It's Time to Take Back Your Gold

By Erin Fischer

It’s been 85 years since the U.S. federal government ordered the confiscation of all gold coin, gold bullion, and gold certificates. On this fateful day in 1933, gold as the U.S. knew it was about to undergo a transformation that would forever change the way it is seen to the world. Under Executive Order 6102, issued on April 5, 1933, President Franklin Delano Roosevelt required that all U.S. citizens deliver their gold holdings to a Federal Reserve bank, branch, or agency—or to any member of the Federal Reserve before May 1, 1933.

On the anniversary of this decision to begin easing the dollar off the gold standard, we’re giving you a chance to claim back your gold. Even though this order was repealed by President Gerald Ford on December 31, 1974, we still think it’s important to celebrate your right to own the treasured metal—because that wasn’t always legally possible in the United States.

Before you get worried this will happen again, don’t fear. Back in 1933, when the government confiscated gold, the metal was linked to the dollar. When this hoard was confiscated, the government began taking steps to remove the U.S. from the gold standard in order to increase the money supply during the Great Depression. Because the dollar and gold are no longer linked, these actions would not have the same effect today, as they would not accomplish the same objective (a devaluation of the dollar) as they did in 1933.

Of course, the yellow metal wasn’t taken away without repayment. All citizens who turned in their gold by May 1 were given $20.67 per ounce of gold, which has an adjusted value of just under $400 today. But what happened if you didn’t turn in your gold? Those who violated the order faced severe consequences, including a $10,000 fine (a value of roughly $190,000 today) or up to ten years in prison—or, in some cases, both penalties.

Once all the gold had been confiscated, the government proceeded to raise the price of gold to $35 per ounce, and with that profit they were able to fund the Exchange Stabilization Fund, which was introduced by the Gold Reserve Act in 1934.

Pre-1933 Gold Gets a Boost

As a result of the Executive Order, all U.S. gold coin production ceased, and all coins minted in 1933 were destroyed. In effect, the 1933 $20 Saint-Gaudens became exceptionally rare. Only about 20 of these coins survived—and only because they were smuggled away illegally. In 2002, decades after these coins became legal again, one of these $20 “Saints” was purchased for over $7.5 million!

The Executive Order also boosted the rarity of other pre-1933 gold coins, thousands of which were melted down as a result of the order. The surviving pieces were often stored outside the country in foreign banks or elsewhere. Whereas many of these coins were commonly found in circulation prior to 1933, their production and circulation ceased abruptly with this order. The value of these coins today varies widely depending on condition, date, mint location, and several other factors.

The $20 Saint is one such example of a coin whose value varies based on these factors. But one thing can’t be denied—and that’s its fascinating backstory. As many of our readers know, the $20 Saint is considered one of the most popular, beautiful, and desirable U.S. gold coins. Because these coins were often found in circulation, finding them in higher grades can be difficult. Although most of these coins don’t command the startling rarity of the 1933 $20 Saint, the awe of holding an MS65 $20 Saint-Gaudens Double Eagle in your hands can’t be found in just any coin.

Although it’s been over 40 years since this Executive Order was repealed, investors can’t deny the feeling of owning such a phenomenal piece of U.S. history. In the spirit of “giving the gold back to the people,” we now have a selection of 50 MS65 $20 Saint-Gaudens Double Eagles available at $1,699 per coin*. To take back your gold, so to speak, and add one of America’s most popular historic gold coins to your portfolio, please call us at 800-831-0007 or email us.

*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 are available for purchases of two (2) or more MS65 $20 Saint-Gaudens Double Eagles. Offer expires Friday, May 4, 2018, or while supplies last.