Investing In The 1933 Double Eagle Gold Coins: Wise Or Otherwise?

The 1933 Double Eagle is a $20 gold coin that was minted in the US during the Great Depression. It is one of the world's rarest coins, with only 13 known specimens remaining. Due to its historical context and beauty, it is highly sought after by collectors and investors worldwide. The design, featuring Lady Liberty and an American Bald Eagle, captures the details of national pride and is considered one of the most beautiful coin designs ever minted. With a sale price of $18.9 million, it is the world's most valuable coin ever sold at auction. Given its rarity and desirability, the 1933 Double Eagle gold coin can be a good investment.

The 1933 Double Eagle is the world's most valuable coin

The 1933 Double Eagle is a $20 gold coin that was minted in the United States. In 1933, in the midst of the Great Depression, 445,500 of these coins were struck but never officially circulated. All but two of the coins were ordered to be melted down, and it became illegal to privately own any of the remaining coins. However, a few of the coins were stolen and ended up in the hands of collectors, sparking a series of lawsuits and criminal investigations.

The high value of the 1933 Double Eagle coin is due to its rarity and its historical context. It is one of the rarest coins in the world, with only a handful of specimens known to exist today. The coin also holds historical significance as it was minted during a critical time in American history and was designed to embody the nation's ideals and identity.

The design of the 1933 Double Eagle coin is widely praised and considered one of the most beautiful coin designs of all time. The obverse of the coin features a statuesque Lady Liberty striding forward with a torch and an olive branch, while the reverse depicts an American Bald Eagle, symbolizing freedom and strength. The coin's design captures the details of national pride and symbolizes the growth and preeminence of the United States on the world stage.

The 1933 Double Eagle is sought after by collectors and investors from all over the world. Its sale at the Sotheby's auction in 2021 set a record for the most valuable coin, attracting attention from collectors and enthusiasts alike. The previous owner of the coin, luxury shoe designer Stuart Weitzman, had purchased the coin for $7.59 million in 2002. The auction in 2021 exceeded the estimated price of $10 to $15 million, highlighting the immense value and desirability of this rare coin.

It is illegal to privately own a 1933 Double Eagle

The 1933 Double Eagle is a United States 20-dollar gold coin. Although 445,500 specimens were minted in 1933, none were ever officially circulated, and all but two were ordered to be melted down. However, 20 more are known to have been stolen and found their way into the hands of collectors before later being recovered. Nine of the recovered coins were destroyed, making this one of the world's rarest coins, with only 13 known specimens remaining.

Because the coin was never released to the public, it is illegal to privately own any of the 1933 double eagles, with the exception of the Weitzman Specimen. The Weitzman Specimen was sold in 2002 to private collector Stuart Weitzman for US$7.59 million (equivalent to $12.2 million as of 2022). The coin sold again to an anonymous buyer at auction in June 2021 for US$18.9 million, making it the most expensive coin ever sold.

The United States Secret Service is said to investigate reports of the existence of other specimens that come to light. In the early 1970s, President Nixon took the United States off the gold standard, and President Ford signed legislation that again made it legal for the public to own gold bullion. Therefore, any recovered 1933 double eagle, as gold bullion, was required to be melted before this legislation. While double eagles recovered prior to 1974 were melted down, any double eagle recovered now can be spared this fate.

Currently, with the exception of the one sold on July 30, 2002, 1933 double eagle coins cannot be the legal possession of any member of the public, as they were never issued and hence remain the property of the United States government.

The design of the Double Eagle coin

The Double Eagle coin, also known as the $20 gold piece, was designed by Augustus Saint-Gaudens, a renowned sculptor and artist. The design was commissioned by President Theodore Roosevelt, who wanted to improve the appearance of American coinage so that it embodied the country's national identity and reflected its growing global influence.

The obverse of the coin features Lady Liberty, personified by a woman striding forward. She carries a torch in her front hand and an olive branch in the back, with her robe harkening back to the ideals of ancient Greece and Rome. The United States Capitol dome is depicted in the background, symbolising the achievement of liberty through representative democracy.

The reverse of the coin depicts a young eagle in flight during a sunrise, symbolising America's strength and bright future. The motto "E PLURIBUS UNUM" is inscribed on the edge of the coin, allowing for a cleaner design on both sides.

