4

I wonder if anyone can tell me whether U.S. $20 American Eagle gold coins are considered to be "securities" for purposes of sale? In other words, if I want to start a business that buys/sells them to the public, would I have to be a licensed securities dealer to do so?

I've read a number of articles online that seem to indicate the answer is "no", but before I proceed with my plan, or spend a great deal of money asking an attorney this question, it'd be nice to get some feedback from anyone who can shed some light on the subject. Thanks all!

littleadv
  • 190,863
  • 15
  • 314
  • 526
Daniel Anderson
  • 10,136
  • 4
  • 23
  • 47

1 Answers1

5

No.

Securities brokers/dealers in the United States are licensed to broker debt and equity in corporations. (There are additional, commodities licenses to broker derivatives.) $20 American Eagle coins, or any other type of physical currency or physical precious metals can be traded or brokered by anyone without a specific license (except maybe a sales tax registration).

The only situation where a securities license would be required is if a legal entity is holding the coins and you deal/broker an interest in that legal entity. For example, dealing in SPDR Gold Shares or a similar structure holding either physical assets or the right to purchase those assets (like a commodity pool) would require a securities and/or commodities dealing license.