US Gold Coinage – The Important 8 Piece Set
Looking for additional rarity or privacy in your gold holdings?
Consider US gold coins, minted before 1933 and graded
by The Professional Coin Grading Service.
5 Reasons To Add The 8 Piece Gold Set To Your Holdings
1. Many coin professionals believe high grade U.S. certified gold coins to be scarce, underrated and more importantly have the widest general appeal outside of the bullion market. Now compare the large number of potential buyers with the much smaller quantity of early mint state gold available today and this price dynamic presents a great opportunity.
2. It’s also important to understand that PCGS certified gold coins are universally traded and so create demand both in this country and abroad. We mean great collectors, wealthy royalty and government treasuries all value United States gold pieces, and for good reason. They understand that these early US gold coins remain valuable, represent true wealth and have stood the test of time.
3. There could be as many as 20 million collectors of early gold coins already in place because they possess a strong psychological drive to own what is no longer available and are not easy to attain. So a large base which appreciates and wants to own gold coins struck before 1933 is already on the books. And we believe today’s simple value will attract new investors and increase overall demand.
4. The history behind these early gold coins makes them a part of America’s “golden era” of numismatics and the acclaimed designs are acknowledged as “classics”. An important consideration, even if you’re a “bottom line” type of investor. And because early gold pieces are dated you can easily wonder if the coin was part of a fabled gold rush, an old miner’s dream or a treasure hidden away by someone seeking safety in a world of unbacked paper currency.
5. Let’s discuss value. It’s not abstract, it is a function of demand, investor base, and intrinsic or weight component. There are other considerations like beauty, rarity, and affordability. All of which have a direct bearing on a gold coin’s worth. Now try to imagine all the factors that positively impact gold coin value and we believe that early 20th Century gold coins, certified PCGS MS63 satisfies many of these factors at a price investors and collectors can still afford.
My Recommended 8 Piece Set
Most Pre-1933 Gold Coins Are Circulated or Have Been Melted
We suggest the PCGS MS63 grade of Choice Uncirculated condition because the number of coins which will qualify for this grade is small relative to the number of coins minted. Compare the mintages of our eight gold coins to the number of MS63 examples PCGS has graded since 1986 and you will find that less than 1/2 of 1% of all coins minted would now qualify. Why? Because most either entered circulation and became worn or were melted in 1933.
But how can we be sure of the total number of MS63 examples? That is easy too if your coins are PCGS graded. Independent grading was an unparalleled idea for the coin business, but an even more ingenious notion was a book you may not have seen. It’s called The PCGS Population Report and to the layman it’s nothing more than column after column of numbers. But upon closer examination The Population Report is a great way to scientifically make better choices because it lists every coin graded by PCGS.
Gold Confiscation In 1933
For most people the story of US gold confiscation is not well known. But before you can understand what is happening now it’s important to see how we got into this monetary fix, and why our government is in no position to help us. And when you realize how we were all robbed of the right to own gold in 1933 you will understand how to turn this into a financial advantage today.
Gold ownership in the U.S. was prohibited from 1933 through 1975. In 1933 it was not legal for us to own gold and this law obviously did not affect the Europeans directly – but they soon began to take advantage of this potential windfall. The US prohibited its citizens from owning gold but kept the foreign gold window open to other countries in an attempt to support US paper currency.
The Europeans in turn exchanged our currency for real gold pieces and stored the coins in Swiss and German bank vaults. Believe it nor not, during this period a foreign nation could exchange a US $20 paper note for a $20 gold piece – one for one. Nixon stopped this practice in 1971 but by then the damage was done.
So there are two powerful forces now at work which make the case for owning mint state gold today. First, there is the Roosevelt gold confiscation which began in 1933. US citizens were asked to “turn in” their gold coins and many of the older gold coins then in circulation were melted into bars. These gold bars became our “gold reserves” in Fort Knox. Second, the early gold coins of the 20th century that did not meet this fate were part of the large “paper for gold” exchange which happened between 1933 and 1971. These coins were eventually stored in the banks of Europe by nations who understood the value of real gold coins.
Both of these important factors diminished the number of mint state gold coins available today and create this buying opportunity.
Government Spending And Gold Prices
Today’s out of control government spending is your key to investment success. We believe that in an effort to pay for its unsustainable debt the U.S. rushes to increase its money supply and in the process creates inflation. You have heard this theme before and in each inflationary wave Americans have paid the price in their standard of living. But this time around there has either been a lag in this cause and effect scenario and the government numbers are unreliable because of reporting changes. But make no mistake because inflation is on the way and will further erode your purchasing power.
