Our current recession has thoroughly drained the bank accounts, portfolios, and retirement account holdings of many US investors, and a large number of these hard-working Americans have been prompted to search for alternative means to store their wealth until our economy shows sustainable signs of improvement. Some of these same investors have decided to buy American gold coins that are considered collectibles, not because the investors believe collectible coins are sure to become the next big hobby but because certain types of gold coins legally allow individuals to privatize their wealth.
Individuals who wish to protect their worth from frther damage due to inflation and a stagnant job market often buy pre-1933 US gold coins that have been certified by the professional Coin Grading Service (PCGS). Investors buy American gold coins like the $20 Saint Gaudens and the $10 Liberty Head coin, not to complete a set or add to a numismatic collection, but because government regulations such as Executive Order 6102 Section 2-B state that coins of recognized special value to collectors of rare and unusual coins are private assets that the government may not confiscate from its' citizens.
Gold confiscation may sound like a ridiculous concept, although it happened in 1933 and the prohibition on gold ownership lasted until 1971. For almost 40 years, gold bullion was illegal to buy, sell, or barter with within US borders, and if you refused to turn your bullion over to the Feds you were considered a felon for holding what essentially became a very shiny and costly paperweight. If you buy American gold coins that have been classified as collectibles yet still fluctuate along with the gold spot price, you have the opportunity to make money dyuring this recession and keep your wealth out of the hands of anyone except yourself.
Not all investors will do well financially with certified American coins, although investors who hold their coinage longer than 14 months typically do better financially than investors who hold gold bullion long-term. While bullion is far more apt as a 1-14 month play, it may be wise to buy American gold coins that have been certified by PCGS if you plan on a long-term stake in physical gold. To learn more about how to buy American gold, both in bullion and certified form, give us a call or delve into our helpful investment tutorials below.
Steven Martin
Senior Gold Specialist - Buy-Gold.org
