Now is the time to buy “old gold”…

Until recently, I hadn’t paid much attention to old gold coins, also called numismatics.

I assumed they were overpriced and didn’t offer good value.

That impression has changed.

The surge in gold prices has released many pre-1933 American gold coins onto the market, causing premiums to fall to historic lows.

Yesterday, I listened to a podcast featuring Van Simmons, one of the founders of PCGS, the premier coin grading service.

It was truly captivating. Here’s a snippet:

A $20 Liberty used to be 10 or 20 times the melt value. Now you can buy a brilliant uncirculated $20 Liberty for like 10 percent [over spot price], not 10 or 20 times. I was just looking at them today, just totally shocked and thinking this is stupid. But there’s so many on the market right now because so many people have sold and there’s also a couple of hoards that have come out. But that’ll change.

Van believes this moment is ideal for purchasing pre-1933 coins. After researching the market, I share his view.

Let’s explore further.

Pre-1933 Coins

As many might know, it became illegal for Americans to own gold coins starting in 1933.

Millions of gold coins were surrendered or seized and subsequently melted down. At that time, citizens were compensated $20.67 per ounce of gold. Then, in 1934, the gold price was reset to $35 per ounce, causing a sharp devaluation of the dollar.

Penalties for possessing illegal gold included fines up to $10,000, prison sentences of up to 10 years, or both.

The prohibition on gold ownership for American citizens lasted until 1975.

Buy a Piece of History (at an incredible price)

The coin shown below is a $20 Liberty Head gold double eagle.

Minted between 1850 and 1907, each coin holds .9675 ounces of pure gold.

Right now, you can purchase a brilliant uncirculated (BU) $20 Liberty Head double eagle (random year) for just $4,619 from Apmex.com, a trusted dealer (no affiliations or compensation involved).

That’s merely $39 above gold’s current spot price! A real bargain.

Smaller denominations like the $2.50 Liberty Quarter Eagles can be found starting around $615.

These coins represent significant American heritage and highlight the value of sovereign currency.

Naturally, coins with higher grades command a premium. But considering their age of over a century, these specimens are in remarkable shape.

The European Hoards

If most gold coins were seized and melted down by Roosevelt’s administration, where are these coins now available in the market?

Many come from hoards kept in European bank vaults. During the 19th and early 20th centuries, U.S. gold coins were frequently used in international trade.

Due to frequent hyperinflation in Europe, people often distrusted paper currencies.

Business owners abroad preferred to hold much of their wealth in gold coins, which were passed down through families and stored in vaults across Europe and Asia.

With rising gold prices, heirs are now choosing to sell these coins.

This has led to a temporary surge of well-preserved century-old coins entering the market.

This rare market condition allows buyers to obtain historic coins in nearly pristine condition at prices similar to new American Eagles—a unique opportunity.

I anticipate these bargain prices won’t persist beyond a year or two.

Eventually, these coins will transfer to new collectors and are likely to be handed down for generations to come.

If you’re considering gold bullion, why not own a piece of history along the way? Premiums won’t likely get any better than now.

Here is the podcast link featuring Van Simmons. He’s exceptionally knowledgeable about rare coins. I highly suggest giving it a listen or watch on Youtube.