Deal of the Decade: MS63 Liberty Double Eagles
By Brian Zweig
MS63 $20 Liberty Double Eagle
If you’re like many investors, you might be waiting for a “dip” to add more gold to your holdings. This is a common sentiment, especially nowadays. The spot price of gold, for example, has largely remained within a $75 range in 2018. This narrow trading band has kept many buyers on the sidelines. Whereas breakouts in either direction tend to bring out new buyers, quiet conditions like this result in lower volumes.
What this relatively flat gold chart doesn’t show, however, is a major hidden correction. Spot prices might appear steady with no major movement, but behind the scenes, select U.S. gold coins are trading at 10-year lows. In fact, one coin in particular is selling for less today than it did in 2009, when gold spot was just $900 per ounce.
How is this possible?
The value of a gold bullion product consists of two components: melt value and premium. Simply put, the melt value is the weight in ounces multiplied by the spot price. It represents what the product is worth as a generic piece of metal. Meanwhile, the premium is how much additional value a product commands above its melt value.
Premiums are affected by numerous factors. For newly-minted bullion products, premiums are largely a function of production costs. Take a 1-ounce gold bar for example. If spot is $1,300 per ounce, that same gold bar likely sells for $1,350 per ounce (i.e., a $50 premium) to cover the costs of refining, minting, packaging, and distribution.
For a numismatic product, premiums are more a function of supply and demand. Vintage coins have two basic audiences: investors and collectors. When both groups are actively buying classic U.S. gold coins, demand tends to exceed supply and premiums are forced upward. On the flip side, in periods of quiet investor and collector demand, premiums drift downward.
Fluctuations like this are routine in the pre-1933 U.S. gold market—we’ve seen this cycle repeat countless times over the decades. Furthermore, these ebbs and flows have provided savvy investors with numerous opportunities. Owning legitimately rare U.S. coins with low premiums give you two ways to win. Not only will your coins benefit from a rise in spot prices, but they stand to gain in collector premium, too. By having two potential ways to profit, the odds are stacked in your favor. The key, however, is knowing when to enter the market and which coin to buy.
That’s why we’re highlighting today’s coin in particular. There are many bargains to be found in today’s pre-1933 U.S. gold market, but one piece stands out as a tremendous value. The $20 Liberty Double Eagle in MS63 is one of America’s most storied and iconic coins, but now it’s one of the best buys, too. We’ll cut to the chase: this coin is trading at 50% of its 10-year high and currently sitting at the lowest premium on record!
History of the $20 Liberty Double Eagle
The $20 Double Eagle holds the unique distinction of being America’s highest-denomination circulating coin. Originally the $10 Eagle held this title, but following the California Gold Rush, the U.S. Mint needed an even larger coin. With massive amounts of the yellow metal flowing into the marketplace, the federal government began striking this hefty gold coin.
By the late 19th century, the Double Eagle became one of the world’s most trusted units of exchange. Not only was it used routinely here in the U.S., but many overseas banks chose the Double Eagle for their own reserves. Remarkably, they favored American-made coins over their own country’s currencies! The sentiment throughout the world was that U.S. Double Eagles were the safest way to hold gold.
It’s been over a century since Liberty Double Eagles were last struck, but the coins remain known and admired throughout the world. On the numismatic side, collectors love the $20 Liberty for its beautiful design and fascinating connection to the California Gold Rush. The series also contains a wide variety of date and mintmark combinations, making the series an interesting challenge to obtain.
On the investment side, Double Eagles are preferred for their high gold content, liquidity, and profit potential. Each coin contains 0.9675 fine troy ounces of gold. As a U.S. Mint product with both collector and investor demand, $20 Liberty Double Eagles are always easy to trade and sell. Plus, when premiums are low, they’re viewed as an excellent alternative to modern 1-ounce gold coins.
An American Favorite at the Lowest Price in Over a Decade
While an excellent case can be made for all low-premium Double Eagles, MS63 Liberties offer the very best potential for appreciation. Here’s why:
- In mid-2009, when gold was still under $1,000 per ounce, this coin was trading for $2,500 to $2,750 each. It was selling for over 2.5 times its melt value.
- In late 2009, gold surged by $200 per ounce. Whereas that spike was quite sudden and impressive, the MS63 $20 Liberty staged an even greater rally. In just one month, according to the NGC Price Guide, the coin raced from $2,560 per coin to $3,220 per coin!
- More recently, MS63 $20 Liberty premiums have calmed down to some degree, but remained in the 50% to 70% range. That is, basis a spot price of $1,300 per ounce, MS63 $20 Liberties would command somewhere in the vicinity of $2,000 per coin.
- Today, the NGC Price Guide for the MS63 $20 Liberty is $1,815 per coin.
But that’s not all… On multi-coin orders, we’ll also offer you a guaranteed mix of dates and FREE shipping!
We suggest ordering 3 or more coins, as you will receive the scarcer 1900 and 1907 issues as part of your 3-coin set. The 1900 date is desirable as a turn-of-the-century date, and the 1907 date has numismatic significance as the final year of issue. Both dates are significantly scarcer than the most common date, but we’re throwing them in at no additional premium.
At the lowest price in over a decade, these MS63 $20 Liberties are a remarkable find! If you’ve been waiting to take advantage of a market correction before buying gold, take a close look at these MS63 $20 Liberties at half of their all-time peak. Not only are they currently available at historically low premiums, but we’re also offering two better dates at the common-date price. Our only caveat is to act fast—we have exactly 31 of these 3-coin sets and cannot guarantee that more will be available. It’s been over five years since we’ve offered MS63 $20 Liberties, but it might be mere hours before these coins find new homes. To secure these MS63 $20 Liberties, please call us at 800-831-0007 or email us.
*Prices subject to change based on market fluctuation and product availability. Prices reflected are for cash, check, or bank wire. Free shipping, handling, and insurance are available for all purchases. Offer expires Friday, June 8, 2018, or while supplies last.