While currently there are no restrictions on gold ownership, in 1933, the United States government, by Executive Order, prohibited the private ownership of certain quantities of gold bars and coins.
On April 5, 1933, President Franklin D. Roosevelt dealt with the monetary and banking crisis at the height of The Great Depression by signing Executive Order 6102, which was in effect, a stripping of the gold citizens held to insure their financial futures in exchange for a payment of the then-current gold standard price of approximately $20 per ounce. However the Executive Order that banned private ownership of gold included several exceptions. One exception allowed people to own gold coins having a recognized special value to collectors of rare and unusual coins.
In 1934, the government raised the price of gold to $35 per ounce. This efficiently devalued the dollar by approximately 43% and raised the price of gold by approximately 75%.
Although we can’t say for certain if or how the government might prohibit private ownership of gold in the future, the Treasury Department at various times has identified different gold coins which it considered to be of recognized special value to collectors of rare and unusual coins. These included all United States gold coins minted prior to 1933 and all foreign gold coins minted before 1959.
It is estimated that 99% of the gold coins minted prior to 1933 were exchanged and then melted down. Today, that remaining 1% of Pre-1933 gold coins have increased value due to their rarity.
To learn more about the Presidential Executive Order 6102 and how it applies to your gold investments, call Capital Gold Group at (800) 510-9594.
The representatives at Capital Gold Group are not financial advisors and the information provided in this blog should not be considered financial advice. The past performance of gold investments is not indicative of potential future gains.