Daily Gold Eagle Update

December 10, 2009 – There are two types of $5 Gold Eagle coinage, but these coins have some very distinct differences. Pre-1933 $5 Gold Eagles weigh ½ ounce, and the modern-day (after 1986) coins weigh in at 1/10 ounce. Both generations of Gold Eagle coinage are classified as “investment-grade,” but the historic rarities and the modern-day bullion pieces are utilized by two very different kinds of investors.

American gold Eagle coins that were released post-1986 are considered bullion by our government, and these coins are especially useful in holding periods of 1-14 months. Gold bullion bars and coins are meant for short-term profit-taking ventures, but these coins are not so useful as long-term investments.

You should not hold gold bullion long-term because of the risk that it could be confiscated again by our government. Our government froze the gold bullion market in 1933 and made it illegal for US citizens to own gold bullion. This “prohibition” lasted 38 years until 1971, and some economists believe that another gold confiscation could take place in the next year if our dollar continues to falter.

If you would like to hold your gold for an indefinite amount of time without having to worry about your leaders taking it from you, pre-1933 Gold Eagle coins are a more appropriate addition to your portfolio. These coins have higher cost association, but they also tend to outperform gold bullion investments after the “break even” point is reached, which usually occurs within the first 14 months.

Thus, it’s a better idea to purchase certified gold if you plan to hold long-term and you would like to store your wealth in a private asset class. Contact Gold-Eagle.org or register below if you want more information on the most commonly traded modern-day and historic Gold Eagle coins. 

Daily Updates Archive

Joshua Harris

Senior Staff Writer - Gold-Eagle.org