For as long as anyone can remember, gold has been associated with Christmas. That makes sense. After all, gold was the first of the three gifts said to have been brought to the Christ child by the Magi. The other two gifts were aromatic frankincense, and myrrh. Fragrant as the latter two are (the Roman Catholic church is reported to burn upwards of 50 metric tons of frankincense a year) nothing on earth has yet been found to compare to the durability, malleability and allure of solid gold. Some people even drink water containing gold coins believing it creates “longevity.” That’s because gold never rusts or corrodes....
Due to its permanence and virtual indestructibility – gold is an element that can’t even be destroyed by acid – it is universally coveted. Naturally, it’s rare. If all the gold ever mined in the world were combined, it would be a cube only 75 feet on each side weighing roughly 200 metric tons. That rarity equates to value. As of this writing, gold is worth over $1,800 per ounce.
To get a first-hand look at an impressive amount of gold visit any major coin show. Many of the coin dealers in attendance will have cases filled with stacks or rows of gleaming, collectible, numismatic or bullion gold coins and bars in all sizes.
For a more impressive yet non-visible perspective, if you find yourself driving along highway 31W some 20 miles south of Louisville, Kentucky, take note of the large building in a field all by itself east of the roadway. It’s surrounded by a massive fence so it’s easy to spot. That is the gold repository at Fort Knox, home to the largest accumulation of gold in the US.
The imposing building that sits on a US military base was built in 1936 to hold the US gold reserves. It’s theft-proof, literally. Constructed from 16,000 cubic feet of granite and over 1,300 tons of reinforced structural steel, the main vault door alone is over 21 inches thick. The roof is so dense it is said to easily survive a nuclear blast. All that is to securely store over 147 million ounces of gold worth upwards of $275 billion.
The building is considered so secure, during World War II the vaults were used to store the U.S. Constitution, Declaration of Independence and original draft of Lincoln’s Gettysburg Address. Just don’t plan on visiting or stopping by a “Fort Knox Gift Shop.” Since its creation, only one president, Franklin Roosevelt, has ever been inside.
Most of the gold at Fort Knox is in the form of 27-pound bars. There are also a goodly number of gold coins. Because just one of the bars would cost in the neighborhood of $750,000, when considering gold as a possible holiday gift, coins are definitely the way to go.
In the US, we have pretty much our pick of gold coins from which to choose. Early in my working career I made it a point to invest in a small gold coin every few months, each from a different country. It was interesting to see those struck from far off places such as Iran, China or Russia. Many of those featured former rulers, leaders or dictators from times gone by.
Worldwide, the most popular gold coins today are the American Eagles. Struck in 1/10-, 1/4-, 1/2- and one-ounce sizes. The smaller fractional coins allow for less expensive purchases though the premiums charged for those lesser-sized coins is usually noticeable. The American Buffalo one-ounce gold coin has also become popular here in the US. It contains the portrait of the American Indian and majestic buffalo reminiscent of US nickels from the 1930s.
Other popular gold coins ideal for gifts include the Canadian Maple Leaf; South African Krugerrand and Chinese Panda – all of which also come in one-ounce and fractional sizes. The Australian Kangaroo has risen in popularity as has the Austrian Philharmonic gold coins.
Equally interesting and historic are smaller gold coins from Mexico; Cuba; Italy; Great Britain; Germany and other exotic lands. A good coin dealer can help offer some fun selections. As always, be sure to purchase from a recognized source to assure you are getting the genuine article. That way, your coins will always be “as good as gold.”
For more collecting information and advice, log onto www.PRexford.com.