The Future of Gold and Mining
Posted on — Leave a commentRecently the World Gold Council released a report on the relationship between gold and the natural environment. As the threat of ecological impact and global warming loom large, mining operations are seeking more efficient methods of sourcing gold. One company, Goldencorp, is at the leading edge of this trend with the “goldmine of the future.”
With new investments in technology, the company is preparing to open a mine designed to be the first all-electric underground operation. The plans include a significant departure from traditional diesel-fuelled equipment which will be replaced by Battery Electric Vehicles (BEV) which are three times more efficient. Changes like this are expected to reduce annual GHG emissions by 70 percent. Moreover, without the exhaust from diesel, Goldencorp’s newest mine will require half the ventilation of a traditional mine.
Goldencorp represents a continued shift to more ecologically responsible solutions. Other mining operations are sourcing their power from large solar panel arrays. Others have reduced their reliance on energy by using naturally-occurring geothermal properties. Mines designed this way require less heat. The Hemlo mine in Canada is an impressive example of how these designs can yield lasting results; even as the mine has expanded, it has seen relatively little change in levels of energy intensity.
Meanwhile, other mines have found ways to reduce dependence on energy with operational changes. The Kinross mining company has minimized fuel consumption with route optimization and more efficient driver training. As a result the company has saved over 15,000 hours of haulage since January of 2017.
These sweeping changes are part of an effort to align economic and ecological goals. Companies are motivated to seek energy efficiency which offers considerable savings and increased profitability. At the same time, the environmental impact from mining drops. One goal serves the other and vice versa.
Consider that for some mines fuel represents more than 20 percent of the commodity and service purchases. Even for operations that use electricity in lieu of diesel need sustainable ways to help generate wattage. The Kumtor mine in Kyrgyzstan uses hydropower supplied by local reservoirs. The result: “the mine’s specific GHG emission footprint resultant from electricity is relatively low,” according to the World Gold Council. Other companies aim to replicate this approach because analysts project the cost of solar, wind, and battery storage to drop by 50-70 percent by 2040.
With so many mining companies taking the initiative to develop more environmentally conscious methods some are hopeful that other industries will take note and introduce similar measures. In the meantime, companies like Goldencorp are leading the way.
These changes should buoy gold investors’ confidence that their decision to own the metal has favorable influences on the planet. As experts at the World Gold Council concluded, their research “suggests gold may have positive implications for long-term investors in helping them manage the carbon footprint of their portfolios over time.”
Gold and The Retirement Crisis
Posted on — Leave a commentThe retirement crisis is upon us. The numbers present a startling picture. A new analysis from The Wall Street Journal shows that “In total, more than 40% of households headed by people aged 55 through 70 lack sufficient resources to maintain their living standard in retirement.”
There are several reasons why this problem has developed. First, many investors saw half their portfolio value vanish during the global economic crisis of 2007/2008. Second, amid decades of wage stagnation, many simply never had the means to save. Third, the disappearance of pensions has put a greater burden on the individual to save more for retirement. Now, approximately 15 million households face an uncertain future. Some have resigned themselves to a sobering truth: they may need to work through their retirement years. One can’t help but ask if things could have been different.
In recent years scientists have taken steps to understand why humans struggle with money. They work within a branch of research called behavioral economics. This area of study suggests that economics don’t only follow rigid rules of supply and demand. Rather, these researchers argue that irrationality drives many outcomes because economics, after all, is the result of human behavior and humans are inherently irrational beings.
Of course, in some cases, like those cited above, the retirement problem is external (wage stagnation, economic policy, etc.) However, many problems are internal stemming from our psyche. That is, our biases and leanings lead us astray. For example, herd mentality is a powerful force which leads most of us to follow the crowd even when the crowd is headed off a cliff. This was a painful lesson for those swept up in the fervor of the dot com boom. Scientist have also learned that we attribute different value and different meaning to money based on its source. Perhaps this is why we often spend bonuses and unexpected windfalls with disregard for the future.
How does a gold investment play into the world of behavioral economics? The answer might be deceptively simple. Conventional investments like stocks and bonds are easy to trade online with the click of a button. This convenience carries a cost. It’s too easy for us to act on impulse. Our emotions have only a short way to travel from our head to our keyboard. Gold, however, is different.
With a physical holding like coins and bullion, investors have a more permanent relationship with the asset. They can hold the weight of their savings and feel its gravity. Moreover, liquidating physical gold presents more steps then those needed to liquidate a stock or bond. Simply put, it’s easier to be a disciplined long-term investor when you’re holding physical gold.
Unfortunately, this benefit is lost with modern alternatives like gold ETFs. These investments, like stocks, don’t offer the behavioral safeguards that come with tangible assets. Additionally, they don’t offer any claim to physical gold and cannot be redeemed for a piece of the precious metal.
