Regarding gold investing, American Gold Eagles and other modern bullion coins often dominate the conversation. However, savvy investors are finding U.S. Mint Pre-1933 gold coins at a lower premium.
These pieces combine the gold bullion value with the historical connection for the potential for numismatic appreciation.
Pre-1933 gold coins can be a lower-premium alternative and a more cost-effective way to buy gold that might appreciate beyond the bullion melt value.
Significance of Pre-1933 Gold Coins
Before President Roosevelt removed the country from the gold standard in 1933, gold coins issued by the U.S. Mint were in circulation, and their value reflected the worth of the precious metal.
Under the gold standard, the government-backed every paper dollar in circulation with gold, ensuring financial security. People could go to the bank and exchange paper dollars for physical gold coins. Coins like the $20 Double Eagle, $10 Eagle, $5 Half Eagle, and $2.50 Quarter Eagle served the same purpose as paper currency today.
These coins are a trusted store of wealth because their natural, intrinsic value is tied directly to their gold weight and purity.
Back then, a $20 gold coin like the Saint-Gaudens Double Eagle wasn’t a collector’s item—it was just a coin used to buy goods and services, like groceries or land.
1933, everything changed when the government forced people to trade their gold coins for paper money, marking the end of an era in which gold was used as everyday currency.
However, many Pre-1933 Gold Coins escaped smelting and have become highly sought after by collectors and investors alike.
Pre-1933 Gold Bullion Coins
While many were once used as circulating currency and hold historical value, some Pre-1933 Gold Coins are frequently sold as bullion because the gold content determines value, not their rarity or condition.
While many were once used as circulating currency and hold historical value, some Pre-1933 Gold Coins’ values are determined by their gold content, not their rarity or condition. They are frequently sold for a slight premium over the gold spot price as bullion.
These coins lack significant collector interest because large quantities were minted, and many remain in common or circulated condition.
As a result, they are primarily traded based on the weight of the gold, often at a much lower premium than modern bullion coins such as the American Gold Eagle.
Common types and denominations of Bullion Grade U.S. gold coins:
- $20 Double Eagle (Saint-Gaudens and Liberty Head)
- $10 Eagle (Liberty Head and Indian Head)
- $5 Half Eagle (Liberty Head and Indian Head)
- $2.50 Quarter Eagle (Liberty Head and Indian Head)
While the annual mintage amounts, specifications, and designs vary across denominations, they all contain .900 fine gold or approximately 21.6-karat gold content, making them attractive to bullion investors.
Low Premium Gold Investment
For gold bullion investors looking for a lower-cost investment, circulated, cleaned, and jewelry-grade Pre-1933 gold coins offer some of the lowest premiums over their melt value.
In today’s bullion market, many dealers offer common-date $20 Gold Pieces from high-mintage years that can be bought and sold for a small premium over their melt value. In the long run, these coins also have the potential for numismatic appreciation.
Diversification and Legal Considerations
These coins offer a unique mix of precious metal investment and collectible status.
Further, as collectibles, pre-1933 gold coins enjoy privacy and historical protection from some forms of government confiscation that modern bullion coins may have.
While no current laws mandate confiscating private gold holdings, some investors value the additional peace of mind from owning coins that have already survived one such event in U.S. history.
Certified Gold Bullion Coins
Investors seeking additional peace of mind may opt for third-party certified and graded Pre-1933 gold coins. Grading services like PCGS and the NGC provide an extra layer of authenticity and assign a numerical grade based on condition.
Certified coins, especially in higher grades, carry a higher premium than non-certified coins and provide added security against the risk of buying a counterfeit since experts authenticate them.
Potential for Long-Term Growth
While modern bullion coins tend to track the spot price of gold closely, Pre-1933 coins have the potential to outperform modern bullion in terms of appreciation.
Beyond the metal’s price, these coins can increase in numismatic value due to their scarcity and collector demand, leading to more significant gains and providing a buffer against volatility in the gold market.
Investors who hold these coins long-term could benefit from gold price increases and numismatic growth, making them dual-purpose investments.