Old Gold Coins

How many of you have lost a penny? Plenty I am sure and most of us would be un affected by it's loss. Well it may hurt a little on losing a dime but one would definitely not lament on that loss. Well let's see, what if you lose a dollar? And what if you lose a gold dollar?? Yes you have read it correctly, a gold dollar.

You must be thinking that you surely know of the huge silver dollars which are practically impossible to lose, but what is it all about a gold dollar?

Many of us do not know that from 1849 to 1889 gold dollars were struck by the US mint. They started producing these coins as the quantum of gold produced from California gold rush increased. In 1849 twenty gold coins ere issued. The cold coins served a two fold purpose, it made proper use of the surplus gold of the California field and it also gave US a standard coin.

Earlier the trade in gold was unregulated. People bought and sold gold in the form of gold nuggets and in the form of gold dust. There would be unfair price escalation and unfair trade practices were very common. Once the government came up with its own standard gold coins the trade practices were regulated to a large extent.

The old gold coin that was first produced was a very small coin. The coins minted from 1849 to 1854 were only 13 mm in diameters. Although given its size it is quite likely to lose it, but losing this would certainly be very painful. The value of this coin was equal to the average daily pay of a person of those times.

In 1855 the coin underwent a change; it retained its weight and purity but was much thinner. This coin was 15mm and was thinner than the previous one.

Till the US went off the gold coins both these coins were in circulation.

Investing in coins is actually a great idea. Gold is the most stable of all metals, it does under go wear and tear it is malleable and you can convert it in to any form and the value of gold is never likely to decrease. In fact if you invest in these gold coins you can be that proud owner of a coin that was may be used by Lord of Lydia!

Gold is an investment that you can actually hold in your hand and unlike your investment in the equity market you don't even have to worry about an economic downturn.

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