History may be repeating itself. That’s not surprising considering we humans tend to fulfill our very own definition of “insanity.” That is, we keep doing the same thing over and over again yet always expect a different result. Not gonna happen.
What we’re doing yet again is going to war. In the Middle East, humans are waging war on a comparative large scale. When substantive conflicts take place and cause widespread uncertainty, humans again and again gravitate to and even hoard gold. That sends prices skyward.
Case in point…Hamas attacked southern Israel on October 7, when the price of gold was $1,860. Within days, gold prices climbed $130 per ounce to almost $2,000. It was reminiscent of the mid-1930s. The potential for war was looming in Europe. Tensions were high. Worse, the US government imposed the Gold Reserve Act which banned any export of gold, stopped convertibility of gold into paper money and even restricted gold ownership....
Reaction was immediate. Even though it was technically illegal to own in quantity, hoarding of gold began. The price almost doubled from $20 an ounce to $35. The 1970s saw the greatest run-up in the price of gold when it skyrocketed from $40 per ounce to briefly hitting just over $800 in January 1980.
The exception in the legality of owning gold from 1933 to 1975 was if it was in the form of jewelry or collectible coins. It’s amazing how many individuals became “numismatic collectors” during that period. Thank goodness they did. Their “collecting” of gold coins kept tens of thousands of rarities from being surrendered to the government and melted merely for their precious metal content.
It’s doubtful we will ever lose our fascination and lust for gold. It’s been a part of our DNA since 2450 BC when an Egyptian alchemist named Zosimos discovered it.
The probability of actual circulating precious metal gold coins ever returning to daily use is all but impossible. Ten-dollars-worth of gold would be tiny – roughly the size of the head of a large pin. Today, the smallest gold coin available weighs one gram. It is just eight millimeters in diameter.
The appeal of gold means everyone from credit card companies to private clubs label top-tier status the “gold” level. It’s also true for faux gold coins, even here in the US. Our last stab at a circulating dollar coin was one that was gold in color. Though we no longer have the “golden” Sacagawea dollar coin the US Mint hasn’t abandoned the idea entirely.
The “American Innovation” golden dollar series has been in place since 2018. If you haven’t heard of it, that’s not surprising. The coins don’t circulate and are available only directly from the Mint.
The concept behind the “innovation” dollars is to salute inventions from each of the states and US territories. Twenty such coins have been issued over the past five years. Four have been released in 2023 – the latest from Ohio. The “innovation” featured on that golden dollar coin is the “Underground Railroad.”
It’s a stretch to call that “railroad” a US innovation. After all, safe houses and aided escape routes have been around for millennia. Their creation can’t be attributed to modern-day Ohio. However, as it relates to slavery in the 1800s, the US Underground Railroad was the one path to freedom for thousands. In that regard, the “railroad” of hiding places and clandestine paths was pure gold.
The new coin features two arms clasping each other around the wrist. One arm, on which dangles a broken chain and shackle, is being lifted by the other. Beside the image is the word “OHIO.” Surrounding it are the words, “UNDERGROUND RAILROAD” and “UNITED STATES OF AMERICA.”
The coin is a fitting tribute to the Underground Railroad...a secret system that offered the best, but most dangerous, chance at freedom. Unfortunately, few will ever be free to see the coins because they will not be in general circulation. Instead, they are available in rolls and bags or can be purchased in a highly polished “proof” format for $11.50 each only from the Mint at: www.USMint.gov.
Similar to the gold coins of the 1930s, the ones to acquire these glittery golden dollars will be a few collectors. What will their value be in the future? Nice as they are and shiny as they may be, it would be wise to remember, “All that glitters is not gold.”
For more collecting information and advice, log on to: http://prexford.com/.