Many countries including the United States, Canada, China, Australia, and South Africa mint official legal tender gold coins each year, which are primarily meant for collectors and investment purposes and are not meant for circulation.
These government backed gold bullion coins derive their value from the gold content, rather than face value as money, although they are legal tender. The market value of the coins is generally about equal to the market value of the gold content, not the face value (“legal tender value”). For example, a 2023 1 oz. Gold American Eagle with $50 face value is worth and would sell for approximately $2064.60, the current spot price of gold plus the current “premium” as of today, June 7, 2023. Though these coins differ in purity and actual physical size (including all base metals), they are popular because they all contain exactly one troy ounce of gold. An investor should expect to pay between a 4.75% to 6.00% per ounce “premium” on these 1 ounce bullion coins. The “premium” will vary with daily market conditions and by supply/demand conditions for each individual coin. The table below lists the most well known of these government minted gold coins.
* All have exactly 1 troy ounce of gold