Comparing modern Bullion to Pre-33 Gold Coins.

For a number of years, the goto investment strategy revolved around the accumulation of bullion and contemporary coins. While this transition presents intriguing opportunities pre-33 gold coins, it is also marked by certain considerations, notably the premiums associated with smaller denomination coins. The prospect of premiums on such coins has raised some concerns, although larger denominations, such as half eagles with premiums ranging between 15% to 20%, appear to be a more feasible option for me.

acquire common Double Eagle and Eagle with lower premiums

To gather pricing information and evaluate my potential investments, I have been referring to reputable sources like JM Bullion and APMEX. Nevertheless, I plan to exercise caution and prudence by making actual purchases at coin shows, where I can physically inspect the coins before finalizing any transactions.

The allure of pre-33 U.S. gold coins, particularly St. Gaudens and Pratt coins, has captured my interest. Their historical significance and ready availability make them an appealing choice for me. Although I do not currently own any Liberty coins, I anticipate including them in my portfolio in the future. My overarching goal is to acquire common coins with lower premiums, particularly Indian half eagles, as I consider expanding my collection to include full and double eagles.

Circulated and common pre-33 gold coins, with their lower premiums compared to bullion, offer a compelling value proposition for those focused-on stacking rather than collector value. Additionally, I have found modern commemorative gold coins in the $5 to $10 range, such as those featuring the Statue of Liberty, Constitution, or Olympics, to be an attractive option due to their low premiums and the fact that they are produced by the U.S. Mint.

When it comes to selecting the best coins to stack, standard denominations like $5, $10, or $20 Liberties are often favored. Personally, I tend to target coins in XF to AU grade ranges. MS-graded coins, while higher in value, come with additional grading costs and premiums. In some cases, I have had the opportunity to acquire coins priced close to spot, especially those considered common date and lacking significant numismatic value. These coins are typically uncirculated but may have minor imperfections.

Grading PRE 1933 us gold coins, does it matter?

the practice of coin grading plays a pivotal role in determining the value and authenticity of coins. Coin grading is a blend of art and science, where experts assess the condition, rarity, and overall quality of a coin to assign it a grade. However, there are various factors to consider when deciding whether or not to have your coins graded.

Absolutely, it’s worth considering the grading of pre-1933 coins

which make up the majority of what I encounter. However, it’s crucial to entrust this task to well-established grading authorities like NGC or PCGS; other companies may not provide the same level of credibility. Grading these pre-1933 gold coins, if they receive a favorable grade, can immediately enhance their value by several hundred dollars. The types of coins that merit grading is typically those with extraordinary rarity, often sought after for the sole purpose of confirming their authenticity. This category includes colonial coinage, early dollars, key date coins, as well as gold coins from the C and D mints, which are commonly counterfeited. Coins that appear to be in the MS64 grade or better, and date back to before the 1940s when coin minting processes became more modernized, are generally considered worth the grading investment.

In my perspective, pre-1933 gold coins may be worthy of grading, especially if a pricing guide indicates the potential for numismatic value exceeding the intrinsic bullion value. However, when it comes to modern gold coins, the expense and waiting time associated with grading may not justify the effort.

The Importance of Reputable Grading Companies

One of the first decisions collectors and investors must make is which grading company to trust with their coins. The consensus in the numismatic community leans heavily towards two major grading companies: Numismatic Guaranty Corporation (NGC) and Professional Coin Grading Service (PCGS). These institutions are renowned for their rigorous grading standards, and their graded coins often command higher prices in the market due to the trust associated with their certifications. Cost is various hundred dollars.

Reasons to Consider Coin Grading.

The decision to have a coin graded should not be taken lightly, as it involves both costs and potential benefits. Here are some key reasons to consider coin grading:

1. Authenticity Assurance: Grading companies not only assess a coin’s condition but also verify its authenticity. This is crucial, especially for rare or valuable coins, as it eliminates doubts about a coin’s genuineness.
2. Condition Documentation: Grading provides an objective assessment of a coin’s condition, which can be essential for determining its value accurately. Coins in better condition generally command higher prices.
3. Inventory for Insurance: Graded coins can serve as a documented inventory for insurance purposes. If you ever need to file an insurance claim, the value set by the grading company is typically accepted by insurers, reducing the need for additional appraisals.
4. Enhanced Marketability: Graded coins are often more marketable and easier to sell. Buyers have confidence in the grade assigned by reputable grading companies, which can lead to quicker sales.

When to Consider Grading.

