Before the introduction of paper money, coins were among the currency circulating worldwide in many countries, with gold being trendy and valuable. For countless centuries, under the order of kings dating back to what many believe to be as far as the 5th century BC, having these coins allowed individuals to purchase many items and services. Below are more details related to the history of gold coins, including their popularity, benefits, and changes.
Reasons for Creation
There are many theories as to why gold coins were created, including one that suggests Croesus, the King of Lydia, wanted the pieces to commemorate his rule. He also wanted to use the currency to help him trade for items in large quantities.
It’s believed the coin didn’t officially take off until the King of Lydia had been captured by Persia. The Persians then took the coin and adopted it in their own version. That produced one of the first gold coins, the ancient Persian coin. After a time, more versions would be created.
Gold’s popularity rose for various reasons, such as the low spread of the pricing, whether purchasing or selling the coins. Compared to other options, including silver, gold is considered easier to transport because of its high value-to-weight ratio.
Today, gold coins are still popular for various reasons, including their ability to hedge against inflation. Owning this type of currency can help sellers and buyers establish diversified portfolios. In a time of macroeconomic uncertainty, buying coins from reputable Carlsbad gold coin dealers can also provide a measure of financial security.
Gold coinage replaced the barter system in many areas, becoming very predominant as a means of exchange and allowing international expansion in commerce. As time progressed, the circulated coins would become replaced by gold bullion coins to keep up with modern value. Around the world, many countries began to manufacture different types of gold coins based on the unique development of their choice. As a result, this type of currency comes in different shapes and sizes, and some of the most popular minted coins are the Canadian Gold Maple Leaf, the Gold Britannia, the Gold Panda, and the American Eagle.
The Krugerrand is famous in many countries. It was the first one-ounce gold bullion coin created. Decades ago, this minted coin accounted for approximately 90% of the gold coin market. It generally contains 24 karats of gold and a mix of other metals, such as copper.
How to Collect
If you’re interested in collecting gold coins or merely want to buy and sell them later, you can purchase them from local gold coin dealers or even from a bank. You could also visit coin shows to learn more about the minted coins and build connections within the currency community.
Whether they’re looking to purchase silver bars or gold coins, Carlsbad collectors know they can trust the reliable professionals at First National Bullion. We can answer all your questions and help you find all the information you need to decide whether precious metals are the right investment for you. Give one of our experienced dealers a call today.
The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.