As a nationwide retirement disaster looms large, one must ask what needs to change today for those that still have time to make a change and improve their future. A portfolio with exposure to gold is part of the solution. Gold keeps us anchored and has a low correlation to stocks and bonds. In uncertain times investors need more options.
The Blanchard “Test Your Coin IQ” Quiz
Posted on — Leave a commentWelcome coin investors! The history of coins and money is fascinating. Test your coin IQ with the questions here. Let us know how you did in the comment section below!
- What is the first commemorative coin in U.S. history?
Answer: The 1892 Columbian Exposition half dollar was minted to commemorate the World’s Columbian Exposition, also known as Chicago’s World Fair. These half dollars with a face value of 50 cents were sold for $1 to help cover the spiraling costs of the World Fair. With a fairly high mintage, only a few coins of high grade quality show outsized value. The average auction price for all years of the coin is around $613, according to the NGC.
Coin details: The obverse design features Christopher Columbus in profile. The reverse features the Columbus flagship, the Santa Maria, and two globes. The Reverse Inscription includes: WORLD’S COLUMBIAN EXPOSITION, CHICAGO, 1492, 1892.
- What commemorative coin boasts the Italian phrase: “Fatti Maschii Parole Femine”?
Earn extra credit if you know the translation.
Answer: The Italian phrase translates to “Deeds are manly, words womanly” and is the Maryland state motto. That phrase appeared on the 1934 Maryland Silver Commemorative coin.
This coin is an example of a classic U.S. commemorative coin. The 1934 Maryland half dollar was issued to celebrate the 300th anniversary of English colonist’s arrival in the state Maryland. About 300 English colonists arrived aboard two ships (the Ark and Dove) in 1634 to settle in the area that is now Maryland. Lord Baltimore George Calvert held the Royal Charter for that land. Notably, this coin is one of the first commemoratives struck after the start of the Great Depression in 1929. Struck at the U.S. Mint in Philadelphia, the mintage totaled 25,000.
You can own this coin for as little as $231.00.
Coin details: The obverse of the coin features a portrait of Cecil Calvert, or Lord Baltimore, who sponsored the colonists. The reverse of the coin features the coat of arms of Maryland with the phrase: Fatti Maschii Parole Femine. Additional inscriptions include “Maryland Tercentenary” and the dates “1634-1934”.
- What gold coin series used an “incuse design” (not a raised design).
Hint: The obverse features a male Indian chief with a large ceremonial headdress.
Answer: The Indian Head Quarter Eagle with a face value of $2.50 was introduced in 1908 and minted through 1929. It is noteworthy for its incused design: the lettering is sunk into the flat plane of the coin. This revolutionary sunken design concept is credited to a Boston physician: William Sturgis Bigelow, a friend of President Teddy Roosevelt. Grading of these coins is considered difficult as the incused design does not show much wear.
The coins were popular Christmas gifts in the late 1920’s and remain extremely coveted by collectors today.
Take a look at a few examples here.
Coin details: Bella Lyon Pratt crated the design which features a Native American Indian Chief on the obverse and an eagle facing left on the reverse. The 1911–D mintage totaled 55,680 and is considered the “key date” of this series. The survival rates are low, which increased the rarity value of these stunning 1911 coins.
The last coin was struck in 1929 as the Great Depression hit. The 1929 mintage totaled 532,000. Most 1929 examples are nicely struck with great luster even today. However, this date is notable for more than average bag marks. Perhaps once the Great Depression hit, the movement of gold coins slowed significantly.
If you enjoyed this article, please let us know at 1-800-880-4653.
Read More:
Trivia Questions For Coin Collectors: Do You Know The Answer?
Beyond Bullion: The Beauty and Allure of Pre-1933 Gold Coins
The Hidden Cost of Economic Growth and Rising Stocks
Posted on — Leave a commentEconomic growth is good and stocks are rising. Everything’s rosy, right?
Once you dig beneath the surface and look at what’s fueling the growth, it’s easy to see the high cost Americans are paying for this growth.
This story started about 10 years ago…
Since the 2008 global financial crisis, the Federal Reserve fueled a massive bull cycle in the U.S. equity market through extraordinary low interest rates. That low-interest era is winding down as the central bank slowly hikes interest rates.
For years, Wall Street traders and money managers took advantage of the “punch bowl” of low interest rates, which fueled rising stock prices in what many called a “bubble.”
While the Fed removes the proverbial punch bowl from the stock market, the Administration stepped in with another substitute late last year.
Monetary to Fiscal Policy
The baton passed from monetary policy to fiscal policy to drive short-term economic growth and stock prices.
