Historic U.S. Gold Set at Record Low Premium
By Brian Zweig
MS62 $10 and $20 Liberty Sets
For years, we’ve made a point of informing clients of favorable market conditions by closely monitoring the vintage U.S. gold market. When we brought to your attention that MS64 $20 Saints were trading at record low premiums, many of you took advantage of the outstanding opportunity.
Now, we have identified two historic pre-1933 U.S. coins that are trading at record low premiums: $10 and $20 Liberties.
For over a century, America’s gold coinage served as the world’s most recognized and universally accepted form of value. The demand for U.S. gold coins existed both here and abroad since foreign banks, institutions and merchants preferred American coinage over all other forms of money. Just as American Gold Eagles and Silver Eagles enjoy worldwide demand today, $10 Liberties and $20 Liberties were internationally known as a trusted unit of exchange.
Although U.S. gold coins were pulled from circulation in 1933, they have found a new purpose as both collectibles and bullion items. In fact, they have a strong following among both investors and numismatists.
This dual demand is what makes pre-1933 U.S. gold such an attractive target for smart investors. Owners of vintage American gold coins have two ways of profiting:
- A rise in the spot price of gold.
- An increase in the collector value of the coins.
Unlike most modern bullion items such as bars, rounds, Eagles and Maples that are produced on-demand, the supply of pre-1933 U.S. gold is finite. When demand heats up for these vintage coins, there is oftentimes not enough supply in the marketplace. The result: increased premiums.
Sometimes, these spikes in premium can be quite dramatic. Volatility in the price of gold will typically drive premiums up significantly. In addition, if a major marketer or retailer decides to promote a specific coin, it will often jump in value regardless of where gold is trading. New reference books and changing collector tastes can also influence premiums. Just as 90% silver coins fluctuate in premium depending on market conditions, the same phenomenon exists with vintage American gold coins.
The Liberty design, also known as the Coronet motif, adorned America’s gold coins from the 1830s through the early 1900s as one of the longest-lived coinage designs in the history of American numismatics.
The U.S. Mint favored the design because it was easy to strike, and citizens appreciated the motif due to its highly attractive appearance. Other than adding the motto “IN GOD WE TRUST” to certain denominations in 1866, the design was largely untouched for decades.
The $10 Liberty and $20 Liberty served a unique function in American and international commerce. Unlike smaller denominations, such as the gold dollar, $2.50 Liberty and $5 Liberty, the $10 and $20 pieces were often used for large transactions.
Those two denominations were the coin of choice for inter-bank transfers and sovereign wealth reserves. As evidence of this practice, many $10 and $20 coins were discovered in European and South American bank vaults in the late 20th century. When foreign entities received payments from the United States, they requested payment in the form of $10 and $20 gold coins.
More recently, $10 and $20 Liberties have developed a strong collector and investor base. Numismatists are attracted to these coins due to their historical background, beautiful designs and rarity.
Investors prefer Liberty gold coins due to their profit potential and track record of appreciating during market turmoil. For example, looking back in the past 10-15 years, these coins have frequently traded for substantial premiums:
- MS62 $10 Liberties, for over a decade in the early 2000s, consistently traded for double or even triple their melt value. More recently, in the past five years, they have sold for 50-60% over melt.
- When gold surged past $1,000 per ounce in 2010, MS62 $20 Liberties saw a major increase in premium. Dealers were bidding 60% over melt for these coins, because there simply wasn’t enough supply in the marketplace. Today, $10 and $20 Liberty premiums are selling at record low prices relative to spot. Demand for vintage gold coins is cyclical – and we are currently in a valley.
Furthermore, a relative calm in spot prices has contributed to low premiums. This combination allows shrewd buyers to pick up Liberty gold at surprisingly low levels. We feel these scarce and historic gold coins represent one of the best buys in American numismatics at the moment.
Most Liberty gold coins are trading at reasonable levels, but the best value is pre-1900 $10s and $20s in Uncirculated grade. For essentially the same price as a raw circulated coin, you can own a PCGS/NGC graded MS62 piece from the 1800s.
The date and condition make these coins much more appealing to collectors. However, at today’s prices, you’re not paying much of a premium for this added benefit.
Each set contains two coins: a pre-1900 $10 Liberty and a pre-1900 $20 Liberty. Both will be graded MS62 by NGC or PCGS.
At this price, each set is just 30% over melt, almost half of what the premium typically has been. We find it difficult to believe century-old U.S. gold coins in Mint State condition can be had for such a tiny premium over spot. Considering how quickly premiums can dramatically increase on these pre-1933 coins, now is the time to take advantage of the record low premiums!
MS62 $10 and $20 Liberty Set - Call for pricing and details! Price includes FREE shipping, handling and insurance
Call us at 800-831-0007 or send us an email to order your MS62 $10 and $20 Liberty sets today.
*Prices are subject to change due to market fluctuation and product availability. Price includes free shipping, handling and insurance.