Gold Coin Collecting

Gold Coin Collectors in 1950

The Empire State Numismatic Association held a Convention last weekend at the Hotel Syracuse. Coin collectors from all parts of New York State and nearby states attended. Many beautiful collections were exhibited. A dozen coin dealers in the bourse bought and sold coins, and an auction of 1,375 lots was held for members. These lots were cataloged months in advance and a complete description of each coin was printed in a catalog sent to collectors from coast to coast.

Those who were unable to attend the sale in person sent their bids by mail for any lots in which they were interested. Unless someone present was willing to pay more for a lot than the highest bid received in the mail, it was sold to the person sending in the high bid.

While the displays were not open to the general public, several people who were attending other functions at the hotel during the weekend stopped in to inquire about the value of some old coins which they had. In particular, there were some bank employees attending another meeting who asked about gold coins.

LAW MODIFIED

In February this year, the Federal Reserve Banks sent a notice to all member banks advising them that the 1933 law requiring all gold coins to be turned in to the government does not apply to U. S. gold coins having a special value to collectors.

Therefore, persons now wanting to turn in gold at a bank are to be told of this new ruling and that a recognized numismatist should be consulted as to the value of the coins. The bank itself is not allowed to give the customer more than the face value of the coins and any coins deposited with the bank become the property of the U. S. and must be forwarded to the U. S. treasurer. A bank may not pay out gold coins to any person.

However, this new ruling indicates that it is no longer illegal to hold, acquire, transport, or sell gold coins. Such coins may not legally be exported from the U. S without a license from the mint, but a holder of gold may now sell such coins within the nation.

MUCH GOLD HOARDED

Many persons evidently hoarded gold bullion coins and did not turn it in to the government in 1933 and 1934 when gold was called in. Since that time they have held it illegally and have been afraid to let it be known that they owned gold coins for fear of the possible penalties for illegal possession.

Now, however, such persons may properly dispose of their coins without being subjected to embarrassing questions. This has brought a lot of hoarded gold coins into the numismatic market in the past few months and the price of the coins has dropped.

The value of the actual gold in a coin is about 170 per cent of its face value so that a $10 gold piece is worth at least S17, just from its gold content alone. From a coin collector's standpoint the condition of a coin is more important than the date, with a very few exceptions. 

For gold coins in fine condition, the common dates have been worth approximately twice face value, but lately so many hoards have been offered for sale that dealers are beginning to be wary about purchasing additional coins. There are comparatively few collectors of gold coins due to the large amount of money involved and, therefore, there is little demand for the gold series compared with copper or silver coins of the United States.