Gold coins have been popular collectors items for investors and numismatists for many decades. Their recent mass production has made them an affordable solution for investing in gold, while their relative scarcity makes them ideal additions to coin collections. But when were gold coins first used? What is their history? Continue reading to discover the origin and historical relevance of gold coins.

While gold had been used as currency for many years already, it was in approximately the sixth century BC that it was first converted into what we would recognise as gold coins today. Prior to this, gold was traded in the form of ingots, which were bars or blocks weighed to ascertain their value and could easily be cut into smaller pieces.

The first real coins were used in what is today known as western Turkey. One side of each coin was usually emblazoned with the image of a lion or bull, while the other side was imprinted with a seal. These coins were struck from a gold and silver alloy and used predominantly for taxation purposes rather than as currency.

The use of gold coins was quickly appropriated by the Greeks, and when Alexander the Great consolidated the Greek Empire, it spread to the rest of Europe. From then on, throughout the world, gold coins went through a variety of changes as additional gold deposits were discovered. The number of gold coins steadily increased over the course of history until the 19th century, during which virtually all newly mined gold was converted into coins.

Over time, countries stopped using gold coins as currency, instead opting for a gold standard, in which all notes and coins were backed by physical gold, and could be exchanged for their value in gold at any time. Eventually, the gold standard was abandoned and is no longer used anywhere in the world.

In order to give individual investors the ability to add gold to their portfolios, South Africa created the Krugerrand, which is considered legal tender. Investors are now easily able to purchase gold coins because they contain less gold and are more affordable than gold bullion. In fact, by 1980, Krugerrands made up approximately 90% of gold coins worldwide.

Thanks to the Krugerrands remarkable success, gold coins have become a lucrative investment, with many countries now offering their own national gold coins. Moreover, minting commemorative coins has become a popular way of celebrating important people and events in history. For example, The Scoin Shop offers a selection of Mandela coins, which are gold coins depicting South Africas former president.

As the retail branch of the South African Gold Coin Exchange, The Scoin Shop offers a wide range of gold coins. Whether you want to invest in gold or celebrate history by owning commemorative gold products, we have the coins for you.

Take a look at our selection of gold coins or speak to one of our investment advisors today to discover which coins will best suit your existing gold coin collection.