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Buy Gold Coins - 3 Reasons To Buy

by Daniel Wright

Gold coins are of special interest to coin collectors for three primary reasons. First, gold has a long history as the main monetary unit of exchange, and the importance of historical events in which gold or gold coins had a big role. Second, minted gold coins have both aesthetic and artistic appeal. Third, gold has a role in today's economy as a very functional, financially liquid store of monetary value. Indeed, US gold coins are still being minted and sold by the American government.

Gold coins were first minted around 560 BC. Gold coins were the primary form of money from that time until the early 1900's. In 1933, the worldwide Great Depression led to a switch by the governments of the world to currencies with very little intrinsic value beyond the cost of production, such as paper currencies and minted coins made from far less valuable metals. The U.S. Government ceased circulating US gold coins about this time.

Gold is a particularly appealing material for use in jewelry due it's unique color, luster, and extreme malleability. Those same properties make US gold coins and coins from other countries aesthetically appealing to collectors. The stories behind the designs printed in gold coins provide a valuable window into the world's history, in addition to their artistic value.

Gold bullion coins are gold coins that are collected for monetary value. From 90 to almost 100% gold by weight, these bullion coins have a very high gold percentage. Since the value of gold in our economy fluctuates in the area of hundreds of dollars per ounce, these gold coins represent a dense store of financial value. Like some other metals such as silver, gold is thought by investors to represent a hedge against inflation of currency that is intrinsically worthless.

Along with a hedge against inflation, a lot of investors will store a portion of their net worth in metals like gold in order to hedge against yet another Great Depression. Such investors will claim that modern currencies with no intrinsic value will also lose value as units of exchange. Under such a line of reasoning, gold coins will gain in value as units of exchange as people flee from banks and other classes of investments in order to find a safer place in which to store their wealth. Over the millennia, unlike stocks and bonds and paper currency, gold has never lost value as a unit of exchange.

No matter the reasons behind your interest in gold coins, you can learn much more online or from books on the topic of numismatics and gold bullion. Although disreputable dealers abound online, as in the physical world, there are many reputable gold dealers from whom you can buy gold bullion or buy gold coins.

Learn more about US gold coins at the net's premiere site covering everything related to U.S. gold coins, US-Gold-Coins.org. Whether you're seeking to buy gold bullion or buy gold coins, everything you need is here including current spot gold price prices, gold related videos, and of course, our US Gold Coins Blog!

Published September 4th, 2008

Filed in Hobby