Everything You Could Want To Know About Gold Bullion Coin

While we often imagine that the trade of precious metals is in the form of bars or ingots

, gold is also traded in a more practical form, in the shape of a gold bullion coin. The standard gold bar weighs 12.4 kilos while a lighter bar called the kilobar, which weighs 1000 grams, is also widely used. The hefty mass of gold bars makes them impractical for everyday investors that is why the one ounce gold bullion is gaining popularity for those want to use gold as a hedge for inflation and as a store of value.

Because of its gold coin value, gold coins first came out for circulation in the economy in 643 BC during King Croseus' time until it was more common in the 20th century. However, due to hoarding especially during the Great Depression, countries opted to cease the creation of gold coins for trading.

The gold bullion coin is starting to make a come back as legal tender, but they were never meant to be circulated. Gold coins and even the 1 oz gold bullion mini bars today often end up in the hands of collectors and investors.

In the United States, the American Gold Eagle is the official gold bullion coin and is based on the Gold Bullion Act of 1985. These coins were released into the public in 1986. The 22 karat gold coin contains silver and copper and the impurities make the coin more durable.

Getting stuck with a gold coin means that you are lucky beyond words, because it is probably worth far more than what the coin's face value is. For instance, the Gold Maple Leaf coin of Canada is worth $50 alone, but in reality it is worth $1,000 because the coin itself actually contains a troy ounce of gold as assessed in 2009.

The gold coin can have different weights and face values. A coin that is roughly the size of a US dime can have as much as one-tenth of an ounce of gold inside it. A gold coin that has a troy ounce of gold within it is roughly the size of a US half dollar. To date, the biggest coin in the world is the Gold Nugget of Australia which has 1 kg of gold in it!

In today's uncertain economic times, precious metals are an attractive protection against inflation. For the layman who wishes to invest in precious metals, the gold coin bullion is a very attractive choice because of affordability as well as ease of handling.

by: Eric McMillan

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