Before You Buy US Gold

Updated: Jun 23

The Ten Most Valuable Tips You Must Know Before You Buy US Gold.

1. Gold Bullion Products May Not Be The Best Choice

These are the Facts

May 1, 1933 – President Roosevelt's Executive Order 6102 required U.S. citizens to deliver on or before May 1, 1933, all but a small amount of gold coin, gold bullion, and gold certificates owned by them to the Federal Reserve, in exchange for $20.67 per troy ounce. Under the Trading With the Enemy Act of October 6, 1917, as amended on March 9, 1933, violation of the order was punishable by fine up to $10,000 or up to ten years in prison, or both. An exception to the order was listed in section 2 (b) “Gold coin and gold certificates in an amount not exceeding in the aggregate $100 belonging to any one person; and gold coins having a recognized special value to collectors of rare and unusual coins.”

Jan 30, 1934 -- The Gold Reserve Act of January 30, 1934 required that all gold and gold certificates held by the Federal Reserve be surrendered and vested in the sole title of the United States Department of the Treasury and changed the value of the dollar in gold from $20.67 to $35 per ounce.

1954 - In 1954 the Treasury Department amended the Gold Regulations of the original Executive Order to enable the continuance of the exemption of rare coins from the gold confiscation provisions, and they expanded the definition of "coins" with a recognized special value to collectors of rare and unusual coins to include "gold coin made prior to April 5th, 1933 (Federal Register 4309, 4312 1954, as codified in 31 CFR Section 54.20)

Aug 15, 1971 - The price of gold remained fixed from Jan 30, 1934 until August 15, 1971, when President Nixon announced that the United States would no longer convert dollars to gold at a fixed value, thus abandoning the gold standard for foreign exchange.

Dec 31, 1974 - On December 31, 1974, with Executive Order 11825, President Gerald Ford repealed the Executive Order that Roosevelt used to call in gold in 1933. This was necessary because on the same day Congress restored Americans' right to own gold. The limitation on gold ownership in the U.S. was repealed after President Ford signed a bill legalizing private ownership of gold coins, bars and certificates by an act of Congress codified in Pub. L 93-373 which went into effect December 31, 1974. P.L. 93-373 did not repeal the Gold Repeal Joint Resolution, which made unlawful any contracts that specified payment in a fixed amount of money or a fixed amount of gold. That is, contracts remained unenforceable if they used gold monetarily rather than as a commodity of trade.

Oct 28, 1977 - 1977 Congress removed the president's authority to regulate gold transactions during a period of national emergency other than war. However, the Act of Oct. 28, 1977, Pub. L. No. 95-147, § 4(c), 91 Stat. 1227, 1229 (originally codified at 31 U.S.C. § 463 note, recodified as amended at 31 U.S.C. § 5118(d)(2)) amended the 1933 Joint Resolution and made it clear that parties could again include so-called gold clauses in contracts formed after 1977.

Dec 17, 1985 – President Reagan signed into law the Gold Bullion Coin act which allowed the US Mint to produce gold coins from “newly mined domestic sources”. Gold American Eagles went on to become one of the most well known gold coins.

Gold Confiscation in the Future…

So the question remains; could it happen again? Who knows? Of course it is possible; it has been done before and governments in times of stress simply change the laws. As you can see above, gold bullion was forced to be sold to the government in 1933. Then in 1974, that executive order was repealed. Furthermore, in 1977, Congress removed the president’s authority to regulate gold except during a national emergency of war.

It is true that numismatic collector type coins were excluded in the 1933 confiscation. Whether or not they will again be excluded in any future confiscation is completely unknown. There is a logical thought process for excluding collector coins, in that the government was trying to obtain monetary control of gold bullion. The government had no interest in rare and unusual coins of special value to collectors. However, what the government has done in the past is not necessarily indicative of what they will do in the future.

2. Certified US Coins Are Not Your Only Option

For Key Date type coins, I would highly recommend NGC/PCGS certification. On the other hand Raw coins like $20 Liberty Gold Double Eagle BU (Random Year), or 1922-1935 Peace Silver Dollar BU (Random Year) are not certified, and have no bar-codes, therefore are extremely difficult to track. Everything is exempt from reporting when you buy gold or silver, unless you pay more than $10,000 in cash. Dealers have to report customer sales of 25 or more (but not fewer) Krugerrands, Maple Leaves, or Mexican Onzas, five bag lots ($5,000 face value} of US 90% silver coin, kilo gold bars, 100 oz. gold bars, 1,000 oz. silver bars, or 50 oz. or 100 oz. of platinum. If you sell lots smaller than these, the dealer reports nothing.

3. Only Deal With a True ANA Member Dealer


Approved August 1967 by the ANA Board of Governors; revised March 2002

As an ANA member dealer, I agree to comply with the following principles:

To comply with the ANA Member Code of Ethics. These are very great details

4. Discipline Yourself To Start Out Small

One of the most important of all ten. The facts are that most every conservative ecomised in the world all agree, you must own, it's not a choice between 5%-25% of your investment portfolio, in precious metals as a hedge against inflation, and a preservation of capital.

5. Staying With True BU's

BU - (n) stands for 'brilliant uncirculated' which means that a coin has never been circulated and retains almost all of its original mint luster from its original strike. ... Coin collectors and/or coin dealers often abbreviate the 'brilliant uncirculated' term, referring to them simply as BU coins.

6. Bank Wire Money To Any Dealer For Your Own Protection

Wire transfer – This is a direct transaction between two financial institutions, and it’s generally not an automated process. Since executing a wire transfer involves manual processing and can require phone calls between the banks, the fees can be higher compared to other options. But it’s also the fastest method and may be your only choice if you need to transfer a large sum of money or send funds overseas.

ACH transfer – Compared to wire transfers, ACH transfer fees are lower – even free at some banks and credit unions – but transactions will take a day or two to complete.

7. Plan To Dollar Cost Average In At Least Four Separate Buys

Many investors look beyond daily price movements and buy physical precious metals for the long-term. When planning to hold an asset, for example, physical precious metals for five to seven years or more, it is less important to consider the cost of the metal for the day, and,  historically, more important to examine its performance in relation to other investments.

Depending on what you intend to spend, personal objectives and investment timing are important in considering the conservative dollar-cost averaging approach. Dividing the total sum to be invested into equal amounts and investing those fixed amounts at regular intervals over time has always been beneficial. This approach enables you to scale up or down with the market.

8. Unless It's Bullion Do Not Trade

9. BBB is Not Good Credibility At Six Months Or Less

Most thorough investigations have found a sampling of more than 100 businesses that had ratings of A- or higher despite having serious actions taken against them by government regulators in the past year. Some have been ruled flat-out scams and were shut down, but still kept their high BBB grade.

10. Buy US Gold Now

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