The United States Constitution contains one of the most powerful, yet overlooked, monetary principles in modern finance:
“No State shall… make any Thing but gold and silver Coin a Tender in Payment of Debts.” — Article I, Section 10, U.S. Constitution
This mandate wasn’t arbitrary. It was a deliberate safeguard against fiat inflation, debt-based economies, and monetary manipulation—problems we now face at a global scale. At the heart of this principle lies Constitutional Coinage, or what many call Constitutional Gold and Silver: coins issued by the U.S. Mint when American money was still backed by precious metals.
In this article, we will explore what Constitutional coins are, their historical significance, legal status, and how collecting and using them aligns with the modern sound money movement. We’ll also cover why these coins can be a strategic asset for those seeking to protect their wealth and promote economic liberty.
What Are Constitutional Coins?
Constitutional Coins refer to U.S. gold and silver coins minted and circulated before the complete transition to fiat currency. They were legal tender issued by the U.S. government, containing real, measurable amounts of precious metal and were used in everyday commerce for over a century.
They are commonly divided into two main categories:
1. Constitutional Silver
Often called “junk silver” (a misleading term), this refers to:
- Dimes, quarters, and half dollars minted in 1964 and earlier
- Composed of 90% silver, 10% copper
- Include:
- Mercury and Roosevelt dimes
- Washington quarters
- Franklin and Kennedy half dollars (pre-1965)
Each $1 face value of these coins contains approximately 0.715 troy ounces of silver.
2. Constitutional Gold
These include U.S. gold coins minted before 1933, such as:
- $2.50 Quarter Eagle
- $5 Half Eagle
- $10 Eagle
- $20 Double Eagle
These coins were minted in .900 fine gold (90% gold, 10% copper) and remain some of the most beautiful and historic pieces of American money ever created.
A Brief History of Constitutional Coinage
The Coinage Act of 1792
The foundation for U.S. coinage was laid in 1792, establishing the U.S. Mint and a bimetallic standard: gold and silver coins backed by weight and purity, not political promises.
- The dollar was defined as 371.25 grains of fine silver.
- Gold coins were denominated to reflect their metal content at a fixed ratio (initially 15:1).
These standards held (with minor adjustments) until the 20th century, anchoring the U.S. economy in a hard money system that limited inflation and supported honest exchange.
The Transition to Fiat
- In 1933, President Roosevelt ended gold coin circulation and prohibited private ownership of most gold coins.
- In 1965, silver was removed from circulating coins under the Coinage Act of 1965.
- In 1971, President Nixon severed the dollar’s link to gold completely, ending the Bretton Woods system.
Since then, the dollar has been a pure fiat currency, with no intrinsic or redeemable value—leading to significant inflation and erosion of purchasing power over the decades.
Why Constitutional Coins Matter Today
Constitutional coins are more than collectibles—they are historic sound money instruments. Here’s why they matter:
✅ 1. They Are Real Money
Unlike fiat dollars, constitutional coins have intrinsic value. A pre-1965 dime contains about 0.0723 ounces of silver. At $30/oz, that’s over $2.00 of melt value—far more than its face value.
This means these coins cannot be inflated away. They are what money is supposed to be: a stable medium of exchange and a reliable store of value.
✅ 2. They Are Legal Tender
These coins still carry their original face value and are recognized as legal tender. While it’s unwise to spend a 1964 quarter for 25 cents, their legal status makes them more widely accepted than bullion or foreign coins, and may even have favorable tax treatment in some jurisdictions.
✅ 3. They Are Portable and Divisible
Silver dimes and quarters offer small, divisible units of value, making them perfect for barter or small transactions—ideal in an inflationary or emergency environment.
Compare this to a 1 oz silver round: breaking that into smaller units requires fees or fractional coins. Constitutional silver already solves this.
✅ 4. They Are Recognizable and Trusted
Because they were circulated for decades, constitutional coins are easily recognizable. Their standardized weight, composition, and iconic imagery (like Liberty, Washington, or the Walking Liberty figure) make them instantly trusted, unlike unknown bars or exotic tokens.
✅ 5. They Are Durable and Practical
Designed for circulation, these coins are incredibly resilient. Unlike bullion which scratches or wears easily, constitutional coins are tough enough to spend, trade, and transport without damage.
Benefits of Collecting Constitutional Coins
For investors, collectors, and advocates of sound money, constitutional coins provide a host of benefits:
🪙 Tangible Wealth Storage
Holding constitutional gold and silver allows you to store value outside the banking system, free from digital controls, internet outages, or financial crises.
🪙 Hedge Against Inflation
As fiat money loses purchasing power, silver and gold coins tend to rise in value, preserving buying power over time.
🪙 Emergency Barter Currency
In times of currency crisis, hyperinflation, or grid failure, constitutional coins may serve as real barter money. Silver dimes and quarters are perfect for food, fuel, or trade in a collapse scenario.
🪙 Historical and Aesthetic Appeal
These coins are beautiful, tangible links to American history. Collecting them offers a patriotic and educational experience, connecting you to the economic philosophy of the Founders.
🪙 Low Premiums
Compared to modern bullion coins, 90% silver coins often have lower premiums—especially when purchased in bulk or circulated grades.
How to Start Collecting
🔍 Identify Your Goal
- Are you investing for value storage?
- Are you preparing for barter and emergency use?
- Are you collecting for historical value?
This will guide whether you focus on uncirculated, graded specimens, or more circulated, stackable coins.
📦 Buy from Trusted Dealers
Look for reputable coin shops, bullion dealers, or numismatic marketplaces. Avoid paying excessive premiums—do your research and check spot price comparisons.
💰 Start Small
Even $10–$20 a month can build a strong collection over time. Focus on:
- Silver Roosevelt dimes and Washington quarters
- Franklin and Kennedy half dollars (1964)
- Pre-1933 gold in fractional denominations (if budget allows)
Legal Considerations
Constitutional coins are legal to own, trade, and sell. However:
- Don’t spend them at face value unless absolutely necessary.
- Understand capital gains taxes if selling for profit (though some states exempt precious metal sales).
- Verify authenticity—especially for gold coins, which are more likely to be counterfeited.
Constitutional gold and silver coins are not just relics of a bygone era—they are blueprints for sound money and a practical tool for modern financial resilience. Whether you’re protecting wealth, preparing for economic uncertainty, or simply reclaiming the principles of honest currency, constitutional coins offer a compelling, time-tested solution.
By collecting, trading, and even using these coins, individuals take a step toward monetary independence, historical continuity, and true financial freedom.
“Gold is the money of kings, silver is the money of gentlemen, barter is the money of peasants, and debt is the money of slaves.” — Norm Franz
Disclaimer: Royal Leo Holdings, LLC is not a registered financial advisor. All content on this site is provided for informational and educational purposes only and represents our own opinions—not financial advice. You should consult a qualified professional before making any investment decisions.
