Back To Top
Pre-1933 U.S. Gold Coins
Prior to 1933 gold and silver were used as currency in day to day transactions, and these coins were created by the U.S. Mint. The Founding Fathers and the framers of the U.S. Constitution knew that paper money could be easily debased through excessive printing and overspending, and they desired a stable currency that would be of value the world over. It is for these very reasons that gold was mined and then coined in the United States from the 1700's until 1933, when President Franklin Delano Roosevelt issued Executive Order 6102
This Order required all Americans to turn in all but $100 worth of their gold coins that were not "Rare or Unusual" or face a fine of $10,000 and/or 10 years imprisonment. In exchange for their gold coins, American Citizens received paper Federal Reserve Notes. These Federal Reserve Notes have now lost over 90% of their purchasing power while old gold and silver coins now trade at prices tens or even hundreds of times their face value! Seems like the Founding Fathers knew exactly what they were doing.
U.S. gold coins produced before 1933 are looked at differently than gold bullion produced today, both by the precious metals market and the Internal Revenue Service as well. The IRS deems these old gold coins as collectibles, and therefore they offer benefits that bullion coins do not, and you should understand these benefits thoroughly before you purchase either rare coins or bullion coins. ITM Trading maintains a hand-picked and highly trained staff that can answer any questions you may have about owning either type of coin, and they are always ready to be of service.
Another Gold Confiscation?
When FDR called in the gold coins in 1933, the U.S. was still reeling from the effects of the Great Depression, and was in deep financial trouble. In fact, to help out with the balance sheet, once FDR had most of the gold of his American Citizens collected and exchanged for paper, he reset the official price of gold from $20.67 per ounce to $35.00 an ounce. Americans basically saw the value of their "Dollar" decrease by almost 75%, while those that still held gold saw the value of their precious yellow metal increase by a like percentage against the Dollar!
Worthy of note is the fact that while Americans were now forbidden to hold gold as a currency, other countries and their citizen's could freely exchange Federal Reserve Notes for U.S. gold at the new rate of $35 per ounce. FDR knew that the trading partners of the U.S. would not accept paper money printed by the U.S. in exchange for their products and natural resources, especially if the U.S. was in dire financial straits. Fast forward to today and you will see economic similarities.
The United States is the World's largest debtor, and we are creating digital money at a frantic rate. Some say that another gold confiscation is necessary to pay for the exorbinant debt accrued over the last 30 years, when then President Nixon discontinued the foreign exchange of Federal Reserve Notes for U.S. Gold and then removed the Federal valuation of gold allowing the market to set the trading value of the metal.
If our creditors demand something other than a promise and digital Dollars then perhaps there will be another confiscation. If this occurs, the U.S. government will once again pay the holders of gold bullion and bars the going rate for their holdings, however those that hold old and rare coins that have significant value above the gold content of the coin will likely once again be exempted since the fair market value of these coins will be very difficult to determine in such a tumultuous time.
In addition, old rare coins make up a very small percentage of the gold held privately in this country, and would not be a substantial cure to a very substantial debt problem. Also a point to consider is that "Rare and Unusual" coins were exempted once, and today more than ever the rich and powerful influence the laws and policies of this nation, and it is the rich and powerful who tend to own substantial rare coin portfolios.
ITM believes that a portion of your assets should be in physical assets, including precious metals. Diversification is key to any portfolio, and if your portfolio is 100% in Dollar denominated assets, you are not diversified against a currency fall or collapse. Old and rare coins offer further diversification within a precious metals portfolio.
ITM can help you understand the precious metals market, and can inform you of strategies and trends that can make the difference between "Breaking even" and "Breaking the bank". ITM Trading also offers a two-way buy-sell market for coins we put in your possession, and will continue to service your portfolio long after the sale, unlike many others in this industry. Take advantage of the current economic conditions and choose to own gold through ITM Trading.
Looking for Gold Bullion? We sell the most popular gold bullion bars and coins online.