Category: Gold and Silver News

As the broader economy shows signs of foundational weakness, gold and silver (yet again) have proven their inherent value and inflation-hedge properties. Both precious metals have boasted impressive advancements over the last week.

Watch this week’s The Gold Spot to hear Scottsdale Bullion & Coin Founder Eric Sepanek and IRA Liaison Michelle Ellis explain these major price moves, why gold and silver are expected to surge higher, and how investors can take advantage of this situation.

Spot Gold Price Hits All-Time High

This week, spot gold prices took off, notching new highs. On Tuesday, March 5, 2024, the spot price of gold first reached its new high since December 2023 when it hit $2,141.59 an ounce. However, the rally continued as gold brought a new high price each day of the week. As of today, Friday, March 8, 2024, the gold spot price hit a new intra-day all-time high price of $2,195/oz after the release of an overall weaker U.S. jobs report.

The rush into gold comes amidst a backdrop of weaker economic conditions and spiking gold demand. This is gold’s fifth record high price in the past three months alone, underscoring the yellow metal’s fundamental strength and the shift into safe-haven assets. In early December 2023, spot gold prices hit a then-high of $2,135/oz.

Get More Out of Your Gold & Silver Investments

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The spot silver price is pulling its weight by setting a two-month record¹ around the same time. It’s not uncommon for this shiny precious metal to follow closely behind gold’s upward trajectory.

Premiums Are Still Low…For Now

Don’t make the mistake of assuming that elevated gold and silver prices automatically result in higher dealer premiums. Right now, these add-ons remain at favorable lows as the supply of coins, gold bars, and silver bars is healthy.

“Even though [gold and silver] prices are high, premiums are in a really good spot.” – SBC Founder Eric Sepanek

This hasn’t been the case in previous episodes of significant gold and silver price hikes, so investors should take full advantage of the opportunity while it lasts.

Perfect Timing for Contributions

The strength of gold and silver prices and relatively low premiums come at an opportune time for investors looking to optimize their retirement savings. The clock is ticking on 401k and IRA contributions which investors can make for both the 2023 and 2024 tax years, but only until April 15th. Here are the limits based on age and year:

You can knock out contributions for two years simultaneously, further diversify your portfolio, and lock in gold and silver prices before they jump higher. It’s also a great time to rollover a 401(k), IRA, or another eligible retirement account to expose your nest egg to physical gold and silver.

A Limited Buying Opportunity

Gold prices might have hit all-time highs, but experts think things are just getting started. The recent price ceiling has been re-established as the floor with gold value remaining steady and strong. Due to a confluence of economic fragility, geopolitical instability, and waning investor confidence, gold and silver prices are expected to continue moving upward.

$2,500 an ounce is the average of 2024 gold price forecasts from a slew of market analysts. It’s only the beginning of March, and gold prices are well on their way to hitting this prediction. Investors can expect a few retractions on the way up, but experts are saying this is a prime time to buy physical gold and silver.

“We’re very bullish, we’re not surprised, and we think it’s going to keep going in that direction.”

Don’t Wait to Buy Gold and Silver. Buy Gold and Silver, and Wait

All signs point to higher gold and silver prices in 2024 and beyond. Right now, investors have a limited opportunity to buy gold and silver while premiums are relatively low and before prices jump higher. Waiting around until the “perfect” time is a failed strategy. As always, investors are much better off buying gold and silver and waiting for their inevitable rise in value.

As the broader economy shows signs of foundational weakness, gold and silver (yet again) have proven their inherent value and inflation-hedge properties. Both precious metals have boasted impressive advancements over the last week.

Watch this week’s The Gold Spot to hear Scottsdale Bullion & Coin Founder Eric Sepanek and IRA Liaison Michelle Ellis explain these major price moves, why gold and silver are expected to surge higher, and how investors can take advantage of this situation.

Spot Gold Price Hits All-Time High

This week, spot gold prices took off, notching new highs. On Tuesday, March 5, 2024, the spot price of gold first reached its new high since December 2023 when it hit $2,141.59 an ounce. However, the rally continued as gold brought a new high price each day of the week. As of today, Friday, March 8, 2024, the gold spot price hit a new intra-day all-time high price of $2,195/oz after the release of an overall weaker U.S. jobs report.

The rush into gold comes amidst a backdrop of weaker economic conditions and spiking gold demand. This is gold’s fifth record high price in the past three months alone, underscoring the yellow metal’s fundamental strength and the shift into safe-haven assets. In early December 2023, spot gold prices hit a then-high of $2,135/oz.

Get More Out of Your Gold & Silver Investments

Learn How

The spot silver price is pulling its weight by setting a two-month record¹ around the same time. It’s not uncommon for this shiny precious metal to follow closely behind gold’s upward trajectory.

Premiums Are Still Low…For Now

Don’t make the mistake of assuming that elevated gold and silver prices automatically result in higher dealer premiums. Right now, these add-ons remain at favorable lows as the supply of coins, gold bars, and silver bars is healthy.

“Even though [gold and silver] prices are high, premiums are in a really good spot.” – SBC Founder Eric Sepanek

This hasn’t been the case in previous episodes of significant gold and silver price hikes, so investors should take full advantage of the opportunity while it lasts.

Perfect Timing for Contributions

The strength of gold and silver prices and relatively low premiums come at an opportune time for investors looking to optimize their retirement savings. The clock is ticking on 401k and IRA contributions which investors can make for both the 2023 and 2024 tax years, but only until April 15th. Here are the limits based on age and year:

You can knock out contributions for two years simultaneously, further diversify your portfolio, and lock in gold and silver prices before they jump higher. It’s also a great time to rollover a 401(k), IRA, or another eligible retirement account to expose your nest egg to physical gold and silver.

A Limited Buying Opportunity

Gold prices might have hit all-time highs, but experts think things are just getting started. The recent price ceiling has been re-established as the floor with gold value remaining steady and strong. Due to a confluence of economic fragility, geopolitical instability, and waning investor confidence, gold and silver prices are expected to continue moving upward.

