Using Gold Eagle Coins in or as Jewelry

One of the best things about the standard issue 1-ounce American gold bullion Eagles is that they continue to hold their value strictly as a commodity investment item, despite what the law creating them in 1986 may have said about the their sole numismatic value. But an interesting trend has evolved from technology and fashion, alike: using gold eagles as jewelry or having gold Eagle investments melted down to create new, often hand-made, jewelry.

For starters, the post-1986 gold Eagle coins are made with 91.67% pure gold, 3% silver and just over 5% copper, giving the coin durability and the luster that accompanies high gold content. This means that they can be made directly into 22-karat gold items without any additional alloying. However, most often, jewelers will continue to add silver or other metals to bring the content down to 18-karat, which is much more resilient at only 75% pure gold.

However, those who buy gold Eagles for aesthetic appeal often buy them in denominations smaller than the single-ounce that serves as the base for other fractional denominations covering 1/10-ounce, 1/4-ounce and 1/2-ounce sizes. Smaller denomination gold bullion Eagles are the most popular, with the 1/10-ounce size being very much in line with the size of other charms.

Most often such jewelry is simply the coin itself mounted in a gold ring with an eye for a chain soldered on the top. These creations are the most simple and most often seen way for jewelry collectors to get involved with gold Eagle investing on their own terms. However, some find the 1-ounce coin too much like a medallion and hence, too “disco.”

Of course, certified Double Eagle coins from the pre-1933 crackdown on gold are of such high numismatic value that it would be foolish to either melt or mount these gold bullion Eagles that routinely go up for auction at prices several times higher than the spot price of gold on any given day. As collector's items, such coins are scrutinized for every single aspect of their condition and measured against the relative rarity of the coin.

However, both pre-1991 roman numeral dated gold Eagles and the more recent issues dated with Arabic numbers, are equally well-suited for re-purposing and recycling into something more useful. Moreover, any time you buy gold from the US mint you can be assured that the gold itself was mined in the US by well-paid and protected workers, which cannot be said for many other gold producing nations.

Other types of gold Eagle jewelry include the practice of cutting figures right out from the coins and welding them into new pieces based upon the original strike. Other companies offer the smallest denominations as gold signet rings. In addition to the gold Eagles, silver Eagles are often seen on less precious applications such as money clips and cane tops.

Regardless of what eventual use one decides to purchase gold Eagles for, they will always be worth the amount of gold stamped on the front, no matter what that use might be.

Article Archive

Clint Faust

March 26, 2009