Lot 1767
1861 $20 Liberty. NGC graded AU-55. A lustrous, untoned example. Popular Civil War issue. With the advent of paper money Greenbacks by the Federal Government in 1862, prices of paper money fell against gold. Most gold in those days was stored in bank vaults against as reserves or was used to pay for imports in international transactions. The exporters had to "bid up" the gold price by supplying more of the depreciating greenbacks. At one point three years into theWar, it required $264 in greenbacks to purchase $100 face value in gold coins, a 164% premium over the usual par price of $100 paper for $100 gold. Life continued under these stressful conditions as markets adjusted to the disruption. We see the same thing today when it takes $1500+ in Federal Reserve greenbacks or digital currency to acquire an ounce of gold money, yet markets adjust and move along (PCGS # 8932) .
Estimated Value $1,900 - 2,000.
The Arden Collection.
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| Realized $2,990 |