$2,500 an ounce is the average of 2024 gold price forecasts from a slew of market analysts. It’s only the beginning of March, and gold prices are well on their way to hitting this prediction. Investors can expect a few retractions on the way up, but experts are saying this is a prime time to buy physical gold and silver.

“We’re very bullish, we’re not surprised, and we think it’s going to keep going in that direction.”

Don’t Wait to Buy Gold and Silver. Buy Gold and Silver, and Wait

All signs point to higher gold and silver prices in 2024 and beyond. Right now, investors have a limited opportunity to buy gold and silver while premiums are relatively low and before prices jump higher. Waiting around until the “perfect” time is a failed strategy. As always, investors are much better off buying gold and silver and waiting for their inevitable rise in value.

Gold and real estate are two of the most popular physical assets used for portfolio diversification. When investors are looking for protection from inflation, volatility, and economic uncertainty, these tangible investments commonly spring to mind. Here are some distinctions between gold and real estate that investors could consider before they invest in these assets.

Accessibility

When it comes to ease of access, gold is the clear winner. The average home costs over $430,000 and commercial property is orders of magnitude more expensive. These historically high prices, which are ever-increasing, keep the overwhelming majority of investors from considering real estate as part of their portfolio. Conversely, gold’s ease of divisibility results in a broad spectrum of assets representing various price points. Whether you’re purchasing your first piece of gold or topping up your retirement account, you’ll have no trouble finding a gold asset that matches your pricing needs.

Maintenance

Real estate doesn’t just require a bigger buy-in than gold. It also demands considerable ongoing investments. Generally, owners should expect to spend up to 2% of the property’s value every year on general upkeep including maintenance and repairs. That means real estate investors should expect to put over $8,000 annually into this asset, based on the average price of a home. On the other hand, investing in physical gold doesn’t incur any routine costs. In proper storage conditions, gold assets don’t face any risks of deterioration. The only exception would be for investors who open a precious metals IRA which only costs a few hundred dollars annually.

👉 Suggested Reading: How Much Money Do You Need to Start a Gold IRA?

Liquidity

Ideally, a physical investment offers wealth protection while being easily convertible into cash when necessary. Unfortunately, this isn’t the case for real estate which has a strong reputation as an illiquid asset. The average timeline for selling a home stands at nearly two months, while  historically a short period of time, severely restricts an investor’s flexibility when they are ready to sell. The liquidation process is even longer for commercial properties. Alternatively, gold is considered a highly liquid asset because of its incredibly high demand and worldwide recognition. Selling gold is a much more straightforward process that often only takes a few days. This allows investors to convert their investments at will to take advantage of market trends or to address financial needs.

Inflation Hedge

One of the defining characteristics of a worthwhile physical asset is its ability to hedge against inflation. Investors purposefully seek out these investments to preserve their wealth as inflation ravages paper markets. Gold has always demonstrated a strong inverse relationship to the rest of the economy. In other words, gold prices tend to rise as inflationary pressures sink the value of traditional assets. For example, when the US economy was being decimated by stagflation throughout the 1970s, gold prices surged over 1,700% from around $36 to well over $650 within the decade. In the same period, the average home prices climbed only 9.9%. It’s also important to note that all the costs involved with maintaining real estate increase with inflation, eating into any potential gains.

Risk

Physical assets are typically perceived as carrying less risk than their paper counterparts. However, the complexity of real estate transactions and the sheer number of people involved opens up investors to considerable counterparty risk. Just recently, the National Association of Realtors – the largest consortium of brokers in the country – was found guilty of artificially inflating brokerage fees by fixing industry-wide rates. This robbed investors of several percentages of their property’s value. Institutional investors have been found guilty of manipulating gold prices too, but the impact is much less severe than in the real estate market. Plus, these schemes impact paper gold much more than physical gold which maintains its inherent value regardless of market manipulation.

Debt

Real estate’s higher barrier of entry inevitably forces people into debt. A staggering 78% of home purchases in the United States require financing which is reflected in the national mortgage debt of $19 trillion. This debt accumulation puts investors at risk of overleveraging and defaulting. Although some precious metals investors take out loans to increase their gold holdings, debt is not a prerequisite for investing in gold like it is for real estate. There’s a rich variety of gold assets spanning a range of price points, making it easy for investors to find products that suit their needs. Gold’s lower price point also lends itself to the investment strategy of dollar-cost averaging.

Volatility

The real estate market is heavily influenced by the rest of the economy which makes it a more volatile asset than gold. Everything from interest rate hikes and currency devaluation to inventory changes and market sentiment can throw real estate prices out of whack. Plus, there’s the constant issue of debt. The relatively recent 2008 Global Financial Crisis was sparked by a massive housing bubble resulting from bad loaning practices, and the foundation of the real estate market is still based on debt. Centuries of recognition and worldwide use as a hedge against economic pressures have made gold an incredibly stable asset. Its inherent value isn’t impacted by flare-ups in the economy which keeps prices relatively calm.

Gold vs Real Estate: Shifts in Perception

Common investing wisdom might suggest that real estate is the ideal physical asset for protection against economic uncertainty and instability. However, recent numbers demonstrate gold’s strength in virtually all categories. A recent Gallup survey revealed that the number of Americans choosing real estate as the best long-term investment dropped by 11%. Conversely, gold’s selection as the leading investment nearly doubled from 15% to 26%.

If you’re interested in learning more about investing in gold, grab a FREE copy of our Precious Metals Investment Guide. It’ll equip you with everything you need to know to get started investing in precious metals to diversify your portfolio, protect your wealth, and hedge against inflation.

Gold and real estate are two of the most popular physical assets used for portfolio diversification. When investors are looking for protection from inflation, volatility, and economic uncertainty, these tangible investments commonly spring to mind. Here are some distinctions between gold and real estate that investors could consider before they invest in these assets.

