Tangible Assets: US Mint Pre-1933 Gold Coins

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As tangible assets, vintage gold coins can diversify an investment portfolio, reducing risk by spreading exposure across different asset types. Many investment advisors recommend precious metals as a safe haven since prices remain relatively stable to the dollar to offset the volatility that can come in the stock market. Tangible assets are an alternative investments that can diversify an existing investment portfolio and provide protection against inflation.

Gold coins can bring unique diversity to an existing investment portfolio, while expanding on an interest in numismatics or history. Beyond potential financial gains, the process of collecting, studying, and preserving historical coins can morph into a numismatic hobby.

Prior to the Great Depression, gold coins were the normal and natural form of money and in common circulation throughout the world. While the government recalled millions and melted them down, millions more were saved from the smelters due to limited personal ownership exemptions in the law, along with exemptions for coins having numismatic value.

During the era of the gold standard, gold coins were the preferred and accepted method of trade and commerce. In recent years, many well preserved Pre-1933 US Mint gold coins have been discovered in historic “hoards” from European vaults, such as the well known Rive d’Or Collection, discovered in a bank in Paris and released in 2008.

Coins having historical significance often appreciate in value, especially those in good condition, with rare mint marks, from limited mintages, those connected with special collections and other particulars. Owning some of these tangible assets can bring personal satisfaction and a sense of connection to the past, in addition to the intrinsic value of the gold.

There are known counterfeits that circulate in the market from time to time, most often from shady sellers. These are easily discovered due to the widespread industry use XRF along with the more affordable devices like the Precious Metals Verifier from Sigma. These devices have become an indispensable tool for local coin shops, pawn shops, “we buy gold” stores, jewelry stores.

As a way to reduce risk, many investors choose third-party graded gold coins from companies such as NGC and PCGS. Coins that have been graded and encapsulated by these types of services have been verified as authentic. Based on an expert analysis, a grade and unique serial number are assigned to each coin during the review process, which can later be used to verify authenticity.

In addition to the Sigma, there are a variety of other devices that assist hobbyists, numismatists and investors to verify authentic products and reduce risk.

US Mint Pre-1933 Gold Coins

American gold coins from the late 19th and early 20th centuries are a favorite for many investors and collectors, due to the connection to our history. While these coins have been held by collectors and investors for nearly 100 years, they are among the most widely recognized throughout the world.

1927 St Gaudens Double Eagle Gold Coin

Pre-1933 gold coins from the US Mint were minted to standards defined by the Coinage Act of 1792 and updated in 1849 and again in 1873. The original Act defined three distinct denominations, the larger $20 Double Eagle was defined in the updated Act.

  • $10 Eagle – Defined with 247 4/8 grains of pure gold or 270 grains of standard gold. The accepted
    standard for coin gold during the era was 90% purity, or .900 fineness. This accounted for a significant amount of gold, while being alloyed with a small amount of more durable metals like copper for added strength for circulations. Each $10 gold eagle coin is minted with 0.4838 troy ounces of gold.
  • $5 Half Eagle – Defined with 123 6/8 grains of pure gold or 135 grains of standard gold. Each $5 gold eagle coin is minted with 0.2419 troy ounces of gold.
  • $2.50 Quarter Eagle – Defined with 61 7/8 grains of pure gold or 67 4/8 grains of standard gold. Each $2.50 Quarter Eagle gold coin is minted with 0.121 troy ounces of gold.
  • $20 Double Eagle – Define as the twenty-dollar piece, five hundred and sixteen grains of standard gold.

The California Gold Rush created a huge increase in the inflow of gold flowing into the U.S. Treasury, creating the need for a new denominations to handle the influx. The Coinage Act of 1849 authorized the production of the $20 Double Eagle, which was the largest denomination for a regular issue U.S. gold coin at the time. The Act also established the specifications for the $1 gold coin.

The Liberty Head double eagle or Coronet double eagle was introduced as a pattern coin by the US Mint in 1849 and entered production in 1850. Each $20 Double Eagle Gold Coin is minted with 0.9675 troy ounce of gold. The Double Eagle had an overall weight of 33.436 grams and was made from 90% gold and 10% copper alloy, maintaining the standard for U.S. gold coins.

Throughout its mintage history from 1850 until 1933, more $20 Double Eagle Gold Coins were issued than all of the other denomination. Today, these coins are highly sought after by both investors and collectors, particularly those that are third-party graded and in mint state condition.

Tangible Assets

These coins are made of 90% gold, which gives them intrinsic value based on the current price of gold. This means that even if the numismatic value of the coins fluctuates, they will always retain value based on their gold content.

These coins are historical artifacts from a bygone era when the economy was on the gold standard. The rarity and historical significance of Pre-1933 gold coins can adds numismatic premium to their value. For This means that these coins can appreciate in value over time, not just due to the price of gold, but also due to their historical and collectible value.

