Coin Collector

Coin Collector | 42 | www.allaboutcoins.co.uk to still be in existence due to the majority being melted down, hence the rarity of the coin. 1933 was also the same year President Roosevelt signed an executive order which took America off the gold standard and recalled gold coins in return for paper money, making it illegal for gold bullion to be owned by private individuals. The ‘confiscation’ of gold from private investors meant the United States gold reserve was increased which led to the formation of the United States Bullion Depository, commonly known as Fort Knox. It was at Fort Knox that a 1933 double eagle was stored and later sold at auction for $7.5 million. (You can read about this more below). The Treasury donated two coins to the Smithsonian Institute, but other coins also escaped the melting pot, for reasons which the US Government says was not sanctioned by them. At that time, it was common practice to be able to swap older double eagles for the new ones and this may not have been recorded in the record books so we think that it is slightly unfair of the US government to have confiscated various coins that have surfaced. The summary of the $7.5 million is as follows. In 2001, a British coin dealer, Stephen Fenton, was arrested in New York in a sting operation when he tried to sell a double eagle that he claimed had once belonged to King Farouk of Egypt. Criminal charges were eventually dropped against Fenton, but the government held onto the coin arguing that the coin belonged to them. The case was settled however, when the Government agreed to split proceeds of the sale at auction with Mr Fenton, plus $20 to the US Government for monetising the coin. The coin was then sold at auction in 2002 at Sotheby’s for a record-breaking $7,590,020.00. A few years later, the heirs of Israel Switt, a New York jeweller who died in 1990, discovered ten Double Eagles in a safety deposit box that had once belonged to Switt. The family contacted the US Treasury in order to get the coins authenticated with a view to selling them, hoping for a similar deal in which the proceeds of any sale would be split between the US Government. However, the US Government instead claimed ownership of the coins and confiscated them, and is not so far offering the same deal that it offered Above, from left: an 1874 Double Eagle. Reverse on the right now shows the words ‘IN GOD WE TRUST’ in the circle of stars. Coronet almost pointing to 7th star. Larger date. In the years 1866 to 1876 the reverse saw a change, with the motto ‘IN GOD WE TRUST’ being added, sitting in the halo of the thirteen stars. The shield in front of the eagle now has rococo sides • An 1897 Double Eagle. The reverse on the right now shows the full words ‘TWENTY DOLLARS’ the scroll has thickened allowing more room for the motto ‘E PLURIBUS UNUM’ a smaller date is present and coronet now points to the gap between stars. The ‘S’ mint mark is shown magnified Below, from left: a 1927 Double Eagle showing Liberty Walking with olive branch and torch. Reverse shows an eagle flying over the sun • A 2002 Modern 1 oz Eagle. These modern coins are similar in gold weight and design to the older Double Eagles to Stephen Fenton. The US Government claims that Israel Switt obtained the coins illegally, and that his heirs have no claim on property that was illegally obtained by him. Israel Switt was a personal friend of US Mint Cashier George McCann, and it seems likely that George McCann probably swapped $20 gold pieces of earlier years for the 1933 specimens that Israel Switt came to possess. Nine of these were sold some years later and subsequently confiscated by the US Secret Service. Israel Switt then apparently claimed that he did not have any more left. Switt could not be prosecuted for the alleged theft because the statute of limitations had expired, but the US Government still maintains that it is the rightful owner of the coins. The Modern 1oz Gold Eagle The modern 1oz gold eagle issued from 1986, holding a face value of $50. The obverse of the coin once again features a similar Liberty design meaning they could be mistaken for a double eagle at a first glance. The name ‘eagle’ means they are sometimes confused with the original $10 eagle coins.