US GOLD CERTIFICATES

US GOLD CERTIFICATES - A BRIEF HISTORY

Historically, US Gold Certificates were currency that was redeemable in gold coin.  First authorized by Congress in 1863, and remained in circulation until 1933.  Actually it was unlikely that most of the denominations of US Gold Certificates would have been circulated in day to day business operations. Over 100 years ago, a hundred dollars was a large amount of money.

In their initial issue, they were printed in $20, $100, $500, $1,000, $5,000 and $10,000 denominations, making them more likely to have been used as interbank funds transfer instruments.  Later on, Gold Certificates were also printed in $10 and $50 denominations. It is really a shame these notes were not circulated more as some of them were very ornately designed and quite beautiful.

In 1933, Congress passed the Gold Reserve Act, which among other things, made the possession of gold certificates illegal. Since the Series 1934 Gold Certificates were never released into circulation, they are most interesting of all the notes issued. Presumably, those Series 1934 notes were used as interbank funds transfer instruments only.  The most exciting of those was the Series 1934 $100,000 note, bearing the portrait of Woodrow Wilson.

Despite the fact that ownership of Gold Certificates was illegal for thirty years, many remained in the hands of collectors, meaning that for a time, they had the distinction of being contraband US currency.  In 1964, possession of gold certificates was re-legalized, although redemption for gold was not reinstituted. These notes can never be redeemed for actual gold by the US Government but some have achieved high values strictly as collectibles.