- A word to the wise. The abnormally low interest rate environment was not without costs to the economy, which has still not fully recovered or returned to normal interest rate and inflation conditions.
- Fiscal policy stimulation also has its costs, and they could prove more devastating economically in decades to come.
How does fiscal policy boost stocks? Last year’s tax cut included the biggest corporate tax cut in American history.
- Most companies saw their tax rate drop from 35% to 21%.
The huge corporate tax cuts increased many publicly traded companies price/earnings ratio. That means their earnings went up as their tax rate went down.
Did the company produce any more widgets? Or, were the company’s actual revenues increased? No. The P/E ratio looks better because most company’s see greater earnings because of lower taxes.
At What Cost?
Number one: a huge increase in the U.S. debt and deficit.
The U.S. took on a big amount of debt to pay for those tax cuts and a little bit more economic growth now.
Simply put, policymakers made a trade. They traded bigger deficits for you and your kids in the future for a little bit more economic growth and rising stock prices at the end of the current old and tired expansion cycle.
Policymakers kicked the can down the road, taking a little bit of “good” now for what could turn out to be a lot of bad later.
Here’s a look at the numbers. The Treasury racked up a record amount of debt in the first three months of 2018, borrowing about $488 billion, or $47 billion more than initial estimates, according to a recent Newsweek article.
Here’s what makes this new debt even more worrisome:
“As the U.S. takes on these unprecedented levels of debt during economic boom times, a potential crisis looms: Foreign investment in U.S. debt is currently at its lowest point since November 2016 and has been decreasing steadily since 2008, when foreigners owned about 55 percent of American debt,” the Newsweek article warned.
Risks Are Rising
While the tax cuts, economic growth and rising stock prices sound good now. The costs are clear.
The costs could include dramatically higher interest rates – perhaps even in the double digits – in the future as America is forced to finance its massive debt amid a world of less-interested takers.
It also leaves less money available for the already burdened Social Security system. In 2037, Social Security is estimated to only have enough funds to pay out about 75% of benefits. Some policymakers now want to slash program benefits to reduce the rising debt burden. That will only hurt everyday Americans, most who already haven’t saved enough for retirement.
There’s Never Been a Better Time to Buy Gold
Once you look beneath the surface and realize the rickety house of cards the current economic growth and rising stock market is built upon, the value and dependability of gold looks better than ever.
Current market conditions offer investors a rare opportunity to protect their wealth and insure their future with physical gold. While you can’t control what the government does, you can control you own financial future. Buying physical gold now could be an invaluable move to protect and preserve your financial security in the future, which looks more uncertain all the time.
Don’t fight the Fed: What it means for gold investors
Posted on — Leave a commentYou may be familiar with an old market saying: “Don’t Fight the Fed.”
Since the Federal Reserve bumped interest rates higher at its meeting today – tugging the fed funds rate to 1.75-2.00% – it’s valuable to consider the true meaning of that statement.
Warning! Dial Back on Stock Exposure
“Don’t fight the Fed” is a recommendation to stock investors to “pare back” on stock holdings as the central bank pushes interest rates higher. Why?
- The Fed hikes interest rates toward the end of a business cycle to prevent overheating (inflation).
- Historically, that precedes a bear market in stocks and a recession in the economy.
Essentially – Don’t Fight the Fed is a warning to stock investors – get out while the going is good!
- That may be truer than ever today! The current U.S. economic expansion cycle turned 9 years old in May. That is the second-longest expansion going back to the 1960’s.
What It Means for Gold
But, interest rates are going higher isn’t that bad for gold? Nope. Not now. Here’s why.
There are extremely low odds the Fed will truly be able to “normalize” its monetary policy before the next recession hits. Interest rates have been historically low for a DECADE now – since the 2008 global financial crisis. There is nothing normal about these conditions.
Higher interest rates are bad for stocks (it makes everything companies buy on credit cost more). When stocks turn down, history shows time and time again, that gold prices turn up – usually significantly.
Gold climbed 179% from the 2008 low into the 2011 high. We are getting close to the tipping point in that cycle now.
- Don’t Fight the Fed means a bear market and recession could be just around the corner.
This is a rare opportunity to accumulate gold – perhaps one of the safest assets known to mankind at a relative bargain price. Buying gold coins and bars is one of the best way to protect your assets at this point in the business cycle.
The Fed is making moves. Are you? Call Blanchard today at 1-800-880-4653 to take steps to protect your assets.
A Stir in China: Rising Demand for Gold
Posted on — Leave a commentIn recent months something has reinvigorated China’s demand for gold. In fact, 2017 was the first year since 2013 in which China experienced a growth in jewelry demand. This increase marks a reversal of a worrisome trend that began just a few years ago.
