The History of Gold Bullion Coins
The word, ‘bullion’ comes from Claude De Bullion, the French Minister of Finance under the rule of Louis XIII. Bullions are characterized as gold, silver, and other valuable metals as coins, bars, or ingots. They are used for trading purposes in this form.
Trading with valuable metals was a necessity for society in the early days. Before cash or monetary forms were accessible, individuals would make use of the barter system to get food and other necessities. For instance, if a shoemaker wanted food, he would exchange and trade directly with a farmer.
The limitation here was that the farmer would only agree to the deal if he needed another pair of shoes. Therefore, people started exchanging items that were valuable for both parties.
With time, valuable metals like gold, silver, copper, iron, lead, obsidian became marketable because of their unique properties. And this is how people started using bullion coins as means of trading.
Here is a brief discussion about the history of different gold bullion coins:
Krugerrands of South Africa
The first gold coin in the world was issued by the South African Mint in 1967. The coin was named Gold Krugerrand, combining Paul Kruger, the head of South Africa’s last name, and the currency of the nation, rand. These coins feature a springbok, which is an animal like an antelope.
By 1980, the Krugerrand represented over 90% of the world’s gold bullion market and became the prime choice for financial backers.
These coins don’t have a monetary value but depend on the current gold prices. Krugerrand coins containing more than 50 million ounces of gold and have been sold since they were first issued in 1967.
Maple Leaf of Canada
After the issuance of Krugerrand, other mints around the globe had an opportunity to come up with their own gold coins. Mints across the world would launch their gold bullion coins in the coming years. September 1979 saw the birth of the first 24 carats gold coin at the Royal Canadian Mint.
Eagles of America
In 1986, gold coins of America, called the Eagles, were issued as a substitute to Krugerrands. These coins were made of the alloy, which was also used to make Krugerrands, being 0.917 pure.
American Gold Eagles were offered in various sizes of 1 oz, 1/2 oz, 1/4 oz, and 1/10 oz. The American Eagle’s obverse and reverse display, Double Eagle of Saint Gaudens, and a family of eagles, respectively.
At Orion Metal Exchange, we provide you with different gold coins and bullions to invest in. If you are interested in investing in gold and silver coins and want to secure your retirement with gold and silver, our experts can guide you on the best ways. Contact us to know how to invest in gold and other precious metals.