Investors have had a desire for pure gold and now their American supplier, the U.S. Mint plans to unveil the nation's first 24-karat gold coin at its West Point, N.Y. facility.
The coin is modeled on the tradtional buffalo nickel, the American Buffalo on one side and a Native American on the other. Both versions come stamped with $50 face value even though they are worth substantially more.
According to this WashingtonPost. com article the U.S. Mint has sold 22-karat gold coins known as American Eagles since 1985, but Deputy Director David A. Lebryk said the new offering is aimed at investors who want coins that are pure gold. He estimates that the world market in gold coins is divided between sales of 24-karat coins such as the Canadian Maple Leaf, which account for 60 percent of the market, and more durable 22-karat coins, a category dominated by the American Eagle. Last year the mint sold 420,000 American Eagle coins, which also have a face value of $50 and contain 1 ounce of gold plus some alloy metal for durability.
"There appears to be a market for both," Lebryk said. The mint will produce only 300,000 proof-quality American Buffalo coins but will mint enough bullion coins to meet demand, he said. All the gold will be domestically mined.
Read the full article here.
Know More about gold and investing at GrowYourFunds.com.
Comment Preview