The decision to grade a coin should be based on several factors:

1. Rarity and Potential Value Increase: Coins that are rare or have the potential to significantly increase in value when graded may justify the grading cost. Certain key date coins or those in exceptional condition fall into this category.
2. Cost of Grading vs. Potential Return: Consider the cost of grading relative to the potential increase in the coin’s value. If the grading cost outweighs the expected gain, it may not be financially prudent to grade the coin.
3. Authentication Needs: Authentication is particularly critical for coins with a history of counterfeiting. Having such coins authenticated can protect you from inadvertently acquiring fakes.
4. Personal Preference: Some collectors and investors prefer ungraded coins, as they enjoy the tactile experience of handling coins directly. Personal preference also plays a role in the decision.

The Challenge with Modern Coins

The debate on grading modern coins remains contentious. Some argue that the cost of grading often exceeds any potential increase in value, especially for common modern coins. Modern coins may not benefit as much from grading compared to their older pre 33 counterparts, which tend to exhibit greater price discrepancies based on grade.

How to Submit Coins to PCGS for Grading.

On the PCGS website, the primary purpose is to acquire knowledge about coin grading and authentication through PCGS. Prior to delving into this subject, an overview of the website itself is essential. It harbors an array of invaluable, complimentary resources that offer extensive insights into coin collecting and numismatics in its entirety.

• Submission guidelines: PCGS provides detailed submission guidelines on its website, including information on how to package and ship coins, how to fill out submission forms, and how to pay for grading services. Following these guidelines can help ensure that your coins are processed quickly and accurately.

Firstly, an exceptional resource is the ‘Price Guide.’ Upon selecting this option, visitors can explore various categories of American coins and select a specific coin of interest. For instance, let us navigate to the domain of half dollars, specifically the Walking Liberty half dollars. Within this segment, a comprehensive display of pricing information for different coin grades is provided. It is pertinent to note that not all conceivable grades are showcased, yet it does present a representative assortment of grades along with the corresponding years of coinage. For instance, if one were to examine a 1934 Mint State coin, particularly one graded as Mint State 65, the indicated value ranges from $400 to $550.

Furthermore, the website offers access to PCGS CoinFacts and NoteFacts. These sections serve as valuable reservoirs of knowledge for individuals seeking information about specific coins. Let us, for example, consider the Buffalo nickel. A simple selection allows one to peruse various types, such as Type 1 and Type 2. Clicking on Type 2 reveals a historical account of the coin, encompassing its origins and a chronicle of its journey through collectors’ hands. Moreover, detailed information pertaining to each coin’s specific year of issue, mint mark, and even proof variations is accessible. It is imperative to underscore that these resources are made available without any cost.

A notable feature worth exploring is the ‘Population Report.’ This feature is particularly fascinating as it encompasses data from numerous countries. To illustrate, let us focus on the United States and into Barber quarters. Here, the emphasis shifts from pricing to population statistics. In essence, this report elucidates the number of coins within each grade category that have undergone PCGS evaluation. For instance, inspecting the 1900 date reveals pertinent information: three coins graded at MS-60, six at MS-61, and so forth. Typically, as one ascends the grading scale, the population of coins becomes scarcer. For instance, considering the 1899-S variant, only a solitary coin attains the coveted MS-68 grade, with none achieving the esteemed MS-69 or MS-70 ratings. This often corresponds directly with the coin’s rarity and, consequently, its market value.

Slabbed or Raw: Choosing Pre-33 Gold Coins.

When selecting pre-33 gold coins, collectors must decide between purchasing slabbed or raw coins. Here’s what to consider:

• Slabbed Coins: These coins are professionally graded and protected in a plastic holder by third-party grading services like NGC or PCGS. The assigned grade can significantly impact the coin’s value, with higher grades commanding higher premiums. Slabbed coins offer enhanced security and protection from damage, but they tend to be more expensive due to grading fees and premium costs.
• Raw Coins: Raw coins are ungraded and remain outside plastic encasements. They are often more budget-friendly, with their value primarily determined by gold content and condition. Raw coins possess unique character and historical authenticity as they remain unaltered. However, they are potentially more vulnerable to damage and can be challenging to sell without a professional grade.

Acquiring Pre-33 gold coins presents a choice: raw or slabbed?

Opting for raw coins demands practice, ensuring you’re securing genuine pieces with original surfaces, which can be a competitive endeavor on platforms like eBay. The allure of raw coins lies in their charm; a bit of a gamble, akin to being a gold “adventurer,” as even if you don’t strike it rich, you’ve still got the precious metal.

Buying Pre-1933 Gold Coins: Certified vs. Raw – Higher price on market.

The video recommends sticking to certified coins when purchasing pre-1933 gold coins, as they offer more security and higher potential value. This video provides valuable information for those interested in investing in pre-1933 gold coins, particularly focusing on the importance of certification and the potential drawbacks of buying raw coins.

