pre-1933 gold coins Archives - FindBullionPrices.com

March 29, 2024April 28, 2024

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.

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.

October 24, 2023February 21, 2024

Investing in Vintage Gold Coins

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Many vintage gold coins come with a rich history that provides a tangible connection to a bygone era, something that modern bullion doesn’t offer in the same way. These coins represent ancient empires, defunct monarchies and bygone eras from when many economies were on a gold-standard, which can be intriguing to investors and collectors alike.

For investors who value gold as a store of wealth, vintage gold coins are seen as reliable in terms of their gold content. Given that they were minted under a standardized system, there’s a level of trust regarding their purity and weight. Because of their connection to history, they also serve as collectible items and as tangible assets with intrinsic value.

These coins were minted during an era when the world economy was based on the trusted gold-standard. Intended for circulation, most of these coins were minted with an alloy of .900 fine gold, with the remainder a more durable metal, most typically copper.

While all gold coins carry intrinsic value due to their metal content, vintage coins can also have numismatic value. The numismatic value depends on collector demand, rarity, historical significance, condition, other attributes and can fluctuate based on market conditions.

US Mint Pre-1933 Gold Coins

Gold coins minted by the United States prior to 1933 are an investment choice that is part of history. These coins often carry a numismatic premium and most trade at a premium over spot, unless in very poor or damaged condition.

When the government ordered the seizure of gold in 1933, not everyone complied with the order. Some people simply chose to keep their gold and hoped that they wouldn’t get caught. The actual enforcement of the executive order was primarily targeted prosecution against vocal opponents of the seizure. A historical use of the courts to create examples of political foes and propagandizing the media to instill fear into the people.

The executive order made exceptions for gold coins with recognized special value to collectors of rare and unusual coins, which meant numismatic (collectible) coins were exempt. Many individuals claimed their gold coins held collectible or numismatic value, even if they were relatively common.

With the passage of Public Law 93–373, signed by President Gerald Ford on August 14, 1974, Americans regained the right to own gold, which had profound implications for the gold market, the economy, and individual financial freedom. The law repealed the restrictions on private ownership of gold that had been in place since President Franklin D. Roosevelt’s Executive Order 6102 in 1933, reflecting a changing view toward gold ownership and the role of gold in the U.S. financial system.

Pre-1933 U.S. gold coins represent an era in American numismatics before the significant gold recall and meltdown. Owning these coins is akin to holding a tangible piece of American history.

In addition to their bullion value, many pre-1933 gold coins have numismatic or collector value. Rarity, condition, mint marks, and historical significance can make certain coins particularly sought after by collectors. Pre-1933 U.S. gold coins like the Saint-Gaudens $20 Double Eagle and the Liberty Head design are well recognized among coin dealers and collectors worldwide. Their gold content and purity are consistent and widely accepted.

Mexican Peso Gold Coins

Mexico City is home to the oldest mint in North America, established in 1535 under decree of the Spanish Crown. Vintage Mexican Gold Peso coins are some of the most beautifully designed gold coins in the world.

The Mexican gold peso, especially the “Centenario” 50 pesos coin, holds a notable place in the realm of gold coinage. The smaller denominations of Mexican gold peso coins, namely the 2, 2.5, and 5 gold peso coins, were introduced in various periods of the 20th century as both commemorative and circulating coins.

Introduced in 1921 to commemorate the 100th anniversary of Mexico’s independence from Spain, the Centenario became a mainstay in the international gold market. Its purity and the reputation of the Mexican Mint made it a trusted coin for international trade, especially in regions with close economic ties to Mexico.

The smaller denominations of Mexican gold peso coins were introduced in various periods of the 20th century as a reliable store of value. Most of these coins have seen limited circulation because of the high gold content.

European Gold Coins

Most countries in Europe minted gold coins during the 17th, 18th, 19th and even into the early 20th century. Most were intended for use in merchant trade were widely circulated. Although today they are mainly considered bullion coins, many are in surprisingly good condition for their age and can have additional numismatic value.

20 Francs

The Latin Monetary Union (LMU) was a 19th-century to unify several European currencies into a single gold-standard based around the French Franc, which facilitated trade and commerce among member nations. The LMU established standardized weights, denominations and purity specifications for the gold or silver content of coins.

The coins were minted to a common specification that could be used in all member states, similar to how the Euro is used today across the Eurozone.

Many gold coins from LMU member states, like the French Gold Rooster or the Swiss Vreneli, have become iconic. These coins feature designs that resonate with the culture and history of their respective nations.

