1/2 Ounce American Gold Eagle
Overview
The ½ oz. American Gold Eagle coin is a beautiful coin produced by the U.S. Mint, and a popular choice for investors and collectors looking to acquire physical gold for a relatively low price tag. This is the second largest version of the American Gold Eagle coin, with the 1 oz. version being the largest. It has a face value of $25, but an intrinsic value of far more than that. It has a very appealing design, and has been in production annually since 1986.
History
The U.S. Mint has been producing the American Gold Eagle series for nearly three decades. Production began following the Gold Bullion Act of 1985, which put into place a law that any gold that is used to make these popular bullion coins must come from the U.S. In other words, no foreign-mined gold can be used. The coins are an updated version of a gold coin the Mint used to produce that was used in everyday purchases and transactions in the 1800s and 1900s. The U.S. Mint produces annual versions of each American Gold Eagle based on demand for the coins. In addition to the ½ oz. version, the Mint also produces a 1 oz. version ($50 face value), a ¼ oz. version ($10 face value), and a 1/10th oz. version ($5 face value).
Denomination and Size
The ½ oz. American Gold Eagle has a face value of $25. However, given its gold content of one-half ounce, its actual value is much higher, based on the current price per ounce of gold. The diameter of the coin is 27 mm (1.06 in), and it is 2.24 mm thick (0.09 in). The ½ oz. American Gold Eagle coin weighs 16.966 grams, or 0.5455 troy ounces.
Purity
Each American Gold Eagle coin is guaranteed by the U.S. Mint to contain ½ oz. of fine 22 karat gold. The coin is comprised of some other metals as well, broken down as follows: 91.67% gold, 3% silver, and 5.33% copper. While the coin is not completely made of gold, the gold content is by far the most abundant within the coin, and gives it its true intrinsic value. Each ½ oz. American Gold Eagle uses only gold mined within the United States of America. Its pure gold content, trusted U.S. Mint authenticity, and source of gold are some of the reasons why many people love this coin.
Design
The design of the ½ oz. American Gold Eagle coin is another reason why this coin is such a popular purchase. The front (obverse) of the coin features a version of Augustus Saint-Gaudens' most famous and arguably most beautiful rendition of "Lady Liberty." She is adorned with lovely flowing hair, and has a burning torch in her right hand and an olive branch in her left, symbolizing liberty and peace. The U.S. Capitol building can be seen on the left in the background. The back (reverse) of the coin displays Mary Busiek's design of a male bald eagle carrying an olive branch in its talons, majestically hovering over a nest containing his female mate and two young eaglets.
Written on the front side along the top is the word “LIBERTY,” and the year (“2014”) appears on the front as well. On the reverse side, “UNITED STATES OF AMERICA” appears along the top, and the gold content (“1/2 OZ. FINE GOLD”) and face value (“25 DOLLARS”) appear along the bottom. The phrase “E PLURIBUS UNUM,” which means “out of one, many,” is shown on the left side, while “IN GOD WE TRUST” is written on the right side.
The design remains the same from year to year, with only the year (“2014,” etc.) changing.
Value
People purchase the ½ oz. America Gold Eagle coin for a variety of reasons, but everyone is interested in its value. The coin costs significantly more than its face value of $25 because it contains half of an ounce of pure gold. The price of gold is an important factor in determining the coin’s value; you can divide the current price per ounce of gold (which changes daily) in half to get a rough idea of the value of the coin (for example, if gold is worth $1,200 per ounce, than an approximate value of the ½ oz. American Gold Eagle is $600).
The coin’s condition is also a factor in determining its value. Your purchase is guaranteed to be uncirculated and in mint condition, so it is important to keep the coin in this condition for maximum value. Also, the year may be an impacting factor on its value, especially as more time passes since the coin was minted. Some historians and collectors may pay more for a coin that was minted in a historically significant year, or some may pay more for a year that is significant to them, such as the year they were married or the year that their child was born.
Price
Like its value, the price of the ½ oz. American Gold Eagle is largely dependent on the current price per ounce of gold. Gold is far more expensive than silver, which is why you will pay so much more for a ½ oz. American Gold Eagle than a coin with similar silver content. As far as gold is concerned, this coin is far more affordable than a 1 oz. coin or a gold bar, which can sometimes cost hundreds of thousands of dollars. Gold’s price has been relatively low in 2013 and 2014 as compared to the previous years; thus, many people have taken advantage of the lower prices and invested in physical gold, expecting the price (and the value of their investment) to increase in the coming years.
Why Buy?
Aside from their appealing design, people invest in ½ oz. American gold Eagles for a variety of reasons. Some like to diversify their overall portfolio with physical gold. Others use the coins as a means to invest in their child’s college fund. The coin is also an option to fund an IRA, or convert wealth into physical assets to divide amongst children and heirs.
When you purchase with ITM Trading, you will receive free shipping and insurance on your purchase. In addition, we offer discounts when purchasing between 6 and 20 of the ½ oz. American Gold Eagles during the same transaction, or even deeper discounts when purchasing 21 or more. Lastly, you can save some money by using a wire, check, or ACH transaction as your method of payment, as opposed to your credit card. We encourage you to invest in your future with a ½ oz. American Gold Eagle coin!
