrinsic value.
Gold prices fall and rise, according largely to the degree of fear that people have about the future. When war is imminent gold prices soar.
When economic conditions are good, inflation low and employment rate high, gold prices fall. Under these conditions there are investments that are probably going to produce a better return than holding gold bars.
People buy gold because they fear the inflation and catastrophic share price collapse that normally accompanies war and political uncertainty. They buy gold because they think gold will hold its value.
Historically gold holds some value, whereas shares can lose all of their value overnight. However, anyone who buys gold at the high price associated with war will almost certainly lose money, when they sell at a lower price.
Conclusion - buy gold when everyone is saying to invest in the stock market. Sell gold when things are looking grim and there are lots of buyers out there.
If you do buy gold you need to appreciate that this investment has risk. The price of gold may fall. It may be years before you can sell your gold at a profit.
Until recently many countries made it illegal for individuals to hold gold bars or bullion. Individuals could buy gold coins and other items however. The South African Krugerrand was minted to exploit this opportunity and to earn much needed foreign exchange for that country during the years of economic sanctions.
Nowadays you can buy gold, silver and platinum coins in many denominations, including Canadian and US dollars, sterling crowns and sovereigns.
http://goldcoins.blogspot.com
This post was Sponsored By: gold coin
Article Source: http://www.articledashboard.com
Wanda Cortez is a prolific writer, who has a background in the financial and investment industry. Find more information on investment at Buying Gold or Buying Silver
Subscribe to:
Posts (Atom)