For only the second time in 44 years, I’m recommending old US gold coins. The other time was in the 1990s.
$20 Libertys and St. Gaudens now are priced competitively with 1-oz American Gold Eagles, the world’s most popular gold bullion coins. This in on a per ounce basis!
The better grade coins carry slightly higher premiums but are still good buys based on historical prices. In strong bull markets, these coins pick up sizeable premiums.
Here’s the primary reason that old US gold coins pick up big premiums in bull markets: Bull markets come about mostly during times of fear, such as the 2008 World Financial Crisis and when inflation rears its ugly head. No way of knowing when the next crisis will surface, but inflation is already rising.
Further, many analysts believe that stocks are heavily overvalued, that they are priced for “perfection.” Meaning everything has to go right for Trump’s tax cuts, Obamacare reform, infrastructure rebuilding and deregulation efforts. If not, stocks are vulnerable. Three months into a stock market decline, interest in gold picks up.
It is during times of fear that telemarketers promote old US gold coins. Then investors react emotionally, not logically. Now is the time to invest logically, not emotionally.
Take advantage of this opportunity to own old US gold coins at record low premiums. When they pick up premiums, trade them for bullion coins and increase the number of ounces of gold that you own.
Here’s a link to a graph that shows a historical relationship between spot gold and premiums on VF $20 Libertys.
Call us if you want to talk get more details on this opportunity.
Now, here’s a few basic facts about the $20 Libs and Saints. Each coin was minted containing .9675 ounce of gold, the $20 Libs from 1849 to 1907, the Saints from 1907 to 1933.
The Libs were used as money and show more wear than Saints, which were rarely used as money because paper money was becoming acceptable. Therefore, most Saints are higher graded coins and carry slightly higher premiums than $20 Libs. Still, both coins are good buys at these premiums.