The Advantages of Pre-1933 Gold Products
Old gold coins, like Pre-1933 gold coins, have a story to tell. The 1933 gold confiscation has made Pre-1933 gold a valuable asset to own.
Many Americans are unaware of the fact that gold in the United States have been confiscated on three different occasions during the course of history. The majority of these gold seizures took place during the Revolutionary War as well as the Civil War. But, the most recent case of gold confiscation happened in 1933 during the tenure of American President Franklin D Roosevelt. A year later, in 1934, silver was also confiscated.
Franklin Delano Roosevelt issued a mandate through which all the American citizens were ordered to forfeit all the gold in their possession. Nearly all the gold was turned over to the Federal Reserve and any citizen who failed to obey the order was subject to punishment ranging from substantial fine payment to imprisonment. The gold confiscation was not applied to jewelry and was extended to bullion and gold bullion coins only. The only exception in coins made during that time were the seizure of coins of numismatic interests and those with numismatic value, which referred to coins with a minimum premium of 15% over the spot market price of gold at that time. The President granted back the citizens the right to own gold on 31st December 1974.
Pre 1933 Gold Coins, Confiscation & More
Modern day American laws still grant the Federal Government the power to impound gold and silver when necessary (Read the recent National Defense Resources Preparedness executive order Obama signed into law). According to the laws put down in the 2nd chapter of title 12, of sub chapter IV, section 95A, the Feds can confiscate gold and silver but under certain circumstances as stated, “During the time of war, the president may through any agency that he may designate, license or otherwise–(A) investigate, regulate, or prohibit, any transactions in foreign exchange, transfers of credit or payments between, by, through, or to any banking institution, and the importing, exporting, hoarding, melting, or earning of gold or silver coin or bullion, currency or securities”.
Pre 1933 gold and silver graded coins have several advantages over modern bullion.
Privacy of the coins: The graded pre-1933 gold and silver coins are the last of the few investments that can be acquired privately and kept confidential. These numismatic gold and silver coins are completely private and investing in them can be done without letting even a single person know anything about the transaction. Paper investments made through banks and brokerages require them to make a full disclosure of your investment to governmental agencies. In many cases, this information is sold to marketers. However, this sort of intrusion into your private transactions are completely absent if you invest in pre 1933 coins. Disclaimer: We do not give tax advice. Please consult your accountant.
Confiscating concerns: The executive order passed by President Franklin Roosevelt on April 5, 1933 stated that it was illegal to own bullion gold bars or coins. The exact terms of the order stated that under the order of the president, all citizens were required to surrender all gold bullion coins, bars and certificates to the Federal Reserve Bank by the 1st of May 1933. The hoarding of gold bullion, certificates and coins were forbidden. The exceptions were those gold coins which had some special value as rare or unusual coins. Anyone violating the terms of the mandate were fined an amount of $10,000, a huge sum in those times, imprisoned for ten years or made to suffer both. Even any officers, director or agent found to be a participant in an act of violation was not spared and were punished.
In my opinion and using history as a guide, gold and silver will most likely be confiscated once again in order to back a collapsed dollar. Nothing is for certain but it seems probable in my view and this is why I like pre-1933 gold and silver more so than bullion. Will the government confiscate pre-1933 metal? Perhaps, but at least the confiscation of bullion would be a warning shot to take action but considering that the pre-1933 market is a small fraction in size of the bullion market, it could cost the government more time and resources to go after this niche market because there are so many different types and grades of coins and each would have to be valued for a buyback program to be legitimate.
Good investment performance: As per the CU 3000 Index, numismatic coin performance standards gave a $1,000 investment of generic gold coins of 1970 a current value of $22,500. A coin portfolio of mint state gold worth $1,000 during that same time period was worth $57,977. Compared to the Dow where the $1,000 worth of investment made in 1970 grew up to $13,500, the difference is huge. USA has experienced fifteen recessions since 1919. But regardless of how the economy fared, the value of numismatic rare coins have performed well. For example, during the horrific stock crash of 1987, the CU 3000 Rare Coin index went up 660%.
Common Tags: Pre-1933 Gold, Coins, Old Bullion, Antique, Bars, Confiscation Information, Rare