Accessibility

When it comes to ease of access, gold is the clear winner. The average home costs over $430,000 and commercial property is orders of magnitude more expensive. These historically high prices, which are ever-increasing, keep the overwhelming majority of investors from considering real estate as part of their portfolio. Conversely, gold’s ease of divisibility results in a broad spectrum of assets representing various price points. Whether you’re purchasing your first piece of gold or topping up your retirement account, you’ll have no trouble finding a gold asset that matches your pricing needs.

Maintenance

Real estate doesn’t just require a bigger buy-in than gold. It also demands considerable ongoing investments. Generally, owners should expect to spend up to 2% of the property’s value every year on general upkeep including maintenance and repairs. That means real estate investors should expect to put over $8,000 annually into this asset, based on the average price of a home. On the other hand, investing in physical gold doesn’t incur any routine costs. In proper storage conditions, gold assets don’t face any risks of deterioration. The only exception would be for investors who open a precious metals IRA which only costs a few hundred dollars annually.

👉 Suggested Reading: How Much Money Do You Need to Start a Gold IRA?

Liquidity

Ideally, a physical investment offers wealth protection while being easily convertible into cash when necessary. Unfortunately, this isn’t the case for real estate which has a strong reputation as an illiquid asset. The average timeline for selling a home stands at nearly two months, while  historically a short period of time, severely restricts an investor’s flexibility when they are ready to sell. The liquidation process is even longer for commercial properties. Alternatively, gold is considered a highly liquid asset because of its incredibly high demand and worldwide recognition. Selling gold is a much more straightforward process that often only takes a few days. This allows investors to convert their investments at will to take advantage of market trends or to address financial needs.

Inflation Hedge

One of the defining characteristics of a worthwhile physical asset is its ability to hedge against inflation. Investors purposefully seek out these investments to preserve their wealth as inflation ravages paper markets. Gold has always demonstrated a strong inverse relationship to the rest of the economy. In other words, gold prices tend to rise as inflationary pressures sink the value of traditional assets. For example, when the US economy was being decimated by stagflation throughout the 1970s, gold prices surged over 1,700% from around $36 to well over $650 within the decade. In the same period, the average home prices climbed only 9.9%. It’s also important to note that all the costs involved with maintaining real estate increase with inflation, eating into any potential gains.

Risk

Physical assets are typically perceived as carrying less risk than their paper counterparts. However, the complexity of real estate transactions and the sheer number of people involved opens up investors to considerable counterparty risk. Just recently, the National Association of Realtors – the largest consortium of brokers in the country – was found guilty of artificially inflating brokerage fees by fixing industry-wide rates. This robbed investors of several percentages of their property’s value. Institutional investors have been found guilty of manipulating gold prices too, but the impact is much less severe than in the real estate market. Plus, these schemes impact paper gold much more than physical gold which maintains its inherent value regardless of market manipulation.

Debt

Real estate’s higher barrier of entry inevitably forces people into debt. A staggering 78% of home purchases in the United States require financing which is reflected in the national mortgage debt of $19 trillion. This debt accumulation puts investors at risk of overleveraging and defaulting. Although some precious metals investors take out loans to increase their gold holdings, debt is not a prerequisite for investing in gold like it is for real estate. There’s a rich variety of gold assets spanning a range of price points, making it easy for investors to find products that suit their needs. Gold’s lower price point also lends itself to the investment strategy of dollar-cost averaging.

Volatility

The real estate market is heavily influenced by the rest of the economy which makes it a more volatile asset than gold. Everything from interest rate hikes and currency devaluation to inventory changes and market sentiment can throw real estate prices out of whack. Plus, there’s the constant issue of debt. The relatively recent 2008 Global Financial Crisis was sparked by a massive housing bubble resulting from bad loaning practices, and the foundation of the real estate market is still based on debt. Centuries of recognition and worldwide use as a hedge against economic pressures have made gold an incredibly stable asset. Its inherent value isn’t impacted by flare-ups in the economy which keeps prices relatively calm.

Gold vs Real Estate: Shifts in Perception

Common investing wisdom might suggest that real estate is the ideal physical asset for protection against economic uncertainty and instability. However, recent numbers demonstrate gold’s strength in virtually all categories. A recent Gallup survey revealed that the number of Americans choosing real estate as the best long-term investment dropped by 11%. Conversely, gold’s selection as the leading investment nearly doubled from 15% to 26%.

If you’re interested in learning more about investing in gold, grab a FREE copy of our Precious Metals Investment Guide. It’ll equip you with everything you need to know to get started investing in precious metals to diversify your portfolio, protect your wealth, and hedge against inflation.

Gold hits record high over $2180 an ounce on mixed jobs data, heading for the biggest weekly rally in five months, as investors react to the key U.S. jobs report for February.

Job growth topped expectations in February, pointing to a still-vibrant U.S. labor market while the unemployment rate rose. Nonfarm payrolls rose 275,000 for the month topping the forecast of 198,000. The jobless rate moved higher to 3.9%, even though the labor force participation rate held steady at 62.5%. Average hourly earnings, watched closely as an inflation indicator, showed a slightly less than expected increase for the month and a deceleration from a year ago. Resilience in the labor market will bolster the case for a rate cut.

The yellow metal had touched a record high of $2,164.09 in the previous session following testimony before Congress from Federal Reserve Chairman Jerome Powell that solidified expectations of pending interest rate cuts in the next few months. Lower interest rates are considered bullish for the yellow metal, making it a more attractive asset for investors. Gold also has support from haven demand related to the conflict in the Middle East. 

Front-month gold futures rose 0.3% Thursday to settle at $2,165.20 an ounce on Comex, and the most-active April contract gained 3.3% during the first four days of the week. Bullion dropped 0.6% in February after declining 0.2% in January and gaining 0.7% in December. The metal rose 13% in 2023. The April contract is currently up $13.70 (+0.63%) an ounce to $2178.90 and the DG spot price is $2166.10.

