Feb 2025

160 Years of the Latin Monetary Union: Buying Historical Gold Coins at the Best Price

By StoneX Bullion

160 years ago, in 1865, the Latin Monetary Union was established—a significant currency alliance aimed at facilitating international trade. France, Belgium, Italy, and Switzerland agreed to adopt common coinage standards, ensuring that gold and silver coins were mutually accepted within member countries. Later, other nations, such as Greece, also joined the union.

Standardized Coinage Across Europe

The primary goal of the monetary union was to unify the weight, fineness, and face value of circulating coins. The gold coins of the union followed the French franc system: 20-franc pieces weighed 6.45 grams and contained 90% gold. This standardization greatly simplified transactions.

The Most Popular Gold Coins of the Latin Monetary Union

Even today, the gold coins of the Latin Monetary Union are highly sought after by collectors and investors alike. Particularly popular are French 20 Franc Napoleon coins, Swiss Vreneli coins, and Italian lire gold pieces. These coins offer historical appeal and an attractive gold price.

Why These Gold Coins Are So Affordable

Compared to modern bullion coins such as the Krugerrand or Maple Leaf, historical gold coins from the Latin Monetary Union are often more affordable. Since they were minted in large quantities and are exempt from value-added tax (VAT), they are among the most cost-effective ways to acquire physical gold.

Gold Value vs. Collector’s Value

While many of these coins trade close to their gold value, some rare issues command collector premiums. Coins with low mintages, specific years, or exceptional preservation conditions can fetch significantly higher prices.

Stability in Times of Crisis

Gold has proven to be a reliable store of value over centuries. Historical gold coins from the Latin Monetary Union offer the advantage of having both intrinsic value as a precious metal and a historical status as once-recognized legal tender.

The Importance of Minting Quality

The condition of historical coins plays a crucial role in determining their value. While worn coins often trade close to the gold price, uncirculated specimens (graded as "mint state") command significantly higher premiums.

The Most Famous Issues in Detail

The most well-known gold coins of the monetary union include:

Why Investors Buy Historical Gold Coins

Beyond their attractive pricing, these coins offer the advantage of worldwide recognition. Additionally, in Germany and many other countries, they are exempt from capital gains tax if held for over a year before being sold.

Are There Risks of Counterfeits?

As with all gold coins, counterfeits of Latin Monetary Union coins do exist. Investors should purchase only from reputable dealers and utilize authentication methods such as X-ray fluorescence analysis.

The Impact of the Union’s Dissolution

In 1927, the Latin Monetary Union was officially dissolved, as maintaining a gold standard became increasingly impractical. Nevertheless, many of the coins minted during its existence remained in circulation and were used as investment gold well into the mid-20th century.

Where Can You Buy These Coins?

Historical gold coins from the Latin Monetary Union are available through bullion dealers, auction houses, and specialized online shops. Buyers should look for fair pricing and authenticity guarantees.

Comparison With Modern Bullion Coins

While modern investment coins are typically minted in larger units, such as one ounce, 20-franc coins, weighing around 6.45 grams of gold, offer a more flexible alternative. Investors looking for smaller denominations can benefit from this variety.

Conclusion: An Underrated Investment Opportunity

Gold coins from the Latin Monetary Union present an attractive option for investors who appreciate historical value while seeking investments close to the material price. Their history, standardization, and worldwide recognition make them an intriguing alternative to modern bullion coins.