American Eagle Gold Coin vs $20 Double Eagle Gold Coin?

Posted by on October 25, 2016 in Antiques & Collectibles, Appraisal & Insurance, Coins, Gold, Precious Metals, Prices / Spot Prices

American Eagle Gold Coin vs $20 Double Eagle Gold Coin?


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 As Coin Dealers in Los Angeles, we are often asked by customers who are interested in investing in gold coins which is a better investment when comparing the American Eagle gold coin to the pre-1933 $20 Double Eagle gold coin. For anyone looking to buy or sell gold coins in Los Angeles it is important to understand the distinction between a bullion coin and a numismatic coin.

Bullion coins are valued based solely on their precious metal content, and numismatic coins can have a “collectible” value that is much higher than their intrinsic metal value. The American Eagle gold coin is a bullion coin struck by the U.S. Mint since 1986. It is produced in 1oz, 1/2oz, 1/4oz & 1/10oz sizes and sells for approximately 3%-5% over the spot price of gold. United States $20 gold coins are generally considered semi-numismatic coins. They were struck by the U.S. mint, and used as legal tender, until 1933. Each coin contains a significant amount of gold (.96oz), and among the common dates are very plentiful. These coins tend to trade very close to their intrinsic gold value, and are quite comparable to standard bullion gold coins. However, not all $20 St. Gaudens or $20 Liberty gold coins are created equal. Coins in exceptional condition, or of a scarce date and/or mint mark, can have a numismatic value which far exceeds its gold content. Unfortunately this distinction can be easily misrepresented by unscrupulous coin dealers who sell common date $20 gold coins at huge premiums over gold under the premise that they are rare and highly collectible. Essentially these are two very different types of investments in gold coins. One is primarily an investment in the gold market, and the other is an investment in the “rare coin” market. For the investor with little knowledge of coins in general it can be difficult to distinguish the difference, and research whether they are paying a fair price.

If investing in the gold market is the primary goal, the American Eagle gold coin for most investors will prove to be the easier product to buy & sell at fair prices. We do not recommend investing in any numismatic gold coins that are not graded by either PCGS or NGC grading services. Finding a reputable coin dealer is paramount when dealing in investment grade gold coin. Los Angles Gold & Silver is a rare coin shop located in the heart of the Beverly Hills shopping district. If you are interested in buying or selling gold coins in Los Angeles we can be of assistance.