Moreover, the tangible nature of these coins can provide a sense of security not found in other types of investments. They are physical assets that you can hold in your hand, which can be reassuring in a world of digital and paper investments. This tangibility also means that they can be easily stored, transported, and sold, making them a flexible investment option.

While millions of these coins were minted prior to the prohibition on private gold ownership, millions of them were melted down into large gold bars for deep storage at the Bullion Depository at Fort Knox and in the underground vault at the Federal Reserve in New York.

Liberty Series

The

St-Gaudens and Indian Heads

The Basics of Silver as a Store of Value and Wealth

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In an age where digital transactions and cryptocurrencies are the norms, the concept of precious metals as a form of currency might seem outdated to many. However, there’s a compelling case to be made for considering silver not just as a relic of the past but as a relevant and wise choice for long-term wealth preservation and financial security.

The Forgotten History of Silver as Money

For centuries, silver and gold have been the cornerstone of global trade and currency. Our grandparents carried silver coins in their pockets, and the coins in circulation prior to 1965 were minted from 90% pure silver. Many in America built their wealth based on gold and silver reserves.

This historical significance isn’t just a matter of antiquity; it’s a testament to the intrinsic value these metals have played for thousands of years across various cultures and civilizations, but which is often overlooked in modern times.

Ancient civilizations, including the Greeks, Romans, and Chinese, used silver as a primary medium for trade. Silver coins were minted and used extensively for commercial transactions. Various countries, at different times, adopted a silver standard, a monetary system in which the value of paper currency was defined in terms of a certain amount of silver.

The Spanish silver dollar, sometimes referred to as “pieces of 8”, was widely used beyond Europe, especially in the Americas and Asia, with silver playing a key role in early global trade. With the advent of the Industrial Revolution, silver, like gold, began to be seen more as a commodity and an investment. The shift to paper money and, later, digital transactions, led to a decline in the use of silver as everyday currency.

Today, silver continues to be an important asset in investment portfolios and is still used in various forms of commemorative and investment-grade coins. The historical significance of precious metals as a medium of exchange and store of value remains an important part of the global monetary systems.

Why Silver is Relevant Today

In the world of digital finance, silver stands out because it is a tangible asset. It’s an object that you can own and keep as a store of value, like a savings account. Unlike digital currencies or stocks, silver is something you can hold.

Silver has historically offered protection against inflation. When fiat currencies like the dollar lose value due to economic policies and market fluctuations, precious metals often retain their value. There have been many examples in history where their value has even appreciated. This is because these commodities often have an inverse relationship with other investments.

Compared to gold, silver is much more affordable, making it an accessible investment option for young investors who are starting to build their portfolios.

Diversifying your investment portfolio is a fundamental principle of sound financial planning. Including silver can provide balance and stability, especially during times of high inflation and economic uncertainty.

Beyond its value as an investment, silver’s industrial uses are expanding in the tech and medical industries, potentially driving up its demand and value. For the environmentally conscious, silver offers a sustainable investment. It’s recyclable and plays a crucial role in various green technologies, including solar panels.

How to Get Started with Silver Investing

Start by learning about the history of silver as currency and its current role in the economy involves delving into various educational resources and platforms.

A good place to begin is with books focused on the history of precious metals as money and currency. Most of these well regarded books are available in Kindle and other eReaders, paperback and hardcover:

Stay updated with the current role of silver in the economy by following financial news platforms and blogs that specialize in precious metals. Websites such as Kitco, The Silver Institute and FindBullionPrice.com offer news, analysis, and data on silver markets.

Various online learning platforms offer courses in economics and history, some of which specifically offer courses that cover the use of precious metals as currency.

The CME Group, the company which runs and operates various commodities markets and exchanges include COMEX, offers a free self-guided Introduction to Precious Metals online class that provides an overview of various precious metals, how they are consumed by industry and why they are important investments.

YouTube also offers numerous educational channels where experts and influencers discuss the history and economics of silver. Documentaries and TV programs that focus on economic history or the history of money often cover the role of silver.

Social Platforms such as Reddit, Facebook, LinkedIn, and other specialized online forums have communities devoted to precious metals, such as /r/Silverbugs and /r/Gold. These and other online communities can be valuable for discussions, resource sharing, and advice from experienced investors and enthusiasts.

Silver ETFs and Buying Vaulted Silver

Silver can be purchased in physical form (as bars or coins) or through silver Exchange-Traded Funds (ETFs). A silver ETF purchases and holds silver or silver-related assets in a trust. The value of an ETF share is thus linked to the price of silver, minus fund expenses and fees.

Investors can buy and sell shares of a silver ETF on a stock exchange, just like individual stocks. This provides a simple way to invest in the silver market without dealing with the challenges of physical silver storage and security while aiming to track the spot price of silver. This means that the ETF’s share price moves in tandem with silver prices in the global market.

