Are Pre-1933 Gold Coins a Buy Right Now?
Posted by Andrew Adamo on Sep 18th 2024
Collecting Pre-1933 US Gold Coins
As a collector, there’s something incredibly special about owning a piece of history, and pre-1933 US gold coins offer just that. These coins were once part of everyday American currency, minted in denominations of $2.50, $5.00, $10.00, and $20.00. However, due to President Franklin Roosevelt’s 1933 executive order, the majority of gold coins were recalled, melted down, and destroyed. The few that survived now serve as rare and cherished collectibles, with each coin holding its own unique story.
What are Pre-1933 US Gold Coins?
Pre-1933 US gold coins are gold coins minted by the U.S. government before the Gold Confiscation Act of 1933. These rare coins are highly valued for their historical significance, scarcity, and gold content. They include various denominations like the $20 Double Eagle, $10 Eagle, $5 Half Eagle, $2.50 Quarter Eagle, and others.
Why were gold coins confiscated in 1933?
In 1933, President Franklin D. Roosevelt issued an executive order to confiscate most gold coins, bars, and certificates from U.S. citizens in order to boost the economy during the Great Depression. The government melted down these coins to increase gold reserves and move away from the gold standard.
Why are Pre-1933 Gold Coins valuable?
Pre-1933 gold coins are valuable due to their historical significance, rarity (since most were melted down), and high gold content. They also appeal to investors and collectors as a hedge against inflation, given their scarcity and numismatic value.
What is the best Pre-1933 Gold Coin to buy?
The Saint-Gaudens Double Eagle ($20 coin) is among the most popular pre-1933 gold coins to buy due to its stunning design by Augustus Saint-Gaudens and historical importance. It’s highly prized by collectors and investors alike.
How much gold is in a Pre-1933 Gold Coin?
Pre-1933 gold coins typically have a high gold content. For example:
- Double Eagle ($20): Contains about 0.9675 troy ounces of gold.
- Eagle ($10): Contains about 0.48375 troy ounces of gold.
- Half Eagle ($5): Contains about 0.241875 troy ounces of gold.
- Quarter Eagle ($2.50): Contains about 0.1209375 troy ounces of gold.
Are Pre-1933 Gold Coins a good investment?
Yes, pre-1933 gold coins are considered an excellent investment due to their rarity, historical appeal, and gold content. They also tend to appreciate over time and provide a strong hedge against inflation, especially in uncertain economic times.
What types of Pre-1933 Gold Coins exist?
Several types of Pre-1933 U.S. gold coins include:
- $20 Double Eagles (Liberty Head, Saint-Gaudens)
- $10 Eagles (Draped Bust, Capped Bust, Classic Head, Liberty Head)
- $5 Half Eagles (Capped Bust, Classic Head, Liberty Head, Indian Head)
- $2.50 Quarter Eagles (Capped Bust, Classic Head, Liberty Head, Indian Head)
- Gold Dollars, $3 Gold Pieces, and the rare $4 Stella.
Why buy Pre-1933 Gold Coins instead of modern bullion?
Pre-1933 gold coins offer more than just gold content; they provide historical significance, numismatic value, and scarcity that modern bullion lacks. These coins also do not have reporting requirements for privacy-conscious investors, unlike bullion purchases.
How much are Pre-1933 Gold Coins worth today?
The value of Pre-1933 gold coins depends on factors like condition, rarity, and gold content. For example, a Saint-Gaudens Double Eagle in excellent condition can be worth several thousand dollars, while rarer or uncirculated coins may command even higher prices at auction.
Are Pre-1933 Gold Coins subject to capital gains tax?
No, Pre-1933 gold coins are considered numismatic collectibles and often enjoy tax advantages. They are not subject to the same IRS reporting requirements as modern bullion investments, offering a layer of privacy.
Where can I buy Pre-1933 Gold Coins?
You can buy Pre-1933 gold coins from reputable dealers, online retailers like Bullion Shark, auctions, or coin shows. It's important to verify the authenticity of the coins and buy from trusted sources.
Why were some Pre-1933 Gold Coins not melted down?
Some Pre-1933 gold coins escaped confiscation and melting because they were either held by collectors, hidden from the government, or stored in overseas banks. Today, these surviving coins are rare and highly valued.
How does the historical significance of Pre-1933 Gold Coins impact their value?
Pre-1933 gold coins circulated during key moments in U.S. history, including the California Gold Rush, Civil War, WWI, and Great Depression. These historical connections add immense value and interest to the coins, making them treasured assets.