When Roosevelt did the gold recall did that increase demand?
Back in 1933 President Theodore Roosevelt passed a bill that allowed the Government to confiscate all the gold in the United States. Even though US citizens were forbidden from owning gold within the country US citizens could own gold outside of the United States, which in fact Roosevelt did. Upon receiving the gold bullion and coins they were melted down and stored in the Federal Reserve. This did not increase the demand of gold at the time. It wasn’t until 1977 that congress revoked the bill that prohibited the possession of gold. Gold prices had dropped to an all time low in 1974, because US citizens couldn’t purchase gold in any form. Now of course not all of the gold was received. There were a few citizens that insisted on not complying with the regulations set forth by the Government. This resulted in several thousand gold coins that didn’t get returned and destroyed like the Double Eagle, increase in value. These coins are still highly prized even today. They are rare and valuable, because the demand is so high for these coins. These gold coins can range from a few hundred dollars to several million dollars. The most expensive gold coin ever sold was a 1933 Double Eagle. This coin sold in 2002 at a New York auction for 7.5 million dollars over the phone. Even though the prices of these gold coins have risen significantly there is still a great demand for pre-1934 gold coins. Any dealer that decides to sell gold coins and has a decent collection should have some of these coins in stock. Now there have also been different ships that have sunk and were carrying some of these Double Eagles, since their recovery it has influenced the demand of the coins on the market. Obviously, the more coins available on the gold market the lower the prices will be. The result of Roosevelt’s gold confiscation was that prices have risen on many of the pre-1934 gold coins, because their number is limited. Now when you purchase gold coin that predates 1934 you are paying not only for their gold content, but for their rarity as well.
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