The United States Mint, a bureau of the Department of the Treasury, has played a vital role in the country’s economic history since its establishment in 1792. Its primary functions include producing coinage for trade and commerce while overseeing the movement of bullion. It’s worth noting that paper money production falls under the jurisdiction of the Bureau of Engraving and Printing.
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Americans interested in purchasing gold coins do not need to look outside the borders of the country. The U.S. Mint produces several gold coins that are both attractive and valuable. Recent headlines illustrate the popularity of these coins.
The first United States Mint was founded in Philadelphia in 1792, followed by the establishment of additional mint centers, each marked by its unique mint symbol. Today, there are four active coin-producing mints: Philadelphia, Denver, San Francisco, and West Point. These mints are responsible for producing a wide range of coins used in everyday transactions.
The United States Mint has a rich history, dating back to the Fugio cent in 1787, which was one of the earliest general-circulation coins in the nation. Over time, it evolved from being part of the State Department to becoming an independent agency in 1799. In 1873, it was incorporated into the Department of the Treasury, and in 1981, it was placed under the authority of the Treasurer of the United States. Throughout its history, the United States Mint has had notable figures, such as its first Director, David Rittenhouse, and important positions like Chief Engraver, filled by individuals like Frank Gasparro and William Barber.
The Mint also operated branch facilities in various locations across the United States, including Charlotte, Dahlonega, and New Orleans. These branches facilitated the conversion of locally sourced precious metals into coinage. A branch was also established in Carson City, Nevada, to process silver deposits from a rich vein discovered in the region.
In addition to domestic minting facilities, there was a branch mint in Manila, Philippines, making it the only U.S. mint located outside the continental United States. It produced various denominations of coins.
Modern US Mints United States Mint – Philadelphia Congress enacted legislation in 1792 that authorized the newly formed United States of America to mint its own currency. The Philadelphia Mint is known as the “mother mint” and for decades was the only U.S. Mint facility. For that reason, the coins minted there exhibited no “mint mark.” In 1838 the New Orleans Mint was opened to serve the Southern States and began the tradition of branch mints putting their own unique “mint mark” on each of their coins. West Point Mint – New York The West Point Bullion Depository was erected in 1937 as a storage facility for silver bullion and was nicknamed “The Fort Knox of Silver.” In 1988, the US government approved the most recent branch mint at West Point, N.Y. to assist in striking modern gold and silver issues with the “W” mint mark including various Commemoratives and Bullion Coins
Today, there are four active coin-producing mints, each with its unique history and functions:
- Philadelphia Mint: The largest facility, it has been responsible for producing coins since 1793. It also handles master die production and houses the engraving and design departments.
- Denver Mint: Established in 1906, it strikes circulation coinage, commemorative coins, and produces working dies for other mints.
- San Francisco Mint: Initially serving the California Gold Rush, it has been mainly used for proof coinage since 1975, with exceptions like the Anthony dollar and some quarters.
- West Point Mint: Officially designated as a branch mint in 1988, it plays a crucial role in producing gold, silver, platinum, and palladium American Eagle coins and has struck various commemorative and proof coinage.
Gold coins production.
Congress authorizes the Mint to produce commemorative coins as warranted. These are considered legal tender but are not minted for general circulation. The 2011 gold commemorative coins pertain to the Medal of Honor and the U.S. Army. The $5 gold Medal of Honor coin and the $5 gold Service in War U.S. Army coin each feature 90 percent gold composition.
- Gold First Spouse coins feature a portrait of a first spouse on the obverse and a unique reverse design containing an image that symbolizes the woman’s life and work. These half-ounce $10 coins are made from 0.999 fine gold. The coins are released in the order that the female served as first spouse, with Eliza Johnson, Julia Grant, Lucy Hayes, and Lucretia Garfield coins issued in 2011.
- The American Buffalo 24-karat bullion coin features images created by James Earle Fraser, a well-known American sculptor. This is the first 24-karat 0.9999 fine gold coin struck by the U.S. Mint. The $50 coin offers an investment in 24-karat gold in legal tender coin form. American Buffalo gold proof coins were also issued from 2006 through 2009.
- Perhaps most well-known are the American Eagle gold coins. Launched in 1986, these bullion coins have become extremely popular investments. Uncirculated and proof versions of American Eagles are available for collectors. Each proof coin is sealed in a protective plastic capsule, is packaged in a presentation case, and includes a Certificate of Authenticity.
Additionally, the U.S. Bullion Depository at Fort Knox, Kentucky, is not a coin production facility but serves as a secure storage location for gold and silver bullion reserves.
To identify the origin of coins produced at different mints, mintmarks have been used over the years. The location of the mintmark on various coins has changed over time, providing collectors with valuable historical information.
The United States Mint engages in various activities, including modern us gold coin production, congressional gold medals, and marketing special coinage. It also manages the movement and safeguarding of bullion.
Can you buy gold coins from the us mint?
