Investing in gold is a wise choice as it holds its value even during economic downturns, unlike paper money. Some countries even base their currency value on the gold standard. In the past, the value of gold remained fixed, with one troy ounce (31.1 g) priced at $35. However, its value has significantly increased over the years.
So, if you’re wondering how much 14 mg of gold is worth, you might consider purchasing a Buffalo tribute gold-clad coin. This coin contains 14 mg of 24K gold, and its price varies based on the current value of gold. Let’s take a closer look at the details.
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The Value of 14 Mg of Gold
You may have heard about Buffalo tribute coins, which claim to be made of the purest gold ever used for an American currency. However, it’s important to note that 24K gold is too soft to be used for making jewelry or coins. In reality, the $50 Buffalo gold coin is clad with a thin layer of 14 mg of 24K gold.
The initial price of this coin was intended to be set at $50, but you can purchase it for only $9.95. While this may seem like a bargain, it’s important to understand that the value of gold has increased exponentially over the past few decades. The current value of gold is almost seven times higher than in the year 2000 and over 50 times higher than in 1970.
Considering this substantial increase in gold’s value, it might be surprising that a coin made of pure gold is priced significantly lower than planned. How is this possible? Let’s delve into the details.
Calculating the Value of 14 Mg of Gold
Using milligrams as the unit of measurement for gold weight is uncommon, but it’s essential to understand the value of the precious metal content before making a purchase. To calculate the price of 14 mg of gold, we need to convert this weight to more commonly used units.
One gram is equivalent to 1,000 mg or 0.0321507466 troy ounces. Therefore, 14 mg is equal to 0.014 g or 0.00045 troy ounces. With this value in mind, we can determine that 14 mg of gold is currently worth slightly over $0.89 (with slight variations).
It’s crucial to keep in mind that the market price for this small quantity of gold cannot significantly impact the overall price of the coin. Even if the gold price were to increase by $100 per troy ounce, the price of this coin would only change by approximately 4.5 cents, which is negligible.
Another factor to consider is the credibility of the coin’s issuer. Despite the advertising, the National Collector’s Mint, the company behind these coins, is not affiliated with the official US Mint. Therefore, it’s important to exercise caution when making a purchase.
The Gold Buffalo Tribute Coin
The Gold Buffalo coin is highly regarded as one of the most beautiful coins ever produced by the US Mint. It features two powerful symbols: the Native American and the American bison, representing the legacy of the indigenous people and the determination of the pioneers who conquered the Wild West.
The new $50 Gold Buffalo coin, minted in 2006, pays tribute to the original design by James Earle Fraser. However, its composition is different, with a thin layer of 14 mg of pure 24K gold replacing the nickel.
The obverse of this private non-monetary coin showcases the Native American design from the original Buffalo nickel. The word “LIBERTY” appears in front of the Indian chief’s head, alongside the year. The designer’s initial, F, is also present below the date. The proof version of the Buffalo gold coin features the letter W as a mint mark, indicating production at the West Point mint.
On the reverse side, the coin bears the inscription “UNITED STATES OF * AMERICA” encircling the centrally positioned bison standing on a mound. “E PLURIBUS UNUM” is divided into three lines, similarly to the original nickel. The words “IN GOD WE TRUST” appear beneath the bison, along with the numerical $50 denomination and the note “1 OZ. .9999 FINE GOLD.”
This gold-clad coin, weighing one troy ounce (31.1 g), is coated with 14 mg (0.00045 troy ounces) of 99.99% pure 24K gold. It has a thickness of 0.116 inches (2.9 mm) and a diameter of 1.29 inches (32.7 mm), with a reeded edge.
Understanding Gold Weight Measurements
The gram is the most commonly used unit for measuring gold, while milligrams are less frequently used. To provide a comprehensive understanding of various gold weight measurements, let’s examine some conversions:
- One troy pound equals 12 troy ounces.
- One troy ounce equals 20 pennyweights.
- One pennyweight equals 24 grains.
- One gram equals 15.43 grains.
- One troy ounce equals 31.10 g.
While these conversions may seem complex, it’s important to grasp the idea that 14 mg of gold is an incredibly small quantity with a value of less than a dollar.
To put this into perspective, you can compare the prices of gold weighing between 14 mg (0.00045 troy ounces) and 14.99 mg (0.00048 troy ounces) with the cost of 1 g (0.03 troy ounces) of gold, which is currently approximately $65.56.
In conclusion, before purchasing a coin claiming to contain pure 24K gold, it’s crucial to consider all the information and weigh the pros and cons. Be aware that the $50 Buffalo gold coin is not made entirely of gold and contains only a thin layer of the precious metal. The small quantity of 14 mg of gold makes it virtually impossible to refine.