When this article was originally published, the discussion centered on privately minted gold rounds versus government-issued gold coins. The original article was prompted by a recent customer account: his mother-in-law had reportedly been persuaded by a coin broker to trade government-issued gold coins for private rounds because of a claimed risk of government confiscation. The broker reportedly said President Roosevelt signed Executive Order 6102 in 1933, making ownership of government-issued gold coins illegal. The broker further claimed that only numismatic gold coins were exempt and treated gold rounds as included, although the original article noted no indication that rounds were exempt as well.
Although the government did order citizens to surrender gold coins, gold bullion, and gold certificates in 1933, the original article said that comparatively few citizens appeared to have voluntarily given up their coins. It pointed to Atlanta Gold & Coin’s historical buying and selling of pre-1933 gold coins as context. A small number of prominent prosecutions resulted from noncompliance, but the article stated that, generally, most citizens retained their coins without much attention or public drama.
At publication, Atlanta Gold & Coin’s view was that future gold-coin confiscation presented a relatively limited risk, and that concern alone should not lead someone to avoid government-issued coins. For readers who nevertheless considered that risk worth addressing, the article suggested pre-1933 U.S.-issued gold coins instead of rounds, because those coins are considered numismatic. It also suggested considering purchases from a local coin dealer rather than an online dealer as a way to help keep transactions private.
The original article listed several advantages of government-issued gold coins, including pre-1933 coins, compared with privately issued gold rounds:
- The issuing government guarantees the precise gold weight and purity stated in the coin’s specifications.
- They carry legal-tender status in their country of origin.
- Potential buyers generally recognize them more readily than privately minted gold rounds.
- They are generally less susceptible to counterfeiting than privately minted rounds.
- They tend to be more liquid than privately minted gold rounds.
- When the original article was published, it said they would bring a higher price when gold coins were sold.
The original article also identified a possible future concern with private gold rounds: the mint that made them, or the company for which they were made, might no longer be operating. It said this possibility could be especially relevant when a company used questionable sales methods to persuade prospective customers to buy such items. The article noted that coin brokers and dealers had previously received fines for these practices, with many ultimately closing because of heavy fines, penalties, or reputational damage. It concluded that an American gold eagle or Canadian gold maple leaf would be considerably easier to market than a private round from a company unfamiliar to most people.
At the time of original publication, the article described the following: For readers who, at publication, still believed their bullion coins faced confiscation risk, the article suggested considering certified coins graded by established third-party services such as PCGS and NGC. Professionally graded coins are commonly described as collectible or numismatic coins. If the purchase was solely intended to address a possible future confiscation concern, the article recommended focusing on more moderately certified examples, such as MS69. It further stated that MS69 gold coins could often be found for only a couple of percentage points more than raw, ungraded gold coins.
When the article was originally published, Atlanta Gold & Coin expressed hope that readers found it useful and invited them to make contact for further assistance.
