After starting to stack junk silver coins, many investors start thinking about whether or not there’s junk gold coins.
While not usually referred to as “junk gold”, there are forms of old circulated gold coins that are often sold at or just above melt value.
Prior to the United States Gold Confiscation in 1933, gold coins were in common circulation. Many of the Pre-1933 gold coins were melted down. Some were converted to jewelry. Some were stashed away and hidden until it became legal to own gold again.
Most of the pre-1933 gold coins that circulated throughout the United States carry a numismatic premium above the intrinsic value of the gold. Sometimes they can be purchased near their melt value, but most often not.
There are other gold bullion coins, primarily from Mexico and Europe that are more comparable to being junk gold.
During the 1800s and early 1900s gold coins were circulated. In the United Kingdom, the gold sovereign was the standard. Other parts of Europe, such as France, Switzerland and Belgium were part of the Latin Monetary Union that was standardized on the French Gold Franc. In Mexico, gold Peso coins were the standard.
Millions of these coins were produced in their respective countries.