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$20 Liberty Double Eagles offer better returns than bullion.
Posted on: 2009-07-19
Circulated $20 Liberty Double Eagle (1849-1907)
There are three main reasons to consider investing in circulated double Eagles as an alternative to modern issue bullion coins;
1. Coins minted prior to 1933 are considered collectables by the U.S. government. Modern issue bullion coins are considered a gold investment. At the sale of $25,000.00 or more of bullion, from you to a dealer, we are required to file a 1099 tax form on your behalf. There is no such requirement when dealing with any coins minted prior to 1933. It is your responsibility to report such sales.
2. Coins minted prior to 1933 are not confiscatable. In 1933 the U.S. Government declared it illegal to own gold. They set the price and simply gave you cash for your gold thus removing any supply and demand laws. Double Eagles and other rare coins are exempt from this law as it is written because they are considered collectibles. If the government were to declare gold illegal again, an immediate premium would be put on circulated $20 Double Eagles and other gold coins that trade like bullion. It is important to note, the reason the government enacted this law, was to get people to stop hording their wealth and spend cash to spur the economy during the great depression. There is growing concern; the government could make similar moves in the future.
3. Supply and demand will work in your favor. Every day the various mints are turning out their modern issue bullion product. Some examples include the Canadian Maple Leaf, the South African Krugerrand, the United State’s Gold Eagle and Buffalo, and the Austrian Philharmonic. The limit to how many are made is set on how much raw gold is available and supported by the investment demand in gold. Double eagles have not been made since 1933. There is a set amount and unlike bullion, that number is not increasing. During the fourth quarter of 2008, the United State’s Mint halted the production and distribution of Eagles due to a lack of gold available to them. Demand for gold did not halt however, and as a result, other bullion products experienced a sharp increase in premium over the Spot price. Circulated $20 Double Eagles experienced a much sharper increase than any other bullion product. Today, demand for gold continues to increase, while production from the world’s leading mining companies continue to decrease. It is very likely; we could see a disruption in Eagle production due to a lack of available gold again in the near future.
To reserve your Non-Confiscatable $20 Liberty Double Eagles, please call Audubon Gold Exchange today.
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