Recently, the World Gold Council reported that demand for gold in China shrank by one-third between 2013 and 2016. What precipitated this drop? Decreasing gold prices drove accelerated buying. However, this fervor led to an over supply. Stores appeared everywhere. Merchandise piled up. This trend gave rise to price wars in which purchases fell with each year representing less than the one before. Despite the signs of a classic supply and demand problem, there was another underlying culprit to the downfall.
Too many sellers mistakenly believed that consumers only wanted gold jewelry for its valuable metal. Retailers accepted consumers as a purely pragmatic group. As sales dropped, merchants were forced to rethink their assumptions. They began understand that consumers want style. In time, retailers began to offer a wider array of gold products thereby appealing to the consumer’s aesthetic leanings.
This concept makes intuitive sense. Increasingly, China’s economy is driven by middle-class consumers. This group is seeking luxury goods. As more people enter the middle class the demographic is changing. More younger consumers populate this tier than ever before. This change means that sellers have had to expand beyond traditional 24ct products which appeal more to an older demographic.
Younger buyers want 18ct and 22ct gold which is considered, in China, more fashionable and is also more affordable. These lower ct offerings give the jewelry a distinct color that is more in keeping with younger tastes. This diverse product selection is the ultimate win-win. As the World Gold Council explains, “these products offer fatter profits for retailers. 24ct jewelry is usually sold by weight, with slim margins. K-gold is sold by piece, which allows the retailer to boost profit margins.”
Technology has also entered the picture. Makers now have the capability to use a chemical process to manufacture “3D” gold which is up to four times harder than 24ct gold while using only one-third of the amount of gold found in a traditional piece of jewelry that is the same size. Manufacturers and artists have designed new pieces that resonate with the growing consumer base.
Retailers are wise to react swiftly to changing times. Research shows that more than three-quarters of the urban population in China is expected to be middle-class by as soon as 2022. Consider that in 2000 only 4 percent of the urban population was middle class. These new households have greater income and more disposable wealth. Not surprisingly, spending from this group is projected to increase by 9 percent per year through 2020.
These figures illustrate opportunities not only for gold sales in China, but also for gold investors in the U.S. As demand increases, prices will rise and investors will be poised to capitalize on the rising tide.
What the Emerging Global Middle Class Means for Gold
Posted on — Leave a commentTo understand the future of gold you need to look at where the action is, and experts agree, the action is in emerging economies. Emerging markets are important when forecasting gold demand because these are the regions positioned to see the greatest population growth over the next decades. Research from Brookings projects that within the next 17 years, approximately 170 million people will enter the middle class every year.
The World Gold Council (WGC) suggests that the engine of this growth will be technological growth, institutional reform and organizational changes. People lead this change; therefore, demographic shifts will be critical to spurring the innovation necessary to deliver on these bold population forecasts. For example, the WGC expects the share of citizens to be of working age in Africa will rise from 13% to 40% by 2100 making the country a dominant player on the world stage. Interestingly, these projections don’t reflect the popular belief that China’s status as an economic powerhouse will continue unabated. In fact, they expect the country’s economic growth to shrink by 1% per year starting in 2050.
As the middle class grows, purchasing power grows with it. McKinsey expects that annual consumption within emerging economies to reach $30 trillion. The purchasing power of this group will be staggering. McKinsey continues, “As a result, emerging-market consumers will become the dominant force in the global economy. In 15 years’ time, almost 60 percent of the roughly one billion households with earnings greater than $20,000 a year.”
Middle class growth in these countries has implications beyond gold purchases as a status symbol of conspicuous consumption. Governments will likely increase their demand for the metal as technological developments increase. The same body of research shows that China’s commitment to technology will account for 50% of its economic growth by 2030. Gold will continue to be a major component in technological devices like tablet computers and smartphones snapped up by a growing base of voracious consumers. This trend will present an interesting phenomenon in which more people have access to technology which, in turn, gives them greater ability to buy gold.
Additionally, investors in many of these countries will opt to store their household wealth in gold. This choice comes from a long-standing belief that gold is a safer store of wealth than local currency or financial instruments like stocks and bonds. As globalism continues to advance, more citizens are likely to choose gold because it is valued and respected around the world unlike many paper currencies.
Moreover, citizens of developed countries are also likely to opt for gold more than they do today. Why? Because as emerging economies become more established there will be less variance between emerging market and developed market equity funds which will only spur investors to seek diversification in other areas like precious metals.
The emergence of a more populous middle class will be a significant influence over the future of gold and investors who seek to capitalize are starting to invest now.
U.S. Mint Gold Coin Sales Surge By 433% In May
Posted on — Leave a commentGold coin buying turned frenzied in May, as sales of American gold coins skyrocketed by a stunning 433% in May from April, according to U.S. Mint data.
