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For those who don't know the history of the 1933 illegal Gold

Started by bsshog40,

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bsshog40

bsshog40

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Most expensive coin in the world

First publicly issued in 1850, the twenty-dollar Double Eagle gold piece was made from gold ore from the California Gold Rush. In 1907, the coin underwent a radical face-lift at the hands of famed American sculptor Augustus Saint-Gaudens. The Double Eagle was discontinued in 1933 by executive order, when President Franklin Roosevelt took the country off the gold standard in an attempt to right the course of the U.S. economy during the Great Depression. Because People in the U.S. were hoarding gold, the nation's financial system was undermined and any coins in circulation were strictly forbidden.

 

With payment or hoarding of gold prohibited, thousands of citizens turned in their gold to the banks but no one told the U.S. Mint to stop making new gold coins: The mint produced 445,000 new $20 Double Eagle coins after Roosevelt's order, but never put them into circulation. In 1937, the U.S. Mint's stockpile of 1933 Double Eagle coins was destroyed (with the exception of two earmarked for historic preservation, which currently reside at the Smithsonian Institution), but several coins were stolen and circulated. The Secret Service discovered years later that George McCann, the Mint's chief cashier, had stolen 10 of the coins, but one by one the Treasury Department and other federal agents recovered all of them - save one.

 

 

 

How the last 1933 Double Eagle survives to this day is part of the fascination with this rare coin. In 1944, agents for Egypt's King Farouk -- an eccentric collector of stamps, aspirin bottles, old razor blades and coins -- applied for an export license for a 1933 Gold Double Eagle. As the result of a Treasury Department oversight, Egypt was granted the license and a 1933 Double Eagle was housed in the private collection of King Farouk, one of the greatest coin collectors of all time. It wasn't until a few weeks after the license was signed that suddenly everyone realized the mistake. The coin was illegal to own, and in fact clearly had been stolen from the U.S. Mint, but the contemporaneous political climate stymied attempts to retrieve it. In 1944, the US was in the middle of a world war, and Egypt stood at the crossroads in the middle of the Mediterranean. It was not the right moment in diplomatic history to go and try to make a claim on a coin, but the coin detectives waited until 1952, when Farouk was overthrown to get it back.

 

In 1954, King Farouk's 1933 Double Eagle turned up in Cairo at a state-held auction of the deposed king's coin collection. The U.S. government recognized that the 1933 Double Eagle was in that collection, and they officially asked the Egyptian government to pull it from the sale and return it as stolen property of the United States. Although the coin was withdrawn, it was not returned and authorities lost track of it for more than 45 years. The coin disappeared...

 

Found, lost and found again

In 1996, British coin dealer Stephen Fentonbrought brought the coin to the Waldorf Astoria Hotel in New York City, to sell to an American collector. Federal agents, posing as coin collectors, seized the 1933 Double Eagle in a successful sting operation and while it cannot be proven with absolute certainly, it is believed that this coin is the same 1933 Double Eagle from King Farouk's prized collection. Fenton was put in jail, but he soon got out and went to court in order to battled the U.S. government over ownership of the coin. Meanwhile the coin itself was stored in what authorities thought was a secure location: a vault at the World Trade Center.

 

But the coin was fated to survive yet again. Just weeks before the twin towers were destroyed on September 11, 2001, the case was settled out of court and the Double Eagle in question - which was minted legally, yet was illegal to possess - was allowed to be privately owned, and was moved to Fort Knox, Kentucky. It was subsequently put up for auction. The coin was sold to an anonymous bidder at a Sotheby's auction on July 30, 2002 for the whopping sum of $7,590,020 prompting U.S. Mint director Henrietta Holsman Fore to proclaim the 1933 Double Eagle "the most valuable coin in the world."

 

 

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Mirrored Morgan

Mirrored Morgan

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Bobby, Interesting story behind the 1933 Saint G. I wonder what that coin would go for now? I have the book that Stacks gave out at the auction in New York City. It is packed full of pictures and tells the story very well. Let me know if you would like to read it and I will send it to you.

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bsshog40

bsshog40

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Bobby, Interesting story behind the 1933 Saint G. I wonder what that coin would go for now? I have the book that Stacks gave out at the auction in New York City. It is packed full of pictures and tells the story very well. Let me know if you would like to read it and I will send it to you.

 

Thanks MM. I'm going to be moving here in about 3 weeks. If you would, just pm me a reminder and I would love to be able to read about it after I get moved. Don't need anything of someone else's getting lost in the shuffle. thanks again!

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RWB

RWB

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There are actually two excellent books about the 1933 double eagles:

Double Eagle by Allison Frankel, and Illegal Tender by numismatist David Tripp.

 

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physics-fan3.14

physics-fan3.14

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There are actually two excellent books about the 1933 double eagles:

Double Eagle by Allison Frankel, and Illegal Tender by numismatist David Tripp.

 

I've read Illegal Tender, and I agree that it is excellent.

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DC Dawg

DC Dawg

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There are actually two excellent books about the 1933 double eagles:

Double Eagle by Allison Frankel, and Illegal Tender by numismatist David Tripp.

Drat... I was just going to mention Illegal Tender! One more reason for reading Tripp's book is that he was the consultant to Sotheby's for the auction of the coin. which sold for $7,590,020 including buyer's premium and $20 to the US government to balance the books. Tripp does provide a chapter about the auction from an insider's view, which is very interesting!

 

Scott :hi:

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Conder101

Conder101

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Most expensive coin in the world

The Indian 1000 Gold Mohur? (Bid to 8 million, with juice 9.5 million but it failed to meet the reserve.)

 

The mint produced 445,000 new $20 Double Eagle coins after Roosevelt's order, but never put them into circulation.

The coins were struck in March, the actual gold recall order was made April 5th.

 

but several coins were stolen and circulated.

Unproven supposition.

 

The Secret Service discovered years later that George McCann, the Mint's chief cashier, had stolen 10 of the coins, but one by one the Treasury Department and other federal agents recovered all of them - save one.

They had accounted for all ten of them, the nine Izzy sold that they recovered and the one in the Farouk collection, when Eliasberg turned in the eleventh of the ten pieces the SS said the cashier stole. So far they have accounted for 21 of the 10 "stolen" coins.

 

In 1944, agents for Egypt's King Farouk -- an eccentric collector of stamps, aspirin bottles, old razor blades and coins --

Hey, you forgot pornography. (And if you spent enough at the 1954 palace sale they would let you view the collection.)

 

The coin was illegal to own, and in fact clearly had been stolen from the U.S. Mint,

Clearly?

 

while it cannot be proven with absolute certainly, it is believed that this coin is the same 1933 Double Eagle from King Farouk's prized collection.

As TDN said, at least some who saw it back in 54 say the Fenton coin is not the same one.

 

and $20 to the US government to balance the books.

But the government books were already in balance, which was why they didn't know there was a "theft" back in 1933.

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