| As a precious metals investor, you may heard | | | | coinage (the American Eagle gold coin, although it |
| much about numismatic and "semi-numismatic" | | | | has a face value, does not count) and is typically |
| coins, particularly the St. Gaudens $20 double | | | | used only in jewelry and privately-held investment |
| eagle gold coin. While coin collecting can be an | | | | vehicles such as bars and bullion coins which would |
| interesting hobby, it is not necessarily related to | | | | be harder to recall and account for. The majority |
| metals investing. Coins of this type vary in value | | | | of recalled gold coinage in 1933 was housed in |
| with the ebb and flow of the collector market and | | | | bank vaults. |
| are not strictly tied to metal value. Also, these | | | | - As gold is no longer used as a monetary |
| coins often go for much more over spot price | | | | instrument by the U.S. government, confiscation is |
| than bullion coins. | | | | unlikely in any event. |
| One of the concepts that gets bandied about | | | | Now, you may be wondering about silver in |
| quite a bit is the idea of U.S. government | | | | regards to this as well. Silver held sway as |
| confiscation. While it is true that the U.S. | | | | coinage for longer than gold, and some silver coins |
| government did have a gold recall in 1933 by | | | | can still be found in circulation. However, silver has |
| executive order of FDR, gold coins of a significant | | | | never been subject to confiscation, and its status |
| value over gold value were not subject to this | | | | as an important industrial metal gives good reason |
| recall. Many dealers use this to imply that in the | | | | to believe that there will never be a silver recall. |
| event of another confiscation these older coins | | | | 90% and 40% silver U.S. coinage is still widely |
| would fall in this category in order to sell these | | | | available, and although it sounds contrary to what |
| types of coins to the unsuspecting or newer | | | | I stated above, these coins are a good value - as |
| metals investor. However, the confiscation issue is | | | | long as they can be bought at near silver spot or |
| a red herring for several reasons: | | | | less. This is an important distinction to make, as |
| - The dollar was backed by gold in 1933 and the | | | | old silver coinage (often referred to as junk silver) |
| recall was designed at least in part to stop the | | | | often carries very little to no value as a collector |
| run on banks; the dollar no longer has any metal | | | | item over the metal value. These coins, if |
| backing. | | | | anything, are semi-numismatic, but don't bank on |
| - St. Gaudens $20 coins in almost uncirculated to | | | | collector value. |
| mint state conditions are still very common even | | | | In short, if you approach this from the |
| considering their age due to decades of mass | | | | perspective of a metals investor never look at a |
| storage in European bank vaults. | | | | coin for collector value. Collector markets are |
| - There is nothing that states that numismatic | | | | often hard to get a pulse on, and numismatics are |
| items could not be confiscated in the event of | | | | much more illiquid than their bullion counterparts. If |
| another recall; the original executive order no | | | | you're paying more than spot plus a modest |
| longer has any force of law. | | | | premium, you're paying too much. |
| - Gold is no longer used in regular-issue U.S. | | | | |