Additionally, digital platforms like OneGold.com and Vaulted.com provide investors with a mobile application that enable quick and easy buying of vaulted allocations of physical silver, gold and platinum. These vaulted allocations can be easily redeemed anytime for secure delivery of physical precious metals to your home.

OneGold.com specializes in digital precious metals, allowing customers to buy, sell, and hold digital gold and silver without the need for physical storage. The metals backing digital investments are stored with well-known vaulting services, ensuring the security of the physical metals backing your digital investments.

OneGold.com was founded as a partnership between two of the biggest names in the precious metals industry, APMEX and Sprott Metals. Founded in 2000, APMEX is a leading online retailer of precious metals. Founded by Eric Sprott, a renowned investor in the precious metals sector, Sprott Money is known for providing valuable insights into the precious metals market with articles, reports, and analysis that can help investors make informed decisions. They also offers investors a variety of services including options for precious metals IRAs and other investment accounts.

Vaulted.com is an online mobile web app that allows investors to buy and sell allocated silver and gold. Each client is provided with an advisor who offers a personalized approach to investing in precious metals. Vaulted stores its precious metals in the Royal Canadian Mint, which provides investors with a high level of security and assurance. With Vaulted, you can buy, sell, and even request physical delivery of their precious metals for a small transaction fee for buying and selling and a low annual maintenance fee for storage and insurance.

Buying Silver Online

Buying silver online offers numerous advantages, including convenience, variety, and competitive pricing. As a tangible asset, silver provides security and privacy, similar to real estate, but with greater liquidity.

Online dealers offer a wide range of silver products, from coins and bars to specialty and numismatic items, providing more options than what might be available in your local coin stores. Many online dealers offer products from a variety of international mints that aren’t available locally. With lower overhead costs compared to brick and mortar stores, online dealers can offer lower premiums over the spot price of silver. Several dealers also offer silver at spot price deals catered specifically to new investors that offer a low risk way to start.

Buying online allows you to easily compare prices and products across multiple dealers with many providing a variety of educational materials, market analysis, and investment guides. Most of the trusted and reputable online dealers are have customer reviews and ratings on third-party websites, helping you make an informed decision based on other buyers’ experiences.

Online transactions provide various payment options, including credit cards, bank transfers, and even a large assortment of cryptocurrencies through platforms like Bitpay. Combined with purchases being delivered discreetly and securely to your doorstep, this level of privacy, discretion and convenienceis not be possible with in-person transactions.

FindBullionPrices.com provides comprehensive price comparisons for various physical silver coins, silver bars and silver rounds from a wide range of online dealers and enables investors to quickly find the best available prices. By aggregating prices from dozens of reputable online bullion dealers, FindBullionPrices.com gives investors access to a broad market landscape from a single platform that saves time and effort that would otherwise be spent visiting multiple websites.

Our product listings covers a vast array of silver coins, bars, rounds, and even collectible and numismatic items. In addition, we provide access to a broad range of educational materials, analysis and detailed guides on investing in precious metals. These resources help buyers understand market dynamics, investment strategies, and other factors affecting precious metals prices.

The most popular silver investments include a variety of notable silver coins and bars. Top selling 1 oz coins like the American Eagle, the Canadian Maple Leaf and the Krugerrand are a mainstay for investors who prefer government backing or have a specific need such as a Silver IRA.

Private mint 10 oz silver bars offer a combination of low premiums, high liquidity, bulk discounts and unique varieties that are suitable for both long-term holding and short-term trading. Compared to smaller denominations like 1 oz coins or bars, 10 oz silver bars have lower premiums over the spot price of silver allow you to acquire more physical silver for the same money.

Silver has a high market demand and is recognized globally, facilitating easier buying and selling. Silver’s value is universally recognized, with prices updated daily based on global markets, enhancing its liquidity.

Unlike real estate or land, silver can be bought, sold or traded in smaller units, making transactions simpler and quicker. This liquidity, combined with its global recognition and ease of transaction, makes silver, along with other assets like gold and stocks, a preferred choice for beginning investors seeking liquid tangible assets.

Like any investment, the spot price of silver constantly fluctuates. Keeping an eye on the market can help you make informed decisions. The “spot price” of commodities like silver and gold refers to the real-time market price at which they can be bought or sold for immediate delivery. The spot price of silver is influenced by various factors, including supply and demand dynamics, geopolitical events, market speculation, and currency fluctuations. For precious metals like silver, gold, and platinum, the spot price is typically quoted per troy ounce.

For beginning investors, especially Millennials and Gen Z, rethinking silver as a currency and store of value offers a bridge between the past and the future. It’s a way to preserve wealth in a tangible form that has stood the test of time, while also aligning with modern values of sustainability and diversification. In an ever-changing financial landscape, the enduring value of silver can provide both stability and peace of mind.