Collecting coins, for many years, has been the hobby of many collectors and investors. Since 2008, however, the interest in gold coins has changed purposes. The price of gold has skyrocketed in recent years, and analysts believe the prices will continue to rise throughout 2013. With a shaky economy and a troubled stock market many investors are shifting their focus towards more tangible commodities, such as gold and silver. Thus, a great interest in gold coins has been renewed within the public. One much loved and traded coin is the Australian Gold Nugget coin, a series of coins that are released each year by the Gold Corporation in Australia.
History of the Australian Gold Nugget Coin
The Australian Gold Nugget Coin series began in the 1980s and has remained a popular series ever since. The Australian Gold Nugget Coin is of particular interest to investors and collectors because it is deemed to be legal tender in Australia. Additionally, the coin is struck in several denominations, ranging from 1/20 of an ounce, to one full kilogram of 24 karat gold. The coins are of special interest, additionally, because the design on the coin is changed each year. Some years and denominations are rare than others.
The original series was minted in 1986 and ran, unchanged in design feature, with the exception of the design, until 1991. In 1991 the 2oz, 10oz, and 1kg were added to the series. The additions were done for a variety of different reasons, but one noted reason is that the Gold Corporation, a Western Australian Government owned company, intended to use a returns to scale economy and keep premiums low.
When the original coins were stuck in 1986, they were the only coins that included a plastic bezel edging, at that time. The plastic edging, with the gold coin inserted, raised the durability of the coin, protected the gold, and create a niche interest in the coins.
The obverse of the coin, since 1999, has depicted Queen Elizabeth the Second. The reserve of the coin changes each year. From 1986 until 1989 the reverse of the coins featured gold nuggets, the feature for which the coins were aptly named. After 1989 the coins began depicting different kangaroos on the reverse. The change was, in part, due to the fact that kangaroos are more widely associated with Australia and Australian culture.
The Price of Australian Gold Nugget Coins
The pricing of the Australian Gold Nugget coins fluctuate based on the price of gold and the rarity of the coin in question. As the series has been in production for over 25 years, there are several coins within the series that are deemed to be more valuable than others. With that being said, each coin has a face value attached to it. These face values have changed as the coins have changed, but they have remained relatively stable.
The 1/20 troy ounce coin is given a face value of $5, while the 1/10 troy ounce Australian Gold Nugget coin has a face value of $15. The 1/4 troy ounce coin has a face value of $25, and the 1/2 troy ounce coin has a face value of $50. The 1 troy ounce coin was given a face value of $100. The 2 troy ounce coin was originally minted with a face value of $500, in 1991, but was lowered to $200 in 1992. The 10 troy ounce coin was minted with a value of $2500 in 1991, but was lowered to $1000 in 1992. Similarly, the 1kg coin was minted with a value of $10,000 in 1991, but was lowered the following year to $3000.
The value of these coins fluctuate with the price of gold and, because of their collectible nature, are often traded above the value of gold at any given time. The limited production of these coins also make them more valuable.
Each year new coins are minted with a new reverse design. The designs are completely unique to the year in which they are struck.
Where to Buy Australia’s Gold Nuggets
While buying gold coins are wonderful investment pieces, and can be an extremely rewarding hobby, there are some things to be cautious about. Namely, the existence of counterfeit golden coins. These counterfeit coins do not contain the precious metals, in the correct percentages, that the minted coins do. Because they are not struck by the Gold Corporation, and not recognized by the Australian government as legal tender, these “gold coins” have no intrinsic value. In order to prevent being dubbed by a fly-by-night operation, all investors should focus on buying coins from trusted, accredited businesses. govmint.com, goldsilver.com, perthmint.com and thelondonmintoffice.com., are four commonly referred to gold coin businesses that operate on the internt. These businesses are fully accredited and are trusted businesses with a track record of success and legitimacy.