NOT ALL GOLD IS CREATED EQUAL
Quality vs. Quantity – Value vs. Weight
PUBLIC GOLD (Bullion Coins, Bars, Rounds)
Bullion is manufactured by U.S. Mints as well as selected foreign country mints. Bullion products have “weight value” based upon their purity, but may have little “intrinsic value” as these products are minted in large quantities. It is seen as a public asset, or also known as a reportable asset, and under the Presidential Executive Order from FDR #6102, bullion is not considered to be exempt from government confiscation. These coins can be speculative in nature and track closely to the metals daily “spot price” as posted by the NYMEX and the London Fix. The advantages of Bullion may be limited to their monetary and “weight value” only. This metal class is often used for short term holds and or trading mechanisms for active investors.
Bullion is seen as a safe store of value and hedge against potential rising inflation. Bullion is considered to be any type of government gold minted from the early 1980’s to current date. Modern bullion is the most common type of gold actively traded, where in other metals classes may be more suitable for hoarding and wealth preservation purposes. Bullion is typically the cheapest entry point for an average investor to purchase
physical coins or bars, but may also not be the most superior for quality asset protection and growth potential needs. Bullion comes in the form of bars, coins and ingots. They are minted by major governments, but are not intended to be used in circulation as currency. Bullion is most notably recognized in the form of coins; most commonly the Canadian Maple Leaf, the American Eagle, the South African Krugerrand, and the Austrian Philharmonic. Physical Bullion value follows very close to the spot price in the market which can be volatile if tracked daily.
PRIVATE GOLD (Pre-1933 Coins, Certified Coins, Numismatics)
Advantages of Pre-1933 Gold and Silver Coins over Modern Bullion
Preferred by heads of state and private citizens for their privacy, wealth preservation, and non-confiscation qualities, these coins have many advantages over bullion coins. Ideal for longer term holds, (3-5 years or longer), and may be seen as a better hedge against inflation. Private gold AKA pre-1933 or certified coins are just as liquid as bullion, yet offer many advantages that bullion doesn’t offer. The features and benefits include the following but are not limited to; privacy, asset protection, reliable and liquid, and typically tend to outperform bullion coins/bars in the long term.
Coins minted prior to 1933 are considered to have a semi-numismatic value and may carry an additional premium over bullion coins due to the high quality and intrinsic nature of the coin. Certified coins or Pre-1933 coins that are inspected and graded by PCGS (Professional Coin Grading Service) or NGC (Numismatic Guarantee Corporation) are typically considered to have numismatic value. Private Gold is internationally recognized legal tender coins that were minted decades ago which will always have rare and historic value as they haven’t minted these coins for decades. Numismatic coins are exclusive as they exist in very limited supply, and are intrinsically valued based on rarity, age, condition and market demand. The spot price of gold plays only a small role in the price of each numismatic coin. Another key advantage that private gold has over bullion is that they are likely more downward resistant to market fluctuations or downside volatility. Under the current mandate, anything can change with the government’s stroke of a pen; however, written in law as of today, there is no mandate to confiscate pre-1933 gold coins under the Executive Order #6102 issued by President Franklin D. Roosevelt, nor is there a mandate to report ownership of numismatic coins to the government upon liquidation. Private coins are easily portable and typically provide the most superior protection for your portfolio.
Saint-Gaudens Double Eagles have traded as high as four to five times the price of gold, but currently are trading at less than twice the spot price of gold! This is an unbeatable opportunity to buy, as the investment grade coin bull market, which historically launches after bullion peaks, has yet to really begin.
Expect huge profit potential and performance with diversifying into Investment Grade Gold and Silver. Now is the time to diversify your bullion holdings to maximize your overall growth potential. This investment coin could rise in value more than ten times from current levels to return to its previous peak premium over the COMEX spot price.