Real Money On The Way - US Will Mint 24 Karat Golden Dollars

Thursday, January 12, 2006

It took a little longer than originally planned, but now the USA is ready to create some real money again. According to the Presidential $1 Coin Act the Treasury will begin to issue two series of gold dollars, .9999 pure.
Under the legislation, one-third of all $1 coins minted will be Sacagawea dollar coins (Golden Dollar). The Mint will issue four different $1 coins a year in the order of the period of service of each president starting with George Washington, beginning in 2007. The legislation authorizes the Mint to sell $1 proof coins and uncirculated versions. There was no information about the purity or weight of the new golden dollars.
But the best is only coming:
The U.S. Mint will also produce a 24K gold bullion $10 coin honoring the spouses of former Presidents. The new half-ounce gold coins will be produced in sequence with the $1 Presidential coins. The gold coins will have an image of the First Lady, and the reverse will feature an image emblematic of the First Lady's life and work. The legislation authorizes the Mint to sell proof and uncirculated versions. The act authorizes the Mint to sell bronze copies of the gold bullion coin. The legislation also requires the Mint to produce a new 24K gold bullion 1-ounce $50 coin. For the first year, this coin will bear the classic Indian Head 5-cent coin or "Buffalo nickel" design.
Funny note here: The new golden coins, expected to vanish in collectors vaults as soon as they will be sold, shall help to reduce the budget deficit, said the Congressional Budget Office (CBO). I wonder where the budget deficit would be today, had the USA never abolished the gold standard.
As the US so far only produces 22K American Eagles the CBO estimates that the new 24K Buffalo nickel will create much more demand. The CBO expects that the use of gold for coins will rise from 400,000 to 500,000 ounces p.a.
I hope I will be able to get at least one of the one-ounce coins as I expect there will be raging demand for them in 2007.
FYI only: The One-cent pieces will be redesigned (but not made out of gold of course.)


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