Macro

1933 Gold Bar Sale Amid Record Prices, Central Banks Buy Heavily

Gold surges 12% YOY with central banks buying a record 1,083 metric tons in 2022, as Lear Capital unveils a historic 1933 gold bar.

By Max Weldon

5/16, 09:04 EDT
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Key Takeaway

  • Lear Capital offers a rare 1933 gold bar for sale amid soaring gold prices, highlighting its historical and investment value.
  • Central banks' record gold purchases in 2022 and continued buying in 2023 underscore gold's role as a safe haven asset.
  • With predictions of gold hitting $3,200 an ounce by 2027, this historic bar could be a lucrative investment opportunity.

Gold's Historical Allure Intensifies

Gold's appeal has surged, with its price climbing 12% year-over-year and an impressive 80% increase over the past five years. This precious metal is not only a safe haven during economic turmoil but also a hedge against inflation, retaining value through financial and geopolitical upheavals. The demand for gold has reached such heights that even Costco Wholesale Corp. has been drawn into its orbit. Central banks around the world are significantly contributing to this demand, with record purchases of gold bars to diversify their reserves, enhance liquidity, and fortify balance sheets. In 2022, a staggering 1,083 metric tons were acquired globally, a spree that continued into 2023 with 1,037 metric tons purchased.

A Rare Piece of Gold in Turbulent Times

Lear Capital has acquired an 80.3-ounce gold bar assayed by Léo Matthey in 1933, a period marked by severe financial instability in the United States. This bar, with its serial number 33, represents a direct link to a tumultuous era when gold ownership was restricted to stabilize the financial system. The bar's assay during the Great Depression, a time when the public's preference for gold over paper money and bank deposits led to significant gold outflows from the Federal Reserve, underscores its historical significance. This piece, boasting a purity now equivalent to 0.9999, is not just a tangible asset but a slice of financial history.

Central Banks' Role in Gold's Resurgence

Central banks have been instrumental in bolstering gold's position in the global market. Their aggressive acquisition strategies are not merely for diversification but also reflect a strategic move to use gold in canceling government bonds, thus reducing debt on their balance sheets. Countries like China, India, and Turkey have been particularly active, viewing gold as a resilient asset that can withstand economic shifts. The record purchases by central banks underscore gold's enduring value and its role in national financial strategies.

Management Quotes

  • Kevin DeMeritt, founder of Lear Capital:

    "This is a rare piece of history. We’re offering an incredibly good price on this bar, but we would love to sell it to someone who appreciates the history and wants to hold on to it for its historic value."