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Today, let us look at the issue of whether your hoard of old gold coins (or silver coins) are at risk of being confiscated (or euphemistically “called-in”) by the Government. Also, we shall examine whether there are any coins that are exempt from being called-in.

Lest we forget, let us remember that although Franklin D. Roosevelt’s Executive Order required Americans to turn in their gold coins and bullion, foreigners were allowed to and still continued to redeem paper dollars for gold until August 15, 1971, when President Nixon closed the gold window. From the end of World War II to 1971, our gold reserves were cut in half by this exchange.

Today it is a widely held belief that all the gold coins surrendered under Roosevelt’s call-in were either melted down or were refined into .999 fine gold bullion bars. However, that was not the case. It was to the government’s advantage to give foreigners gold coins instead of bullion bars.

If the official price of gold was at $35 an ounce, a foreign bank presenting $35 million paper dollars would receive 1,000,000 ounces if the U.S. Treasury delivered gold bullion. However, when the U.S. Treasury delivered gold coins with a face value of $35 million, it delivered only 967,500 ounces, saving 32,500 ounces. Remember that each $20 Liberty and St. Gaudens (Double Eagles) actually contains only .9675 ounce of gold. The smaller coins also contain the same percentage of gold. Therefore, it was to the U.S. Treasury Department’s advantage to give out U.S. gold coins instead of .999 fine bullion bars. In addition to this swap, before Roosevelt’s call-in, millions of old U.S. gold coins had already made their way to Europe through private means.

Therefore, in the historical view of the government’s policy of delivering “confiscated” gold coins to foreign governments, how can a seller of old U.S. gold coins claim to be selling “non-confiscatable” gold when the old U.S. gold coins he is holding may actually have been called in back in 1933?

Many promoters of old U.S. gold coins would rarely reveal the sources of their coins. They foster the notion in the minds of investors that the coins they are selling had somehow survived the 1933 FDR Administration call-in. A common “explanation” would be that the coins being promoted had just arrived from Europe a few weeks earlier. Several large numismatic (coin-collectors) wholesale firms have offices in Europe (Brussels, Paris, Zurich, etc.) sourcing for hoards of old U.S. coins. One such firm regularly advertises “Gold Coin shipments coming in from Europe daily.”

Remember that the false notion of “non-confiscatable” old gold coins lies in Roosevelt’s Executive Order that exempted “gold coins having recognized special value to collectors of rare and unusual coins.” Are old U.S. gold coins “rare and unusual” today?

Between 1850 and 1907, U.S. mints turned out over 100 million pieces of $20 Libertys. Between 1908 and 1933, they coined some 65 million pieces of $20 St. Gaudens. Today, no one knows how many have survived, but a casual estimate is in the tens of millions, with the bulk of them residing in European bank vaults.

Because of all the old U.S. gold coins in Europe, and because of the huge premiums they carry, old U.S. coins are dangerous investments. As gold prices edge higher, European banks may become sellers, causing old U.S. gold coins to fall in price while gold prices goes up.

Alternatively, the European banks may decide to hold their gold but melt down their high-premium old U.S. coins and convert it into .999 fine gold bullion, thereby increasing their gold holdings. Such a move, of course, would put downward pressure on old U.S. gold coin prices.

The concept of “non-confiscatable” gold is a counterfeit notion. The idea lives on only because unethical dealers continue to promote it for their own benefit. Investors who do not have these facts are unable to a wise buying decision. You need not be a victim to the hype that is so prevalent in the gold coin investing industry.

Investors wanting to buy gold should go with the bullion coins: American Gold Eagles, Maple Leafs, or Krugerrands. These coins move dollar for dollar with the world price of gold, and are easy to buy, sell, and trade or redeem. Additionally, tracking the value of these coins is easy. No “expert” has to look at them: they are widely recognized and accepted from money changers to coin dealers in all parts of the world today.

For a trusted and reliable source of U.S. Gold and Silver Eagle Coins that is the only sure way to protect your family’s finances from inflation and recession, we put our stamp of approval on the Silver Snowball Program promoted by Ed Freeman and Dr. Tom O’Brien. International shipping is also available to all investors for a flat rate of $6. Silver Snowball - The World’s Most Affordable Gold and Silver Program.