Back in the early 1900s seeing or possessing a gold coin was the norm for most citizens. It was as common as paper money and silver coins are to us now, although they too may become obsolete in terms of currency one day.
In 1933, a resolution from Congress took us off the gold standard, removing the right for creditors to demand payment via gold. So, gold coins morphed from currency to collector’s items becoming valuable in their uniqueness and rarity.
Largely understood, pre-1933 coins tend to be the highest in value. There are a variety of coins sold throughout the early to mid-2000s that fall under that category. The most expensive having sold for upward of $18 million.
Value is not simply based on the age of the coin. There are other factors to consider when assessing why these particular coins might be worth thousands of dollars.
Read on to discover what makes gold coins valuable and some of the characteristics of the most valuable gold coin.
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What Makes a Gold Coin Valuable?
When discussing gold coins there is a sense of wonder in reference to their origins and the life they lived while in circulation.
As times changed and currency changed the gold coin was taken out of circulation and over the years they were seen less and less, except for those that had the foresight to see the future value and collect them.
Surely there is a set of standards or criteria to determine why a specific gold coin might be valuable enough to attach a hefty price tag to it. These standards include:
- Population Approximations
- Bouillon Content
Based on these characteristics the value of gold coins can be determined. This standard set of criteria is used to measure the value of gold coins.
Let’s explore each in-depth for a better understanding.
Demand is not a new concept when it comes to the profitability of a product or service, gold coins included. The more it is sought after, the more valuable it becomes.
This is especially true of gold coins where there may only be a few or perhaps even one of a specific kind.
Unlike a toy that is mass-produced and then sold out for a time, a gold coin is a one-of-a-kind commodity. Now, of course, the rarity of the item is only a factor in the value of an item if it is desired.
If no one cares about its existence then it has no monetary value attached. Gold coins have continued to be valuable because there is a demand to possess them.
Although there are exceptions to the rule, the rule tends to be that the older the coin, the more value it has and this is due to a few reasons.
Older coins tend to be harder to find because they may not be in circulation or available for purchase from a mint, like other coins.
Due to their age, the population may have been greatly reduced due to being lost or destroyed. Not to mention, that the older the coin the more likely it is to be given over to corrosion and decay, which further minimizes the numbers of those that might still hold value.
This factor goes without saying but it is not as simple as the coins ‘wear-based grade’. There are other considerations to a collector or potential buyer like visual appeal, the tone and color of the coin, as well as signs of erosion or damage.
Like with age, condition reduces the number of coins that may be considered valuable to a handful, making those left extremely rare.
A mintage lets me know how many of that given issue of coin were created in the United States mint. The lower the mintage the more interest there may be from collectors because of its rarity.
However, the mintage is not an isolated factor but goes hand in hand with population approximation.
While mintage may tell you how many of a certain issue of coin was created overall, population approximation tells you how many still exist in any given setting.
Whether that be in holdings, in circulation, in collections, in the market, and so on. This number solidifies the coin’s rarity and helps distinguish its value from others similar to it.
The bullion content tells me what kind of metal the coin is made out of. This is critical because at first glance a coin can appear gold or silver but in actuality, they are just plated and the metal underneath is brass or copper.
Testing the coin’s composition will tell you where it sits in value based on the expense of the metal it is formed out of.
The design falls under visual appeal and is vastly important to any collector, especially one that already has an extensive collection and is looking for something unique and eye-catching.
It’s not just the beauty of the design but what it may signify of the time. The cultural, societal and historical references, as well as themes of patriotism and unity.
What is the Most Valuable Gold Coin in the World?
The most valuable gold coin in the world has a rich history and is the only of its kind. It traveled outside of the confines of the United States, when all other coins like it were confiscated or exchanged and melted down to be turned into gold bullion bars.
That title belongs to a 1933 Saint-Gaudens $20 Gold Double Eagle valued at $18,872,250, last sold July 2021 by coin collector Stuart Weitzman.
It made it all the way to Egypt, before reappearing in the hands of a collector, after the government requested it be returned.
Ultimately, it was sold to Weitzman by both the collector and the United States government and the proceeds split in 2002.
While the value of gold coins can fluctuate with any one of these factors in play, what can never be contested is that commodities like these are rare and very few will be able to enjoy their uniqueness.
Coin collecting is an exciting endeavor and one with a high intrinsic value to all who’ve spent their lives in the pursuit of these forgotten currencies.