Daily Gold Eagle Update

December 16, 2009 - The first Gold American Eagle coin was minted in 1838, and these coins were widely used in the $10 denomination until 1933. Gold American Eagles were also minted with $2.5, $5, and $20 face values at different times between 1839, and 1933.

Minting of the Gold American Eagle coin was halted in 1933 and the Eagles that were in circulation as bullion within the United States were seized when President Franklin Roosevelt issued Executive Order 6102. Roosevelt did this to pay down our nation’s radical debts and stabilize the faltering dollar. Gold bullion confiscation ended in 1971, and the Gold Bullion Coin Act reinstituted the production of American Gold coins in 1985.

Coins that were produced after the Gold Bullion Coin Act was passed, bear a $50 face value. The $50 Gold American Eagle is worth much more than its face value (these coins are currently worth about $1200 each), although the pre-1933, $20 face value coins (which contain the same amount of gold as the $50 coins), are worth even more than the modern-day pieces.

Investors usually purchase the modern-day Gold Eagles when they desire a short-term (1-14) position in the gold coin market. This is due to the rising threat of another bullion confiscation, in which case privately held bullion would be useless, or make you a felon. Modern-day bullion coins closely track the gold spot price, so it is possible to realize profits quickly if that is your goal.

Investors who would like privacy with their investment for a long period of time, and who want to preserve their buying power and financial security may do better financially with a certified American coin. Pre-1933 coins that have been certified as Mint State are unlikely to be seized by our government even if gold bullion was needed, and you can feel free to contact Gold-Eagle.org directly if you have any more questions about the gold market. 

Daily Updates Archive

Joshua Harris

Senior Staff Writer - Gold-Eagle.org