Gold Bullion Coins:

Gold Bullion Coins are coins that are produced as actual currency by the United States or another Government. They usually have a nominal face value (for example: the one ounce, United States Gold Eagle has a $50 face value). Of course, no government sells at the face value. Instead they sell Gold Bullion Coins for the market value of the gold plus a nominal premium for making the coin.

Gold Bullion Coins are usually available in in 1 ounce, 1/2 ounce, 1/4 ounce and 1/10 ounce. It is less expensive to buy a 1 ounce coin than two 1/2 ounce coins because you pay "manufacturing costs on two gold coins instead of just one. The same holds true for even smaller denominations. It is cheaper to purchase a 1/2 ounce than two 1/4 ounce gold coins etc.

Liquidity is the other side of the equation. It is easier to liquidate (sell) a 1/2 ounce gold coin than a 1 ounce coin. It is also easier to liquidate a 1/10 ounce coin than a 1/4 ounce coin. However, right now, and in the forseeable future, gold is far more liquid than any other asset regardless of the denomination and size.

American Eagle Gold Coins:

1. American Gold Eagle Coins are 95% pure gold. Although each coin has the stated amount of gold (IE: 1 ounce) it also contains copper to "harden" the coin and make it less scratch resistant. This in no way detracts from the coin's value. In fact, it can be seen as a positive for investors because the Gold Eagle is more resistant to scratching and other defacements that could effect its value.

2. Gold Eagles were available through the United States Mint, which manufactured them. However, due to excessive demand, the Mint's availability is sporadic at best. Most gold bullion coins are therefore, supplied by the secondary market.

3. Because the Gold Content is guaranteed and backed by the Good Faith and Credit of the United States government, gold eagles are extremely liquid and do not require a certificate or asayer to prove value.

4. American Eagles can be purchased here: or through a reputable gold bullion dealer, or coin dealer such as those that are listed in the Google ads on this site.

5. Gold Eagles have a nominal face value (IE $50 on the 1 ounce coin). This means you can spend them at anywhere that American Currency is accepted. This means it would be highly advisable to keep them away from family members and friends that would spend them as cash. As the coin is really worth almost 20 times face value for its gold content, spending it for groceries is enough to make any grown man or woman cry.

It is recommended that you store gold bullion coins in a protective plastic sleeve. If buying them in a larger quantity is desired, they will often be packaged in rolls of 10 (1 ounce Coins). It is important that the coins are not scratched or defaced as this will effect their retail value.

Gold Storage options include home safes, bank safety deposit boxes or even bank vaults. The option you choose should depend on the quantity of gold you have on hand.

Large quanties of gold require greater security. Most individuals don't have the availability to provide this type of security in a home setting.

Mid-size quantities and smaller quantities can be divided up between home storage and a bank safety deposit box. As I mentioned in a previous article, "loose lips sink ships".

So, the best home storage place is one that only you will find and/or know about. If you use a bank safety deposit box to store your gold, remember, access to the key is access to the gold. Make sure you store the key with the same care you would store the gold.

This means, don't carry it around on your key-chain. Any criminal worth his weight in salt knows what a safety deposit box key looks like. With a few sophisticated friends they could easily plunder your gold stash before you even know its gone.

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