Gold Certificates (1865–1933)

Gold Certificates were paper notes issued by the U.S. Treasury, each representing a specific quantity of gold held on deposit in the Treasury. They functioned as a convenient alternative to carrying gold coins. Their history ends dramatically in 1933, when President Franklin Roosevelt ordered all gold (and most Gold Certificates) to be turned in to the government.

Origins and Design

The first Gold Certificates were authorized by the Act of March 3, 1863, though they were not widely circulated until after the Civil War. Early issues were used primarily in large-denomination settlements between banks and the government rather than in general public circulation. The distinctive feature of all Gold Certificates is their gold-colored printing — the backs are printed in gold or orange ink, making them visually unmistakable.

Gold Certificates were issued in denominations from $10 to $10,000. The higher denominations ($500, $1,000, $5,000, $10,000) were used primarily in bank-to-bank transactions and are among the rarest notes in American numismatics. The $100,000 Gold Certificate (Series of 1934) deserves special mention: it was never issued to the public, used only for transactions between Federal Reserve Banks and the Treasury, and is the highest-denomination note ever produced by the U.S. government.

The 1933 Gold Recall

On April 5, 1933, President Franklin D. Roosevelt signed Executive Order 6102, requiring virtually all Americans to turn in their gold coins, gold bullion, and Gold Certificates to the Federal Reserve Banks. The order was issued under the authority of the Trading with the Enemy Act of 1917 and the emergency banking powers of the National Banking Act.

The order required citizens to deliver their gold to the Federal Reserve by May 1, 1933, in exchange for Federal Reserve Notes at the fixed rate of $20.67 per troy ounce. Those who did not comply faced fines of up to $10,000 (equivalent to over $200,000 today) and up to 10 years imprisonment. The recall was largely successful: most privately held gold and Gold Certificates were turned in.

Shortly after the recall, the government revalued gold from $20.67 to $35 per troy ounce under the Gold Reserve Act of January 30, 1934 — effectively devaluing the dollar by 41%. This gave the Treasury a profit of hundreds of millions of dollars (the difference between the old and new gold prices) on the gold it had just acquired. Critics called this confiscation; defenders argued it was a necessary step to end the deflationary spiral of the Depression.

It is important to note: Gold Certificates that survived in collector hands (i.e., were not turned in) are legal to own today. The executive order's application to collectors was relaxed over time, and coins and currency with recognized numismatic value were generally exempted. The prohibition on private gold ownership was not fully lifted until December 31, 1974 (by Public Law 93-373), at which point Americans could once again legally own gold bullion.

Collecting Gold Certificates

Because most Gold Certificates were turned in and destroyed in 1933, survivors are much rarer than their Silver Certificate counterparts. The most commonly found Gold Certificate is the Series of 1928 $20 Gold Certificate, which was the last series widely distributed to the public before the recall. Even this is worth $150–$500 in circulated condition.

Higher denominations command extraordinary premiums. A Series of 1882 $500 Gold Certificate in VF condition might sell for $50,000–$200,000. The $100,000 Gold Certificate is owned almost exclusively by Federal Reserve Banks and is not available to collectors.

Source: Bureau of Engraving and Printing: Gold Certificates