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Feb
13
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Before there was paper currency there were gold coins. Today, most consumers rarely ever see a gold coin because these tend to be worth far more than the face value that is minted into their surface. Even modern, investment grade US gold coins are going to be worth much more than their face values.
It helps to understand, however, that there is often serious confusion about collectible coins and investment-quality coins. Where U.S. gold coins are concerned, it all starts with the gold. Is the coin plated? What sort of gold is it? Is it made of 24 karat gold? Is it pure gold? Only those coins that have pure or bullion-quality gold are the kinds to purchase for investment.
Currently, there are two very well-known types of U.S. gold coins regularly bought and traded strictly for investment purposes. They are the gold American Eagles and the gold American Buffalos.
The American Eagles come in a variety of weights that vary from one full ounce of pure gold to one-tenth of an ounce. Each weight has a face value assigned to the coin as well, with values ranging from fifty dollars down to five dollars each. Obviously an intelligent investor will never use the coins as currency, but the fact that they are ensured against total loss by the face value can only be seen as an added bonus.
The gold American Buffalos are available only as fifty dollar pieces in the full one-ounce weight. Both of these varieties of U.S. gold coins are considered to be savvy investments and a very portable way to increase wealth.