Powell said Thursday that Fed policymakers were “not far” from having the confidence to implement interest rate cuts as inflation moves toward the central bank’s 2% target.  

“I think we are in the right place,” he said Thursday in testimony before the Senate Banking Committee. “We are waiting to become more confident that inflation is moving sustainably down to 2%. When we do get that confidence, and we’re not far from it, it will be appropriate to begin to dial back the level of restriction so that we don’t drive the economy into recession.”

The Fed closely tracks both labor market and inflation data when determining monetary policy.

Earlier this week, the ADP employment report showed that private payrolls rose by 140,000 last month, up from an upwardly revised 11,000 in January but slightly lower than the 150,000 estimate by economists surveyed by Dow Jones. U.S. weekly initial jobless claims reported by the Labor Department were unchanged for last week. 

The Fed’s favorite inflation measure, the personal consumption expenditures price index, came in in line with economists’ estimates last week. Excluding volatile food and energy costs, so-called core-PCE increased 0.4% month on month in January and 2.8% from a year earlier. Top-line PCE, including food and energy costs, increased 0.3% for the month and 2.4% on a 12-month basis. 

About 95% of the investors tracked by the CME FedWatch Tool are betting that the Fed will keep rates unchanged this month, while 5% expect a 25 basis point cut. Most investors tracked by the tool also anticipate the Fed will hold rates steady at the following policy meeting in May. Most are now looking to June for a rate cut. 

The central bank has raised interest rates by 5.25 percentage points since March 2022 in an effort to cut inflation, but kept rates unchanged at 5.25% to 5.50% at its last meeting. 

Front-month silver futures rose 0.4% Thursday to settle at $24.58 an ounce on Comex, and the May contract rallied 5.2% in the first four days of the week. Silver lost 1.2% in February after falling 3.8% in January and dropping 6.1% in December. It ticked up 0.2% in 2023. The May contract is currently up $0.022 (+0.09%) an ounce to $24.600 and the DG spot price is $24.33.

Spot palladium decreased 0.3% Thursday to $1,052.00 an ounce but is up 8.7% so far this week. Palladium fell 4.6% in February after tumbling 11% in January and advancing 8.6% in December. Palladium plummeted 38% last year. Currently, the DG spot price is up $11.10 an ounce to $1057.50.

Spot platinum advanced 0.9% Thursday to $925.60 an ounce and is up 3.9% so far this week. Platinum decreased 4.9% in February after falling 8% in January and rising 8.1% in December. Platinum dropped 6.8% in 2023. The DG spot price is currently down $2.30 an ounce to $923.10.

Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or a recommendation regarding any particular security, commodity, or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities, or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand, and accept this disclaimer.

Gold hits record high over $2180 an ounce on mixed jobs data, heading for the biggest weekly rally in five months, as investors react to the key U.S. jobs report for February.

Job growth topped expectations in February, pointing to a still-vibrant U.S. labor market while the unemployment rate rose. Nonfarm payrolls rose 275,000 for the month topping the forecast of 198,000. The jobless rate moved higher to 3.9%, even though the labor force participation rate held steady at 62.5%. Average hourly earnings, watched closely as an inflation indicator, showed a slightly less than expected increase for the month and a deceleration from a year ago. Resilience in the labor market will bolster the case for a rate cut.

The yellow metal had touched a record high of $2,164.09 in the previous session following testimony before Congress from Federal Reserve Chairman Jerome Powell that solidified expectations of pending interest rate cuts in the next few months. Lower interest rates are considered bullish for the yellow metal, making it a more attractive asset for investors. Gold also has support from haven demand related to the conflict in the Middle East. 

Front-month gold futures rose 0.3% Thursday to settle at $2,165.20 an ounce on Comex, and the most-active April contract gained 3.3% during the first four days of the week. Bullion dropped 0.6% in February after declining 0.2% in January and gaining 0.7% in December. The metal rose 13% in 2023. The April contract is currently up $13.70 (+0.63%) an ounce to $2178.90 and the DG spot price is $2166.10.

Powell said Thursday that Fed policymakers were “not far” from having the confidence to implement interest rate cuts as inflation moves toward the central bank’s 2% target.  

“I think we are in the right place,” he said Thursday in testimony before the Senate Banking Committee. “We are waiting to become more confident that inflation is moving sustainably down to 2%. When we do get that confidence, and we’re not far from it, it will be appropriate to begin to dial back the level of restriction so that we don’t drive the economy into recession.”

The Fed closely tracks both labor market and inflation data when determining monetary policy.

Earlier this week, the ADP employment report showed that private payrolls rose by 140,000 last month, up from an upwardly revised 11,000 in January but slightly lower than the 150,000 estimate by economists surveyed by Dow Jones. U.S. weekly initial jobless claims reported by the Labor Department were unchanged for last week. 

The Fed’s favorite inflation measure, the personal consumption expenditures price index, came in in line with economists’ estimates last week. Excluding volatile food and energy costs, so-called core-PCE increased 0.4% month on month in January and 2.8% from a year earlier. Top-line PCE, including food and energy costs, increased 0.3% for the month and 2.4% on a 12-month basis. 

About 95% of the investors tracked by the CME FedWatch Tool are betting that the Fed will keep rates unchanged this month, while 5% expect a 25 basis point cut. Most investors tracked by the tool also anticipate the Fed will hold rates steady at the following policy meeting in May. Most are now looking to June for a rate cut. 

The central bank has raised interest rates by 5.25 percentage points since March 2022 in an effort to cut inflation, but kept rates unchanged at 5.25% to 5.50% at its last meeting. 

Front-month silver futures rose 0.4% Thursday to settle at $24.58 an ounce on Comex, and the May contract rallied 5.2% in the first four days of the week. Silver lost 1.2% in February after falling 3.8% in January and dropping 6.1% in December. It ticked up 0.2% in 2023. The May contract is currently up $0.022 (+0.09%) an ounce to $24.600 and the DG spot price is $24.33.