Although the weight and purity of the gold were standardized across LMU members, each country had its own design for these coins. For instance:

France had the “Napoleon” coin depicting Napoleon III.
Switzerland’s 20 franc coin featured the bust of Vreneli.
Italy had the 20 lire coin with designs such as King Victor Emmanuel II.
Belgium, Greece, and other member and affiliated states had their distinct designs.

The gold content in 20 franc coins is consistent, set to 0.1867 troy ounces (5.805 grams) of gold. This makes them easy to trade, as their gold value is straightforward to calculate. Because they are not as actively minted as modern bullion coins, and their fractional size, the premiums on 20 franc coins can be lower than on more popular gold bullion coins, offering a cost-effective way to invest in gold. Their smaller size compared to a one-ounce gold coin makes them more affordable for individual investors, allowing for more incremental investments.

Gold Sovereign

By the latter half of the 19th century and early 20th century, the gold sovereign had become the “chief coin of the world,” circulating widely not just in the British Empire but also in international markets and areas outside direct British influence. It was a favored coin for international trade and was often held in central banks as a reserve currency.

The Royal Mint established branches in Sydney (1855), Melbourne (1872), and Perth (1899). Australian sovereigns can be identified by mintmarks S, M, or P respectively and were minted until 1931.

The Ottawa branch of the Royal Mint in Canada produced sovereigns from 1908 to 1919. The Pretoria branch minted sovereigns from 1923. The Bombay branch of the Royal Mint produced sovereigns only in 1918.

Dutch Gulden

The Dutch 10 Gulden coin is a notable gold coin from the Netherlands that holds historical and numismatic significance and was part of the country’s currency system before the adoption of the Euro.

The 10 Gulden gold coins were minted at various times during the late 19th and early 20th centuries. The designs of the coins featured the reigning monarch of the Netherlands at the time of minting. For instance, coins from the late 19th and early 20th centuries commonly bore the likeness of King Willem III or Queen Wilhelmina. The reverse side typically featured the national coat of arms and the denomination.

These coins are prized by collectors for their historical significance, gold content, and artistic design. The value of a 10 Gulden coin can vary based on its condition, rarity, and the specific year of minting as well as the intrinsic value of the .1947 troy ounces of gold.

The 10 Gulden gold coins are a reflection of the Netherlands’ rich history and its economic status during the times they were minted. They were part of a broader system of gold-based currency that was common in Europe prior to World War I and the subsequent shift to fiat currencies.

Given their gold content and historical significance, Dutch 10 Gulden coins are sought after by both gold investors and numismatic collectors. They offer a glimpse into the Dutch monetary history and are considered valuable pieces in European gold coin collections.

In summary, the Dutch 10 Gulden coin is a historic gold coin that represents a significant period in the monetary history of the Netherlands. Its collectability stems from its gold content, artistic designs, and the historical context under which it was minted.

Conclusion

Beyond their intrinsic gold content, vintage coins can have additional numismatic or collector’s value. Coins that are rare, in high demand, or in excellent condition can command prices significantly above their melt value.

Vintage gold coins provide an alternative avenue for diversifying a precious metals portfolio. While modern bullion may track the spot price of gold more directly, vintage coins can have value fluctuations based on their rarity, demand, and condition, offering a different investment dynamic.

Older coins often feature intricate designs and craftsmanship that differ from modern coins. The artistry of past eras, combined with the historical context, can make vintage coins more appealing to some collectors and investors. Holding a vintage gold coin provides a tangible connection to a bygone era, something that modern bullion doesn’t offer in the same way. vintage gold coins offer both tangible and intangible benefits that extend beyond mere gold content. Their historical, artistic, and numismatic aspects make them a favored choice for many collectors and investors with an appreciation for history and artistry.

April 23, 2023April 29, 2023

Sales Tax When Buying Silver and Gold

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The notion of being charged sales tax when investing in precious metals is a contentious issue to some. It also represents a line in the sand between some legislators and investors. Despite the long history of gold and silver being recognized as money, many states continue to tax their citizens for the privilege of owning these metals.

Some states have no sales tax, a couple others have provisions specific to precious metals, others impose varying levels of taxation. Taxing the exchange of money, which includes gold and silver, has been a topic of debate for many years.

The recognition of gold and silver as money dates back to ancient civilizations. These metals have been used as a medium of exchange for centuries.

The private ownership of gold became outlawed in 1933. Under government orders, millions of circulating gold coins were seized from citizens and melted down. Jewelry and numismatic coins were exempt from the ban. Any person caught hoarding gold was investigated, prosecuted and imprisoned.

During the prohibition years, coin collecting was viewed by many simply as a hobby. Some savvy investors used coin collecting as a way to discretely hold and hoard gold.

