With inflation still at record highs and a current recession, many investors and even banks worldwide are becoming more interested in gold coin trading. Since the dawn of time, gold has been used to hedge against inflation and diversify portfolios.
Unlike cash and paper assets (i.e stocks), gold can’t be printed out of thin air. Gold also has many different purposes like being used as fillings in dentistry and in semiconductors.
Below, you learn exactly how to buy American Gold Eagle Coins and important gold coin trading guidelines.
What Are American Gold Eagle Coins?
American Gold Eagle Coins contain one ounce (oz.) of 22 karat gold. They also include small quantities of other metals like copper, to ensure durability.
Unlike other gold coins, American Eagle Gold Coins are made from gold only minted in the United States. For that reason, the U.S government guarantees each coin’s gold content, weight and purity.
Since they’re guaranteed by the U.S government, these coins can be traded in the vast majority of the world, making them one of the most commonly traded gold bullion coins.
Brief History of American Gold Eagle Coins
The original American Gold Eagle coin was created back in 1792. It originally traded for $10 and was available in Quarter Eagle ($2.50), Half Eagle ($5), and Double Eagle ($20 amounts.
Like the current American Eagle Gold coin, the original versions were made with 22-karat gold with small traces of copper and silver. This coin was discontinued back in 1933 to prevent banks from going bankrupt during the Great Depression.
In 1985, President Reagan passed the Gold Bullion Coin Act into law, letting the public buy and sell these coins.
These coins have been popular ever since because they’re guaranteed by the U.S government and allow the everyday investor to gain exposure to gold at a reasonable cost.
How to Buy American Gold Eagle Coins
It’s never been easier to invest in American Gold Eagle Coins. Investors from all backgrounds can start investing in American Gold Eagle coins in just 3 simple steps!
Step 1: Open an Online Account
Benzinga partners with a few precious metals brokers who offer new investors special perks when opening a new account. Most importantly, these companies have been personally vetted by Benzinga’s team of analysts.
- Best For:Gold IRAs with On Going PromotionsVIEW PROS & CONS:securely through American Hartford Gold's website
- Best For:Precious Metals and CoinsVIEW PROS & CONS:securely through Priority Gold's website
Step 2: Choose the Gold Coins You Want to Buy
Some common types of gold coins include:
- American Eagle Gold Coins: 1 oz. 22 karat gold coins, guaranteed by the U.S. government. Available in ½ ounce, ¼ ounce, and 1/10 ounce varieties.
- Canadian Gold Red-Tailed Hawk Coins: 1 oz. coin made of pure 24k gold that features the late Queen Elizabeth II on the front.
- American Buffalo Coins: This .9999 American Buffalo gold coin contains a full troy ounce of gold. However, it weighs slightly more due to traces of other metals in the coin. These coins are available in ½ ounce, ¼ ounce, and 1/10 ounce selections.
Step 3: Make Your Purchase
Each company has its own purchase process. Generally, you must fund an account with them and call their help desk to speak with one of their brokers to complete your order.
Most importantly, insure your gold coins while they’re in transit to your address.
How to Buy American Gold Eagle Coins With an IRA
You can buy precious metals with a self directed IRA that gives you several tax advantages. With a self-directed Gold IRA, you can earn a tax deduction up to $5,500 per year if you’re under 50 and $6,500 per year if you’re older than 50.
You can also defer taxation on any gold price gains and it’s also possible to choose a Roth option, letting you invest after tax funds for tax free growth!
How to Trade or Sell Your American Gold Eagle Coins
You can call the trade desk at the partners listed above to sell or trade your American Gold Eagle coins for other products.
Keep in mind that these sales of physical gold could result in taxable gains. Gains would be tax deferred if sold within a Gold IRA.
It’s best to see gold as a long term investment. For example, a ton of gold could buy a Ford model T car in the early 20th century. Presently, a ton of gold can still buy a comparable car.
One of the best times to sell gold is when the gold to silver ratio is high. This ratio shows the spot price of gold over the spot price of silver. A high ratio means that gold is overvalued, making it an ideal time to sell.
The current gold to silver ratio is 79.36, down from a high of 85 last month.
Current Gold Coin Prices
Gold is currently rallying since its spot price is $1,802.90, climbing up from a low of $1,631 from early November 2022.
The spot price of Gold is the price that an ounce of gold can be bought and sold for instant delivery.
Gold still has room to run, since it's down from its 52 week high of $2,040 in March 2022.
Are American Gold Eagle Coins a Good Investment?
In these current economic times, American Gold Eagle coins could be a great initial step to allocate some of your wealth to gold.
They’re backed by the U.S. government, which makes them an even safer investment than other types of precious metals.
Since each coin is only an ounce of gold, you don’t need to invest tens of thousands of dollars to buy them. Our partners listed above also provide free, comprehensive guides on how to buy gold coins.
Frequently Asked Questions
Can you buy Gold Eagle coins at a bank?
While some U.S. banks do sell gold bars, gold coins, and silver coins, the majority do not offer precious metals to the public. Banks typically avoid selling these metals due to their price volatility.
What is the price of American Eagle gold coins today?
The current value for an American Gold Eagle is: $2,530.30.
Are American Eagle gold coins a good investment?
The American Gold Eagle Coin is an excellent option for gold investment. Made from gold sourced from American mines, these coins are produced in New York. These coins can be a great investment for first time coin collectors.