Daily Gold Eagle Update

As the country deals with the worse economic crisis since the Great Depression, owners of gold bullion could have reason for concern. There is a legal precedent in the United States that allows the government to confiscate gold. The purchase of pre-1933 gold American eagle coins can be a very wise move to avoid this problem due to a historical precedent from that era.

In 1933, the United States government confiscated all gold bullion in private hands. The holders of bullion were paid $20.67 an ounce, or forty percent less than the set gold price of $35 an ounce. The action was defended because it was credited with stabilizing the nation’s monetary system and increasing gold reserves. It certainly did the later at the expense of those who had wisely bought and held gold. Many families, who kept part of their lifetime savings in gold, lost forty percent of that share of their savings. Unlike holders of gold bullion, collectors of rare coins were not forced to sell their gold, since the government recognized the historical value of these coins.

The US Mint has been minting gold bullion coins since 1986. These coins, such as the recent reproduction of the famous Saint Gaudens double eagle, are bullion and not collectable rare coins as is the case with pre-1933 gold American eagle coins. History shows that it is wise for serious collectors of gold to consider limiting their purchase of bullion and purchasing collectable gold American eagle coins. 

Daily Updates Archive

Joshua Harris

Senior Staff Writer - Gold-Eagle.org