In this video, Coins Roc discusses the pros and cons of buying pre-1933 gold coins, particularly focusing on the difference between “slabbed” (certified) coins and “raw” (uncertified) coins. The presenter emphasizes the importance of buying certified coins from reputable grading services like PCGS and NGC, as they offer authentication and grading, ensuring that the coin is not counterfeit and has not been cleaned or tampered with. The presenter also mentions the higher market value of certified coins compared to raw ones, highlighting the example of a 1911 $5 Indian gold piece with a retail value of $900 for the certified coin versus a lower value for the raw one.

Coins Roc strongly advises against buying raw coins due to the risks associated with their authenticity, grade, and potential cleaning or damage. They also mention the cost of sending a coin for certification as an additional factor to consider. Conversely, when you purchase a slabbed coin, you’re essentially investing in the confidence of authenticity, value retention, and simplified insurance, not to mention the joy of participating in set registries and building collections with certified coins. Some collectors never submit coins themselves, preferring to buy or upgrade with graded pieces. It’s all about personal preference, and your motivation for collecting; while some revel in the tangible connection to history, others prioritize security and long-term investment. Slabbed coins do have their merits, especially in terms of graded condition and authenticity, but that extra premium might not be a crucial factor in the face of an economic collapse. It’s all about what suits your goals and values in the world of Pre-33 gold. So, whether you’re stacking, collecting, or just enjoying the allure of precious metals, choose your path wisely, and happy coin hunting!

Raw Pre-33 gold is cheaper, if you care stocking and go long term.

Personally, I lean toward raw Pre-33 coins – they’re more affordable, and I relish the tactile link to history. Slabs may be in vogue, but nothing beats holding an old coin from a bygone era in your hand. It might ruffle some feathers among modern numismatists, who often prefer slabbed coins, but for those who cherish the genuine touch of history, raw Pre-33 gold is the way to go. When it comes to legacy planning, raw coins are not only cost-effective but also suitable for passing down to your children. Plus, given the right source, research, and testing, there’s no reason to be skeptical of buying raw coins.

If your primary goal is to invest in precious metal, the intrinsic value lies in the metal itself, not the state or rarity of the coin. Low-premium gold rounds are your go-to for stacking. However, for those who collect as part of their stack, opting for slabbed coins can offer advantages, particularly in terms of the ease of sale due to established grade and authenticity. Slabbed coins are favored by collectors who prioritize the coin’s condition and grade over its historical and intrinsic character. It’s important to remember that an MS-69 slabbed coin, for instance, doesn’t inherently outshine an average raw bullion coin – it’s just encased in plastic with a premium price tag. So, should you choose to engage in this world of encapsulation, be mindful of your goals and the value it brings to your collection.

Raw or slabbed, it’s all a matter of perspective.

And for those concerned about the hypothetical value in a post-crisis world, the slab might not mean much.

The world of slabbed bullion coins revolves heavily around grading and encapsulation services, where third-party entities provide a safeguard for the coin’s legitimacy and state. The grade assigned to the coin carries significant weight, influencing its market value, with superior grades demanding a premium. Slabbed coins are generally perceived as more secure and safeguarded against damage compared to their raw counterparts. The decision to opt for slabbed coins usually stems from one of three key reasons: either it complements your personal collection, particularly if it consists of coins above a specific grade, or it concerns coins prone to counterfeiting, necessitating an extra layer of assurance for both yourself and potential future buyers. Lastly, for high-value and rare coins, encapsulation can mitigate the risk of potential grade depreciation due to damage over time, making it a sound investment strategy.

Nonetheless, the coin collecting realm is not without its controversies. Some consider the grading, certification, “first-striking,” and special labeling of common raw bullion coins as MS69 or MS70 to be among the most audacious schemes perpetrated on collectors. In the modern coin context, grading might seem superfluous since most contemporary minted coins maintain a Brilliant Uncirculated (BU) condition. However, grading serves a vital role in assessing the condition and authenticity of older coins. Meanwhile, the concept of registry sets, designed to encourage collectors to needlessly grade and certify common coins, adds to the critique.

Why cleaned gold coin are cheaper than non-cleaned?

The issue with “cleaned” coins, especially concerning pre-1933 US gold coins, lies in their potential depreciation in value. While cleaned coins may be a more economical option for stacking gold based on weight, the cleaning process can significantly impact their worth, potentially reducing them to selling at or near spot prices. This is particularly crucial for pre-1933 US gold coins, where the condition and natural luster play a significant role in determining value.

For US coins, especially those predating 1933, cleaning is generally discouraged as it damages the coin’s condition and diminishes its original luster, attributes highly valued by coin collectors. The market dynamics for these coins are notable, with cleaned coins often selling for less than their uncleaned counterparts. The discrepancy is exemplified in examples like a $5 Indian coin – a cleaned one may be priced around $550, while a mint state $5 Indian could surpass $1,000 due to the collector demand for coins in pristine condition.