May gold coin sales marked the highest level since 2015, as investors used the lower price levels as an opportunity to increase physical gold ownership, amid a time of rising geopolitical and economic tensions.
In May, the U.S. Mint sold 24,000 ounces of American gold eagle coins, up from 4,500 ounces in April.
- Premiums, or the different between the gold coin and spot gold prices is historically narrow right now, about 1-1.5%. That creates great buying opportunities for investors.
Spot gold prices slid since mid-April, pressured in part by a rising U.S. dollar and an initial jump in the 10-year Treasury yield. However, 10-year rates have slumped sharply in the past few weeks.
3 Reasons Gold May Have Found a Floor
The recent price dip toward the $1,300 an ounce in gold may be bottoming out. Why?
- Chinese and Indian buyers tend to be “price sensitive,” which means they tend to wait for price retreats to buy. The $1,300 an ounce level in gold is viewed as a good buying opportunity, which should attract physical buying from these two gold hungry nations.
- The U.S. dollar is expected to fall back, which in turn, should help gold prices recover. One factor that could weigh on the U.S. dollar are the rising concerns over the economic impact of a Trade War, which could derail expectations for a couple more Federal Reserve interest rate hikes in 2018.
- Increased interest in gold as an inflation hedge.S. inflation data and more importantly future inflation expectations have steadily increased since the start of the year. That increases demand for gold to hedge against the corrosive impact of higher prices on goods and services. Gold typically climbs during periods of rising inflation, which helps to protect purchasing power of one’s assets.
Bottom Line
The swift jump in American Eagle gold coins during May could just be a taste of what’s to come this year. Professional money managers turn to gold during times of economic uncertainty, crisis and rising inflation. The 2018 run toward gold may just be getting started. Is your portfolio fully protected?
What Does Italy Mean for Gold?
Posted on — Leave a commentRecently, gold prices have dropped due to fears surrounding political turmoil arising from Italy. Equity markets around the world have followed this same trend. The trouble began on Sunday when the President of Italy, Sergio Mattarella, blocked the appointment of the finance minister. Mattarella remarked that his decision surrounded “The uncertainty over our position in the euro.”
Concerns are growing as this decision marked the 84th day of Italy without a government. Moreover, the country is drowning is debt which now totals 2.1 trillion euros with more added daily. Historically markets have seen gold prices rise in uncertain times as the urge to retreat to “haven” investments increase. However, each scenario is a little different and as Edward Meir, a consultant at INTL FC Stone explains, “The stronger dollar seems to be offsetting the bullish impact coming out of Europe.” Now, the Euro is falling in value. This drop makes U.S.-traded commodities like gold more expensive for international investors. The one haven investment that’s increasing in value is the U.S. Treasury bond.
Trepidation isn’t limited to Italy. Many investors fear trouble in that country could pervade Europe. Meanwhile, sell-off fears are rising as more investors become less confident in the global political leaders of today. Perhaps this diminished trust is why “Gold has been behaving exceptionally well when measured across various major currencies, and it continues to maintain an uptrend against the U.S. dollar as well,” explained one portfolio manager at Sprott Asset Management.
More voting will likely occur this fall. However, investors aren’t excited about the event. Many fear that the ballots will strengthen the anti-Eurozone mood and ultimately lead to a fracturing of the currency. This outcome would wreak havoc on global financial markets. Equities and many bonds would fall in value as earning potential and confidence in credit worthiness decline.
In such a scenario gold offers a greater likelihood to preserve one’s wealth or even expand it. The problem, however, is more than Italy. Their exit from the Euro would likely precipitate other countries doing the same. Savvy investors might find clues to the future of gold in this scenario with a look to the not-too-distant past.
In the fourth quarter of last year we saw Catalonia’s parliament declare independence. This act was one of defiance in the face of the Spanish government. This event is a useful case study for investors facing Italy’s dilemma because “Catalonia is a small microcosm of the total European situation. But what it represents is the idea of an unstable European Union,” explained Dan Hussey, senior market strategist at RJO Futures in Chicago. Shortly after this move, gold prices increased.
Seasoned investors understand that the only certainty is uncertainty. Italy and Europe is top-of-mind for many at the moment. While this narrative unfolds, others are almost certainly beginning to take shape and in such early stages of development that we don’t see them. For this reason, gold remains an enduring investment that kicks into gear when you need it to.
Pre-1933 Gold Coins: Why They Survived and What They’re Worth
Posted on — 1 CommentPre-1933 gold coins are the gold pieces the U.S. Mint struck for circulation before the country stopped coining gold in 1933: the $1, $2.50, $3, $5, $10, and $20 denominations, each 90% gold. Dealers often call them “pre-33 gold.” Most were turned in and melted after the gold recall of 1933, and many of those that remain survived because they were sitting in foreign bank vaults at the time.
