Since the beginning of 2024, gold prices have surged by over 30%—a remarkable increase for an asset known for its stability.
While this benefits those who already own "enough" gold, those just starting to accumulate it now face higher entry costs.
However, there’s a part of the physical gold market that hasn’t followed this upward trend. In fact, certain products in this category have continued to decline in price.
No, we’re not talking about bullion bars or coins like Gold Eagles or Canadian Maple Leafs, which closely follow gold’s spot price.
Instead, the focus is on semi-numismatic coins, like the historic $20 Saint-Gaudens or $5 Indian Head coins, last minted nearly a century ago. While not originally rare, most of these coins were melted down during the 1933 gold confiscation.
Today, these coins derive their value from both their gold content and their rarity.
Yet, they are currently trading at historically low premiums. Take Saint-Gaudens, for example; their premiums today start at just 7% above their gold content, effectively offering no added value for their rarity.
Historically, these same coins commanded premiums of up to 200% (or sold at three times their gold content).
And certain $5 Indian Heads currently trade at just 30% above their gold content, compared to a 904% premium (ten times their gold content) in 2006. This is truly a market anomaly.
If you’re considering buying gold coins in the near future, you’re faced with a choice: pay nearly the same price for a bullion coin with zero collectible value or pick up a semi-numismatic coin with the potential for significant premium expansion if the market returns to historical norms.
In fact, these coins could even offer some downside protection against falling gold prices, as expanding premiums could offset any declines.
For investors interested in physical gold, these pre-1933 coins present not only a chance to own a tangible asset with higher-than-gold appreciation potential but also an important and beautiful piece of US history.
Since the start of 2024, gold prices have soared by over 30%—an impressive rise for an asset that typically does not fluctuate much. This is good news if you own gold already, but disappointing for those still looking to build their holdings. Gold bars and coins are now about 30% more expensive than they were…