Many of the coins, although valuable for the intrinsic nature of the precious metal content, were viewed as merely collectibles. Many states allow for the taxation of numismatic collectibles.

During this time coin collecting quickly grew in popularity with many investors turning their attention to numismatics that were generally exempt from the ban. Whitman’s Blue Book was first published in 1942, followed by the Red Book in 1946.

Pre-1933 gold coins play a huge role for collectors and investors alike. These historic coins are from a period of time when the US economy was backed by gold.

For today’s investors, the premiums on pre-1933 US Mint gold coins have fallen significantly in recent years. In some situations, premiums for NGC and PCGS graded collectible double eagle coins can be lower than raw specimens. With cycles of numismatic premiums rising and falling over time these coins represent a solid long-term investment that could potentially bring numismatic returns.

Also during this time several countries began minting restrike gold coins. They are basically modern “reproductions” produced by the official government mint to the same standards as when the gold standard was agreed upon.

At the time, restrike gold coins were recognized as collectibles even though they had no numismatic value. It was a clandestine way for many gold investors to transact real money during the several decades when the ban on private gold ownership was place.

Many state laws regarding precious metals were written prior to 1974, during the times when ownership, buying as a hedge, or investing in gold was still illegal. The numismatic items that were bought and sold were viewed by the states as collectibles, thus taxable under most regimes.

Currently, six states have no sales tax on any purchases: Alaska, Delaware, Montana, New Hampshire, Oregon and Wyoming. While Nevada, South Dakota and Washington have laws or rules that exempt sales tax on precious metals purchases. Utah and Arizona have recently passed legislation that exempts precious metals from state capital gains taxes.

There is a growing recognition among state legislatures to exempt gold and silver purchases from sales tax due to its worldwide recognition as money. Lawmakers are recognizing the fact that gold and silver are relevant as a store of value and a hedge against fiat inflation.

The belief that precious metals transactions should not be subject to taxation is growing among state legislatures because they are now viewed as investment and not a consumer good.

While some states have recognized the historical and economic value of precious metals and are working to eliminate sales tax on them, other states still impose varying levels of tax on such purchases.

It is important for investors to be aware of the specific tax laws in their state when considering buying precious metals. Even in states that require taxation of previous metals it is possible to find a friendly local coin store or pawn shop that will gladly accept cash for silver.

The rules related to charging sales tax on precious metals are complex and vary across the 50 states and even amongst localities.

While trends towards eliminating or reducing sales tax on precious metals are growing, more states are beginning to recognize the importance of metals as real money and the value it brings in diversifying portfolios, protecting against economic uncertainties and being a stable asset.

There are many arguments against the taxation of the exchange of money into a store of value.

Double taxation: When precious metals are purchased with money that has already been taxed, it is essentially double taxation to also tax the exchange of those metals. This can make investing in precious metals less attractive, and may discourage investors from diversifying their portfolios.
Decreased competitiveness: If one state taxes the exchange of precious metals and another does not, it puts the taxed state at a competitive disadvantage. Investors may choose to purchase metals in a non-taxed state to avoid the extra cost, resulting in lost revenue for the state that taxes the exchange.
Economic impact: Taxing the exchange of precious metals can have a negative impact on local economies. Investors may choose to take their money elsewhere, and local precious metals dealers may suffer from decreased business. This can lead to job loss and a decrease in tax revenue for the state.
Encourages black market activity: High taxes on precious metals can encourage black market activity, where transactions take place off the books and taxes are not paid. This can lead to lost revenue for the state and can make it difficult for law enforcement to track the flow of money.

In the US, gold played a significant role in the economy when the country was on some form of the gold standard until 1971. During this period, the US dollar was backed by gold, which meant that the government had to hold enough gold to cover a large percentage of the value of all the dollars in circulation throughout the world.

However, the tax-free states in the US recognize the value of precious metals and the role they play in a diversified investment portfolio.

More states are recognizing the historic nature of precious metals as a form of currency and therefore, should not be subject to sales taxes. Mississippi became the latest state to remove sales tax on silver and gold allowing citizens to protect their savings against the devaluation of the dollar.

Removing Taxes on Silver Purchases

In addition to the tax-free states, several states have recently taken steps to remove or reduce sales tax on precious metals purchases.

For example, Mississippi, Kentucky, Maine, Wisconsin, Vermont, Minnesota, Alaska, Tennessee, Maine, and Idaho have all passed laws that either exempt precious metals from sales tax or reduce the tax rate.

These legislative actions reflect the growing recognition of the value of precious metals as a safe-haven asset and store of value.