Today a common-date double eagle sells for little more than the gold it contains, while a handful of rare dates bring six and seven figures. This guide explains how pre-1933 gold became scarce, what it is worth against its gold content, and what to weigh before buying.
- A $20 double eagle holds 0.9675 troy ounce of gold, about $3,900 worth at November 2026 prices.
- Common-date Saint-Gaudens $20s trade within about 5-10% of their gold value through MS-64; smaller coins carry larger premiums.
- The 1933 recall exempted coins of “recognized special value to collectors,” with no date rule.
- PCGS estimates 44% of 1924 double eagles survive, but only 93 of the 1,101,750 dated 1932.
- The record: the only 1933 double eagle the government monetized sold for $18,872,250 in 2021.
What Are Pre-1933 Gold Coins?
Congress authorized gold eagles, half eagles, and quarter eagles in the Coinage Act of 1792, and the double eagle followed in 1849. The gold dollar and the $3 piece were discontinued by an act of 1890 and the quarter eagle in 1930, so the last gold coins of the series were the eagles and double eagles of 1933.
Every pre-1933 gold coin is 0.900 fine, 90% gold and 10% copper, so its gold content follows directly from its legal weight.
| Coin | Designs most often seen | Pure gold (troy oz) | Gold value at $4,045/oz |
|---|---|---|---|
| Double eagle ($20) | Liberty Head 1850-1907; Saint-Gaudens 1907-1933 | 0.9675 | about $3,914 |
| Eagle ($10) | Liberty Head 1838-1907; Indian Head 1907-1933 | 0.48375 | about $1,957 |
| Half eagle ($5) | Liberty Head 1839-1908; Indian Head 1908-1929 | 0.24187 | about $978 |
| Quarter eagle ($2.50) | Liberty Head 1840-1907; Indian Head 1908-1929 | 0.12094 | about $489 |
| Three dollars ($3) | 1854-1889 | 0.14513 | about $587 |
| Gold dollar ($1) | three types, 1849-1889 | 0.04838 | about $196 |
Gold content from the statutory standard weights at 0.900 fine; gold value with gold at $4,045 per ounce on November 10, 2026.
The double eagle carries the market. James B. Longacre’s Liberty Head design ran from 1850 to 1907, and the Saint-Gaudens double eagle, with Liberty striding forward holding a torch and an olive branch, replaced it from 1907 until the end.
How the 1933 Gold Recall Made These Coins Scarce
“Atrocious Hideousness”: The Last Gold Designs
On December 27, 1904, President Theodore Roosevelt wrote to Treasury Secretary Leslie M. Shaw: “I think our coinage is artistically of atrocious hideousness.” Augustus Saint-Gaudens was engaged early in 1905 and modeled the new gold in the high relief of ancient Greek coins, which the Mint’s presses could not strike in one blow.
Saint-Gaudens died on August 3, 1907. The Mint struck his High Relief double eagles on a medal press, 11,250 by PCGS’s count (the Mint Director reported 12,153), then switched to a lower relief for regular coinage. In 1908 Bela Lyon Pratt’s Indian Head gold $2.50 and $5 sank the design into the coin instead of raising it, a method the Mint said had “never been applied to coins in modern times.”
April 5, 1933: Executive Order 6102
The recall began in a banking panic. At 1 a.m. on March 6, 1933, two days after taking office, President Franklin D. Roosevelt proclaimed a national bank holiday, citing “heavy and unwarranted withdrawals of gold and currency from our banking institutions for the purpose of hoarding.”
On April 5 he signed Executive Order 6102, which required Americans to deliver all gold coin, gold bullion, and gold certificates to a Federal Reserve bank or member bank by May 1, 1933. It allowed two exceptions that mattered to collectors: up to $100 in gold per person, and “gold coins having a recognized special value to collectors of rare and unusual coins.” Violators faced fines of up to $10,000, up to ten years in prison, or both.
Owners were paid face value in other money: $20 for a double eagle, the equivalent of $20.67 an ounce of gold.
“No Gold Shall Hereafter Be Coined”
A Treasury order of December 28, 1933 ended the $100 allowance and took quarter eagles out of the collector exemption; the final deadline to turn in gold was midnight, January 17, 1934. On January 30, 1934, the Gold Reserve Act declared that “no gold shall hereafter be coined” and ordered gold coin “formed into bars.” The next day Roosevelt raised the official price of gold from $20.67 to $35 an ounce, and the gain went to the Treasury, not to the people who had turned in their coins.
The last gold coins struck were Philadelphia’s 1933 issues: 312,500 eagles and 445,500 double eagles. None of the 1933 double eagles was ever officially released (see the FAQ below).
