23
Sep
Rare Coins Add Diversification (and a “Cool Factor”) to Your Portfolio
When it comes to investing in precious metals, diversification is key. Many people understand the importance of adding gold and silver to their investment portfolio, but it’s not enough to diversify INTO precious metals. It’s also important to diversify WITHIN your precious metals assets. True precious metals diversification means that buying gold and silver bullion bars isn’t enough.
That’s why many professionals, including the Portfolio Specialists at United Patriot Coin, recommend incorporating both bullion coins and bars, as well as historic coins and certified rare coins in your overall tangible assets portfolio. That includes U.S. Mint gold coins minted prior to 1933, since these coins provide value not only in the gold they contain (the intrinsic value), but also the potential appreciation through their historic significance and value on the rare coin market (extrinsic value).
Check out our inventory of Saint-Gaudens Double Eagle Coins >>
The Legacy of the U.S. Mint
The U.S. Mint, established in 1792, has been the cornerstone of American currency production for more than two centuries. While it’s well-known for producing circulating coinage and bullion, it also has a rich history of creating some of the most collectible coins in the world. The Saint-Gaudens Double Eagle is one of these iconic pieces, offering not only the value of its gold content but also the intrigue (and appreciation potential) of its historical significance.
Before paper dollars became widespread, gold and silver coins were the backbone of U.S. currency. Alongside the Saint-Gaudens Double Eagle ($20), the U.S. Mint also produced smaller denomination “Eagle” coins: the Eagle ($10), Half Eagle ($5), and Quarter Eagle ($2.50). These coins varied in weight and size but were all made of 90% gold and 10% copper (standard 22 karat purity), a standard alloy used for durability. The Double Eagle contained nearly a full ounce of gold (with an actual gold weight, or AGW, of 0.9675 oz).
Prior to the Saint-Gaudens series, these coins were part of the Liberty Head series, which featured a more traditional design of Lady Liberty and an eagle, minted from 1838 until 1907. Both gold and silver coins were used for day-to-day transactions, with silver dollars, half dollars, and smaller denominations in common circulation. The gold standard kept these coins in everyday use until 1933, when the Great Depression led President Franklin D. Roosevelt to remove the U.S. from the gold standard, confiscating privately held gold to stabilize the economy and transition the nation to a paper-based currency system. This marked the end of gold coin production for circulation and the beginning of a new era in American money.
The History of the Saint-Gaudens Double Eagle
Minted from 1907 to 1933, the Saint-Gaudens Double Eagle was designed by Augustus Saint-Gaudens, one of the most famous American sculptors of his time. The $20 gold piece—known as a “Double Eagle”—is often regarded as one of the most beautiful coins ever produced by the U.S. Mint. The coin’s obverse (as the “front” is called in coin investing lingo) depicts a striking image of Lady Liberty holding a torch and an olive branch, while the reverse showcases a bald eagle soaring above the sun’s rays. It was created during a time when the United States was emerging as a global power, and Saint-Gaudens sculpted the design to reflect the nation’s sense of optimism and growth.
Why Did They Stop Minting the Saint-Gaudens Double Eagle?
The minting of Saint-Gaudens Double Eagles came to a sudden halt in 1933 during the Great Depression, when President Franklin D. Roosevelt issued Executive Order 6102. This order led to the recall of gold coins from the public to stabilize the economy, resulting in many coins being melted down. The recall made surviving Saint-Gaudens Double Eagles far rarer, as only a limited number were kept by collectors or preserved in museums.
This scarcity, along with its stunning design, has made the Saint-Gaudens Double Eagle one of the most sought-after coins in the rare coin market today.
How Rare Coins Complement Your Bullion Holdings
When diversifying into precious metals, it’s important to consider not just the weight of gold you’re acquiring but also the type of assets you’re investing in. Here’s why mixing standard bullion with rare coins makes sense, using the Saint-Gaudens Double Eagle as an example:
1. Gold Content: Both a gold bar (24 karat) and a Saint-Gaudens Double Eagle (22 karat) contain investment-quality gold. They offer the same fundamental benefit as a store of value and a hedge against inflation.
2. Historical and Collectible Value: While gold bars are valuable for their metal content, they lack the historical allure that coins like the Saint-Gaudens bring. These coins offer a unique combination of beauty, history, and rarity, making them more than just an investment in gold as a commodity—they’re an investment in American culture and craftsmanship.
3. Rarity and Market Demand: Unlike standard-issue bullion (coins or bars), which is continuously produced and has no rarity value beyond its established “price of gold” index value, the Saint-Gaudens Double Eagle is a finite commodity. The limited number of surviving coins has led to increased demand among collectors. As interest in rare coins grows, the value of these coins can rise--independently of the spot price of gold.
4. Diversification Within Precious Metals: Owning a mix of bullion and rare coins can provide balance in a precious metals portfolio. While bullion, like gold bars or bullion coins (e.g., American Gold Eagles, South African Krugerrands), offers liquidity and a direct tie to the current gold price, rare coins offer the potential for greater appreciation due to their collectible status and limited supply.
Diversify Your Precious Metals Investments
Incorporating precious metals into your portfolio is a smart move, but true diversification means thinking beyond just standard bullion items. Owning a mix of bullion and rare coins like the Saint-Gaudens Double Eagle can provide both stability and growth potential. The value of the gold itself ensures a solid foundation, while the rarity and historical value of historic coins can offer additional upside over time.
Whether you’re looking to secure your wealth with gold or invest in a piece of history, consider adding a Saint-Gaudens Double Eagle to your collection. It’s a smart way to diversify within precious metals and a great opportunity to own something truly extraordinary.