These states have recognized the importance of precious metals as a store of value and have taken steps to remove barriers to their ownership. These states have made it easier for investors to protect their wealth with these assets.

Several states have recently introduced legislation to remove or change sales tax laws regarding precious metals.

For example, Mississippi, Kentucky, Maine, Wisconsin, Vermont, Minnesota, Alaska, and Tennessee have all either eliminated or reduced sales tax on precious metals in recent years.

Idaho and Maine are also considering gold reserve laws, which will allow the state to hold gold as a reserve asset.

Texas, often taking a leadership role in guiding other states, has introduced gold-backed digital currency law as an alternative to the anticipated Federal Reserve CBDC.

The state of Texas also operates a first-of-it’s kind bullion depository which allows for the segregated storage of precious metals for both individual and institutional investors in a secure and guarded facility.

April 20, 2019April 29, 2023

Compare Premiums to Determine Which Silver Dealer Has the Best Price

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When you buy silver and gold bullion from online dealers the pricing displayed on their websites can be confusing. It can sometimes be hard to tell if you’re getting a good deal or not.

All bullion dealers, whether online or a local coins shop, price their bullion relative to the spot price of the precious metals. The price the dealer charges over spot price is called the dealer premium.

The only way to know whether or not you’re getting the best price when you buy precious metals online is to compare the dealer premiums over spot price.

Comparing dealer premiums for a particular item, whether it’s the latest American Silver Eagle coins, 10 oz silver bars, or Pre-1933 gold coins, can be a tedious and time consuming job. Looking for the same item across multiple dealer websites takes time.

FindBullionPrices.com provides tools to help simplify the process for buying silver and gold bullion from online dealers. We pull the latest prices from many trusted and reputable bullion dealer websites for over 300 unique products.

Each product listing is designed to make it easier to decide which dealer has the best deal when you buy bullion online. The product listings display the current spot price, including the melt value for each item. The current price the dealer is selling an item for is displayed, along with the calculated dealer premium over the melt value.

For each product we try to show as many dealers as possible that are selling a particular gold or silver coin. Dealer inventories can change quickly so we may not always show every dealer that is selling a particular item, though we try to do the best we can.

Shipping Charges and the Myth of Free Shipping

Many online bullion dealers offer free shipping when you place an order over a certain dollar amount. For a lot of bullion dealers, the free shipping threshold is that orders over $99 ship for free. The cost of the shipping is generally included in the dealer premiums.

Several online bullion dealers offer free shipping for all orders regardless of the dollar value of the order. These dealers typically have much higher premiums per item to cover the shipping costs.

Still, there are other dealers that are more transparent in their pricing and cost structure. They may not offer free shipping at all, or have a higher minimum order dollar value threshold for offer free shipping.

As silver and gold bullion are commodities, market conditions dictate the price trend which affects the price you pay. As with any business, each dealer has different levels of overhead, operating costs and desired profit margins.

Some online bullion dealers prefer high volume with lower margins while others may charge a heavy premium, especially when purchasing lower quantities or lower order values.

The top trusted and reputable online bullion dealers willing to compete on both service and price, who are interested in establishing long-term stacker customers that will continue to buy from them on an ongoing basis, are the dealers will to compete on price and provide the best customer service.

Payment Methods and Types

Our dealer listings section has a page that shows the payment methods accepted by dealer accepts and displays information regarding the shipping policies, minimum order value thresholds for free shipping and more.

Virtually all online bullion dealers accept credit cards, checks and wire transfers for payment. Dealers that accept credit cards and PayPal as payment methods typically incur a fee for each transaction. The fee that credit card companies and PayPal charges the dealer are typically 3% to 4% of the dollar value of the order. These fees are included in the cost.

Online bullion dealers often display on their product pages two or three different prices. Dealers will usually display the Cash Price and the Credit Card/PayPal price, and some dealers may display a third category that have begun accepting BitCoin and other cryptocurrencies for payment.

Paying the Cash Price for Silver & Gold Bullion

The lowest price is the Cash Price. The Cash Price when you buy gold or silver from an online dealer represents the equivalent to walking into the store and paying cash. This is obviously not possible when making an online transaction, so this price also often represents the price if you were to mail a check to the dealer, use an e-check option or perform a wire transfer.

Some credit card companies and payment processors have requirements that forbid merchants from charging a fee for accepting credit cards as a payment method. Online bullion dealers get around this by offering the items for sale at a Credit Card/PayPal price that is typically 3% to 4% higher than the Cash Price. While the Cash Price is often referred to as a discounted price for using Cash, Check, e-Check or wire transfer as a payment method.