The Gold Argentina 5 pesos is quite the popular coin for investors and collectors from around the world because they weigh the same and have the same size as the British Sovereign, which is literally the gold standard from around the world. The biggest difference between the two is that the gold Argentina 5 pesos coin is actually rarer than the Imperial British coins. They are minted in Buenos Aires and other mint locations throughout Argentina, yet they provide a historically interesting way to purchase additional gold bullion for a diversified portfolio.
History & Background: Gold Argentina 5 Pesos
Early in the 1900s, a phrase was used to refer to people with lots of money. This phrase was called “rich as an Argentine.” By the year 1914, Great Britain was the only nation to have more urbanization than Argentina. And when 1929 hit and the Great Depression reared its ugly head, Britain was also the biggest nation with the most automobiles per capita besides Argentina. This nation located in South America was considered one of the 10 richest countries throughout the world based on income per capita. But within the next 20 years following a number of ill-advised economic policies that were begun by Juan Peron’s administration, this prosperity was slowly but surely shattered. The problems began when they borrowed heavily from lenders and countries overseas, nationalized many of their industries, and expanded state services.
The government didn’t have the available finances to cover all of the massive spending and they could no longer pay their debts or borrow any money, so their debt was dwindled away because of inflation. Price and wage inflation became so big that it was 2.1 billion times higher than initially stated between 1976 and 1991. The gold Argentina 5 peso started gaining value and it was worth more than 5 trillion times more than the official five peso denomination. Although it was long considered an example of wealth and comfort, the currency failure and poor economic policies by the government made Argentina one of the biggest financial collapses during the finale of 20th century and moving into the 21st century.
And from that point forward the country began to experience a steady level of economic decline, but the prosperity was enough to celebrate the gold coin and its triumph. The Gold Argentina 5 Pesos was first produced in 1882 and production continued throughout 1889. They are very reminiscent of the early days of American coins with their patriotic themes regarding freedom as well as other beautiful designs.
Precious metals investors and collectors consider this coin an excellent alternative to modern bullion, and this is especially true if you’re looking to purchase gold in bulk. Besides the obvious advantage that these are bullion gold coins, they also have demand from collectors, privacy, and the potential for price increases since they are limited in their nature and not many exist in the world today. And when gold experiences greater levels of demand, the spot prices also increase.
Physical characteristics: Gold Argentina 5 Pesos
On the front of the coin, also known as the obverse side, you’ll see symbols of freedom and unity. The front side has a bust of Liberty wearing a Phrygian . On this coin you’ll also discover the words “Libertad 5 Pesos Un Argentino 9D Fino” that fully surrounds the portrait of Liberty. You’ll also notice the last name of the engraver on the bottom of the bust, whose name is Eugene Andre Oudine.
People who invest in and collect coins will appreciate the reverse or backside of this coin. On the reverse side of the gold Argentina 5 pesos you’ll see one version of the national Argentine coat of arms. And inside the wreath are located two joined hands coming together in unity. The words Republica Argentina are also located on the back along with the year that the coin was issued.
The Gold Argentina 5 Pesos coin, when issued, was nearly a quarter of an ounce and they only ever minted the five pesos denomination. The specific specifications of these coins include the following:
- Gold purity of 90%
- 2334 Troy ounces of gold content
- 5 mm of thickness
- 22 mm in diameter
- 26 g of mass
Pricing the Gold Argentina 5 Pesos Coin
The Gold Argentina 5 Pesos coin is considered legal tender in the Argentina Republic. Because of massive inflation within the country, the five peso value will not afford you enough to purchase too much in this country. But the gold itself within the coin is worth a great deal at around $200 or more, depending on the spot price at the time. And the major worth of this coin is made up of the value of the gold. Since there is historical interest for these gold coins, there is additional value in the historical premium as well.
These gold peso pieces are part of the South American Heritage, but most of the value that they contain comes from the amount of gold within them. And this market value is important for people who purchase and invest in gold as part of their portfolio for their retirement. The overall market value is made up of the various price swings that gold goes through throughout the trading day in centers like Hong Kong, Chicago, Singapore, Zürich, New York, and London on their exchanges. The price fluctuations happen six days a week as this commodity trades, when trading begins on Sunday and ends at the close of the business day on Friday. To discover the spot price of gold, search the Internet for a live update.
Can I Buy a Gold Argentina 5 Pesos Coins for My IRA Investment Account?
Since most of my readers are focused on retirement investing, they wonder if the gold Argentina 5 pesos coin qualifies for a self-directed IRA. The IRS is the sole decider on whether or not a coin is considered valuable enough. They use two principles to evaluate these coins. They focus on a coin’s value due to collectability and whether or not it has the right levels of gold purity.
IRA investors must put $5000 in their precious metals individual retirement account and use it to purchase gold, silver, platinum, or palladium. Traditional IRA investors need to roll their account over into a precious metals IRA.
Does the Gold Argentina 5 Pesos Coin qualify? No it does not qualify because the gold level of purity is only 90%. The IRS says that all gold coins must have purity levels of 99.5% or greater to achieve eligibility status.
You can still invest in these gold 5 pesos and they definitely make a good investment. You just cannot purchase them within your precious metals IRA account. To buy them, go online and look at a specialty website or visit a gold coin shop in your neighborhood.