Spot palladium decreased 0.3% Thursday to $1,052.00 an ounce but is up 8.7% so far this week. Palladium fell 4.6% in February after tumbling 11% in January and advancing 8.6% in December. Palladium plummeted 38% last year. Currently, the DG spot price is up $11.10 an ounce to $1057.50.

Spot platinum advanced 0.9% Thursday to $925.60 an ounce and is up 3.9% so far this week. Platinum decreased 4.9% in February after falling 8% in January and rising 8.1% in December. Platinum dropped 6.8% in 2023. The DG spot price is currently down $2.30 an ounce to $923.10.

Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or a recommendation regarding any particular security, commodity, or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities, or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand, and accept this disclaimer.

Pre-1933 US gold coins are often heralded as the pinnacle of precious metals investments. For nearly a century, these legendary coins have attracted investors looking to own a piece of American history while securing their wealth. The iconic saga surrounding these coins along with their numismatic appeal and scarcity make them formidable investment vehicles. Everyone interested in holding precious metals should understand the value and significance of pre-1933 gold coins.

What are pre-1933 gold coins?

Pre-1933 gold coins represent a distinctive class of investment-grade coins with tremendous inherent value. All US coinage minted before the infamous 1933 gold confiscation falls within this highly sought-after group of coins. The minuscule amount of coins that evaded melting during the Great Depression have achieved legendary status in investment and collecting circles. The interest surrounding pre-1933 gold coins is reflected in their increased valuations and impressive sales prices. People worldwide seek out these rare coins to add to their coin collections and investment portfolios.

The History of Pre-1933 Gold Coins

The story of pre-1933 gold coins reaches back to the dawn of the United States. In the American colonies, foreign gold coins were the currency of choice before domestic minting began. The Portuguese Johannes and the Spanish Pistole were two of the most popular gold coins during this period both of which eventually inspired American gold coins.

The Coinage Act of 1792 established the United States Mint and launched the first branch in Philadelphia. For the first few years, the production of gold coins was slow as silver and copper coins took precedence. Production of pre-1933 gold coins officially kicked off in 1795 with three gold coins: a $10 Eagle, a $5 half-eagle, and a $2.5 quarter-eagle.

The widespread availability of gold during the California Gold Rush prompted Congress to issue the minting of two new gold coins with the Coinage Act of 1849. The $20 Double Eagle was a continuation of the Eagle series and immediately became the largest gold coin. The Gold Dollar, despite being planned for years prior, failed to gain much circulation after its release.

One of the more peculiar pre-1933 gold coins came in the form of a three-dollar piece following the Coinage Act of 1853. This gold coin was primarily minted to make it easier to purchase stamps in bulk. The coin’s design broke the mold set by the Eagle series by revamping Lady Liberty and replacing the characteristic eagle with a simple wreath and the number “3”.

The $4 Stella is another oddity in the history of pre-1933 gold coins which was designed for international use within the Latin Monetary Union (LMU) – a short-lived cross-border financial system in the 19th century that the US never officially joined. It’s worth noting the Stella gold coin only had a purity of 85.7%.

In the beginning, the face value of American gold coins matched their gold value. For example, a Double Eagle in 1849 had a nominal value of $20, and its 96.75% gold contents were worth $20. Decades of astronomical inflation irrevocably severed this connection as pre-1933 gold coins are now worth exceedingly more than their face values which remain unchanged.

Nearly all of these gold coins experienced various design changes throughout their minting periods. The treasured sculptor Augustus Saint-Gaudens has become synonymous with the beautification of American gold coinage – most notably with the Saint-Gauden’s Double Eagle which bears his name.

Gold coinage gradually gained popularity in the US until it became the official backing of the country’s monetary system with the Gold Standard Act of 1900. The legislation fixed gold prices at $20.67 per troy ounce and set strict purity requirements of 90% gold. Unfortunately, the looming Great Depression would stifle the blossoming of US gold coinage.

In 1933, President Franklin D. Roosevelt signed the controversial Gold Confiscation Act which required the American public to hand over their gold holdings. The overwhelming majority of pre-1933 gold coins were taken out of circulation, bank vaults, and private storage to be melted down to give the government more gold storage for ramp-up money printing.

The importance of pre-1933 gold coins didn’t cease after confiscation. Arguably, these famed coins are even more influential today as investment vehicles than they were as circulating coinage. Owing to their rich history, gold content, and scarcity, pre-1933 gold coins are highly sought after by investors and collectors alike.

Types of Pre-1933 Gold Coins

$10 Gold Eagles

• Draped Bust Gold Eagles (1795-1804)
• Capped Bust Gold Eagles (1807-1834)
• Classic Head Gold Eagles (1834-1839)
• Liberty Head Gold Eagles (1839-1907)

$5 Half Eagles

• Capped Bust Gold Half Eagles (1795-1807)
• Classic Head Gold Half Eagles (1829-1834)
• Liberty Head Gold Half Eagles (1838-1907)
• Indian Head Gold Half Eagles (1908-1929)

$2.50 Quarter Eagles

• Capped Bust Gold Quarter Eagles (1796-1807)
• Classic Head Gold Quarter Eagles (1834-1839)
• Liberty Head Gold Quarter Eagles (1840-1907)
• Indian Head Gold Quarter Eagles (1908-1929)

$1 Gold Dollars

• Liberty Head Gold Dollars (1849-1854, 1856-1889)
• Indian Princess Gold Dollars (1854-1856)

$3 Gold Pieces

• Indian Princess Gold Three Dollars (1854-1889)

$20 Double Eagles

• Liberty Head Gold Double Eagles (1849-1907)
• Saint-Gaudens Double Eagles (1907-1933)

Miscellaneous

• Four Dollar Gold Stella (1879-1880)

Why Buy Pre-1933 Gold Coins

Historical Significance

When you purchase a pre-1933 gold coin, you’re investing in a tangible piece of American history. These remarkable coins circulated during key events including the California Gold Rush, the Civil War, the Great Depression, and WWI. These connections to the past imbue pre-1933 gold coins with an inestimable value that makes them highly sought-after investments decades later.

