How common was it to use a $20 gold piece in everyday life?

I'm having a hard time wrapping my head around the fact that people would use $20 gold pieces and other gold pieces in everyday life for basic purchases. Exactly how common was it for people to use these coins in the 1800's and 1900's? I know $20 then isn't what $20 is today but did people use these for big purchases or at least $2.5 gold pieces?

 

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I can remember my father saying it was not uncommon to receive one for a birthday present.

 

i have often thought about this as well. it seems most u.s. gold is in rather good condition compared to smaller silver coinage. i know a lot of the capped half dollars were shipped around mostly to banks which is why there are so many nice one of those. did gold have the same thing happen with it?

 

According to the Inflation Calculator $20 in 1913 is worth $467 today - 1913 is the earlies it goes back. That's a lot of cash to be carrying around, which is probably why not a lot was carried around, hence the better than average condition of $20 gold pieces versus lower denomination coinage.

 

Good fact. But then what about quarter eagles which would be about $58 back then. A lot more reasonable. This still boggles my mind thinking about it.

 

Me too. But to me that's a little more reasonable, like carrying a $58 bill.

Now, the purpose of the $10,000 bill, which was for public circulation, eludes me.

 

I thought those big bills were only used privately between banks?

 

That was the $100k bill, but don't quote me. I'm not a bill collector.

 

I can't imagine people using those gold coins too much back then. Remember, the wages back then were very low and sometimes it took a whole week to save up a few bucks.

And about the bill, large denom. bills are used by banks and government.

 

The 1883 Liberty nickel didn't have the word "cents" on the reverse. Since they had a somewhat similar design as the half eagle, gangsters would gold plate them and pass them off as $5 coins. I imagine the use of gold coins in general wasn't entirely uncommon.

 

Actually from what I have heard over the years gold for most was a big deal back then. Mostly used for major gifts and hoarding. Remember many of the banks were private and the government did not back them. So I think many of the larger coins spent little or no time in commerce more for bank reserves and private hoards.

 

During the mid to late 1800's it depended on where you lived. Back east, all coins were hoarded to some degree. However, out west where gold was plentiful, it was common to spend these kinds of coins.

 

I must disrespectfully disagree. It is not a myth. People hoarded coins, that is why they issued that Civil War and post Civil War paper currency. I also apologize for my use of west, I meant primarily California.

 

The $100k bill was used to move money through the federal reserve system. The $10k bill was used for transfers between banks, mostly.

But it was possible to go in and withdraw $10k from your account, if you had it, and if for some reason you wanted one bill, it's again possible that the bank could give you one $10k bill. But I doubt it ever happened.

 

Obviously it was possible to walk into a bank and get a $500 or larger bill, but not many people had the means to do it. Even $20 was a pile of money then. Frankly I think people that went in and walked out of a bank with a large bill like that back then and just kept it were d***ed fools - but really I am glad they did so the notes survive today for us. Similarly I am thankful for the fools that shipped their gold over to Europe back in 1928-9.

 

From what I have read large amounts of $20 gold coins were used in overseas payments. Thus ending up in European bank vaults they were mostly uncirculated.
Also the gold double eagles were used in the USA to transfer funds between banks.
I have read also that many dealers used to [and maybe still do] travel to europe and personally bring back stashes of gold found in banks and hoards over there.
Lastly, some dates and mint marks once thought rare are now no longer scarce due to being found in europe and brought back into the USA.

 

And you can believe Doug...


He was there.

 

I've read where the Spanish Real was the main currency in the West right up to the 20th century. The 20 cent piece was an attempt to help the conversion between the Dollar and Real.

"Shave and a Haircut...2 bits" (1/4 Real)