If you have been a coin collector for a while or are just starting, you have probably heard about pre-33 gold. If you’re a new investor, you may ask yourself, “Why should I buy pre-1933 gold, and what happened in 1933?” 1933 was a pivotal year in United States gold history. Before this year, gold coins were not only valuable but integral to the daily financial lives of Americans. Gold was more than just an asset—it was currency. People could exchange gold certificates for physical gold coins and freely spend, save, or invest them.
This changed when President Franklin D. Roosevelt signed Executive Order 6102 on April 5, 1933. This order effectively banned private ownership of gold coins, bullion, and certificates within the United States, requiring U.S. citizens to exchange their gold for paper currency at $20.67 per ounce. The government collected the gold, melted it, and stored it, reshaping the national reserves. Gold that escaped confiscation or otherwise survived from that era is now known as “pre-1933” gold, and today, these coins hold significant historical and investment value.
In this article, we’ll explore the appeal of investing in pre-1933 gold, unpack the dramatic events of 1933, and explain why this era of gold holds a unique place in any collector’s or investor’s portfolio.
Gold Coins Before 1933
Gold coins were once a common form of currency in the United States. Coins like the $20 Double Eagle, $10 Eagle, and smaller denominations like the $5 Half Eagle circulated widely. The U.S. government minted these coins in high purity, creating a steady, reliable form of wealth storage. Backed by the “gold standard,” where currency was exchangeable for gold at a fixed rate, the coins had intrinsic value—an essential trait that modern paper currency lacks.
Gold coins circulated alongside silver coins, allowing citizens to transact in valuable metals. The exchange rate between gold and silver fluctuated, but coins’ face values represented metal content and the strength of the U.S. economy. This stability allowed citizens to preserve their wealth in gold without fear of paper money losing value through inflation or economic uncertainty.
What Happened in 1933?
In 1933, the United States faced the Great Depression, an economic crisis that gripped the country with extreme poverty, high unemployment, and widespread bank failures. The financial system’s collapse caused people to hoard gold, making it difficult for banks to maintain the necessary reserves to lend money and stabilize the economy.
To address this, President Roosevelt implemented several emergency measures. One of the most controversial was Executive Order 6102, which aimed to prevent gold hoarding and stabilize the economy by increasing the government’s gold reserves. The order required all citizens to turn in their gold coins, bullion, and certificates to the Federal Reserve in exchange for paper currency at the official rate of $20.67 per ounce.
How was the Gold Ban Implemented?
The gold ban applied broadly and carried stiff penalties. Citizens were given a deadline of May 1, 1933, to turn in their gold or face fines of up to $10,000 or prison sentences. Despite the enforcement, some individuals hid or withheld their gold, hoping the law would eventually be repealed.
The U.S. Treasury became the primary entity for gold collection, with the government’s goal to gather as much gold as possible to replenish reserves. In 1934, Congress passed the Gold Reserve Act, further consolidating government control over gold. The Act revalued gold to $35 an ounce, a significant increase from the previous rate, and helped the government store considerable value in gold, ultimately aiming to stabilize the economy.
The Effect on Gold and Silver
The gold confiscation significantly reduced the amount of gold in public circulation, driving up the scarcity and value of gold coins that managed to avoid the recall. This new scarcity and historical significance have given pre-1933 gold coins a unique value over time.
Silver, meanwhile, was not included in the 1933 restrictions. This allowed silver coins to remain in circulation as a form of currency. While silver’s role as money continued in circulation, it didn’t carry the same scarcity or regulatory drama as pre-1933 gold, making the latter an appealing option for collectors and investors.
What Happened to the Collected Gold?
Once the gold was collected, it was transferred to the U.S. Treasury and held in reserve. Much of it was melted down and stored in vaults, including at Fort Knox. Estimates suggest that roughly 500 tons of gold coins were collected, although it’s hard to determine the exact amount. This newly centralized gold supply fortified the country’s reserves, allowing the government to control and support the currency without relying solely on private reserves.
What Happened to Gold That Wasn’t Turned In?
Many Americans did comply with the order, but some found ways to keep their gold. Today, gold coins that survived the confiscation era are considered “pre-1933” gold, highly valued by collectors and investors. Coins that weren’t surrendered, including those taken out of the country or hidden, became relics of a time when gold was everyday currency. For those caught illegally holding gold, the penalties were steep—often leading to confiscation, fines, or jail time.
When Did Gold Become Legal to Own Again?
It wasn’t until 1974, under President Gerald Ford, Americans were once again allowed to own gold bullion freely. This followed the end of the gold standard in 1971, which uncoupled the dollar’s value from gold reserves. After four decades of restrictions, gold ownership was no longer a crime, and individuals could once again hold gold as a personal investment.
Why Should I Buy Pre-1933 Gold?
Pre-1933 gold coins carry an irreplaceable blend of historical importance and scarcity. Surviving coins are often in high demand for their beauty, design, and role as artifacts of American history. Investors are drawn to these coins for their “double value”—not only do they contain precious metal, but they are also numismatic, meaning they have collectible value due to their rarity and historical significance.
Many pre-1933 coins are graded and certified, meaning experts for authenticity and quality have inspected them. With high gold content and historical charm, they offer something unique to collectors and investors, especially since their supply is limited. The number of surviving pre-1933 gold decreases yearly, making the survivors rarer and more collectible. This makes pre-1933 gold an appealing addition to precious metal portfolios.
Final Thoughts and Types of Pre-33 Gold Coins
Pre-1933 gold coins come in various denominations. Most of these coins underwent various design changes through the years due to revisions by different engravers, updates in design philosophy, or technical challenges in minting. These variations can significantly influence the rarity and value of specific coins.
1849-1889 $1 Gold Coins
- 1849-1954 Type 1 Liberty Head
- 1854-1856 Type 2 Indian Princess
- 1856-1889 Type 3 Indian Princess
$2.50 Quarter Eagle
- Capped Bust (1796-1807)
- Capped Head (1821-1834)
- Classic Head (1834-1839)
- Liberty Head (1840-1907)
- Indian Head (1908-1929)
$3.00
- 1854-1889 Gold Princess
$4.00
- 1879-1880 Stella
- 1795-1829 Capped Bust
- 1834-1838 Classic Head
- 1839-1908 Liberty Head
- 1908-1929 Indian Head
$10 Eagle
- 1795-1804 Capped Bust
- 1838-1907 Liberty Head
- 1907-1933 Indian Head
- 1849-1907 Liberty Head
- 1907-1933 Saint-Gaudens
One of the rarest is the 1879 or 1880 four-dollar Stella. NCG estimates that an MS (Mint State) 67 will be worth $400,000 to $2,750,000 (2021-2023). PCGS (Professional Coin Grading Service) reports a similar range for this rare gold coin.
If you are considering collecting or investing in pre-1933 gold coins (video), it is essential to research these coins by consulting with numismatic experts and your financial advisor. Also, take in mind that a coin’s value may change.
For those seeking historical artifacts and tangible assets, pre-1933 gold offers a compelling opportunity. It combines the stability and appeal of gold with the allure of American history, providing a rare investment that’s both physically and culturally enriching. Whether you’re a collector or an investor, the story behind pre-1933 gold offers insight into America’s economic resilience and the lasting legacy of gold.
