What Makes A Gold Coin Valuable?
The Value Of Gold Coins
Gold coins have value for several reasons. First and foremost gold coins have value, meaning they are worth money, because of their gold ore content. Gold ore has been mined since the days early man roamed the earth. It has long since been the most precious and therefore most valuable element on earth. Gold is precious and has value for one simple reason and it has nothing to do with how shiny it is: gold is valuable because there is a limited and finite supply of it which exists in the world. As more and more gold is mined, the earth’s stores of gold ore are reduced. Since gold was first mined until present day, there have only been 80 cubic meters of solid gold extracted from the earth. Not very much when this gold has to be shared the world over. For this reason, and the fact that there is currently heavy demand on this precious metal, gold bullion and gold coins are worth a lot of money. Currently as of 2009, gold is trading on the markets for over $1,000 per troy ounce. This means a single gold coin that weighs a solid ounce is a very expensive piece of metal.
Assessing Gold Coin Value
Not all gold coins are of equal value for two simple reasons: gold purity and gold coin weight. The gold coin standard is 99.999% pure gold, the highest verifiable gold purity that can be measured. While most gold coins minted by refutable minters, such as the U.S. Mint or Royal Canadian Mint are in fact of the highest purity, not all gold coins are so. Some may have lesser purities from 50% to 99%. The only way to know for sure a gold coin´s purity is to have it certified. This will determine its gold ore purity and also the second key to gold coin value: its weight. The more ounces, or partial ounces, a gold coin weighs the more gold bullion it contains and therfore is worth more. An American Eagle gold coin of a single troy ounce, certified by the U.S. Mint to be 99.999% pure gold is currently worth over $1,100 and rising.
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