When inflation heats up the dollar gets weaker and people wonder what is happening to their savings as purchasing power goes down. At first these losses are small and few are alarmed but over time this process takes its toll. The cycle is repeated as the U.S. once again spends too much and a series of deficit years are created and so the government again is forced to print too much paper money. This is then the true definition of inflation: Too much paper money chasing too few real goods or services. Since time began the result of printing too much money has been to devalue the currency and in the process creates gold demand.
The government rationale might be that it was necessary to create jobs during tough economic times or to pay for a war but in the end this process debases the value of money and lowers everyone’s standard of living. We believe that when gold and other hard assets react to this devaluation their prices will move higher.
Six More Reasons The 8 Piece Set Represents Value
1. The 8 Piece Set has underperformed the broader gold bullion market and in the process has not been as volatile. Many investors are concerned about gold’s large price swings so this approach provides the buyer with a blanket gold insurance policy and at the same time may offer a better night’s sleep. For contrarian investors price levels may present a compelling value play over time. In our opinion these early mint state coins now represent extraordinary value.
2. The 90/10 Investment Rule. How many people out there are potentially interested in your investment as time goes on? In this case there are legions of people for only about 10% of the population now invests in hard assets. That means 90% of the population is still available to drive prices higher. And unlike the 1970’s the price of gold is plastered on national television and over the Internet! This guarantees early investors a huge pool of potential new buyers.
3. All certified gold coins are portable and quietly moved at a moment’s notice. Whether the sum is large or small they present excellent liquidity in times of trouble which can be stored in a modest safe deposit box, need no special care, but are handy and away from intervention. These certified gold coins create one of the few truly private financial transactions available today.
4. These coins are almost always used to build sets and this human trait provides advantages: First, it compels even the beginner to buy first one coin and then another. Thus decreasing the number available, which should, in inflationary times push prices higher. Second, the notion that a modest investor can begin with one coin adds appeal because it opens up a wider buying pool.
5. Today’s prices are low relative to old highs and so present a great value play in the traditional certified market. In 1989 when the certified gold market was hot and relatively new the PCGS 8 Piece Gold Set sold for more than $20,000.00. So today’s pricing for a contrarian investor cannot be beat and for the technical analyst represents a significant retracement of more than 50%.
6. And for the really astute trader consider this inside premium information. The lower the premium on these mint state gold coins the better value for investors. To better understand “premiums” consider that in 2002 a bullion owner could trade 20 ounces of gold for an 8 piece gold set – PCGS graded MS63.
Today that same bullion trader would only have to give up 6 ounces of bullion gold for the same set. That is an extraordinary imbalance in relative pricing. To put it another way – a bullion gold trader gets more than 3 times more material today in this trade than was possible in 2002. That alone should carry the day when considering any type of re-balancing of your gold holdings.
Could European Sources Dry Up?
Remember in the beginning of this report we said the Europeans took advantage of our open gold window and exchanged currency for our gold coinage until 1971? Well that was the truth and since the 1970’s American dealers have been flying to Europe, buying these coins and bringing them back to an eager audience in the United States. But in the last few years an interesting question is being discussed. Considering the majority of these coins were circulated or melted, how many mint state examples are still left in Europe? Many dealers admit the supply cannot last forever.
Pick Up The Phone While Prices Are Attractive
It’s easy to take advantage of this opportunity – after reading this report and doing your own homework follow this approach:
1. If you are a first time buyer consider certified gold and understand how it fits into your overall inflation strategy. If the entire set is too much consider one or two coins at a time. This long-term approach could prove very profitable and may be a foolproof way of saving money.
2. Should you already own gold bullion consider trading a portion of your holdings into an 8 Piece Set PCGS certified MS63. This approach is not a substitute for bullion but a diversification that takes advantage of scarcity and long term demand. Always keep a core position in bullion products and consider diversification while prices are so favorable: The CNI Balanced Portfolio Approach.
As you might imagine any written report has its limitations and even the best gold investment involves risk. We believe, however, this undervalued area offers investors a serious value opportunity.
So call and ask any questions you might have, including the ones we have overlooked. We will give you our most straightforward and objective answers. All before you invest one dime. Then you decide.
Thanks for reading and good luck on your new investment.
PS: Everyone is in a hurry these days – if a phone call is inconvenient contact me by Email. I will answer any questions you may have and there is never any obligation.