The first coins issued in 1907 featured Roman numerals for the date, but this was later changed to Arabic numerals. The motto "In God We Trust" was also added in mid-1908 due to public demand. In 1912, the design was slightly altered again to include 48 stars along the rim, representing New Mexico and Arizona's admission as states.

The Saint-Gaudens Double Eagle is considered one of the most beautiful coins ever minted, with its rich detail and resplendent shine. The high-relief design, desired by both Roosevelt and Saint-Gaudens, proved impractical for mass production, and the mint eventually insisted on a low-relief version.

The history of the 1933 Double Eagle

The 1933 Double Eagle is a United States 20-dollar gold coin. In 1933, in the midst of the Great Depression, 445,500 specimens of this Saint-Gaudens double eagle were minted. However, none of these coins were ever officially circulated, and all but two were ordered to be melted down.

The story of the 1933 Double Eagle is one of intrigue and mystery. Unknown to the mint, a number of the coins (20 have been recovered so far) were stolen, possibly by the U.S. Mint cashier, and found their way into the hands of collectors. The coins circulated among collectors for several years before the Secret Service became aware of their existence. An investigation was launched in March 1944 when an investigative reporter looked into the history of the coins he had spotted in an upcoming auction.

During the investigation, seven coins were seized or voluntarily turned in to the Secret Service and were subsequently destroyed. An eighth coin was recovered and destroyed the following year. In 1945, the investigation identified the alleged thief and his accomplice, a Philadelphia jeweler named Israel Switt, who admitted to selling the nine coins but could not recall how he obtained them. The Justice Department attempted to prosecute them, but the statute of limitations had passed.

In addition to the nine recovered coins, one other 1933 Double Eagle was acquired by King Farouk of Egypt, a voracious collector. In 1944, Farouk purchased the coin and applied for an export license from the United States Treasury Department. Unaware of the significance of the unissued coin, the Treasury Department granted the license, and the coin was exported to Egypt. However, within weeks, the government officials realized the significance of the 1933 Double Eagle and discovered the existence of nine other coins that had illegally left the Mint.

In 1952, King Farouk was deposed in a coup d'etat, and his possessions, including the double eagle coin, were put up for public auction. The United States government requested the return of the coin, but it disappeared and was not seen again in Egypt. It resurfaced again in 1996, when British coin dealer Stephen Fenton was arrested by U.S. Secret Service agents during a sting operation in New York. Criminal charges against Fenton were dropped, and a civil case was settled in 2001, with ownership of the coin reverting to the United States government.

In 2002, the United States government authorized the private ownership of one 1933 Double Eagle for the first time and sold it at auction to an anonymous bidder for $7.59 million. This coin, known as the Weitzman Specimen, was sold again in 2021 to another anonymous buyer for $18.9 million, making it the most expensive coin ever sold.

In 2005, ten additional stolen 1933 double eagle gold coins were recovered from the family of Israel Switt. These coins were authenticated by the United States Mint and the Smithsonian Institution. A jury ruled in 2011 that these coins were illegally obtained by Switt and were thus still government property.

The rarity of pre-1933 gold coins

Historical Events and Legislation:

• The Great Depression (1929-1939): This economic crisis led to people hoarding gold, which stalled economic growth. As a result, President Franklin D. Roosevelt issued Executive Order 6102 in 1933, making it illegal for individuals to own monetary gold. This order aimed to provide relief during the national banking emergency.
• The Gold Recall Act (1933): This act made it illegal to own gold in the United States and required citizens to return their gold coins to the government. The act was an attempt to inflate the money supply and boost the economy.
• The Gold Reserve Act (1934): Passed by Congress, this act outlawed the circulation and private possession of US gold coins for general circulation. It declared that gold coins were no longer legal tender, and citizens had to exchange them for other forms of currency.

Limited Supply and Minting Changes:

• Limited Supply: Pre-1933 gold coins have a limited supply due to the federal government's recall and melting of these coins. The surviving coins are highly sought-after by collectors and investors due to their rarity.
• Minting Changes: The US Mint's first gold coins were produced in 1795 and initially contained 22-karat gold. However, the gold content was adjusted over time, and from 1837 onwards, pre-1933 gold coins were stabilized at a composition of 90% gold and 10% alloy of silver and copper.
• Denominations: Pre-1933 gold coins were minted in various denominations, including $1, $2.5, $5, $10, and $20. The $20 Liberty design, for example, was the country's largest gold coin for nearly 60 years.

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