The Great Gold Coin Meltdowns
1834, 1933 & 1980
People are always interested in what they can’t have. Part of collecting something is the thrill that comes from collecting it. Rare coins are just as thrilling to find for many as 100 year old antique and fine art that is hard to get a hold of. There were millions of gold coins that were minted and in circulation at one time in U.S history. However, very few actually survived their trip through the decades and centuries, making it hard to find these older coins. Plus, anyone who finds them has their hands on a rare and unique item, no matter what condition it is in.
Pre-1900 coins were generally low denominations, and they were too soft for the rough use of circulation and everyday use. They quickly became worn and scratched, at which point they were returned to the mint and melted down. The melted gold was used to make new coins, and save the U.S. from refining more gold when they could just recycle the old stock.
The first United States gold coin meltdown occurred in 1834 and included all coins minted from 1795 to 1834. The reason for this was because our new nation had too much gold tied up in coinage when at that time the value of the gold in coins exceeded the face value of the coins themselves. At that time the United States went on the gold standard and the value of our money was directly tied to the value of gold.
Gold coins were then confiscated in 1933 by the government, as their attempt to help the economy recover from the Great Depression. During that time coin collectors like to refer to what happened as the Great Gold Coin Meltdown. The biggest destruction of gold coins that had ever occurred in history took place in the United States. Millions of coins were recalled and destroyed, being melted into bars for the U.S. Treasury to hold on to in its various depositories. Many dates and coins have become extinct. However, many are only nearly extinct, which makes them extremely valuable to collectors.
Having the hope to find that one exceedingly rare, very old coin is often what keeps many collectors going and keeping on the hunt. However, finding these coins are complicated and highly unlikely, and when and if they are found, they will definitely be a hefty investment for anyone who seeks to own them. In 1980 some gold coins were melted down once again, because gold was more than $850 per ounce. The high price of gold encouraged many people to sell, sell, sell, which created the need to melt down the old coins because they were ultimately worth less in the eyes of the mint.
Anytime that people have a large investment of gold or silver and the prices skyrocket, you should expect a lot of selling going on, which means coin could be melted down, allowing them to be turned into gold bars or standard bullion coins for the US Government. This is more fundamental to gold and silver investing than collectible currency coins of years past. When gold coins are melted down the significance and value of the ones that survive are sure to increase.