Even though many people use this phrase, it isn’t necessarily true that a gold coin is worth its weight in gold. In fact, the US has issued a plethora of plated gold quarters that do not possess any extra necessary value than the thin layer of gold on top of the plated coins.
In fact, the layer of gold is typically 0.003 inches thick, which makes it nearly impossible to resell these coins. Why? The melt value doesn’t really exist when the layer of gold is so thin.
On the other hand, if you have a genuine gold quarter, meaning a quarter that is completely made of gold, then you’re definitely one of the lucky ones because it has major value. In fact, the US government issued 91,752 gold quarters throughout its history, and each one of these coins is considered a collector’s item and it’s worth much more than the $.25 face value, that’s for certain!
Are you wondering how much gold quarters are worth? I’ve taken the time to break down the current gold quarter market, I’ve analyzed the price history, and I shared whether I think it’s a sound investment or not.
A Crash Course on Gold Quarters
Believe it or not, in the grand scheme of things gold quarters are relatively new. The US first introduced gold coins in 1792. The result of this introduction was the $10 American Eagle, the five-dollar half Eagle, and the quarter Eagle worth $2.50. Try not to confuse quarter Eagles with gold quarters, because they are very different and have a much different value from one another.
The US mint periodically issued commemorative coins in the 19th and 20th century including the Louisiana Purchase Expo Dollar in 1903 and the Grand Memorial Dollar in 1922.
During the late 20th century, the US mint started issuing coins that were intended for circulation, better known as NIFCs. They were specifically issued for the collector’s markets and many of the silver and gold coins became very rare including the Library of Congress 2000 by metallic Eagle and the National Baseball Hall Of Fame and Museum Coin issued in 2014.
The 2016 Standing Liberty Centennial Gold Coin
This is the first ever gold coin ever officially sanctioned in the United States to enter circulation. It was made with 99.99% 24 karat gold, even though it has a face value of $.25. The total weight is 0.25 Troy ounces and on the obverse side there is a W hallmark that references West Point, NY, which is the place where it was minted. As mentioned earlier, this is the only official gold quarter ever minted in the US, and there are only 91,752 of them produced and in existence.
This gold quarter has an after-market value that is derived from the melt value of the coin, which in turn coincides with the gold spot price. Right now, in early May 2022, the value of gold bullion is $1876 per ounce. Since this coin represents 0.25 ounces of gold, the current value is a quarter of the spot price, which equals $469 and you can sell it for on the aftermarket.
Believe it or not, if the gold coin is considered “perfect uncirculated” and it doesn’t show any scratches or signs of wear, coin holders can typically sell it for more than 15%-25% of its current weight value, which is definitely a nice added bonus to say the least.
Standing Liberty Centennial Gold Quarter Price History
- The price in 2016 was $290
- the price in 2017 was $324
- The price in 2018 was $320
- The price in 2019 was $380
- The price in 2020 was $484
- The price in 2021 was $439
- And the current price is $469
Although it doesn’t increase in value every year, the overall trajectory has been positive in the past seven years. In fact, the value of this gold quarter has increased by nearly 62% in a mere seven years. This is a difficult feat to accomplish in any market, which proves that the gold quarter market is definitely a hot one at this time.
Is It Worth It to Invest in Gold Quarters in 2022?
Many investors remain uncertain if this is a top-quality investment for 2022. We are happy to tell you that investing in gold quarters is a great way to add diversity to your portfolio while hedging against inflation and equity markets that remain unstable. In fact, at the end of 2021, gold actually topped $2000 per ounce to reach record-breaking price increases.
Did it maintain its upward momentum? No, it didn’t, but it hasn’t particularly sold off too much either, so it’s bound to begin its next major price advance in the near future.
Generally speaking, mainstream experts forecast an increase in the price of gold within the next few years. Goldman Sachs believes gold could reach $2300 per ounce, while Bank of America is even more optimistic and expects it to reach $3000 per ounce in the near future.
When times are difficult and unstable, this is when gold performs the best. Investors tend to pull their money out of the stock market and other volatile investments and put it in precious metals like gold, silver, platinum, and palladium. This is historically what the big boy investors do during times of economic strife.
As an example, when the economy was struggling in late 2007, the value of gold increased by more than 25% between then and March 2009. During this time, the S&P 500 lost more than 55%, which made gold a tremendous investment in comparison.
History is on your side as a gold investor, because historically the value of gold tends to rise relatively consistently. It isn’t part of an unstable market and the economic risk is few and far between with this investment.
Even better, with Covid-19 pandemic related issues still potentially on the horizon, the economic instability continues to exist, which makes gold quarters an incredibly valuable commodity to say the least.