Check out our inventory of Saint-Gaudens Double Eagle Coins >>
That’s why many professionals, including the Portfolio Specialists at United Patriot Coin, recommend incorporating both bullion coins and bars, as well as historic coins and certified rare coins in your overall tangible assets portfolio. That includes U.S. Mint gold coins minted prior to 1933, since these coins provide value not only in the gold they contain (the intrinsic value), but also the potential appreciation through their historic significance and value on the rare coin market (extrinsic value).
Check out our inventory of Saint-Gaudens Double Eagle Coins >>
The Legacy of the U.S. Mint
The U.S. Mint, established in 1792, has been the cornerstone of American currency production for more than two centuries. While it’s well-known for producing circulating coinage and bullion, it also has a rich history of creating some of the most collectible coins in the world. The Saint-Gaudens Double Eagle is one of these iconic pieces, offering not only the value of its gold content but also the intrigue (and appreciation potential) of its historical significance.
Before paper dollars became widespread, gold and silver coins were the backbone of U.S. currency. Alongside the Saint-Gaudens Double Eagle ($20), the U.S. Mint also produced smaller denomination “Eagle” coins: the Eagle ($10), Half Eagle ($5), and Quarter Eagle ($2.50). These coins varied in weight and size but were all made of 90% gold and 10% copper (standard 22 karat purity), a standard alloy used for durability. The Double Eagle contained nearly a full ounce of gold (with an actual gold weight, or AGW, of 0.9675 oz).
Prior to the Saint-Gaudens series, these coins were part of the Liberty Head series, which featured a more traditional design of Lady Liberty and an eagle, minted from 1838 until 1907. Both gold and silver coins were used for day-to-day transactions, with silver dollars, half dollars, and smaller denominations in common circulation. The gold standard kept these coins in everyday use until 1933, when the Great Depression led President Franklin D. Roosevelt to remove the U.S. from the gold standard, confiscating privately held gold to stabilize the economy and transition the nation to a paper-based currency system. This marked the end of gold coin production for circulation and the beginning of a new era in American money.
The History of the Saint-Gaudens Double Eagle
Minted from 1907 to 1933, the Saint-Gaudens Double Eagle was designed by Augustus Saint-Gaudens, one of the most famous American sculptors of his time. The $20 gold piece—known as a “Double Eagle”—is often regarded as one of the most beautiful coins ever produced by the U.S. Mint. The coin’s obverse (as the “front” is called in coin investing lingo) depicts a striking image of Lady Liberty holding a torch and an olive branch, while the reverse showcases a bald eagle soaring above the sun’s rays. It was created during a time when the United States was emerging as a global power, and Saint-Gaudens sculpted the design to reflect the nation’s sense of optimism and growth.
Why Did They Stop Minting the Saint-Gaudens Double Eagle?
The minting of Saint-Gaudens Double Eagles came to a sudden halt in 1933 during the Great Depression, when President Franklin D. Roosevelt issued Executive Order 6102. This order led to the recall of gold coins from the public to stabilize the economy, resulting in many coins being melted down. The recall made surviving Saint-Gaudens Double Eagles far rarer, as only a limited number were kept by collectors or preserved in museums.
This scarcity, along with its stunning design, has made the Saint-Gaudens Double Eagle one of the most sought-after coins in the rare coin market today.
How Rare Coins Complement Your Bullion Holdings
When diversifying into precious metals, it’s important to consider not just the weight of gold you’re acquiring but also the type of assets you’re investing in. Here’s why mixing standard bullion with rare coins makes sense, using the Saint-Gaudens Double Eagle as an example:
1. Gold Content: Both a gold bar (24 karat) and a Saint-Gaudens Double Eagle (22 karat) contain investment-quality gold. They offer the same fundamental benefit as a store of value and a hedge against inflation.
2. Historical and Collectible Value: While gold bars are valuable for their metal content, they lack the historical allure that coins like the Saint-Gaudens bring. These coins offer a unique combination of beauty, history, and rarity, making them more than just an investment in gold as a commodity—they’re an investment in American culture and craftsmanship.
3. Rarity and Market Demand: Unlike standard-issue bullion (coins or bars), which is continuously produced and has no rarity value beyond its established “price of gold” index value, the Saint-Gaudens Double Eagle is a finite commodity. The limited number of surviving coins has led to increased demand among collectors. As interest in rare coins grows, the value of these coins can rise--independently of the spot price of gold.
4. Diversification Within Precious Metals: Owning a mix of bullion and rare coins can provide balance in a precious metals portfolio. While bullion, like gold bars or bullion coins (e.g., American Gold Eagles, South African Krugerrands), offers liquidity and a direct tie to the current gold price, rare coins offer the potential for greater appreciation due to their collectible status and limited supply.
Diversify Your Precious Metals Investments
Incorporating precious metals into your portfolio is a smart move, but true diversification means thinking beyond just standard bullion items. Owning a mix of bullion and rare coins like the Saint-Gaudens Double Eagle can provide both stability and growth potential. The value of the gold itself ensures a solid foundation, while the rarity and historical value of historic coins can offer additional upside over time.
Whether you’re looking to secure your wealth with gold or invest in a piece of history, consider adding a Saint-Gaudens Double Eagle to your collection. It’s a smart way to diversify within precious metals and a great opportunity to own something truly extraordinary.
Check out our inventory of Saint-Gaudens Double Eagle Coins >>
For a confidential consultation with one of our Metals Portfolio Experts about incorporating rare coins from the U.S. Mint into your portfolio, please submit the following form.