American Eagle: probably the most popular US investment coin
Summary
- The American Eagle is a US investment coin available in gold, silver and platinum
- The American Gold Eagle and American Silver Eagle, first issued in 1986, are the most important versions
- The American Gold Eagle has a gold content of 91.67%
- The fineness rating of the American Silver Eagle is 999/1000
- Both coins feature Liberty, the goddess of freedom, on the obverse with an eagle on the reverse
- Naturally, the American Eagle is especially popular in the USA, but banks and precious metal dealers worldwide will accept and trade this investment coin
Anyone with some background knowledge of coins and bars has probably already heard of the American Eagle. Much in demand in the USA, this investment coin is usually encountered as either a gold coin, or a silver coin – though it is now also available in a platinum version. For that reason, this article will focus on coin versions made from two precious metals – gold and silver – used to create the American Gold Eagle and American Silver Eagle respectively. Please note this investment coin should not be confused with another Eagle – a ten-dollar gold coin issued by the US States Mint from 1795 up to 1933.
The history of the American Eagle
The American Gold Eagle coin was brought into being by the Gold Bullion Coin Act of 1985. This legislation, signed by the then US President Ronald Reagan, passed into law on 17 December, 1985. This document specified the permitted denominations of the new coins. However, the Gold Bullion Coin Act of 1985 also stipulates that the gold required for the coinage may only come from newly mined domestic sources. The first of these gold coins were issued in 1986.
The legislation governing the creation of the American Silver Eagle is the Liberty Coin Act of 09 July, 1985. This statute enabled the US government to sell off significant parts of its vast silver reserves at a very reasonable price. So, in a formal ceremony held in San Francisco on 29 October, 1986, James Addison Baker III initiated the minting of the first coin. As the then US Treasury Secretary, Baker proudly announced he would trigger a new silver rush which would require no pickaxe or shovel. This event established the American Silver Eagle as the first pure silver coin in the USA.
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American Eagle: Purity and denominations
The American Gold Eagle has a gold content of 91.67%, which corresponds to 22 carats, the other components being copper (5.33%) and silver (3%). This blend of metals was intended to increase the coin’s durability, with the copper content also adding a subtle reddish colouring. The American Gold Eagle is available in four different denominations:
- a 1/10-ounce coin with a diameter of 16.5 mm and a face value of 5 US dollars
- a 1/4-ounce coin with a diameter of 22.0 mm and a face value of 10 US dollars
- a 1/2-ounce coin with a diameter of 27.0 mm and a face value of 25 US dollars
- a one-ounce coin with a diameter of 32.7 mm and a face value of 50 US dollars
The specifications for the American Silver Eagle coins are altogether more manageable: This silver bullion coin always has a face value of one US dollar, weighs one troy ounce, and has a diameter of 40.6 mm. To date, the American Silver Eagle is the heaviest and largest of US silver coins, and has a silver content of 99.9%.
The design of the American Eagle
The obverse of the American Gold Eagle depicts the renowned deity, Lady Liberty. In this illustration, the goddess of freedom holds an olive branch in her left hand as a symbol of peace, while in her right hand, she carries the torch of freedom. The design employed for this gold coin was created by Augustus Saint-Gaudens in 1907. The obverse face also displays the name LIBERTY as well as the year the coin was minted. Up until 2020, the reverse of the American Gold Eagle showed a flying eagle returning to its nest holding an olive branch in its claws – a link to the obverse illustration. However, this design created by Miley Busiek was discontinued in 2021. Instead, the coin now displays an eagle’s head in profile. The prominent UNITED STATES OF AMERICA lettering at the top, together with information about the weight and face value of the coin, remain unchanged. The coin also bears two further inscriptions: IN GOD WE TRUST and E PLURIBUS UNUM.
The design scheme for the American Silver Eagle differs from that of the gold coin. The Goddess of Liberty still features on the obverse. However, she is depicted in full stride carrying oak and laurel branches in her left hand. This motif created by Adolph Alexander Weinmann is known as the ‘Walking Liberty’ and is also featured on the silver coin known as the Walking Liberty Half Dollar, issued in 1916. As with the American Gold Eagle, the year of minting and the word LIBERTY also appear on the obverse face. However, unlike its gold counterpart, this silver coin also bears the words IN GOD WE TRUST on the obverse. The design which appears on the reverse is based on the Great Seal of the United States and depicts a bald eagle holding an olive branch and a bundle of arrows in its claws. The inscription E PLURIBUS UNUM can be read on a ribbon which the eagle holds in its beak. The words UNITED STATES OF AMERICA are also embossed on the reverse face together with the coin’s weight and face value.
The market profile of the American Eagle investment coin
The American Eagle is a popular investment coin, especially in the United States of America. This is no doubt due to its historic associations and patriotic design. However, outside of the USA, the American Gold Eagle is somewhat less popular, perhaps primarily because of its gold content of just 91.67%, which can seem a little low from today’s perspective. This is also why the USA decided to bring the American Buffalo to the market in 2006 – a gold investment coin with a much higher fineness rating of 999.9/1000. Nevertheless, the American Eagle enjoys worldwide acceptance from banks and leading precious metal dealers (such as Echtgeld AG) who buy and sell this investment coin with relatively low premiums. In Europe the American Gold Eagle probably ranks among the top ten most popular investment coins, with the American Silver Eagle perhaps even making the top five. Furthermore, thanks to the long-standing collaboration between the precious metal dealer Echtgeld, we can observe that many of our mutual clients have opted for the American Eagle as a bullion investment coin.
