Since its introduction in 1986, the Gold American Eagle has become the most popular gold bullion coin in the world. There are several reasons for this:

• The gold content of Gold American Eagles is guaranteed by the U.S. government, making the coins easy to sell anywhere in the world
• Gold American Eagles are the only gold bullion with less than 0.9999 fineness allowed in an IRA
• The gold used in Gold American Eagles has been mined only in the U.S. This not only guarantees quality, but also adds a layer of patriotism when buying the coins.
• The Gold American Eagle has a beautiful design, inspired by historic American coins

Gold American Eagles come in various denominations, with the following gold content (in weight) and face values:

• 1-oz, $50
• half-ounce, $25
• quarter-ounce, $10
• 1/10 ounce, $5

The coins are usually worth much more than their face value. The actual value of a gold bullion coin is based on its gold content multiplied by the spot price of gold (current price of gold on the market.)

Why invest in 1/10-Oz. Gold American Eagles?

Gold has been proven time and again to be a solid investment hedge. It has an intrinsic value that cannot diminish over time.

Gold also has a direct correlation with inflation, and inverse relation with paper investments like stocks and bonds. This means that when inflation is high, or when the economy is in a downturn, negatively affecting the value of stocks and bonds, the value of gold traditionally goes up.

While investing in one-ounce Gold American Eagles is highly recommended, there are several good reasons why you should diversify into the coin’s fractional values, particularly the 1/10-oz. denomination:

• Fractional gold coins are more affordable than full-ounce coins. This gives beginning investors a great chance to diversify their portfolio with gold, without spending too much, initially. You can gradually build up your investment by buying more gold in smaller sizes.
• Fractional gold coins are easier to barter or sell. 1/10-oz. coins, in particular, offer the most flexibility. If you want to convert only a small portion of your gold investment into cash, the 1/10-oz coins will be the best ones to liquidate.
• In a disaster scenario where you will have to use your gold coins to pay for your purchases, 1/10-oz coins will be more practical with their smaller value.
• 1/10-oz coins make excellent gifts without costing as much as bigger coins

One thing to keep in mind is that minting costs for 1/10-oz American Gold Eagles are proportionately higher than bigger coins, as the minting processes involved are the same regardless of the coin’s size.

Features of 1/10-oz Gold American Eagles

As with other Gold American Eagle denominations, the 1/10-oz coin contains gold with 91.67% purity. In making the coins, 24-karat gold is alloyed with 3% silver and 5.33% copper, resulting in 22-karat gold. This is considered the purest density that can best withstand wear and tear.

The 1/10-oz Gold American Eagle coin weighs 0.1091 ounce, with a diameter of 0.650 inches and thickness of 0.049 inch.