RARE GOLD COINS

From 1795 to 1933 the U.S. minted gold coins for use in commerce, both within our borders and with overseas trading partners. That legacy came to an abrupt halt in 1933 when President Franklin D. Roosevelt ordered a halt to the minting of gold coins and issued an executive order confiscating privately held gold and making it illegal for Americans to own gold.

The relatively small number of survivors (perhaps 5% of the original mintages), range in age from 76 to 214 years old and have significant appeal to investors and collectors alike. In fact, according to statistics published by Professional Coin Grading Service (PCGS) and the Penn State Department of Economics, rare gold coins have historically outperformed gold bullion by a wide margin.

At ITM Trading, we believe that $20 Double Eagle gold pieces minted from 1849 to 1933 should form the foundation of your tangible asset holdings. These coins were minted in two primary types: the Liberty $20 Double Eagle (1849-1907) and the Saint-Gaudens $20 Double Eagle (1907-1933). These coins are among the most gold-rich, affordable, liquid, popular, historically significant and attractive issues on the rare coin market.

Among the attractive benefits that rare gold coins offer here are a few:

Outstanding Performance

Historically, collections of rare gold coins have generated considerable long-term earnings for their owners. For example, a man named Harold Bareford apparently bought a collection of American gold coins for $13,832 in the early 1950s which was resold at auction in 1978 for a reported $1.2 million.
This performance has been well documented by sources like The Wall Street Journal, Consumer Reports and an array of coin industry periodicals and guidesheets. These reports all show that wisely assembled portfolios of rare coins have had an exceptionally high rate of long-term appreciation. In fact, According to PCGS, one of two premier coin grading companies in the world, mint state rare coins have outperformed bullion an average 4 to 1 over the past 38 years.*

Privacy

Rare gold coins are one of a small number of investments that can still be acquired privately. Because coins are highly liquid and portable…and because individuals can take physical possession of his or her holdings…coins are attractive to those who do not care to let the rest of the world know what they own. Many who value their privacy also acquire U.S. rare coins due to their status as a collectable that allows purchase and sale of them without 1099-B reporting to the IRS by the coin broker/dealer. In fact, no reporting forms are required during any part of the transaction. These transactions are confidential.

Gold Confiscation Protection
During the last gold confiscation in 1933 under Franklin D. Roosevelt, gold bullion was confiscated by the federal government but rare coins were not. As collectibles, rare gold coins do not fall within the provisions allowing confiscation and in fact are specifically exempted by language in the executive order (click here to read the executive order). Many experts believe that future confiscation of gold bullion is a likely possibility, and that rare or numismatic coins will be again excluded.

Diversification
Many financial experts advise that portfolios contain 10% to 20% in tangible assets to maintain effective diversification. Rare gold coins have shown themselves to be an exceptional hedge against the impact of inflation. Although renowned for their performance in times of high inflation, they have also produced formidable long-term gains in almost every period of economic growth over the past four decades. Rare gold coins can also be very helpful in reducing the overall volatility of a portfolio because they have a tendency to move independently of paper investment vehicles. Thus rare gold coins can offer individuals safety and peace of mind

Liquidity

Certified, rare gold coins are the most liquid of all collectibles.
On an average trading day, thousands of certified rare coins are bought and sold–sight-unseen–on an electronic exchange. On this exchange, thousands of coin dealers nationwide can give bid and ask quotes for almost every certified rare coin.
This degree of liquidity is possible because of independent grading by Professional Coin Grading Service (PCGS) and Numismatic Guaranty Corporation (NGC). No other collectible can offer such outstanding liquidity.

Intrinsic Value

Unlike paper assets, such as stocks and bonds, rare gold coins have actual tangible value that you can literally feel when you hold an historic gold coin in your hand. Therefore, rare gold coins can provide two methods of building and preserving wealth. Wisely chosen coins offer the best advantages of bullion and numismatics in one package. They include the intrinsic security of bullion combined with amazing profit potential no matter what precious metal prices do.

Affordability
Museum-quality rare gold coins are affordable for most private buyers. In spite of their legacy of impressive profits and the periodic 7-figure coins and collections sometimes sold at auction, portfolios of rare gold coins with outstanding track records and promising futures are accessible in a broad range of price levels.

Historic Significance and Aesthetic Appeal

Rare gold coins are antique keepsakes of our nation’s history–tangible links to America’s important heritage–as everlasting and valuable as history itself. For well over two hundred and thirty years, America’s coins have been symbols of American strength and national honor. All through America’s history, coins have paid tribute to our national heroes, great achievements and significant events. These genuinely historic works of art commemorate past sacrifices made in the name of liberty.
The pleasure of truly owning a part of history from a long-gone era makes owning rare gold coins special. Each and every individual coin has journeyed on a unique course through time. As a result, each coin is a distinctive incarnation of the principles and aspirations of America’s founding fathers.

To learn more about what rare gold coins can do for you, contact an ITM Trading representative at 888-OWN-GOLD (888-696-4653).

* this average is calculated using the pcgs.com chart entitled “Mint State Rare Gold Coin Index” and is compared against a bullion start price of $35oz in 1971