There was a time, for forty one years that it was illegal
to own gold. In 1933 Franklin D. Roosevelt made it illegal
for any person in the United States to own hoards of gold.
The ban was not lifted until legislation was signed in 1974
by President Gerald Ford. Although the new bill did not do
away with the Gold Clause Resolution of 1933, people could
now buy and trade gold as a commodity.
This all happened after the great depression. Foreign
banks, who were afraid of the failing economy, were turning
in their paper money in exchange for gold. This was
depleting the gold supply in the U.S. Reserve. Up until
then the United States had been on the gold standard. Many
dollar bills, like the fifty, were printed with a yellow
back which indicated it could be turned in for the gold
rate.
The Executive Order 6102 made it illegal for anyone to own
more than $100 worth of gold. Citizens had to turn in
their gold in exchange for paper money. The gold coins
were melted down into bars by the U.S. Treasury department.
This was done to keep the U.S. dollar afloat and avoid
panic in the overseas market. The tactic worked.
However, not everyone turned in their gold coins. There
are still a few in private collections. These coins are
considered a rare thing and extremely sought after by
collectors and coin dealers everywhere. Certain $20 gold
coins can range in value from $500 to over $20,000
depending on the marks and condition of the coin.
Gold is a timeless investment. The value has gone up
considerably more and more over the years. This is simply
because of the law of supply and demand. The mines are not
producing enough gold to satisfy the demand. Banks were
selling their reserves and keeping the prices more stable.
Now that they are holding on to the gold and the demand has
increased, the prices are climbing. It is expected to peak
at about $1,000 per troy ounce by mid summer of 2008.
The U.S. Treasury has also started to produce and offer for
sale the gold eagle coin. This 1 troy ounce coin has a
face value of $50. This is enabling anyone who wants to
invest in gold to do so. The coins are also available in
the ½ ounce, ¼ ounce, and 1/10 ounce
varieties as well. Being able to invest in the gold market
has finally become possible for the middle class. Many
people are finding it worth the investment.
Investing in gold is a wise choice. The price is
constantly going up. The demand is also growing. The
ability to have it with you and easily transport it is a
benefit. The fact that it is a tangible product that never
loses value is the best reason to invest in gold. Now that
the U.S. Treasury has made the coins available on the open
market, anyone who ever thought of investing in gold can do
so.
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Gary Giardina
For more information please visit:
http://goldinvestingsite.com/
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