Gold coins have been used as a form of currency and investment for thousands of years. The history of United States gold coin rounds is intricately woven into the growth, economic booms, and busts in American history.
Early History
Gold coins were introduced with the U.S. Congress passage of the Coinage Act in 1792, which authorized the minting of gold and silver coin. The first gold coins were the $2.50 gold quarter eagle, $5 half eagle, and $10 eagle. Originally minted with a fineness of .9167, the gold content was lowered in 1834 to .8992 fine, and raised again in 1837 to precisely .900 fine.
The gold rush of 1848 to California provided the first real impetus for making large amounts of gold coins in America. This newfound source of gold was quickly depleted, so the early American coinage were imported from Europe. The San Francisco mint was soon established to provide for the needs of the gold mines in California and produce coinage for the nation.
US Mint San Francisco. Image courtesy: US Mint
The coinage continued to be made right up through the 20th century when most of the gold coins were melted. Events that led to the melting of the coin were not just from its dwindling value as a gold commodity, but also through changes in government policy.
The End of the First Gold Coins
The coin’s Impact on the United States was overwhelmingly positive. They were a part of the brick-and-mortar economy in America. In the earlier years, these shine medallions, particularly the $10 eagle, were a staple of commerce. The quarter eagle coin was used as currency for many Americans until 1933, when it was restricted by Executive Order 6102 issued by President Franklin D. Roosevelt. However, even this action was only intended to prevent people from hoarding – the order did not prohibit coin dealers from holding them and using them as payment for goods and services sold to other coin dealers or collectors.
So the final demise of the currency came about because of a withdrawal from gold and silver coins and Treasury Department policies. During the Great Depression, the government attempted to reduce the amount of money in circulation, which would, in turn, decrease the value of paper money. At the same time, gold was forbidden to be bought or sold as currency. This created a secondary demand for the gold currency which made it difficult for them to be sold.
Image Courtesy: National Numismatic Collection
Standing Liberty Centennial Gold Coin (2016)
The U.S. Mint introduced its Centennial Standing Liberty gold quarter on Sept. 8, 2016. This one-quarter-ounce coin (emblematic of the coin’s historic initial value) celebrates the original design of Herman A. McNeil’s coinage. The dramatic round is .9999 fine 24-karat gold, with a total mintage is capped at 100,000 coins. A total of 91,752 coins were minted, and the mint and mark are West Point.
Depicted on the obverse:
Liberty, armed with an olive branch and shield, steps through a wall opening. The wall bears 13 stars and is inscribed on either side with the phrase “In God We Trust.”
Inscribed on the obverse standing liberty quarter:
LIBERTY
IN GOD WE TRUST
AU 24K
1/4 oz.
2016
Depicted on the reverse standing liberty quarter:
An American eagle in broad-winged flight, edged by 13 stars.
Inscribed on the reverse:
E PLURIBUS UNUM
QUARTER DOLLAR
UNITED STATES OF AMERICA
The Factors that Effect Gold Quarter Price
Consumer and Industrial Demand
Consumer and industrial demand for gold have a strong influence on price. The traditional use of gold in jewelry has not changed significantly, but its demand as a precious metal is moderated by the technology of other materials. These secondary uses for gold are influenced by technological advances, growth in emerging economies, and changes to governmental regulations.
Inflation
Inflation also puts pressure on the value of gold because as the dollar price of gold rises, more dollars are needed to buy the same quantity of gold. As the dollar price of gold goes up, so does the price of silver, and vice versa. Inflation is caused by the value of money falling, which causes consumers to spend more money to buy the same good or service.
Continuing Investor Interest in Gold
A survey of gold buyers was conducted in 2019 by the World Gold Council, showing that 46% of global retail investors have chosen gold products. This high level of market demand from investors means that the price will continue to increase in this area – as more investors move into gold, they will push the price up and up.
In times of financial crisis, people buy as much gold as possible because it is one of the few assets left that have tangible value. The increased demand for gold around the world will increase its price and make it a high-demand investment.
Investment in Today’s Market
Investing in precious metals can be a smart way to invest over the long term. Its suitability as a long-term investment is strongly influenced by two factors: its historical performance and its future potential. As long as the global economy remains unstable, consumers will be tempted away from traditional investment methods and towards gold and other precious metals for long-term savings.
Portfolio Diversification
One way precious metals can help an investment portfolio is through diversification, which is also one of its strengths. While gold prices are typically affected by the stock market, it is not directly tied to any company or industry. In times of uncertain market conditions, it can help balance out a portfolio and give investors a better overall return.
Inflation Hedge
Gold can be used as a potential hedge against inflation and rising interest rates. Over the long term, inflation tends to increase and interest rates usually rise. Investment in gold can help an investor protect their overall portfolio against these kinds of market conditions.
Tangible Asset in Volatile Economic Conditions
Economic instability is another reason why golden investment is an attractive option. During uncertain economic conditions, people need the security of tangible assets like gold to invest in. The metal has always been a ‘safe haven’ asset during times of heightened uncertainty and is likely to continue to be so in the future. A conservative investment, such as a gold ira or gold 401k, can help stabilize a portfolio in volatile markets and provide investors with an attractive way to protect their savings from disruptive financial shocks.
Short Term Market Outlook for Precious Metals
The consensus among analysts and market-watchers is that gold will continue to increase in price over the short term. A number of factors have led to this prediction, including the fact that it is a limited resource and its status as a safe investment that is not affected by any single industry or company’s performance. The market has increased by 34% since 2009, with 2020 reaching the high water mark for the metal.
Image courtesy: GoldPrice.org
Frequently Asked Questions
Q. How many different gold coins are there?
A. The United States minted 91,752 of the Standing Liberty Centennial Gold Coins in 2016. It is the only official gold quarter in existence.
Q. Whats a gold quarter worth?
A. A US-made gold quarter, which is made of 0.25 ounces of pure gold, would be worth approximately $437 at today’s value (March 2021). The spot price for gold bullion was $ 1,746.69 at the time of this writing.
Q. Do gold coins make a good investment?
A. Gold investment is valuable because it’s typically more stable than other investments. This means you can use gold as a safety net for your portfolio. Gold is also a recognized form of protection against inflation.
Q. What is a 24k gold plated state quarter worth?
A. State quarters plated in 24kt gold are almost valueless as a collectible. Since they lack any kind of melt value, they are not bought or sold afterward and are worth only their face value, $0.25.