Even the government lost count. On January 31, 1934, the Federal Reserve dropped an estimated $287 million of “gold coin in circulation” from its figures, explaining that the old number had been overstated by coin “lost, destroyed, or exported without record.”
Why Some Coins Survived
Much of the nation’s gold coin had already left the country: by the Mint’s count, net exports of U.S. gold coin from 1870 to mid-1934 came to $1.65 billion in face value, much of it double eagles shipped abroad to settle accounts and held as bank reserves. NGC credits the survival of many dates to “the large quantity of gold coins held in Swiss and French bank vaults,” which have sent tens of thousands of Saint-Gaudens double eagles home since the 1950s.
PCGS’s survival estimates show the result. About 1.9 million of the 4,323,500 double eagles dated 1924 survive, while the 1932 issue, held almost entirely in government reserves, is down to 93 coins from a mintage of 1,101,750. Of the 180,000 struck at Denver in 1927, fewer than two dozen are known.
Ownership Restored in 1974
Public Law 93-373 restored Americans’ right to deal in gold “in the United States or abroad” effective December 31, 1974, and an executive order the same day revoked the remaining 1933 gold orders.
Historical context America in 1933
- March 6: a national bank holiday suspended all banking; by March 15, banks holding 90% of the country’s banking resources had reopened.
- March 12: in his first Fireside Chat, Roosevelt called the confidence of the people “more important than currency, more important than gold.”
- June 5: Congress voided “gold clauses,” so debts written in gold could be paid dollar for dollar in any legal tender.
- June 16: the Banking Act created federal deposit insurance, which began January 1, 1934 at $2,500 per depositor.
- Unemployment for the year stood at 24.9%, about one worker in four (BLS estimate).
- December 5: the Twenty-first Amendment ended Prohibition.
What Are Pre-1933 Gold Coins Worth?
Every pre-1933 gold coin starts from its gold content. With gold at about $4,045 an ounce (as of November 10, 2026), a double eagle contains about $3,914 of gold, an eagle about $1,957, a half eagle about $978, and a quarter eagle about $489.
Common Dates Trade Close to Their Gold Value
The trade calls the common dates “generic gold.” PCGS describes the common 1924-1928 double eagles in lower Mint State grades as “generally priced at the prevailing gold spot price plus a modest numismatic premium.”
In the PCGS price guide (November 10, 2026), a common-date Saint-Gaudens double eagle lists at about $4,250 in MS-63, about 9% over its gold value, and $4,600 in MS-65, about 18% over. Auction results have tracked those figures: a PCGS MS-63 1924 double eagle sold for $4,148 at Heritage in October 2026.
Smaller Coins Carry Bigger Premiums
The premium grows as the coin shrinks. In MS-63, a common Indian Head eagle lists about 41% above its gold value, an Indian Head half eagle about 79%, and an Indian Head quarter eagle about 74%, against about 9% for a Saint-Gaudens double eagle.
Those are price-guide figures. At auction in 2026, the smaller denominations and gem grades often sold at or below the guides.
Grade and Rarity Change the Math
Condition can matter more than date. The 1909-D half eagle is a common coin, with about 141,666 surviving by PCGS’s estimate, but only about 230 in MS-65 or better. PCGS lists it at about $1,750 in MS-63 and $12,000 in MS-65, although 2026 auction prices for MS-65s ran nearer $6,700 to $7,000.
The true rarities, such as the late Saint-Gaudens dates of 1929-1932, the 1927-D, and the 1933 eagle, trade on scarcity, not gold.
Notable Pre-1933 Gold Auction Records
| Coin and Grade | Price Realized | Auction House | Sale Date |
|---|---|---|---|
| 1933 Saint-Gaudens $20, MS-65 (PCGS) | $18,872,250 | Sotheby’s | June 2021 |
| 1927-D Saint-Gaudens $20, MS-66 (PCGS) | $4,440,000 | Heritage Auctions | August 2022 |
| 1911-D Indian Head $10, MS-66 (PCGS) | $1,800,000 | Stack’s Bowers Galleries | February 2026 |
| 1907 High Relief $20, MS-63 (PCGS) | $35,380 | Heritage Auctions | March 2026 |
| 1924 Saint-Gaudens $20, MS-65 (PCGS) | $4,886.10 | Heritage Auctions | March 2026 |
| 1924 Saint-Gaudens $20, MS-63 (PCGS) | $4,148 | Heritage Auctions | October 2026 |
Are Pre-1933 Gold Coins a Good Investment? The Case For and Against
Collectors and investors weigh the same handful of factors, and none settles the question for every buyer.
What Draws Buyers
- Gold content. A common-date coin’s value rests mostly on the gold inside it.
