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Academics => History and Culture => Topic started by: Heathcliff on March 16, 2015, 11:19:12 AM
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January 17, 2014
The 1933 Double Eagle has a very interesting history. It is held in extremely high esteem by numismatists and it is extremely rare. Someone stole several of these outlawed coins from the United States government, it was eventually collected by Egypt’s King Farouk and finally the U.S. Secret Service seized it. This coin has a diameter of slightly more than one inch and has a weight just above one ounce. However, the 1933 Double Eagle Gold Coin is likely the most valuable coin in the world.
U.S. Government Never Issued The 1933 Gold Double Eagle Officially
The Saint-Gaudens Double Eagle Gold coins were issued by the U.S. government from 1907 – 1932. In 1933, 445,000 of them were minted. However, none of them went into circulation as a result of currency laws that were altered due to Depression era economic woes. In an attempt to stop the bank run and get the economy to stabilize, then President Roosevelt terminated the prevailing gold standard. Gold coins would no longer be minted and all existing gold coins and bullion were confiscated. Consequently, American citizens could no longer legally own gold, with the exception of coins that had numismatic value.
Destruction Of 1933 Double Eagle Gold Coins
These Saint-Gauden’s designed gold coins were minted each year from 1907 until 1933. Several years prior, in 1928, the stock market collapsed ushering in the era known as The Great Depression. Business slowed to a crawl and many people became homeless. People then began to doubt the banking system and many banks collapsed, leaving account holders with nothing. With a legitimate fear of bank failure, people started to panic and withdraw their money in gold coins. Since banks did not normally hold enough gold reserves, many of them failed. This threatened the entire banking system, a collapse of which would result in even more dire economic circumstances. In an effort to avert this impending catastrophe, President Roosevelt terminated the gold standard and made the possession of gold by U.S. citizens illegal. Money could still be withdrawn from banks, but only in the form of paper currency.
The only gold that could be legally held by U.S. citizens was gold that had numismatic or collectible value. This legislation was enacted to avert gold currency hoarding. Due to the fact that gold currency would no longer be minted in the United States, the U.S. mint destroyed the 1933 Double Gold Eagle coins that were minted that year and made bullion bars out of them.
Several 1933 Double Eagle Gold Coins Escaped Destruction
Two 1933 Double Eagles were provided to the Numismatic Collection of the Smithsonian Institute. These are the only legal coins to be part of any coin collection. Nevertheless, by 1952 the U.S. Secret Service was able to confiscate eight additional 1933 Double Gold Eagles. The question is, “How did these coins escape destruction?”
How these coins escaped destruction may never be known for certain, however, many scholars believe that a cashier at the mint, named George McCann exchanged approximately twenty of the 1933 coins that were destined to be destroyed and replaced them with Double Eagles that had an earlier date on them. In this manner, the accounting would not be out of balance and no one would realize that the coins had been replaced.
We know for certain that a jeweler in the Philadelphia, Pennsylvania area, named Israel Switt, did possess nineteen 1933 Double Eagle gold coins.
A King’s Coin
Israel Switt was able to sell nine of the 1933 Double Eagle coins to private collectors. One of the coins was purchased by Egypt’s King Farouk. When the U.S. Secret Service found out about the coins, they were all confiscated, since they were property that was stolen from the U.S. mint. Nevertheless, King Farouk had exported his coin legally prior to the discovery of the theft by the Secret Service and they were unable to recover King Farouk’s coin.
Recovery Of King Farouk’s Coin
In 1952 the King was deposed. His coin appeared on the market briefly, but when it became known that the U.S. government was still interested in confiscating it, it disappeared once again. Over forty years subsequent to its disappearance a coin dealer from the U.K. brought it to New York where it was seized by Secret Service agents who had set up an undercover agent that claimed he was negotiating to buy it.
The 1933 Double Eagle Gold Coin Averts Destruction
The coin dealer from the U.K. whose name was Stephen Fenton, had a long legal fight in U.S. courts over the coin’s ownership. It was stored in Treasury vaults at New York’s World Trade Center. The legal battle was settled just two months prior to the 9/11/2001 terrorist destruction of the WTC. The coin was transported to Fort Knox prior to the 9/11 attacks. The U.S. Mint and Fenton had a compromise deal. The 1933 Double Eagle gold coin would be put up for sale at auction. The proceeds from its sale were to be divided between the U.S. Mint and Fenton.
The 1933 Double Eagle Finally Becomes Legal Tender
Fenton’s coin was auctioned on 7/30/2002 and it sold for $6.6 million with a buyer’s fee of 15%, so the buyer’s cost ending up being $7.59 million. In addition, the buyer had to pay $20 in order for the coin to be monetized and to compensate the U.S. mint for the twenty dollar loss for the stolen coin. The buyer of this coin elected to remain anonymous. Therefore, no one knows where this coin is, or when it may resurface. However, it is now legal tender and the U.S. Secret Service can no longer confiscate it.
Ten Additional 1933 Double Eagles Surface
An heir of Israel Switt, (the Pennsylvania jeweler) named Joan Langbord found ten 1933 Double Eagles among the effects of Israel Switt. Ms. Langbord was unaware of the coin’s legal status, so she had them sent to the United States mint for authentication. The U.S. Secret Service then seized the coins. After a lengthy legal battle with the U.S. government over their ownership. It appears that this case has been settled. The court ruled on 7/20/2011 that the coins are the property of the U.S. government. The coins are now stored at Fort Knox.
Will The 1933 Double Eagle Gold Coin Retain Its Status As The Most Valuable Coin In The World?
It appears that this question has been answered. A jury of 10 has come to the decision that Langbord’s ten 1933 Saint-Gaudens Double Eagles are the property of the U.S. government .This decision was rendered on 7/20/2011. Therefore, these coins will never make it to auction or become legal tender. Consequently, in all probability, the 1933 Double Eagle Gold Coin will retain its position as the most valuable coin worldwide, since there is only one of them in existence that has legal tender status and can be sold privately.
~credits to the source
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ms. schy, eto na po siguro ang holy grail ng mga coin collectors. hmmmm...
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(http://s23.postimg.org/gotk9fbkb/image.jpg) (http://postimage.org/)
(http://s23.postimg.org/i2glqzlfv/image.jpg) (http://postimage.org/)
(http://s23.postimg.org/ico4ac023/image.jpg) (http://postimage.org/)
wow... ang ganda pala ng history nyan... so interesting to read... thanks...
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interesting story... so there is only 1 coin with legal status worldwide... that would surely be the envy of all coin collectors worldwide... :)