Scarcity

Pre-1933 gold coins are quintessential rare coins. They’re notoriously scarce as only a small percentage escaped the government’s wholesale gold confiscation and even fewer survive today. This severely restricted supply results in exceptionally high demand and, as a result, impressive valuations. This rarity will only increase over time as coins become lost or damaged which makes pre-1933 coinage great long-term assets.

No Reporting Requirements

Greater privacy is a unique advantage offered by pre-1933 gold coins. As numismatic assets, these coins don’t require investors to report the investment to the government. On the other hand, investors have to submit 1099 forms and divulge their social security numbers to purchase bullion coins or bars.

High Purity

Thanks to the U.S. Mint’s strict purity standards, most pre-1933 gold coins boast a minimum fineness of 90%. Some coinage, such as the Saint-Gaudens Double Eagles, even reaches 91.67% of gold purity. High concentrations of gold translate to respectable inherent value which makes these coins worthwhile precious metals investments.

Inflation Hedge

Overall, physical gold assets are a dependable hedge against inflation as prices tend to rise when the rest of the economy stumbles. This is especially true for rare coins such as pre-1933 gold coins. Their inherent value derived from historical significance, numismatic appeal, and scarcity keep these coins from being affected by poor economic conditions.

Profit Potential

Beyond mere inflation hedges, pre-1933 gold coins have proven to yield considerable returns for investors. Due to their high numismatic value and historical appeal, these distinguished coins become more sought after over time. Generally, the longer you hold one of these coins, the higher their appreciation and the more profitable your gains.

Are pre-1933 gold coins a good investment?

Pre-1933 gold coins represent some of the finest precious metals investment vehicles. An indelible historical significance, high purity ratings, remarkable scarcity, and overall numismatic appeal equip these coins with superb inherent value. Ever since the massive gold confiscation of 1933, these coins have proven to offer protection against economic pressures along with impressive gains.

However, determining if pre-1933 gold coins are right for you requires a professional assessment of your specific investment circumstances. You can get in touch with a dedicated Precious Metals Advisor at SBC Gold by calling toll-free at 1-888-812-9892 or using our live chat function. One of our experts will be happy to discuss the merits of pre-1933 coins based on your specific investment objectives.

Pre-1933 US gold coins are often heralded as the pinnacle of precious metals investments. For nearly a century, these legendary coins have attracted investors looking to own a piece of American history while securing their wealth. The iconic saga surrounding these coins along with their numismatic appeal and scarcity make them formidable investment vehicles. Everyone interested in holding precious metals should understand the value and significance of pre-1933 gold coins.

What are pre-1933 gold coins?

Pre-1933 gold coins represent a distinctive class of investment-grade coins with tremendous inherent value. All US coinage minted before the infamous 1933 gold confiscation falls within this highly sought-after group of coins. The minuscule amount of coins that evaded melting during the Great Depression have achieved legendary status in investment and collecting circles. The interest surrounding pre-1933 gold coins is reflected in their increased valuations and impressive sales prices. People worldwide seek out these rare coins to add to their coin collections and investment portfolios.

The History of Pre-1933 Gold Coins

The story of pre-1933 gold coins reaches back to the dawn of the United States. In the American colonies, foreign gold coins were the currency of choice before domestic minting began. The Portuguese Johannes and the Spanish Pistole were two of the most popular gold coins during this period both of which eventually inspired American gold coins.

The Coinage Act of 1792 established the United States Mint and launched the first branch in Philadelphia. For the first few years, the production of gold coins was slow as silver and copper coins took precedence. Production of pre-1933 gold coins officially kicked off in 1795 with three gold coins: a $10 Eagle, a $5 half-eagle, and a $2.5 quarter-eagle.

The widespread availability of gold during the California Gold Rush prompted Congress to issue the minting of two new gold coins with the Coinage Act of 1849. The $20 Double Eagle was a continuation of the Eagle series and immediately became the largest gold coin. The Gold Dollar, despite being planned for years prior, failed to gain much circulation after its release.

One of the more peculiar pre-1933 gold coins came in the form of a three-dollar piece following the Coinage Act of 1853. This gold coin was primarily minted to make it easier to purchase stamps in bulk. The coin’s design broke the mold set by the Eagle series by revamping Lady Liberty and replacing the characteristic eagle with a simple wreath and the number “3”.

The $4 Stella is another oddity in the history of pre-1933 gold coins which was designed for international use within the Latin Monetary Union (LMU) – a short-lived cross-border financial system in the 19th century that the US never officially joined. It’s worth noting the Stella gold coin only had a purity of 85.7%.

In the beginning, the face value of American gold coins matched their gold value. For example, a Double Eagle in 1849 had a nominal value of $20, and its 96.75% gold contents were worth $20. Decades of astronomical inflation irrevocably severed this connection as pre-1933 gold coins are now worth exceedingly more than their face values which remain unchanged.

Nearly all of these gold coins experienced various design changes throughout their minting periods. The treasured sculptor Augustus Saint-Gaudens has become synonymous with the beautification of American gold coinage – most notably with the Saint-Gauden’s Double Eagle which bears his name.

Gold coinage gradually gained popularity in the US until it became the official backing of the country’s monetary system with the Gold Standard Act of 1900. The legislation fixed gold prices at $20.67 per troy ounce and set strict purity requirements of 90% gold. Unfortunately, the looming Great Depression would stifle the blossoming of US gold coinage.

In 1933, President Franklin D. Roosevelt signed the controversial Gold Confiscation Act which required the American public to hand over their gold holdings. The overwhelming majority of pre-1933 gold coins were taken out of circulation, bank vaults, and private storage to be melted down to give the government more gold storage for ramp-up money printing.

