Is it legal to own a 1928 gold certificate?
Yes, completely. The ban on holding gold certificates ended on April 24, 1964, when the Treasury revoked the rules mainly so that collectors could own them. You can buy, sell, inherit and display them freely. They're a regular part of the paper money hobby.
Between the end of 1933 and that 1964 change, owning one was against the law. That's why some older relatives kept them hidden and why families sometimes find them tucked inside books or old wallets.
Gold certificate rules, 1933 to 1964
| Date | What changed |
|---|---|
| March 1933 | Presidential orders stopped the exchange of gold certificates for gold coin |
| April 5, 1933 | Executive Order 6102 required people to turn in gold coin, bullion and gold certificates by May 1, 1933, with limited exceptions |
| December 28, 1933 | A Treasury order made private possession of gold certificates illegal |
| January 1934 | The Gold Reserve Act set up a new system of gold certificates held only by the Federal Reserve |
| April 24, 1964 | Treasury Secretary Douglas Dillon lifted the restrictions so collectors could legally hold them |
Why did the government ban gold certificates?
Gold certificates were a promise. Each one said that gold coin had been deposited in the Treasury and would be paid to the bearer on demand. In the banking crisis of early 1933, people rushed to swap paper for gold, draining the reserves. The new Roosevelt administration first stopped paying out gold for certificates, then in April 1933 ordered people to turn in gold coin, bullion and gold certificates to the Federal Reserve. By the end of the year, simply holding a gold certificate was illegal.
The Gold Reserve Act of 1934 moved the nation's monetary gold to the Treasury and created a separate kind of gold certificate used only inside the Federal Reserve System. Gold certificates for the public were finished. Series 1928 was the last to circulate.
How do I read the note?
Start with the color. The Treasury seal and the serial numbers are printed in a gold-orange shade and GOLD CERTIFICATE appears across the top. The $10 shows Alexander Hamilton; the $20 shows Andrew Jackson. On the back you'll find the same green buildings used on Federal Reserve notes of the time: the Treasury Building on the $10 and the White House on the $20.
The series is printed as SERIES OF 1928 near the portrait. The signatures at the bottom should be W. O. Woods as Treasurer and A. W. Mellon as Secretary of the Treasury. A Series 1928A with Woods and Mills signatures was printed, but those notes were destroyed rather than released, so the 1928 is the one you'll find.
Could my gold seal note be something else?
Two notes often get confused with gold certificates. The first is the World War II silver certificate made for troops in North Africa and Europe. It has a bright yellow seal but blue serial numbers and it reads SILVER CERTIFICATE. The second is a Federal Reserve note with a faded or stained seal. A real gold certificate has gold-orange serial numbers to match its seal and the words GOLD CERTIFICATE printed on it.
Larger gold certificates from 1928, such as the $50 and $100, look similar and were also recalled. Large-size gold certificates from before 1929, with gold-orange backs, are an older and bigger type of note.
What makes one worth more?
Every genuine 1928 $10 or $20 gold certificate is worth a collector premium, partly because so many were turned in during 1933. Condition decides where in that band a note falls. Most survivors show circulation: folds, soft paper and some soiling. A crisp, unfolded note with bright color is in a much higher tier.
Star notes, with a star at the front of the serial number, are scarce for both denominations and carry a substantial premium. Unusual serial numbers add value too. The $10 and $20 are the most common gold certificates, so they're the ones collectors use to judge quality closely.
- Check for a center fold and other creases by tilting the note under a lamp
- Look for strong gold-orange color in the seal; faded or brownish seals reduce appeal
- Look for tears at the folds, pinholes and writing
- Check both serial numbers match and look at the front for a star
Can I trade it in for gold?
No. That promise ended in 1933. A gold certificate is still legal tender and the Treasury will exchange it at face value for other currency. That makes ten or twenty dollars the absolute floor. You'll do far better selling it to a collector or dealer than spending it or trading it in.
What should I do with mine?
Put it in a currency sleeve and keep it flat. Don't try to brighten the seal or clean the paper. If it's worn, a local coin and currency dealer can make you a fair offer. If it's crisp, has a star or has a fancy serial, get more than one offer or consider third-party grading. For an estate, ask the dealer for a written description with the series, signatures, serial number and grade.
Frequently asked questions
Is it illegal to have a gold certificate?
No. The restrictions on holding gold certificates were lifted on April 24, 1964. Since then they can be owned and sold freely.
How much is a 1928 $20 gold certificate worth?
It's worth a collector premium even in worn condition. Crisp notes and star notes are worth considerably more.
Can you still redeem a gold certificate for gold?
No. Gold redemption ended in 1933. The notes are legal tender at face value only.
Why is my gold certificate seal orange?
The seal and serial numbers of gold certificates were printed in a gold-orange ink, which is the normal color for these notes.
What is the difference between a 1928 gold certificate and a 1928 Federal Reserve note?
The gold certificate has a gold-orange seal and serials and promised gold coin. The Federal Reserve note has a green seal and was issued by a Federal Reserve Bank.
Sources: Gold certificate (United States) (Wikipedia) · Series of 1928 (United States currency) (Wikipedia) · Bureau of Engraving and Printing frequently asked questions (archived)