Gold, the soft, lustrous yellow precious metal, has been sought and treasured by mankind since ancient times. The Greeks found it in riverbeds in Asia Minor and used it to craft some of the world’s first coins struck more than 2,600 years ago by King Croesus of Lydia.
The Egyptians brought gold down the Nile from Nubia, and both the Roman and Byzantine Empires struck magnificent gold coins that are prized by today’s collectors. Across the Atlantic, the ancient American Indian civilizations of Mexico, Peru, and Colombia fashioned exquisite ornaments from the yellow metal they called the Tears of the Sun.
Gold coinage returned to Western Europe in the late Middle Ages with great international coins called the Florin and Ducat. For centuries governments and peoples esteemed gold as a universal store of value, a primary source of portable wealth, the gleaming standard against which the value of all other things could be reliably measured.
The supply of gold is limited, and no more than 100,000 tons of the precious metal have been produced in all human history. A single cube measuring 57 feet on one side would contain all the gold ever mined. Demand for gold has steadily increased in recent years for jewelry, coinage, electronics and dentistry. Although production has increased, demand has always outstripped it and gold is as rare today as ever.
Leading nations abandoned gold coinage after the First World War, but the revolutions, runaway inflations, economic and political upheavals that followed reinforced gold’s importance in the economic discipline of governments. Today, as in past years, “as good as gold” holds true for governments as well as individuals.
Today, gold coins are in demand all over the world. Classic older issues, modern commemoratives, and newer bullion gold coins are eagerly sought by collectors and investors. Older issues generally offer a numismatic premium as recognized collectibles. Modern bullion coins provide a convenient method of acquiring gold in standardized Troy ounces and fractions. Gold coins make unusual and highly treasured gifts as well as additions to a collection or portfolio.
Stack’s offers a wide selection of United States and world gold coins, each with its detailed specifications. We invite you to look through our Gold Brochure, and will be happy to answer any questions you may have.
Gold has its own “language,” which you should know before making a decision to purchase. Here are some of the basic terms:
Alloy. Coins made of pure gold are very soft, and easily scratched, worn and damaged. Copper and sometimes silver are mixed with gold to add strength and durability. The resulting mixture is called an alloy.
Bagmarks. Minor marks on an otherwise Uncirculated coin resulting from storage or shipment in bags with other coins.
Bid and Ask. The bid and ask price represent what a buyer is willing to pay and a seller is willing to accept. The difference is known as the spread. Bid, ask, and spread change with market fluctuations.
Bullion Coins. Coins struck for sale as a convenient form of gold, today often in increments of a Troy ounce, whose value is a function of their gold weight. Examples include the U.S. Gold Eagle and Canadian Maple Leaf.
Business Strike. A coin struck and intended for regular circulation rather than primarily for sale to collectors.
Coin. A piece of metal of standard recognized value, issued under government authority, generally bearing a denomination and intended for circulation.
COMEX. The New York-based Commodity Exchange Inc. where gold and silver is traded on a daily basis. In the United States, the spot price, or market value of gold at the moment a transaction is finalized is usually based upon trading at the COMEX.
Counterfeit. A forged coin made in defiance of government authority with intent to defraud. Counterfeit gold coins have sometimes been made with lower weights or lesser fineness than the pieces they imitate.
Devices. The major design elements on both obverse and reverse of a coin.
Edge. The “third side” of a coin, the rim which may bear vertical striations (reeding or milling), lettering or ornamentation to prevent clipping or shaving slivers of precious metal.
Face Value. The denomination originally assigned or stamped on a gold coin. Since gold coins are no longer in daily circulation, their face value does not determine their actual value, which is based on scarcity and gold content.
Field. The flat areas of a coin’s surface, which serves as the background for the reliefs or devices.
Fineness. The proportion of gold in the overall weight of a coin. Most U.S. coins are .900 fine, 900 parts of gold out of 1,000 or 90%, the 10% balance is copper. British gold coins are generally .916 fine; Ducats .986; some bullion coins such as the Canadian Maple Leaf are .9999 fine.
Fine Gold Content. The actual weight of pure gold in a coin, as opposed to the gross or overall weight of the piece. A U.S. gold bullion eagle has a fine weight of 31.1033 grams. The gross weight of 33.933 grams includes the copper that strengthens the alloy.
Gram. A metric unit of weight representing 1/1000 kilogram. There are 31.1033 grams per Troy ounce.
Inscription, Legend. The lettering on a coin; inscriptions are in straight lines, legends follow the curvature.
Intrinsic Value. The value of the precious metal in a coin based upon the market value of gold at any given time. This value may fluctuate on a daily basis.
Karat. A unit of fineness representing 1/24th of the gold in a coin. 22 karat coins correspond to the .916 fine, 24 karats describes theoretically pure gold of 1000 fine, though this is generally expressed as .9999 fine.
Kilogram. The major metric unit of weight representing 1,000 grams or 32.15 Troy ounces.
London Fix. The gold price set at a London meeting of five well-established, old-line firms which becomes the benchmark for market trading that day. The price of a transaction is sometimes agreed based upon the AM or PM London fix for that day.
Medal, Medallion. A commemorative or artistic piece resembling a coin but bearing no denomination, not necessarily issued by any government.
Mint. A facility for striking coins, traditionally a government agency.
Mint Lustre. The delicate frost or crystalline sheen on an Uncirculated coin, imparted as the dies strike the planchet or blank.
Mintmark. A symbol or letter identifying the place of striking. U.S. mintmarks include: C, Charlotte, NC, 1838-1861; CC, Carson City, NV, 1870-1893; D, Dahlonega, GA, 1838-1861; D, Denver, CO, 1906 to date; O, New Orleans, LA, 1838-1909; P, Philadelphia, PA, 1942-1945 and 1980 to date, or no mark, all other years since 1793; S, San Francisco, CA, 1854 to date; W, West Point, NY, 1984 to date.
New York Close. The last price of a given day’s trading for gold on the New York gold COMEX.
Obverse, Reverse. The proper terms identifying the “heads” and “tails” sides of a coin.
Premium. The value a coin may bear in excess of its simple intrinsic value, expressed as an actual dollar amount or a percentage.
Proof. A coin struck with specially polished dies on a select, polished planchet. Proofs are generally struck at least twice, to create meticulous detail and deep mirror fields.
Restrike. Coins officially struck bearing a date earlier than the year of actual manufacture. Examples include the 1915 Austrian 4 Ducats, 1947 Mexican 50 Pesos, and 1908 Hungarian 100 Korona.
Spot Price. The market price of gold at the moment a transaction is finalized.
Troy Ounce. The principal unit of weight in the Troy system, generally used in precious metal transactions. The Troy pound contains 12 Troy ounces.
Uncirculated. A coin in new condition, which has seen no wear and has not been circulated, but may show marks from bag storage.