The importance of pre-1933 gold coins didn’t cease after confiscation. Arguably, these famed coins are even more influential today as investment vehicles than they were as circulating coinage. Owing to their rich history, gold content, and scarcity, pre-1933 gold coins are highly sought after by investors and collectors alike.

Types of Pre-1933 Gold Coins

$10 Gold Eagles

• Draped Bust Gold Eagles (1795-1804)
• Capped Bust Gold Eagles (1807-1834)
• Classic Head Gold Eagles (1834-1839)
• Liberty Head Gold Eagles (1839-1907)

$5 Half Eagles

• Capped Bust Gold Half Eagles (1795-1807)
• Classic Head Gold Half Eagles (1829-1834)
• Liberty Head Gold Half Eagles (1838-1907)
• Indian Head Gold Half Eagles (1908-1929)

$2.50 Quarter Eagles

• Capped Bust Gold Quarter Eagles (1796-1807)
• Classic Head Gold Quarter Eagles (1834-1839)
• Liberty Head Gold Quarter Eagles (1840-1907)
• Indian Head Gold Quarter Eagles (1908-1929)

$1 Gold Dollars

• Liberty Head Gold Dollars (1849-1854, 1856-1889)
• Indian Princess Gold Dollars (1854-1856)

$3 Gold Pieces

• Indian Princess Gold Three Dollars (1854-1889)

$20 Double Eagles

• Liberty Head Gold Double Eagles (1849-1907)
• Saint-Gaudens Double Eagles (1907-1933)

Miscellaneous

• Four Dollar Gold Stella (1879-1880)

Why Buy Pre-1933 Gold Coins

Historical Significance

When you purchase a pre-1933 gold coin, you’re investing in a tangible piece of American history. These remarkable coins circulated during key events including the California Gold Rush, the Civil War, the Great Depression, and WWI. These connections to the past imbue pre-1933 gold coins with an inestimable value that makes them highly sought-after investments decades later.

Scarcity

Pre-1933 gold coins are quintessential rare coins. They’re notoriously scarce as only a small percentage escaped the government’s wholesale gold confiscation and even fewer survive today. This severely restricted supply results in exceptionally high demand and, as a result, impressive valuations. This rarity will only increase over time as coins become lost or damaged which makes pre-1933 coinage great long-term assets.

No Reporting Requirements

Greater privacy is a unique advantage offered by pre-1933 gold coins. As numismatic assets, these coins don’t require investors to report the investment to the government. On the other hand, investors have to submit 1099 forms and divulge their social security numbers to purchase bullion coins or bars.

High Purity

Thanks to the U.S. Mint’s strict purity standards, most pre-1933 gold coins boast a minimum fineness of 90%. Some coinage, such as the Saint-Gaudens Double Eagles, even reaches 91.67% of gold purity. High concentrations of gold translate to respectable inherent value which makes these coins worthwhile precious metals investments.

Inflation Hedge

Overall, physical gold assets are a dependable hedge against inflation as prices tend to rise when the rest of the economy stumbles. This is especially true for rare coins such as pre-1933 gold coins. Their inherent value derived from historical significance, numismatic appeal, and scarcity keep these coins from being affected by poor economic conditions.

Profit Potential

Beyond mere inflation hedges, pre-1933 gold coins have proven to yield considerable returns for investors. Due to their high numismatic value and historical appeal, these distinguished coins become more sought after over time. Generally, the longer you hold one of these coins, the higher their appreciation and the more profitable your gains.

Are pre-1933 gold coins a good investment?

Pre-1933 gold coins represent some of the finest precious metals investment vehicles. An indelible historical significance, high purity ratings, remarkable scarcity, and overall numismatic appeal equip these coins with superb inherent value. Ever since the massive gold confiscation of 1933, these coins have proven to offer protection against economic pressures along with impressive gains.

However, determining if pre-1933 gold coins are right for you requires a professional assessment of your specific investment circumstances. You can get in touch with a dedicated Precious Metals Advisor at SBC Gold by calling toll-free at 1-888-812-9892 or using our live chat function. One of our experts will be happy to discuss the merits of pre-1933 coins based on your specific investment objectives.

Gold sticks near all-time high, remaining solidly above the $2,100 an ounce threshold early Wednesday, boosted by this morning’s jobs report, as investors awaited testimony from Federal Reserve Chairman Jerome Powell. 

For February, 140,000 positions were added by private U.S. companies, that’s a bit below the Dow Jones estimate of 150,000. This ADP report precedes Friday’s release of the Labor Department’s more closely watched nonfarm payrolls release.

Anticipation of coming interest rate cuts is fueling gold’s recent rally. Lower interest rates are considered bullish for the yellow metal, making it a more attractive asset for investors. Gold also has support from haven demand related to the conflict in the Middle East. 

Front-month gold futures rose 0.7% Tuesday to settle at $2,141.90 an ounce on Comex, and the most-active April contract gained 2.2% during the first two days of the week. Bullion dropped 0.6% in February after declining 0.2% in January and gaining 0.7% in December. The metal rose 13% in 2023. The April contract is currently up $12.90 (+0.60%) an ounce to $2154.80 and the DG spot price is $2145.20.

Powell is set to testify before Congress on Wednesday and Thursday amid speculation that the Fed will cut interest rates in June, ending its two-year effort to tame inflation. The markets will be watching the congressionally mandated appearances for more information on how the Fed plans to begin implementing rate cuts. 

The monthly jobs report for February comes out Friday from the Labor Department. But before that, the private payrolls report from ADP comes out Wednesday, followed by weekly initial jobless claims from the Labor Department on Thursday. The Fed closely tracks both labor market and inflation data when determining monetary policy. 

Atlanta Fed President Raphael Bostic said in comments published this week that he expects the central bank to pause after the first rate cut to gauge its economic impact. He’s estimated that cuts will begin in the third quarter. 

