New U.S. 24-karat Gold Coin I just came across this article about the U.S. planning to issue a 24-karat gold coin: http://money.cnn.com/2005/04/19/pf/gold_coin/index.htm So many questions jump to mind that I'm not sure where to begin, but I am curious to hear the general thoughts of those here. Also, if anyone can point to more detailed information, I'd be grateful. Will the U.S. continue to issue the current 22-karat gold eagles, or will the new 24-karat replace the current eagles? If the answer is "replace", do you think they'll use a new design, or just make eagles with the same design, only using 24-karat instead of 22-karat gold? Is the spot price of gold keyed to either 22 or 24-karat? I understand that the current 22-karat 1-ounce gold eagle weighs slightly more than 1 ounce because of the alloys, but that they are guaranteed to contain one once of gold. So will the 24-karat "one ounce" coin weigh slightly less (or more?) than the 22-karat "one ounce" coin but still contain one ounce of gold? What effect could this have on the value of the U.S. 22-karat gold coins? Dymaxion P.S. --------------- The U.S. Mint press release provides answers to some of the questions above. http://www.usmint.gov/pressroom/index.cfm?action=press_release&ID=581 They intend to continue the 22-karat gold eagle series and also issue the new 24-karat coins. So how will they be priced relative to each other and relative to the spot price of "gold"?
A 24 carat gold eagle (1 oz gold) will weigh less than the 22 carat (1 oz gold) because there will be no added copper.
The price of the business strike coins is based on the spot price of gold. The spot price of gold is based on pure gold - 24 karat. As for how they will be priced when compared to each other - I would imagine they will be the same. Proof examples of the current coins do cost more. I would imagine the new type will be the same.
If they want to "...mint the most beautiful coins in the world," why don't they start by getting the production quality right on the coins they are currently minting? ...Just more of my griping about the mint. Steve
That is the same thing I was thinking Steve Also they said that not only US people wanted them but around the world.... Speedy
My first thought was, "what took them so long". The canadian royal mint, among many others I presume, has been making .99999 pure gold coins for years now. I wonder how long it will be until the coins will be produced, considering the mint hasn't even settled on a design yet. Billcatz (UID ?), our resident coin carver should be the designer IMHO
What I like about the 99% pure gold coin is that I would expect less toning since there would be virtually no copper: just shiny bright !
I think it is a toss up which is better. If you want to buy bullion so you can melt it down or alloy it yourself, then pure is better. But if you will trade it as an ounce of ghold as an investmenbt, the US coin is better since it is more durable.
Durability might not be much of an issue for coins not being circulated. I've got my AGEs in Air-Tites and I expect zero wear !
But....pure gold is so soft that sliding it around in a container will wear some away. Airtites are OK, of course. Pure gold also scratches VERY easily.
.....thus rapidly reducing the population of higer grade coins I'd imagine. Which is a good thing if you manage get your hands on MS/PS 70 grade coins, and are doing so for investment purposes. Out of curiousity, as a measure, how well do the other 24K coins of the world hold up to the test of time?
I'm not sure on that one at all. I do know that bullionocins are routnely stacked with no case in dealers inventory, for example, so "bullion" coins are not treated partuclarly well, and the wear will be obvious pretty quickly with the pure gold ones.
I'm not sure why they think they muct produce 24 carat gold coins in the first place. Exactly what are the advantages, other than just saying it's another kind! For investment purposes the South Africa Krugerrands are hard to beat. No they aren't very pretty, and they are only 22 carat alloy (gold and copper) but they do have a full 31.1035 grams of pure gold in each one of the full krugers. I have been putting them back in storage from the late 60's (1967 first year of issue) to the present time, and I'm very satisfied with the coin as it is. Don't think I'll be buying any of the 24 carat gold coins even if they are minted.
Dan -- Why do you prefer the Kruggers to the 22-karat bullion coins of other countries? What makes them "hard to beat" as you say? Dymaxion
At least at one time, they sold for several dollars less than comparable coins, for political reasons. Probably is a slight disount on both sides of the trade, but they are an ounce of gold like any other.
Like JBK states, they were at first a little cheaper than others of the same weight and purity. But, when I started buying them it was a no-no to buy any thing like this from South Africa. Like a lot of western people we thumbed out noses at Washington and bought direct from a seller in Liverpool, England through the Royal Bank of Scotland. Keep in mind this was way back in the 60's and I just never felt the need to change.
