$5 Liberty Gold Coins - an Alternative to Bullion

The United States Mint made a variety of different gold coins throughout its history, from $1 to $20 denominations. One of my favorites has been the $5 Liberty, made from 1839 to 1908. There are two distinct types of $5 Liberties, the 1839 to 1866 “No Motto” and the 1866 to 1908 “With Motto.” The basic difference is that in 1866 the motto “In God We Trust” was added to the reverse.

Specifically I favor the more common circulated examples, usually VERY FINE to EXTREMELY FINE condition. One of the reasons I like these specific grade coins so much lies in the fact that they are easy to buy and sell, popular with both collector and investor, and at present time can be purchased for a rather small premium over their intrinsic or “gold” value. In other words, the “collector premium” for these coins is quite low. Mintage figures from the late 19th century to the early 20th runs fairly high, so you can assemble quite a few different dates from the 1880’s to 1908, i.e. a “collection”, without much trouble. It is a great way to own gold if you’re growing weary of bullion coins. (Usually “No Motto” types will draw a larger premium, but not unreasonable given their lower mintages and greater popularity.)

$5 Liberty Gold pieces present an exciting and fun way to buy gold.

Gold History in your Hand!

The $20 Liberty Gold coin, also known as the Double Eagle is a gold coin of the United States made from 1850 to 1907. (Its gold content of 0.9675 troy oz was worth $20 at the then official price of $20.67/oz). The coins are made from a 90% gold (0.900 fine = 21.6 kt) and 10% copper alloy.

The first double eagle was actually minted in 1849 (extremely rare), coinciding with the California Gold Rush. In that year, the mint produced two pieces in proof. The first resides in the Smithsonian Institution in Washington DC. The second was presented to then Treasury Secretary William M. Meredith and was later sold as part of his estate - the present location of this coin remains unknown.

In 1850 regular production began and continued until 1933 (when the official price of gold was changed to $35/oz by the Gold Reserve Act). Liberty design Double Eagles ended in 1907. Prior to 1850, eagles with a denomination of $10 were the largest denomination of US coin. $10 eagles were produced beginning in 1795, just two years after the first U.S. mint opened. Since the $20 gold piece had twice the value of the eagle, these coins were designated "double eagles".

These are wonderful pieces of history that can be purchased at a reasonable premium over their intrinsic value. Usually you will find dealers offering them for sale - simular condition to the example coin I show - at a 20 to 30% premium over their gold value. However, it is important to understand that condition determines value, so this 20% to 30% premium I mention is just a starting point in price.

I think United States $20 Double Eagles are great coins, though most are not rare! The U.S. Mint made plenty. But if you're looking for an alternative to just bullion gold, you may want to consider them. I also find that for the price, they offer a remakable opportunity to handle something of our country's past! A tangible that you can pass down from one generation to the next. Your thoughts?

Goldline trouble?

Just recently New York Congressman Anthony Wiener came out with the accusation that conservative talk show host Glenn Beck was working in cooperation with Goldline International (a gold bullion and rare coin dealer) in “using misleading sales techniques to overcharge consumers for gold coins”. As a sponsor of the Glenn Beck radio show, Goldline has annual sales of nearly $500 million annually.

"It is not surprising that Glenn Beck is attempting to deflect from his behavior in promoting Goldline," Weiner told Yahoo! News in a statement. "But the facts are clear. Goldline rips off consumers and Glenn Beck helps."

Now here’s my question … Do the accusations about Goldline have any merit? I understand that part of the issue, according to Wiener, is that Goldline is “charging to much” for the product they sell. Now I am not necessarily a defender of companies such as Goldline, but how does one determine (especially a Congressman) what is a “fair price” for a product?

In addition, Goldline promotes Swiss Gold 20 Francs as one of their mainstays of inventory, highly recommending them to potential and current customers. The accusations the Congressman is making against Goldline concerns such coins, as apparently the difference between the intrinsic value of the 20 Francs is significantly lower than what Goldline charges.

Now I have no problem in what any company wants to charge for their product. But does a company have an obligation to tell the potential buyer what the markup is? Is there a moral or ethical component to this, must the seller always disclose one's profit-margin? Or is this simply a case of “let the buyer beware” ? Thoughts?