gold bullion or st. gaudens and libertys? : LUSENET : TimeBomb 2000 (Y2000) : One Thread

well, whats the better bet? gold bullion or the st. gaudens most of the coin dealers hawk as unconfiscapable?

-- tim goetsch (, June 30, 1998


Collectible gold coins were exempt from the last blatantly unconstitutional gold confiscation ordered by Uberfuhrer Roosevelt but there is no guarantee that his ideological offspring Slick Willie would give us the same consideration. You get a lot more bang for your buck with the bullion coins like modern Eagles, Maple Leafs, Krugerrands, and Philharmonics. You might also consider silver bullion coins like the modern silver eagles and leafs. They might be less likely to be confiscated than gold.The Saints sure are beautiful, though. The modern Eagles have the same obverse as the Saints but the gorgeous reverse of an eagle in flight against a backdrop of the rising sun has been replaced by a less than inspiring family of eagles. The silver eagles have the same obverse as the famous and desirable Walking Liberty half dollar while the reverse is a tasteful Eagle with olive branch and arrows. I think it's one of the most beautiful silver coins ever minted (next to the Peace Dollar) but most collectors don't like the new stuff no matter how well it's done. To each his own, I suppose. It's kind of a moot point in a way, though. This country is no longer obedient and trusting like we were in the '30's. We've seen to much corruption and hypocrisy and waste to voluntarily turn what little we have left to "do our part". The confiscators would have a tough and likely very dangerous time of it. Speaking hypothetically, of course. ;-)

-- Anon321 (, June 30, 1998.

There are no guarantees with either. If the government wants to make ownership of gold by US citizens illegal again, it will. Then the legal hairsplitting can begin over what's collectible and what's not. At this point bullion is a better buy, I think. The premium for pre- 1934 US gold has gotten too high unless you're a serious collector. Some of the bullion coins now support a degree of collector interest (and premium) as well, which only serves to further confuse the issue.

I found it interesting that the penalty for owning gold in defiance of the government edict in 1934 was a fine of $10,000- an almost unimagineable fortune in the depths of the depression. If they decide to do it again, the fine will probably be a million dollars. My grandfather sort of forgot to turn in the little gold he owned in 1934. I'll probably misplace mine, too, if it comes to that.

There's no such thing as "high powered" gold coins, if you're listening to the ads on the radio. That's hype pure and simple.

As far as silver is concerned, start out with 'junk silver' - pre- 1964 US dimes are best for the purpose. It's called 'junk silver' simply because it consists of normally circulated coins- there's nothing wrong with it. This should be considered real emergency spending money, and it might be difficult to get change for more valuable coins. I wouldn't pay the premium for silver dollars when dimes or quarters serve better as insurance money. I have seen people pay more for silver bullion coins than they would for an equivalent weight in pre- 1964 dimes or quarters, so know what you're doing before you buy.

Over the past few years I have done a good bit of business with Dillon- Gage in Dallas, TX. I have no proprietary interest in the company whatsoever but have found their prices fair and their service quite good. I suggest you call them at 800-375-4653 if you need a source for precious metals. They can deliver your purchase by mail with no problem- I received a bag of junk silver from them last month, in fact, though at 55 pounds the package did raise eyebrows at the post office. If you're worried about confidentiality you'll have to find a local dealer and pay cash. That means you'll pay more as well, of course. But do get a receipt for your purchases- it might come in handy later if/when you sell.


-- Lee P. Lapin (, July 01, 1998.

Does anyone have any experience with silver coin collecting in Canada. The pre1964 US junk silver is good for US citizens - what might be the alternative for Canadians..Thanks

-- Laurane Nash (, July 02, 1998.

Gold Bullion is a good bet. I would stick with the new gold Eagles, Maple Leafs, or Krugerrands. You can buy tenth, quarter, half and full ounces. They are cheaper in price than the collectors coins. Another good bet is silver. If silver goes to $11 you will double your money from today's prices. Gold would have to go above $620 for you to double your money. Two decades ago silver hit $50 per oz and gold was around $700 per oz. One thought, what would be the worth of precious metals, if no one recognizes it as currency? If the majority of people don't prepare by buying metals or other forms of barter, who will recognize it as currency? You can't look at the HISTORY OF METALS AND MANKIND, today we use computer digits to show the wealth in your bank account, paper money which is today no longer backed by precious metals, is simply paper that is a nuisance. Soon a card will be all you need to credit or debit your account. You see this when you buy gas, groceries, ATM's, restaurants, etc. I have the need to carry less cash everyday. Metals could become priced for it's industrial use. I don't see precious metals loosing it's value as currency, but all the possibilities should be looked at. Perhaps local people will only understand the paper currency and only accept that in lieu of metal bars or rounds, or the opposite can happen. I plan on having both on hand Gold bullion, bags of silver, and lots of paper currency. The best site I have found in prices is a shop in Portland Oregon. I have done business with them, and I have also used there web site to bargain with the higher local dealers. Their web site is or Affordable Jewelry and Precious Metals.

-- bob (, July 07, 1998.

I agree and disagree with Bob. I agree that having both paper cash and metals is a good idea. I disagree that looking at the history of money is no good indicator about the prospects of the precious metals (especially gold) in a post-Y2K scenario. History is always a good indicator of future human performance. Gold has at least a 6000 year track record of use as money. It is almost the ideal medium of exchange.

If the fractional banking system goes down once and for all, along with the greater part of modern society, due to computer problems what will be peoples' confidence level in paper money? Zero. What will be their confidence level in credit cards and any other electronic investments? Zero. We would eventually go back to what all societies eventually go back to; a hard money standard.

This is part of the reason I think it's kind of funny when the anti-New World Order crowd talks about Y2K being the perfect time for Uncle to put a computer chip in our heads so that they can control the entire economy. Think about it; people have just lost everything they own, everything they ever knew, everything that was familiar and comfortable and reassuring because *computers* crashed. Now supposedly Uncle is going to convince them that, for their own good, they should get a computer chip in their head "just this one last time and everything will be all right"? Please!

-- Franklin Journier (, July 07, 1998.

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