Why You Should Consider Pre-1933 Gold Coins for Your Portfolio

Gold coins have always been regarded as tangible symbols of wealth—prized for their gold content as well as historical significance.

 

Gold coins have always been regarded as tangible symbols of wealth—prized for their gold content as well as historical significance.

Pre-1933 gold coins offer a unique blend of both, making them a highly sought-after investment. These coins are known for their rarity and provide an opportunity for investors seeking both growth and diversification.

With over 20 years of experience, Bullion Standard is a trusted resource in the precious metals market. In this blog post, we’ll explore why pre-1933 gold coins are a valuable investment, combining historical significance, gold content, and long-term growth potential for your portfolio.

What Happened in 1933?

In 1933, under President Franklin D. Roosevelt, the U.S. government issued Executive Order 6102. This banned the private ownership of most gold coins, with exceptions for collectible or rare coins.

As part of the order, the government recalled a vast number of gold coins to be melted down, drastically reducing the supply in circulation.

This event marked a pivotal moment in U.S. monetary history. Today, pre-1933 gold coins are highly sought after not only for their gold content but also for their rarity and historical significance, making them an even more valuable asset.

The Benefits of Investing in Pre 1933 Coins

Investing in pre-1933 gold coins offers several unique advantages that modern bullion does not. Beyond their gold content, these coins carry a rich history, scarcity, and potential for greater value appreciation over time.

Let's go over all of the benefits of investing in these unique coins:

1. Historical Value Adds Appeal

One of the most compelling reasons to consider pre-1933 gold coins is their historical significance. These coins were once part of daily commerce in America, minted during a period of significant economic and cultural change. 

When you invest in them, you’re not only gaining a solid asset but also owning a tangible piece of American heritage.

2. Diversifying Your Portfolio

Investors often turn to gold to diversify their portfolios, and pre-1933 gold coins offer the perfect opportunity to do just that. These coins not only provide the stability of gold, a historically reliable asset, but they also have a rare collectible element to them.

This gives them added value that can increase over time, especially as the demand for rare and valuable items continues to grow. By incorporating pre-1933 gold coins into your portfolio, you can effectively diversify and manage risk while enjoying the potential for long-term appreciation.

3. Premium Potential

Pre-1933 gold coins often carry a premium above their gold content, making them an attractive option for those looking to maximize their returns.

This premium comes from several factors, including rarity, historical significance, and demand from collectors. As time passes and fewer of these coins remain in circulation, their value often increases, particularly for well-preserved coins or those with unique features.

Ideal for Collectors

In addition to being a smart financial investment, pre-1933 gold coins are highly sought after by collectors for their historical significance and stunning craftsmanship.

Their rich history and detailed, artistic designs make them standouts in any collection. If you’re looking to collect pieces that can provide financial growth and the satisfaction of owning a piece of history, pre-1933 gold coins are a great fit.

Tax Advantages of Pre-1933 Gold Coins

Pre-1933 gold coins can also offer tax advantages. In many cases, these coins are classified as collectibles rather than commodities, which means they may be subject to a lower capital gains tax rate when sold. This can make them a more attractive option for investors looking to minimize their tax liability.

However, tax laws can vary depending on your location and financial situation, so it’s always a good idea to consult with a tax professional before making investment decisions.

What Are the Most Popular Pre-1933 Gold Coins?

Several pre-1933 gold coins stand out for both their historical value and their appeal to collectors. Here are some of the most popular pre-1933 gold coins:

Saint-Gaudens Double Eagle

The Saint-Gaudens Double Eagle is often considered one of the most beautiful coins produced by the U.S. Mint. Designed by sculptor Augustus Saint-Gaudens, this coin features Lady Liberty striding forward, holding a torch in one hand and an olive branch in the other. On the reverse side, there’s an eagle in flight.

Minted from 1907 to 1933, collectors and investors alike seek out this coin, especially the earlier versions with ultra-high relief. If you're looking for a gold coin that combines beauty, history, and value, the Saint-Gaudens Double Eagle is a solid choice.

Liberty Head Double Eagle

The Liberty Head Double Eagle is another gold coin that holds significant historical value. Minted from 1849 to 1907, Liberty Head gold coins are often seen as a symbol of the booming American economy during the 19th century, a time when gold discoveries were being made across the country.

Investors are drawn to the Liberty Head Double Eagle for its gold content and its connection to this period in U.S. history.

Indian Head Gold Coins

The Indian Head Gold Coins are another stunning addition to any gold coin collection. What makes the Indian Head series particularly unique is the fact that the design deviates from the traditional portraits of Lady Liberty seen on most U.S. coins.

First minted in 1907, the Indian Head coins were produced until 1933, and they remain a favorite among both collectors and investors. They have a variety in denominations which makes them more accessible to a wider range of buyers, allowing people to invest in smaller quantities of gold if desired.

Gold Content of Pre 1933 Coins

Pre-1933 gold coins are typically composed of 90% gold and 10% copper. This alloy mix was used to make the coins more durable, so they could withstand circulation without significant wear.

The actual gold content in each coin varies based on the denomination, with higher denominations containing more gold. For example, a Double Eagle has nearly one ounce of gold.

Because they’re composed of a gold-copper alloy, pre-1933 coins are more resistant to damage than modern pure gold bullion, adding another layer of long-term investment security.

How to Buy Pre-1933 Gold Coins

Buying pre-1933 gold coins is a relatively straightforward process, but it’s essential to do your homework first.

You can find these coins through reputable dealers, auction houses, and trusted online platforms specializing in gold or rare coins. Before making a purchase, however, it’s crucial to verify the coin’s authenticity, condition, and grading, as this will impact its value.

Moreover, transparency and fair pricing are key, so look for dealers who offer buyback guarantees and have a solid reputation in the industry. Taking these steps may be time-consuming, but it'll help ensure that your investment is safe and worthwhile.

Diversify Your Portfolio with Pre-1933 Gold Coins

Investing in pre-1933 gold coins is a smart way to diversify your portfolio while also holding a piece of history. These coins combine gold content with collectible appeal, making them valuable for both seasoned investors and newcomers alike.

Bullion Standard is your go-to partner when it comes to investing in all types of bullion—including pre-1933 coins.

As experts in the field, we offer transparent pricing, expert advice, and a wide selection of rare coins that fit any portfolio. Shop online today and start diversifying your portfolio.