When you think of the history of buying gold coins, how far do you think back? Do you think about the white haired, bib-overalls wearing, one toothed gold miners from 1848? Do you think farther back to the dirty pirates who roamed the oceans looking for boats to ransack and steal the gold coins from? Actually, buying gold coins goes back even farther.

Gold had already been used in several European countries and in the Roman Empire for decades. Its popularity had started to wane, however, because new veins of gold weren’t being located quickly. That all changed in 1690, when big gold mines were discovered in Brazil.

Gold coins became the new standard and silver was phased out as the accepted bartering and trading method. Brazilian gold was transported to many countries for them to make new gold coins. The biggest receiver of gold was Britain, who took the gold already made into coins, remelted them, and formed them into their guineas.

Britain imported so much gold, historians believe they made over 31 tons of gold nuggets in to guineas just between 1713 to 1716.

Buying gold coins wasn’t the hobby it is now, it was a way of life. That’s how people made purchases or bartered for items to survive on. Sometimes one gold piece went so far as to buy food, clothing supplies and even household items for one month or more! Gold was much easier to get the higher up in the class system you were. Peasants and servants rarely ever got gold. Instead, they were paid in monies made of less valuable metals.

Gold became very valuable in Britain and silver lost favor fast. Britain found a way to make their silver profitable, as other countries such as China still put a high value on it. British traders sold their silver coins to India and China and made great profits off the coins they once thought were going to be worthless.

Britain minted guineas by the millions and completely quit making silver coins. Gold prices continued to rise and the rich got richer holding it and the poor got poorer waiting to receive some of it.

To make the gold coin official, officials passed the Coinage Act of 1816 that made the Sovereign the official gold standard. Guineas were no longer being made or used as currency.

One of the most popular gold bullion coins on the market is the gold American Eagle. This beautifully designed coin is attractive to collectors and investors alike, since it looks lovely but also has a high gold content. Whether you’re thinking of buying coins as an investment in your future or you simply want to collect these beauties as a way to pass on some American heritage to your children, gold American Eagle coins have a few pros and cons that you should consider.

One the positive side, these coins can be a good way to start investing in precious metals. They are small enough that they aren’t too costly for most beginning investors, which can be a problem when you start dealing with things like bullion, which can be too heavy and expensive for many investors. Plus, they can easily be stored in your home, in a bank vault, or in a specialized precious metals vault, although most people who invest in bullion coins do so in part because they want to keep their investments nearby them in their homes for portability and liquidity.

If you’re going to collect coins, this coin might also be a good place to begin. Collecting American Gold Eagles is simple because they aren’t actually rare coins. However, they are quite beautiful and valuable for their gold content. Before you learn enough about coin collecting to feel comfortable purchasing truly rare coins, you can purchase these bullion coins as a way to collect bits of history, since their designs are unique and intricate.

On the other side of the equation, though, one of the major problems with American Gold Eagle coins is that they have a higher markup than many other coins. Now, this markup over face value or the value of the actual gold content isn’t going to be nearly as high as it would be for other numismatic coins that are valued for their rarity, but it will still be higher than the markup on bullion.

If you’re investing in these coins because you like the way that they look or because you want to begin an interesting coin collection, the markup probably won’t be a problem. If, on the other hand, your goal is to invest in these coins in order to make a good financial decision, you should think for a while about whether or not it’s worth your while to pay the markup percentage.

If you look around at different gold investing websites or dealers in your area, you might find that the price of the gold American Eagle coins can vary quite a bit. Like most other commodities, the price of this item is controlled by supply and demand, but it can also be influenced by other factors, such as when you look at the prices, which dealer is selling the coin, and whether or not you’re having the coin shipped. Here are a few of the factors that help determine the price of the gold American Eagle coins.

The spot price of gold is what the price of these coins is most closely tied to. As supply goes down or demand goes up for pure gold, the price of these bullion coins will rise. This is because the coins are valued mostly for their gold content. Unlike rare, numismatic coins, they aren’t really collector’s items, so their price depends not on what collectors are willing to pay but on the market value of the actual gold that makes them up.

Gold American Eagle coins also fluctuate in price quite frequently. You might actually notice hundreds of dollars of difference in the price of the same coin from one day to the next. This is because like most other commodities, the price of gold can shift rapidly. The spot price of gold is evaluated once or twice a day, and the price of these bullion coins can shift with every new spot price that is announced in the stock market.

Besides these factors, there is also the fact that different dealers mark the coins up differently. When you look at the spot price for gold and the current price for an American Gold Eagle, you’ll realize that the coin is priced at a higher value per ounce than the gold. This is because the coin takes time and effort to make. Also, though, different dealers will charge extra when they sell coins so that they can make a profit.

Plus, if you’re having the coin shipped to you, you’ll probably have to pay even more extra money for shipping fees and shipping insurance. The coins go through the U.S. mail system most of the time, but the coins have to be insured because they have such a high monetary value. All of these things influence the price of an American Eagle coin.