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America has a long history with gold coins. The United States minted its first gold currency over 230 years ago — years before the U.S. Mint was established. While that coin is worth millions, you can find many others more affordably. Among the most popular are $5 commemorative gold coins.
These half eagles have appealed to collectors and investors for over three decades. They feature some of the most iconic moments, topics, and individuals in American history. Of course, they’re far from the only gold coins available in the U.S. What makes them worth the purchase?
At Silver Gold Bull, we work hard to ensure our clients are making informed investment decisions. While some gold bullion offerings have advantages over America’s $5 commemorative gold coins, these smaller pieces certainly stand out in many ways. Here’s what you should know.
What Are $5 Commemorative Gold Coins?
The American Eagle is the official gold bullion coin in the U.S., and the Gold Buffalo series provides a similarly high purity of gold. Of course, these bullion offerings are not the only gold products put out by the mint. Every year since 1986, the U.S. Mint has released a commemorative $5 coin.
The first in the series was a centennial coin celebrating the Statue of Liberty. Since its initial release, though, we’ve seen new designs each year. These commemorative coins are technically half eagles, but they’re hardly “half” of current American Eagles in any way.
We can see this in a variety of areas. The first thing most people notice is that the American Eagle has a face value of $20. The $5 commemorative gold coin series has a face value of — you guessed it — just $5. These commemorative coins are also less than a quarter ounce of .900 gold.
By comparison, the American Eagle is a full ounce of .9167 fine gold. Once you consider all these factors, you may wonder why you’d buy coins from this series at all. Wouldn’t opting for the larger American Gold Eagle be preferable? For some people, the answer is a resounding “no.”
They’re More Affordable Than Most Bullion Offerings
What may be the biggest appeal of $5 gold half eagles is their relatively low price. When gold traded around $1,800 near the end of October 2021, you could purchase a $5 commemorative gold coin for about $460. An American Gold Eagle sold for over $1,900 at the same time.
It’s not just the American Eagle that’s more pricey, either. American Gold Buffalos sold for even more than Eagles at the time. While you might get more gold per dollar with larger offerings, not everyone feels comfortable paying more than the average American’s monthly rent for one coin.
Regardless of why people choose the $5 commemorative gold coin series, the fact remains that their wallets take less of a hit. If you’re new to the world of precious metals investing, this might be a great place to start. As your collection grows, though, it’s wise to move on to bigger things.
After all, you’ll save a ton of storage space by purchasing higher-purity coins!
There’s a Wide Variety Available
When you buy most bullion gold coins, you can’t expect a bunch of variation over time. Since America’s commemorative half eagles change annually, though, collectors can get something new every year. These aren’t minor differences, either. In some cases, multiple issues are released!
While the Statue of Liberty may have adorned the original release, the designs have touched on nearly every aspect of American life since. If there’s an issue, individual, or historic event you’re interested in, there’s a very good chance the U.S. Mint has featured it on this coin.
Just consider a few of the most popular $5 commemorative gold coins in the series:
- 2019 American Legion
- 2016 Mark Twain
- 2015 U.S. Marshals
- 2019 Apollo 11
- 2007 Jamestown
- 1995 Civil War
- 1991 Mount Rushmore
- 2016 National Parks
These are just a small sampling of the more than three dozen coins in the series. Each release is beautifully designed to reflect the importance of what it’s depicting. The most exciting aspect of them, though, is you’re not getting the same old thing each year.
This makes them perfect for display, and some retailers do quite well only selling cases meant to house entire collections of these coins. While the variety of offerings may not be the only reason $5 commemorative gold coins sell so quickly, they certainly contribute to that popularity.
Values Can Far Exceed Intrinsic Worth
Countries typically release bullion coins solely to offer a vehicle for precious metals investing. This is one of the primary reasons there aren’t many variations in American Eagles. They are not meant to hold higher value based on rarity or collectibility.
Those who invest in $5 commemorative coins, however, may have extremely valuable specimens worth more than common issues. This can relate to popularity, varying mintage numbers, or a multitude of other factors.
If you’re looking to solely invest in gold bullion, you should probably avoid the higher-priced examples. Much of their worth rests in numismatic value, and there’s no guarantee you’ll get this back when selling. If you already have one of the following coins, though, you’re in luck:
- 1995-W XXVI Stadium
- 1996-W Cauldron Olympic
- 1997-W Jackie Robinson
- 2001-W Capitol Visitor Center
- 2013-P 5-Star General
- 2014-W National Baseball Hall of Fame
If we again reference the price of gold near the end of October 2021, you could have bought a common $5 commemorative gold coin for $460. A 1997 Jackie Robinson coin in MS70 condition, however, would fetch around $2,250. That’s worth more than an actual 1 oz bullion coin!
Many things can contribute to higher-valued coins, so don’t make the mistake of thinking it’s all about mintage numbers. For instance, the U.S. Mint released 169,428 Jackie Robinson coins in 1997. They released less than 42,000 FDR coins the same year, so the FDR coin is certainly rarer.
If you were to buy the FDR coin, though, you would likely only pay about $600. This is certainly more than common specimens from the series, but it’s a far call from the $2,250 fetched by Jackie Robinson coins. Just stay vigilant and remember that rarity doesn’t always equate to value.
Demand for Smaller Coins Has Gone Through the Roof
When demand began to skyrocket for gold near the beginning of the pandemic, not all gold items were affected equally. In fact, precious metals dealers around the country reported shortages of small gold bullion bars and coins. The $5 commemorative gold coins fall squarely into this category.
While this may seem difficult to understand, it all comes down to liquidity. The simple fact is that far more people can afford a quarter-ounce coin than a 1 oz bullion bar. This means sellers have a much larger buyer pool seeking to purchase their items.
This is a good thing for anyone considering investing in gold. There will always be a buyer for any amount of bullion you have. When you have larger and more expensive items, though, it becomes more difficult to find that buyer.
The most important issue, though, is that larger buyer pools mean more money. When lots of people are after the same item, they’re likely to pay more to secure it. Once you have a $5 commemorative gold coin in your collection, selling it at a great price shouldn’t be an issue.
Buy $5 Commemorative Gold Coins and More Today!
Once you decide to invest in gold, you’ve got a wide array of products to choose from. If you’re looking to keep things simple, gold bullion bars offer high-quality precious metal at an affordable price. Coinage certainly has its appeal, though, so don’t be afraid to venture out!
Many people who choose this route, however, confine themselves to American Eagles. This would create a lack of diversity in your portfolio, and it can get expensive if those are the only purchases you’re making. This is just one of the many reasons to buy $5 commemorative gold coins.
At Silver Gold Bull, we pride ourselves on having one of the largest selections of gold bullion coins online. Whether you want to build your collection around these $5 half eagles or simply add something new to your portfolio, we’ve got exactly what you need. Visit our Gold Bullion page today!
