Ever since Pharaoh walked Ancient Egypt, gold coins have been in high demand in human civilization. Of course back then, gold was considered a luxury, or even a gift, rather than for investment strategies. In Ancient Egypt, the best investment plan you could hope for was to be buried alive with your husband!
Nevertheless, gifts of gold continued to be circulated, all the way until the days of King Croesus, who issued the first official gold coin release. These were the first coins standardized for purity and content and made not for collecting, but for general distribution throughout the land. Eventually gold became currency because of its exceptional qualities and wide production.
It wasn’t until the 20th century that gold became relegated to an investment commodity. Now in the 21st century gold is increasing in popularity again. Why the comeback? Because gold is easy to trade and has a history of retaining its value despite all political or economic turmoil.
Gold coins refer to coins that are mostly made of pure gold (though no coins commonly distributed are 100%). These coins are not used for currency, but retain value for one of two reasons: for their history popularity (collectability) or their bullion content. You don’t always find a coin that has both factors—but when you do it’s a major news story.
As recently as 2002, a rare $20 1933 Double Eagle coin sold for over seven million dollars. While there were almost half a million coins issued, most of them were surrendered and melted down. This rare coin is proof that there are still collectibles out there today!