JERUSALEM (Commodity Online): Now, Israel has jumped on to the bandwagon of gold coin business with international gold prices witnessing record levels in the past few days.

This move has been long due as Israel has been mulling to launch a gold coin for sometime now. On Wednesday, Israel Coins and Medals Corporation unveiled the first Israeli gold coin, coinciding with Jerusalem Day.

According to a press note by the corporation, there was great excitement among both international and Israeli coin collectors on the day of the initial offering of the first Israeli bullion coin.

The Tower of David is the first in the Jerusalem of Gold series of gold coins that will be issued annually and depict a treasured historical site in Jerusalem. The coin contains 1 oz. of fine gold and has a face value of NIS 20.

One side features the Tower of David, rising above the Old City of Jerusalem’s walls near Jaffa Gate. The word Jerusalem appears above Tower of David in Hebrew, English and Arabic. The reverse side depicts the famous Lion of Megiddo, and the design of this side will remain constant in the series.

The gold coins are valuable as collector’s items and as financial investments. The Tower of David edition will be limited to 3,600 coins. In addition, there is a strict limit of five gold coins per customer.

The coins in the series are legal tender and are issued by the Bank of Israel. The next coin in the series, to be issued in 2011, will feature the Western Wall.


The first Israeli bullion coins are priced according to their weight and in accordance with the daily international price of gold, plus a reasonable premium above the gold spot price. Hence the price of the coin is not permanent, in contrast to that of most other coins, since it fluctuates in accordance with the daily international price of gold.

The price of the coin will be fixed daily by the Israel Coins and Medals Corp, at 9 am Israel time, according to the fixing of the London Metal Exchange of 1 oz. of gold on the previous business day, which is priced in US dollars. A premium of 20 per cent will be added to the price of the gold.

The price set each day will remain in effect for 24 hours for transactions completed that day until 6 pm Israel time, via the company website or by telephone.

Buying gold coins is a popular way around the world of holding gold. One of the most popular coins is the American Eagle bullion coin, which is guaranteed by the US government. The American Eagle coins contain a stated amount of pure gold and are made in four denominations.

Actually, the ICMC is adding an extra 0.03 gram of pure gold to each coin just to make sure the coins aren’t under-weight.

The gold is guaranteed to be 99.99% pure. The ICMC was founded in 1961 by then-prime minister David Ben-Gurion as a government company, and was privatized in 2008 when jewellery company GRAS Design Combinations bought the ICMC. The company also produces various medals and commemorative coins for collectors.

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