Gold Coins - Why Were They Minted?

I’ve read a lot of ideas on this but I haven’t looked it up in a while. So here’s my recollection in no particular order. I will assume people will correct me

1. Facilitating transfer of money between financial institutions (easier to send a couple of double eagles than lots and lots of gold dollars)
2. For many years miners could go directly to the mint with their gold nuggets/dust and make a request of the denominations they wanted. So it was whatever worked for their needs.
3. Not everything was <$1. Many expensive items were over $1 such as furniture and luxury goods. And in the early 20th century that was very common.
4. Because of the gold rushes. All the extra gold coming in would add to the general perceived wealth and grow the economy as the metal became more abundant.
5. Tradition. People trusted gold (and to a lesser extent silver) over paper/fiat money as a backing of value as those metals have historically been scarce and prized by people.
6. Store of value, individually - corporately - governmentally

They were minted due to the surplus of gold mines throughout America, especially fueled by the gold rushes of the 19th century, especially those in California and Colorado. The gold standard also played a part in US coinage.

Gold was quite literally money back then. The laws required money to be backed by gold from the treasury, and you could exchange your treasury notes for gold coin.

FDR effectively took the US off the gold standard in the Great Depression, Nixon officially did later on in 1971 when Great Britain came knocking for their gold.

@jmlanzaf said:

@Goob said:
They were minted due to the surplus of gold mines throughout America, especially fueled by the gold rushes of the 19th century, especially those in California and Colorado.

No. They were minted to be used as money. Yes, they minted more when more gold became available. But they weren't minting it just to use it up.

I mean I'm not the most knowledgeable on this topic, as silver coinage is my main study spot but this is just what I've read.

King Croesus of Lydia started it in the 6th Century B.C., and folks took to the idea.

And resumed in 1986.

During his 1980 presidential campaign, Reagan indicated a desire to return the U.S. to the gold standard, noting that "No nation in history has survived fiat money, money that did not have precious metal backing".

Gold coins have been used in commerce for thousands of years. Gold is scarce and valued by humans. Only very recently has gold been relegated to bullion status. All coins are next.

@Goob said:

@jmlanzaf said:

@Goob said:

@jmlanzaf said:

@Goob said:
They were minted due to the surplus of gold mines throughout America, especially fueled by the gold rushes of the 19th century, especially those in California and Colorado.

No. They were minted to be used as money. Yes, they minted more when more gold became available. But they weren't minting it just to use it up.

I mean I'm not the most knowledgeable on this topic, as silver coinage is my main study spot but this is just what I've read.

It is also true of silver. The only reason they minted either one of then was so they could be used as money. Chunks of gold or silver of various fineness could not be spent. Turn them into coins and they can be.

There was, famously, political pressure at times to Mint more due to surpluses. But the only point of Minting was to make money.

But with silver, the Carson City Mint, to name an example, was made to make use of the Comstock Lode and turn the silver into legal tender. With the gold rushes, two new mints were made to make use of the local gold. I'm sure you most likely already know all of this, but I feel that they are fitting examples. Which, yes, going off of what you said with the reasoning to make use of the surpluses, this is essentially what I had said earlier. There were surpluses of silver and gold, fueled by various mines and gold rushes in areas around the country, which people wanted to make use of, and so in order to profit, they made more coins.

Those mints were established because it was too costly to ship the raw bullion to already established existing mints.