It’s common knowledge that there are a few prominent online bullion companies that stand out. However, what purchasing directly from USMint.gov? It’s worth noting that the U.S. Mint primarily deals in numismatic items that often come with hefty price tags, and they don’t offer investment-grade bullion coins for direct purchase. Their website is specifically tailored to cater to collectors, featuring an array of coins and medals that come with substantial premiums.
It’s important to note that the U.S. Mint does not make bullion coins available to the public; they typically sell these exclusively to a select group of wholesalers. This situation may seem like a rent-seeking arrangement, but it originated in the 1980s when there was virtually no market for new U.S. bullion coins after a hiatus of over 50 years. In the days of yore, you could even take your scrap gold to the U.S. Mint, have it assayed, and exchange it for minted coins with an equivalent actual gold weight.
For actual bullion purchases, it’s advisable to explore alternatives like APMEX, JM Bullion, or your local coin shop. The U.S. Mint’s prices for bullion are notably higher, and it’s often more cost-effective to obtain bullion-grade coins from other sources. Furthermore, APMEX is among the select few companies worldwide that can directly purchase gold bullion from the U.S. Mint, with nine located in North America and two authorized purchasers in Europe.
The U.S. Mint mainly caters to dealers but does sell to the public, albeit at higher prices. The quality of the coins remains the same. Your choice should align with your goals. If you aim to steadily invest over time, consider dollar-cost averaging and purchasing what fits within your budget. It’s important to understand that the price differential between what most dealers offer for a gold coin and what the Mint charges is due to the fact that these are indeed distinct coins intended for different markets.
So, is there any valid reason to buy gold coins from the us mint?
For instance, the Buffalo coins offered by the Mint are often unique in their strike quality (Proof) or mint marks (usually West Point or W). For example, there might only be 16,000 Proof strike 2023 Gold Buffalo coins in existence, hence the higher price. Compare this to the 350,000 common gold buffalo coins minted in 2021, and it becomes evident why Mint coins command a premium. It’s worth noting that the quality of the coin itself is not the determining factor; you can find gold coins graded at a perfect 70 that were purchased either from dealers (bullion) or directly from the Mint (Proofs). While obtaining silver proof sets and certain medals from the U.S. Mint is usually straightforward, securing high-demand, limited-mintage items can be quite a challenge. This involves being logged in and prepared the moment these items become available for purchase, which can be a frustrating process due to frequent crashes, gateway errors, and timeouts.
In the video, Savage Stacker discusses his goal of buying fractional gold coins each month in 2022 and shares his observations about the pricing of these coins from different sources, particularly those obtained directly from the United States Mint.
He begins by noticing that two identical fractional gold coins had a significant price difference between them, with one being more than $50 more expensive than the other. He aims to explain why buying gold directly from the U.S. Mint doesn’t always result in the best price.
The breakdown of premiums from the U.S. Mint for one-tenth ounce gold eagles is as follows:
Savage Stacker compares prices from different dealers:
- Nine percent premium above spot price when leaving the U.S. Mint.
- Some dealers sell the same coin for prices around $269 or $271.
- Other dealers, like Monument Metals and SD Bullion, sell it for lower prices, around $217 or $222.
- He highlights that APMEX, despite being an authorized purchaser, has one of the highest prices, even higher than dealers not part of the authorized purchaser program.
The U.S. Mint specializes in selling ‘collectible’ coins, which include proofs and similar items. If you’re interested in stacking gold or silver for investment purposes rather than collecting numismatic items, focus on coins like gold eagles, Canadian maple leafs, or Krugerrands. These coins are widely recognized and trusted by both investors and the general public.
Southern Branch U.S. Mints
the Southern Branch U.S. Mints, including those in New Orleans, Charlotte, and Dahlonega, played integral roles in the economic development of the Southern United States. These mints responded to the demands of a growing economy fueled by gold discoveries, leaving a lasting legacy in the numismatic landscape and reflecting the broader historical context of the region.
New Orleans U.S. Mint: The establishment of the New Orleans U.S. Mint in 1838 marked a crucial chapter in American numismatic history. The port of New Orleans witnessed a substantial influx of foreign gold and silver, prompting the need for a branch mint in Louisiana. Operational until 1909, the mint played diverse roles, serving as an assay office until 1942 and later undergoing renovation to become a museum in 1979. The New Orleans Mint holds a special place in numismatic lore, having struck coins for the United States, the Confederacy, and even Mexico.
The Charlotte Mint: As gold mining expanded into the neighboring counties of the Carolinas and other southern states, the need for a U.S. Mint in the South became evident. During its peak years, gold mining employment in the region ranked second only to farming. The early 1800s saw a significant annual gold yield, with North Carolina leading the nation in production until the California Gold Rush eclipsed it in 1848. The Charlotte Mint emerged to address this need, contributing to the Southern states’ economic growth and the broader history of American coinage.
