The Aramco Slugs.

Immediately after WWII, the American oil company Aramco (“Arab-American Company”) struck a deal with Saudi Arabia in the person of her ruler, Malik Abd al-‘Aziz b. Sa'ud, whereby the company would pay him $3,000,000 each year for oil concessions in the country. Part of the stipulation was that the payments be made in gold and, at Saudi insistence, on the basis of gold sovereigns. Accordingly, Aramco had special gold “coins” struck at the Philadelphia Mint to make these concession payments.

There were two denominations: a “4 pound” and a “1 pound” (or sovereign). That shown above, enlarged by about 50%, is of the larger denomination and, in strict conformity with four gold sovereigns, has a gross weight of 493.1 grains of gold .916²/³ fine – or 452.008333 grains of pure gold.

Such gold concession payments were made in two years: 1945 and 1946. These pieces could – and to a very limited extent, did – circulate as coins in Saudi Arabia. (And Aramco workers sometimes used them as poker chips). Most, however, were shipped off for melting to Macao where the highest prices for them were being offered. After 1946, the payments were made by more conventional means.

To collectors, these pieces are not valued at any great per centage over their bullion value and are usually considered to be “slugs” or “stamped pieces of bullion” rather than real coins.

Wayne Jacobs is numismatic expert. He is the award winning author of numerous articles. He is the secretary and editor of the "Mid-Island Coin Club Numismatic Journal"of Nanaimo, Vancouver Island , British Columbia. The MICC journal are hosted here: MICC webpages Copyright 2006 Wayne Jacobs. This article may be reprinted freely for non commercial purpose only if the resource box is left intact, linking back to us.