- History and design. These are the last gold coins the United States made for circulation, including the Saint-Gaudens design Theodore Roosevelt commissioned.
- A deep, graded market. PCGS alone has certified more than 360,000 double eagles dated 1924. NGC notes that common-date Liberty double eagles “have been used as a hedge against inflation and as an alternative bullion coin.”
The Tradeoffs
- Premiums can shrink. NGC measured the premium on certified MS-63 Saint-Gaudens double eagles falling from 12.84% over melt to 4.60% in the year to October 2024 as gold rose. Its guide value for a 1924 MS-63 sat about 32% above gold value in July 2019 and about 9% above it in November 2026.
- Prices fall with gold, too. Reviewing an October 2026 decline, Coin World found the drops concentrated in common dates priced near melt: “the thinner that cushion, the more a coin behaves like bullion.”
- Spreads. Dealers buy for less than they sell, and a Numismatic News columnist warned sellers in October 2025 to expect quotes below melt on many U.S. gold coins.
- Storage and patience. Gold coins need secure storage and insurance, and the premium and spread paid at purchase have to be made up before a holding shows a gain.
- Taxes. How a sale is taxed and reported depends on the coin and the circumstances; consult a tax professional.
Buyers who want gold at the lowest premium often compare these coins with modern gold bullion coins, which carry no collector premium.
What the 1933 Exemption Does and Doesn’t Mean
Some sales pitches describe pre-1933 gold as exempt from any future recall. The 1933 order set no date: it exempted coins “having a recognized special value to collectors of rare and unusual coins,” and a common-date double eagle was ordinary money that had to be turned in. A federal appeals court later noted that the 1933 double eagles, struck by the hundreds of thousands, were “neither rare nor unusual.”
The “made before 1934” rule came later, from Treasury regulations in force by 1969, and the 1974 law overrode any rule that barred dealing in gold. That record describes the past; it says nothing about how any future law would treat these coins.
How to Buy Pre-1933 Gold Without Getting Burned
- Start from melt. Multiply the coin’s gold content by the day’s gold price: for a double eagle, 0.9675 times the price of an ounce. That is the floor for any price you’re quoted.
- Buy certified coins. PCGS and NGC authenticate and grade gold coins, and each holder carries a certification number you can look up on the grading service’s website. Blanchard’s guide to numismatic grading explains how the grades work.
- Compare the price with the gold value and the guide. A common date should sit close to melt; a large premium needs a reason, such as a scarce date or a high grade.
- Ask for the buy price, too. The gap between what a dealer charges and what it pays back is part of the cost of owning the coin.
Because a gold coin’s worth depends on its authenticity and grade, buying certified coins from an established dealer is the practical safeguard. Blanchard offers certified pre-1933 gold coins graded by PCGS and NGC, from Saint-Gaudens and Liberty Head double eagles to Indian Head quarter eagles.
Frequently Asked Questions
1. What is pre-33 gold?
“Pre-33 gold” is dealer shorthand for U.S. gold coins struck before gold coinage ended in 1933: the $1, $2.50, $3, $5, $10, and $20 pieces, all 90% gold and 10% copper.
2. How much gold is in a $20 gold piece?
A $20 double eagle weighs 516 grains (33.44 grams) at 0.900 fine, so it holds 0.9675 troy ounce of pure gold. The $10 holds 0.48375 ounce, the $5 0.24187, and the $2.50 0.12094.
3. Are pre-1933 gold coins worth more than their gold content?
Usually, though common dates only slightly: in November 2026 a common-date Saint-Gaudens double eagle in MS-63 listed about 9% above its gold value (PCGS). Smaller denominations, high grades, and scarce dates carry larger premiums.
4. What happened to the 1933 double eagle?
The Mint struck 445,500 double eagles in 1933 but never released them; two went to the Smithsonian, and the rest were destroyed in assay tests or melted. A few left the Mint anyway, and the Secret Service traced them to the Mint’s cashier. One, exported to King Farouk of Egypt under a 1944 license, is the only example the government monetized: it sold for $7,590,020 in 2002 and $18,872,250 at Sotheby’s in 2021. Read more in the journey of the 1933 Saint-Gaudens double eagle.
5. Are pre-1933 gold coins a good investment?
Collectors and investors weigh gold content and history against shrinking premiums, dealer spreads, and storage costs. Common dates behave much like gold, while rare dates follow the collector market; neither comes with a guarantee.
Conclusion
The 1933 recall melted most of the gold coin left at home, and the survivors were largely coins that had gone abroad. For common dates, the price is mostly gold plus a modest premium that moves with the metal; for scarce dates and top grades, rarity sets the price.
Weighing pre-1933 gold for your holdings? Contact Blanchard’s numismatic team to talk through dates, grades, and prices with a specialist.
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