Why The 1913 Quarter Eagle Gold Coin Is A Solid Buy

My recommended “Coin of the Week” is the gold 1913 quarter eagle ($2 ½) graded in MS63, MS64 and MS65 condition by the Top 3 leading grading services: CAC, NGC and PCGS. Yes, we have them in stock and ready for you to add to your collection.

The National Numismatic Collection, housed at the Smithsonian’s National Museum of American History, contains a 1913 quarter eagle gold coin but it is graded MS64. So, you now have the rare opportunity to buy one of these coins in equal or better condition than the one in our country’s National Numismatic Collection.

A gold 1913 $2 ½, available in all three grades listed above, is an exceptional coin to buy in the series when you consider population, price and popularity along with our “secret sauce” capitalization formula. These coins have also performed well on the collectors’ market, increasing in value substantially over the past six years … and the best part is that they are still trading at a fraction of the price of their all-time highs!

The 1913 gold quarter eagle is also the coin made before a 10-year gap, where the U.S. Mint didn’t resume making common gold quarter eagles until 1925, lasting only until 1929. Some collectors only collect the scarcer issues from 1908 through 1915, creating extra demand for the 1913.

Be sure you don’t miss your opportunity to acquire one of these amazing coins by calling our expert account representatives. This is an amazing opportunity to own a coin that’s equal to or nicer than what America has in its coin collection at the Smithsonian.

Gold Falls Slightly But Rebounds After the Fed’s Interest Rate Decision

At 2:00 pm (EDT) on Wednesday, the Fed’s Open Market Committee (FOMC) meeting results were announced. Going into the meeting, the betting markets predicted a 90% chance of a 0.25% Fed Funds rate increase. True to expectations, Federal Reserve Chair Kevin Warsh held a press conference to announce the unanimous vote of the entire 12-person board to raise rates by 0.25%, but Chairman Warsh spoke mostly about the strong economy – thereby pleasing President Donald Trump, who nominated him earlier this year.

There will be two more FOMC meetings this year, one on October 27-28, just one week before the election, and I’d bet the Fed will refrain from actions that could lead to accusations of influencing the election by doing nothing at that meeting. However, the odds now favor them raising rates once again on December 9th, unless the Iran conflict ends by then, causing oil, gas and the resulting inflation rate to recede back to near their pre-war levels.

Chairman Warsh’s analysis was brief, to-the-point and welcomely candid about market overreactions to specific monthly data points, including the CPI and healthy retail sales, announced this morning. He looked at the long-term trends, not the “noise” of the monthly ups and downs, which are essentially meaningless.

Of course, the markets don’t see things that way. Traders always want to “react” to the news more than analyze the longer-term trends and make a rational analysis of supply-and-demand fundamentals.

On Wednesday, markets responded as expected to this unanimous vote to “follow the bond market” by raising rates. Most markets declined. Gold declined only slightly (by $23, or -0.5%) for the day, as did the S&P stock index and then gold rebounded and was nearly $4,370 by noon on Thursday and continued to rise.  Here is the basic market reaction by the major markets to the Fed announcement:

Market                 2:00 pm               3:30 pm low         4:00 close              Decline in Final Two Hours

Gold futures        $4,381                  $4,273                  $4,300                                -1.85%                

Dow Jones           52,139                  51,160                  51,462                                -1.30%

S&P 500              7,607                    7,510                    7,552                                  -0.72%

NASDAQ             26,168                  25,800                  25,978                                -0.73%

Data source: Yahoo Finance

On the full day, however, gold only fell $23 (-0.55%), vs. -1.2% for the Dow (-630 points) and -0.44% for the S&P 500. The benchmark 10-year Treasury bond leaped above 5% to 5.016%. Crude oil declined from nearly $105.83 to $102.14 per barrel (-3.5%), and the U.S. Dollar Index rose 0.6% on rising rates.

Investors with a longer-term view would do better to watch the final federal budget deficit for fiscal year 2026, ending on September 30, as our soaring deficits will lead to a weaker dollar. That will be the greatest long-term engine for the continued gold bull market for many decades to come. 

Our Regular Mid-Month Debt and Inflation Update

Each month, the U.S. Bureau of Labor Statistics (BLS) issues the two major inflation indexes, and the Congressional Budget Office (CBO) updates the previous month’s deficit spending, so we offer this mid-month debt/inflation update:

August and YTD Deficits: The August federal deficit increased by $167 billion, taking the total fiscal year (ending September 30) deficit to $2 trillion in red ink. The August deficit was based on $527 billion in expenditures (a $6.4 trillion annual spending rate), while taxpayer receipts amounted to only $360 billion (a $4.4 trillion annual rate), netting a $2 trillion annual rate for the fiscal 2026 deficit.

Once again, the problem is not tax receipts, which were up 3.3%, but the relentless rise in government spending, mostly driven by inflation, higher entitlement costs and a dramatically higher interest cost to service the national debt. The benchmark 10-year Treasury bond yield reached 5% last week and stood at 4.95% before the Fed announcement. Last month, the cumulative national debt reached $40 trillion, so we are in danger of spending the entire federal deficit on interest alone (5% of $40 trillion is $2 trillion). 

Inflation is Also Rising: This past Thursday, the Labor Department announced that the Producer Price Index (PPI) rose 0.4% in August, which is a 5% annual rate, but the core PPI, excluding food and energy, rose by only 0.2%, below the consensus estimate of 0.3%. In the same report, the July core PPI was revised up to +0.3%, from 0.2%. Among the major sectors, August’s wholesale goods prices rose 1.1%, while wholesale service costs rose only 0.1%. Wholesale food prices rose 0.1%, while energy prices soared by 4.2%, and the full-month rise would have been higher, since the PPI data for August only included prices up to August 11. It did not include the recent surge in diesel prices. That will be reflected next month.

We should note that oil and gasoline prices are far from record highs despite what some opposition politicians and media mavens tell us. In the middle of the 2008 financial crisis, the cost of a barrel of oil peaked at $150. Accounting for 55% inflation since then, that would be equivalent to $232 per barrel today, far more than double the actual price of a barrel of crude oil, most recently at $102 per barrel.

Gas prices are also still far below their record highs of 2008, adjusted for inflation. Today’s U.S. average gas price is about $4.35 per gallon in current dollars. That’s 31% below the 2008 peak of $6.31 per gallon and 22% below the 2022 peak of $5.55, when adjusted for inflation. In 2026, we should see a sudden decline in the price of oil and gasoline as soon as ships can safely transit the Strait of Hormuz and the oil they carry can be transported.

Gold fell this week on irrational fears about the Fed raising interest rates further at its two upcoming Open Market Committee meetings later this year but that assumes inflation will keep raising and the military action in Iran and Ukraine will last forever. Oil prices and overall inflation should fall as soon as the backed-up oil tankers can traverse the Strait of Hormuz and then enter the Red Sea safely for a trip through the Suez Canal to Europe, where energy prices are far above U.S. levels.  America is energy independent but Asia, Europe and most of the developing world depend on the free flow of crude oil.