UNIVERSAL COIN & BULLION’S PRESIDENT ON COIN CONFISCATION’S IMPACT
|Published: Wednesday, 04 November 2009 07:28
According to numismatist Mike Fuljenz, the confiscation of gold, from 1934 to 1971 in America, gold coins and bullion were illegal to own, resulting in the melting of many rare gold and silver coins. This caused many rare coins to soar in value over time. For some type coins and low mintage years, there are very few surviving specimens available today, he said. This rarity is documented by the “population reports” by the Professional Coin Grading Service (PCGS) and Numismatic Guaranty Corp. (NGC)
The gold standard was nearly universal a century ago, from the 1880s through 1914. It’s hard to imagine in this modern world, but American and European government leaders were all required to authenticate the quality of their coins and bullion bars in storage, to back their currencies in case of a run on the Treasury. Consumers owned gold in the form of jewelry, coin or bullion bars, which were authenticated by a recognized brand name, or verified at their local assay office, for a fixed value. Mike Fuljenz points out “Rare coins fetched a numismatic premium, depending on their grades, popularity and rarity.”
During World War I, some foreign governments inflated their currencies so much that market forces drove prices way up or created commodity shortages. National policies apparently trumped monetary integrity in war times, so that consumer rights to honest money were abrogated. Some foreign government’s hidden scam was in fact a fraud on the public, forcing them to accept paper money, unbacked by precious metals. As a result, some currencies even became worthless.
Mike Fuljenz is a skilled coin and bullion expert and a 2009 award-winning author. He provides inestimable experience and knowledge of all things numismatic.