The Dahlonega Mint: The discovery of gold in the Southern States in the early 1800s led to a gold rush, and by 1828, gold was found on Cherokee Indian land near what is now Dahlonega, Georgia. Within a decade, gold mining became a thriving industry in the region. Recognizing the logistical challenges of transporting heavy gold across mountainous terrain, mining interests lobbied the U.S. Congress for the establishment of a nearby U.S. Mint. The Dahlonega Mint became a reality, serving the Southern gold mining industry and contributing to the nation’s coinage history.
United States Mints in the Western Frontier
San Francisco United States Mint In 1848, gold was discovered near San Francisco at Sutter’s Mill. In no time, gold fever spread across the Wild Western frontier. Thousands of forty-niners found their fortunes during the “California Gold Rush.” By 1857, the luckiest miners were headed back East, their pockets filled with gold nuggets. The first of the Western Frontier United States Mints was established in San Francisco.
Denver United States Mint The Colorado gold finds of 1858 brought miners by the thousands to the Rocky Mountains. By this time, the 1830’s California Gold Rush was long over. Miners moved on to the mountains west of Denver where mining towns like Central City, Idaho Springs, and Black Hawk grew up quickly. The influx of a growing population created local demand for a coinage facility. Congress finally established a branch of the United States Mint in Denver. The second of the Western Frontier United States Mints was established.
Carson City United States Mint In 1859, hungry prospectors returning empty handed from the California gold rush stumbled on what we know today as the famous Comstock Lode in the Sierra Mountains of Nevada in the Wild West Frontier Days and the birth of the Carson City Mint evolved. The third of the Western Frontier United States Mints was established.
Further information.
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Value in dollar of United States Gold Coins.
When the U.S. Mint was formed by an act of Congress in 1792, the coins it was authorized to mint were backed by silver and gold. In 1792, the Dollar was fixed by law to contain 37.14 grains of silver, and was equal to 24.75 grains or 0.05156 troy ounces of gold. Gold was legally defined to be 15 more times valuable as silver.
The U.S. Mint had been producing gold coins since its establishment in 1792, continuing until the government recalled privately-held gold in 1933. The standard unit for these gold coins was the $10 gold coin, often called an “eagle.” The first gold coins were minted in 1795 – the eagle, which contained $10 worth of gold and had a $10 face value, the half-eagle, $5 and $5, and the quarter-eagle, $2.50 and $2.50. Because gold in its pure form is a soft metal, these coins were produced from gold that also contained an alloy of silver and copper to make them more wear-resistant. These coins were therefore “.91670 fine,” or 22 karat gold.
In 1849, with the rush of gold from San Francisco, the gold dollar and the double eagle was introduced, with a face value of $20 and gold value of $20. In simpler terms, the value of currency, like a $20 gold coin or a $1 silver coin, was originally tied directly to the value of a specific amount of gold. This connection was established by the government, which had the authority to decide how much gold a certain amount of money represented. They chose to declare that $20 represented the value of one ounce of gold, and they physically stamped this value on gold coins. The main objective was not to create a gold coin worth $20, but rather to ensure that each dollar was equivalent to 1/20th of an ounce of gold. This concept is what we refer to as the gold standard. Under this system, a dollar could be exchanged for a precise amount of gold, and gold could be converted into an exact number of dollars, all determined by legal regulations.
For instance, in 1834, the United States adopted the gold standard, setting the price of gold at $20.67 per ounce. This value was meant to remain fixed, offering a stable investment, in theory. However, during the 1929 stock market crash, people began hoarding gold. The U.S. Mint continued to produce gold coins until 1933, when the nation went off the gold standard, and private ownership of gold was made illegal, except for numismatic purposes. Most collectors, afraid of the ruling, turned in their gold even though it was legal for them to keep it. However, enough collectors did not, and there were plenty of gold coins in banks overseas, to assist the modern-day collector.
These de-monetized coins are highly sought after by collectors, who pay a premium for the rarity of the coin, on top of the value of the gold it contains. While the value of the dollar fluctuates against other currencies and can go up or down, the value of gold has always gone up, and will continue to go up, which is why investors have been purchasing gold since the dawn of time.
As of the time of this writing, gold is selling for $1950 per ounce and is confidently expected to stay over $2,000 per ounce. Sixty percent of those people investing in gold are doing it in the form of gold coins, in particular the American Eagle and Gold Buffalo.
But what about the classic gold coins of yore?
Because of their rarity, many Gold Eagles and Double Eagles have commanded enormous prices when recently sold at auction. The 1933 Double Eagle sold in 2004, the only one in the world that is legal tender, sold for $7,590,020 (the last $20 was the cost because it had been made legal tender.)
The 1787 Brasher Doubloon was sold a few years ago by Heritage Auctions for $2,990,000. The 1927-D Double Eagle, even rarer than the 1933 version. The finest known 1920-S Eagle sold in March, 2007 for $1,725,000, and the 1796 No Stars Quarter Eagle was sold in 2005 for $1,380,000.
Gold and especially gold coins have been and continue to be a sound investment in today’s troubling economic times. While paper money may become worthless because there is little to no inherent value in paper, gold will always have value as a commodity.