What do these Saints have in common? The answer: they’re not common at all! Introduction Last...
The Classic Gold Coin Likely to Gain Value Soon
Many investors are interested in not only owning gold for wealth insurance, but for profit motivation as well. Fortunately, there is a coin we believe can achieve both of those goals: the pre-1933 $20 Saint-Gaudens in MS64 condition.
The gold MS64 $20 St. Gaudens coin has historically been an effective crisis hedge and a source of profits in gold bull markets.
While gold performance has room to move a lot higher, we believe the all-time high above $2,000 per ounce is still in our sights.
The History Behind U.S Pre-1933 Gold Coins
From the 1790’s through the 1930’s, American gold coinage served as the backbone of our country’s financial system. Before money existed in the form of paper notes or electronic records, large sums of money were held in the form of trusted, internationally recognized United States gold coins. Copper, nickel and silver may have been used for routine daily spending—but nations, banks and large institutions chose American gold as their preferred store of value.
The role of gold coinage was altered significantly when Franklin Delano Roosevelt passed Executive Order 6102 in 1933. This edict prohibited both the minting and hoarding of American gold coins. The official stated reason for the order was the “hoarding” of gold was stalling economic growth and worsening the Great Depression. In reality, however, the order allowed the Federal Reserve to dramatically expand the money supply without constraint. (We still have the same problem today, but it is magnified considerably.)
The limitation on gold ownership ended in the 1970’s — and classic U.S. gold coins quickly found new life as collectibles and investments. The demand for classic (aka “pre-33”) U.S. gold coins became robust, but the supply was often limited.
Unlike modern bullion products like Eagles and Maples, the supply of classic U.S. gold is finite. No more can be made to keep pace with demand. When pre-33 gold is in vogue, premiums for these items can expand considerably. As a result, premiums over melt spiked during periods of strong demand and extreme volatility. In softer markets, premiums would return to more normal levels.
We’ve watched the premiums for classic U.S. gold expand and contract dozens of times over the years. Today’s relatively low premiums make pre-33 U.S. gold one of the best opportunities in bullion or numismatics.
What makes classic U.S. gold coins so attractive right now? When the spot price of gold suddenly rises, pre-33 U.S. gold coins usually jump in premium. The net result: a spike in the price of gold is amplified in the value of classic U.S. gold.
For example, take the $20 Saint-Gaudens in MS64. When spot gold was $837.30 per ounce in January 2008, MS64 $20 Saints were trading around $1,350 per coin. Two years later, spot had risen to $1,121.90 per ounce (a $285/oz. jump), but MS64 Saints had vaulted to over $2,050 per coin. For every dollar spot gold advanced, the price of an MS64 Saint increased by $2.55.
During strong gold rallies, a one-ounce bullion coin simply tracks the spot price dollar-for-dollar. If spot races upward by $300, a one-ounce gold Eagle will take on $300 more in value. However, in that same scenario, a scarcer pre-1933 gold coin might jump to the tune of $500, $1,000 or $1,500. Simply put, vintage gold coins have a “slingshot factor” standard bullion does not. A gold bullion coin is forever tethered to spot, but classic gold coins have the ability to appreciate at a much stronger rate.
Where pre-33 gold coins are concerned, the key for investors is timing. Very rarely are these coins available at low premiums while spot prices are increasing. Gold appears to have rebounded off the lows, and we see the trajectory continuing upward for years to come. Persistent high inflation, the impact of global Covid-19 lockdowns, and the economic implications of the Russia-Ukraine conflict will continue to create reasons for investors to seek out gold as a safe haven asset.
In a nutshell, today’s premiums represent a superb entry point for classic U.S. gold. The combination of low premiums and low spot prices is extremely unusual. These conditions offer two ways to profit from pre-33 gold: a rise in spot prices and/or premium increases. In fact, if history is any indication, a sharp rise in gold spot price could trigger significant premium expansion. This phenomenon has repeated itself many times in the past—and we would be surprised if it didn’t happen again.
Today, we’re able to offer $20 Saint-Gaudens in MS64 condition starting at just $2,149 each.
Each coin we offer here has been independently inspected and certified by the uncompromising standards of PCGS or NGC to be in MS64 condition.
- MS64 $20 Saints just $2,199 per coin*
- Just $2,179 each when you buy 10 or more*
- Just $2,149 each when you buy 20 or more*
Please call us today at 800-831-0007 or email us to purchase your $20 Saints. Quantities are limited, so don't delay!
*Prices subject to change based on market fluctuation and product availability. Prices reflected are for cash, check, or bank wire. Free shipping, handling, and insurance is included. Offer expires Friday, August 5, 2022 or while supplies last.