In the context of ancient gold and silver coins like Aurei, Denarii, Staters, and Drachma, cleaning is a common practice, given the extended periods of burial or storage that often result in substantial dirt accumulation. However, even in this domain, there’s ongoing debate regarding the extent of cleaning, with preferences varying between minimal cleaning and total dirt removal.

The impact of cleaning is particularly noticeable in the silver market, where “junk silver” tends to move in line with the spot price, but individual coins of higher quality can command significantly higher prices, ranging from hundreds to thousands of dollars.

Coin collectors, in general, prioritize mint luster and tend to disfavor cleaned coins due to the potential surface damage and scratches caused by the cleaning process. The underlying principle is that while you can clean a coin, you cannot reverse the process, making the choice between cleaned and non-cleaned coins a critical consideration for both stackers and collectors alike.

How to identify cleaned gold coins.

To identify cleaned gold coins, you can look for certain signs that indicate cleaning has taken place. Here are some methods to help you determine if a gold coin has been cleaned:

1. Cartwheel Effect: The cartwheel effect refers to the luster and shine that a coin exhibits when it is tilted under light. A cleaned coin may lack this natural cartwheel effect, appearing dull or altered due to the cleaning process.
2. Surface Condition: Inspect the surface of the coin under magnification to look for any signs of cleaning lines or marks. Harsh cleaning methods can leave behind visible lines or damage on the coin’s surface.
3. Toning and Patina: Cleaning can remove natural toning or patina that develops on coins over time. If a coin appears overly shiny or lacks natural toning, it may have been cleaned.
4. Professional Examination: For a more accurate assessment, consider having the coin examined by a professional numismatist or grading service. They have the expertise to detect subtle signs of cleaning that may not be easily visible to an untrained eye.
5. Avoid Abrasive Cleaners: Abrasive cleaners like silver polish can damage the surface of a coin and remove its mint luster. Avoid using such harsh cleaning methods as they can significantly reduce the value of the coin.

Cleaning gold coins with improper tools or techniques can lead to various risks and potential damages, including:

1. Loss of Value: Harsh cleaning methods can damage the delicate surface of the coin, reducing its numismatic value. Even gentle cleaning techniques may decrease the value if the cleaning alters the coin’s original state or removes its natural patina.
2. Physical Damage: Gold is a soft metal, and using abrasive tools or harsh chemicals can scratch or mar the surface of the coin, leading to visible damage that affects its appearance and value.
3. Chemical Damage: Improper use of chemicals not suitable for cleaning gold coins can harm the coin’s surface, causing discoloration, corrosion, or other chemical reactions that may be irreversible.
4. Loss of Historical Significance: Cleaning rare or historical gold coins can diminish their historical significance and authenticity. Removing patina or toning developed over time can detract from the coin’s historical value.
5. Ineffective Cleaning: Using incorrect tools or techniques may result in ineffective cleaning, leaving behind dirt, grime, or residues that can further deteriorate the coin’s appearance over time.

To avoid these risks, it is generally recommended to refrain from cleaning gold coins unless absolutely necessary and to seek advice from professional numismatists or coin dealers before attempting any cleaning procedures. If cleaning is deemed necessary, it is crucial to use gentle methods and appropriate tools to preserve the coin’s integrity and value.

The Pre-1933 Gold Coin, non-confiscatable gold coins a scam.

Most websites that are about gold coins are usually selling the coins — and they’re filled with scams. The most common scam seems to be a selling point that’s on nearly every gold coin website, including the top results on Google.

Most people looking into gold know that back in 1933, president FDR signed executive order 6102 that effectually confiscated all gold coins, gold bullion bars, and gold certificates. The confiscation was justified through “compensation” of a little over $20 per troy ounce of gold. The gold was then taken by the federal government and sold to international investors for $35 per troy ounce. Economic totalitarian executive orders like these were common for FDR, who is one of the most power-hungry presidents in the United States’ history.

But what about the scam? The scam starts after the gold dealer explains the story about FDR confiscating gold. Then the dealer claims that gold confiscation is still a risk. While this is partially true, what they say next is a blatant lie:

To get around the threat of gold confiscation, the dealers claim, you just have to buy pre-1933 gold coins. These collector coins, it’s said, will never be confiscated because the president “doesn’t have the authority” to confiscate gold coins before 1933. A few thoughts about this:

1. He Doesn’t. But then again, he didn’t have the authority to confiscate the other coins he confiscated back in 1933. He…might. Why wouldn’t he? If the courts believe the government can confiscate gold coins, then what on earth does 1933 have to do with anything? The short and simple answer is: nothing.
2. The 1933 claim is simply made so gold dealers can peddle old gold coins for more than they’re worth. This is just another example of why you should always take what people say with a grain of salt, especially if they’re selling you something.