About 97% of the investors tracked by the CME FedWatch Tool are betting that the Fed will keep rates unchanged this month, while 3% expect a 25 basis point cut. Most investors tracked by the tool also anticipate the Fed will hold rates steady at the following policy meeting in May. Most are now looking to June for a rate cut. 

The central bank has raised interest rates by 5.25 percentage points since March 2022 in an effort to cut inflation, but kept rates unchanged at 5.25% to 5.50% at its last meeting. 

The Fed is targeting 2% inflation. The Fed’s favorite inflation measure, the personal consumption expenditures price index, came in in line with economists’ estimates last week. Excluding volatile food and energy costs, so-called core-PCE increased 0.4% month on month in January and 2.8% from a year earlier. Top-line PCE, including food and energy costs, increased 0.3% for the month and 2.4% on a 12-month basis. 

In other news, more than a dozen U.S. states held Democratic and Republican primary elections Tuesday, which were overwhelmingly won by incumbent President Joe Biden and his predecessor, former President Donald Trump. The primaries take the two a giant step closer to facing off in the general election in November. 

Front-month silver futures slipped 0.7 cent Tuesday to settle at $23.98 an ounce on Comex, though the May contract rallied 2.7% in the first two days of the week. Silver lost 1.2% in February after falling 3.8% in January and dropping 6.1% in December. It ticked up 0.2% in 2023. The May contract is currently up $0.306 (+1.28%) an ounce to $24.290 and the DG spot price is $24.06.

Spot palladium decreased 1.3% Tuesday to $961.00 an ounce and is down 0.7% so far this week. Palladium fell 4.6% in February after tumbling 11% in January and advancing 8.6% in December. Palladium plummeted 38% last year. Currently, the DG spot price is up $80.60 an ounce to $1035.50.

Spot platinum slid 1.7% Tuesday to $889.10 an ounce and is down 0.2% so far this week. Platinum decreased 4.9% in February after falling 8% in January and rising 8.1% in December. Platinum dropped 6.8% in 2023. The DG spot price is currently up $16.90 an ounce to $906.10.

Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or a recommendation regarding any particular security, commodity, or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities, or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand, and accept this disclaimer.

Gold sticks near all-time high, remaining solidly above the $2,100 an ounce threshold early Wednesday, boosted by this morning’s jobs report, as investors awaited testimony from Federal Reserve Chairman Jerome Powell. 

For February, 140,000 positions were added by private U.S. companies, that’s a bit below the Dow Jones estimate of 150,000. This ADP report precedes Friday’s release of the Labor Department’s more closely watched nonfarm payrolls release.

Anticipation of coming interest rate cuts is fueling gold’s recent rally. Lower interest rates are considered bullish for the yellow metal, making it a more attractive asset for investors. Gold also has support from haven demand related to the conflict in the Middle East. 

Front-month gold futures rose 0.7% Tuesday to settle at $2,141.90 an ounce on Comex, and the most-active April contract gained 2.2% during the first two days of the week. Bullion dropped 0.6% in February after declining 0.2% in January and gaining 0.7% in December. The metal rose 13% in 2023. The April contract is currently up $12.90 (+0.60%) an ounce to $2154.80 and the DG spot price is $2145.20.

Powell is set to testify before Congress on Wednesday and Thursday amid speculation that the Fed will cut interest rates in June, ending its two-year effort to tame inflation. The markets will be watching the congressionally mandated appearances for more information on how the Fed plans to begin implementing rate cuts. 

The monthly jobs report for February comes out Friday from the Labor Department. But before that, the private payrolls report from ADP comes out Wednesday, followed by weekly initial jobless claims from the Labor Department on Thursday. The Fed closely tracks both labor market and inflation data when determining monetary policy. 

Atlanta Fed President Raphael Bostic said in comments published this week that he expects the central bank to pause after the first rate cut to gauge its economic impact. He’s estimated that cuts will begin in the third quarter. 

About 97% of the investors tracked by the CME FedWatch Tool are betting that the Fed will keep rates unchanged this month, while 3% expect a 25 basis point cut. Most investors tracked by the tool also anticipate the Fed will hold rates steady at the following policy meeting in May. Most are now looking to June for a rate cut. 

The central bank has raised interest rates by 5.25 percentage points since March 2022 in an effort to cut inflation, but kept rates unchanged at 5.25% to 5.50% at its last meeting. 

The Fed is targeting 2% inflation. The Fed’s favorite inflation measure, the personal consumption expenditures price index, came in in line with economists’ estimates last week. Excluding volatile food and energy costs, so-called core-PCE increased 0.4% month on month in January and 2.8% from a year earlier. Top-line PCE, including food and energy costs, increased 0.3% for the month and 2.4% on a 12-month basis. 

In other news, more than a dozen U.S. states held Democratic and Republican primary elections Tuesday, which were overwhelmingly won by incumbent President Joe Biden and his predecessor, former President Donald Trump. The primaries take the two a giant step closer to facing off in the general election in November. 

Front-month silver futures slipped 0.7 cent Tuesday to settle at $23.98 an ounce on Comex, though the May contract rallied 2.7% in the first two days of the week. Silver lost 1.2% in February after falling 3.8% in January and dropping 6.1% in December. It ticked up 0.2% in 2023. The May contract is currently up $0.306 (+1.28%) an ounce to $24.290 and the DG spot price is $24.06.

Spot palladium decreased 1.3% Tuesday to $961.00 an ounce and is down 0.7% so far this week. Palladium fell 4.6% in February after tumbling 11% in January and advancing 8.6% in December. Palladium plummeted 38% last year. Currently, the DG spot price is up $80.60 an ounce to $1035.50.

Spot platinum slid 1.7% Tuesday to $889.10 an ounce and is down 0.2% so far this week. Platinum decreased 4.9% in February after falling 8% in January and rising 8.1% in December. Platinum dropped 6.8% in 2023. The DG spot price is currently up $16.90 an ounce to $906.10.

Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or a recommendation regarding any particular security, commodity, or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities, or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand, and accept this disclaimer.