Investing in Precious Metals Bullion Coins

By Dylan Chase

Uncertainty in the financial landscape and fluctuating values for many asset classes have led more people to consider precious metals investing. Such an investment can be made through a variety of methods such as common stock of mining companies, precious metals ETFs, or bullion coins. The United States Mint produces a number of bullion products including the American Gold Eagle.

Congress authorized the American Eagle Bullion Coin Program in 1985, with the first coins issued the following year in 1986. The coins are produced to exact standards with the weight, content, and purity guaranteed by the government. The American Gold Eagle is struck in a composition of 91.67% gold, 3% silver, and 5.33% copper. For most years, the coins have been minted and offered in four different sizes. The one ounce, one-half ounce, one-quarter ounce, and one-tenth ounce coins each contain their stated weight in pure gold.

The design for the bullion coins features a classic design originally used on the circulating $20 gold double eagle coin designed by Augustus Saint Gaudens. Liberty is depicted striding confidently forward holding a torch and olive branch. The US Capitol building is visible in the background with rays of the rising sun.

The reverse of the coin features a family of eagles. This design was created by Miley Busiek specifically for the new gold bullion coins. A male eagle is shown bringing an olive branch back to a nest containing the female eagle and hatchlings.

In addition to the bullion coins, the United States Mint has offered special versions of the coins for collectors. Since 1986, a proof version of the coin has been created which features a high quality deep cameo proof finish. From 2006 to 2008, collectible uncirculated versions of the coin were produced, which are struck on specially burnished blanks and contain the W mint mark. The collector versions of the coins are priced at a premium and sold directly by the United States Mint to the public. - 32532

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