After starting to stack junk silver coins, many investors start thinking about whether or not there are junk gold coins. Are there “junk gold” coins?
While not usually referred to as “junk gold,” some old circulated gold coins sell at or just above melt value. These would be the gold equivalents of junk silver.
Pre-1933 American Gold Coins
Prior to the 1933 Gold Confiscation, gold coins were in common circulation in the United States. During the confiscation, many of the Pre-1933 gold coins were melted down. Some coins were converted to jewelry to be kept and saved. Others stashed away as many gold coins as they could. Those coins remained hidden until it became legal to own gold again.
Many of the pre-1933 gold coins that circulated throughout the United States carry a numismatic premium above the gold’s intrinsic value. Sometimes, they can be purchased near their melt value.
Vintage Gold Bullion Coins
Other gold bullion coins, such as those from Mexico and Europe, are also comparable to junk gold. Gold bullion coins were in common circulation throughout most of the world until the early to mid-20th century.
Gold coins were in common circulation during the 1800s and early 1900s. The gold sovereign was the standard in the United Kingdom, and many of the colonies and protected territories that were part of the United Kingdom also used it.
Gold Sovereign coins were minted in Australia, South Africa, and other parts of the world.
Each British Sovereign Gold coin contains .2354 troy ounces of gold. There are also half sovereigns and quarter sovereigns coins. Due to their rarity, some gold Sovereigns carry a premium.
In other parts of Europe, countries including France, Switzerland, Italy, and Belgium formed the Latin Monetary Union.
The Latin Monetary Union (LMU) developed a standard based on the French Gold Franc. Many countries trading partners with LMU countries developed coins that followed this standard.
The most common coin from the LMU was the Gold 20 Francs. Each 20 Francs gold coin contains .1867 troy ounces of gold. Various countries produced millions of 20 Francs gold coins for international trade.
In Mexico, gold Peso coins were the standard. Millions of gold peso coins were minted in the early 1900s.
Gold peso coins can be bought today for close to melt value. Mexican Gold Peso coins range in denominations from 2 pesos to 50 pesos.
Their respective countries produced millions of these gold coins worldwide for circulation and trade.
Today, these coins are bought and sold close to their melt value as an investment. They provide a way for investors to buy and hold fractional gold in an easily recognizable form. It is easy to store fractional gold coins in much the same way junk silver is stored.
How to Store Junk Gold
Buying fractional, or junk gold, can store wealth in a tiny space.
Taking a closer look at the Gold 20 Francs coins, it doesn’t matter which country minted them. Each follows the same specifications and guidelines. They all have the same dimensions and are minted from the same alloy containing .900 gold fineness.
Each 20 franc gold coin has the exact specifications regardless of where it was minted.
Gold 20 Francs Coin Specifications
| Gold Content: | .1867 oz gold |
| Gold Purity: | .900 |
| Coin Thickness: | 1.3 mm |
| Coin Diameter: | 21 mm |
With a diameter of 21mm each of the 20 Francs coin is comparable in size of a Jefferson Nickel from the United States. However, the coins are slightly thinner. A standard bank roll of 40 Jefferson nickel coins has a face value of $2 USD and is a little over 3 inches in length.
By comparison, you could fit 60 gold 20 Francs coins in the same amount of space. The price of gold trading in early 2020 just under $1,600 per troy ounce. At that price the value of sixty 20 Francs gold coins would be roughly $17,700 USD.
Fractional junk gold coins are an excellent store of wealth. A roll of junk gold coin can easily be stored or hidden virtually anywhere.