Gold Bullion Coins

Gold Bullion Coins are not collected for their numismatic value but they do provide collectors a valuable gold-investment coin.

Background
Few Americans are aware of their recent anniversary. Seventy-eight years ago a ban on ownership of gold was ordered by President Franklin D. Roosevelt, in 1933. That ban remained the law until December 31, 1974, four decades later and three years after President Richard Nixon removed the United States from the gold standard.

Gold would reach a record high of $850 USD by 1980. It's easy to assume gold was being driven up while Americans bought American bullion coins but the American Eagle wouldn't appear until 1986 ---six years after gold's record-high price.

Americans seeking gold bullion coins before 1980, therefore, had to look to foreign issues. Early 20th century issues included the Austrian 100 Coronas, Mexican Centenario, British Sovereign, the Krugerrand, and the Canadian Maple Leaf. Circulating foreign coinage was the only way Americans could acquire gold bullion coins after the ban was lifted in 1974.

After the 1980's record high gold price, the Mexican Libertad was introduced in 1981, then the Chinese Gold Panda in 1982.

The American Eagle was then introduced in 1986, along with the Britannia in 1987, the Australian Nugget-Kangaroo in 1986, the Vienna Philharmonic in 1989, and the Chinese Lunar Calendar gold coins in 1996.

The 20th century would close with eight governments offering gold bullion coins to the public: Austria (Euro), Australia, Britain, Canada, China, Mexico, South Africa, and the United States.

Bullion Coin Pricing
Collectors discuss "numismatic" value when estimating the price of a collectable coin. Bullion coins are traded solely for their precious metal content. Yet all bullion coins do not trade for the same amount. Age, supply, or demand can vary expectations between same-sized coins. A one ounce Krugerrand and a one ounce Philharmonic, for example, can differ significantly in price. Bullion coin dealers call this a coin's "premium."

A "coin premium" is the additional cost of a bullion coin above and beyond the market value of the precious metal commodity it contains. The difference between "numismatic" value and a coin "premium" can be slight. A Krugerrand dated 1967 may have numismatic value to an individual collector but the marketplace will quote a price on Krugerrands. The "premium" on Krugerrands. If Krugerrands become scarce then the "premium" on all Krugerrands will rise.