In this article, we discuss the most expensive gold coin in the world, which has held the record since 2021 as the most expensive coin ever sold on the numismatic market. This is a specimen whose journey to the numismatic market began with a theft, only to be legalized—after a whole series of legal and judicial twists and turns involving the US Secret Service, a crowned head, and various other actors—and eventually sold twice at auctions for record amounts.
Read on in this article which gold coin it is and for what fabulous amount it was sold.
Gold coin circulation in the US
Until the 1930s, a large number of countries around the world used silver and gold coins in everyday circulation. This was the era of the so-called „gold standard,“ when this precious metal formed the basis of the value of money in circulation. Among those countries were the United States.
Thus, in the US in the early 1930s, gold coins in circulation were: 2 and a half dollars; 5 dollars; 10 dollars; and 20 dollars.
The colloquial name for the 10-dollar coin was the „eagle“. This name originates from the eagle depicted on the obverse of this gold coin. Accordingly, the 2.5-dollar gold coin was called a „quarter eagle“, the 5-dollar one a „half eagle“, and the 20-dollar one a „double eagle“.
Saint-Gaudens Double Eagle
The largest denomination was therefore the 20-dollar coin known as the „Saint-Gaudens Double Eagle.“ It was named after the creator of the coin's design, Augustus Saint-Gaudens, who was otherwise a famous American sculptor.
On the face of that gold coin is depicted an eagle in flight to the left. Above the eagle, along the rim of the coin, is the semicircular inscription: „UNITED STATES OF AMERICA / TWENTY DOLLARS“, and below the eagle is a sun from which rays emanate. Above the surface of the sun is the semicircular inscription „IN GOD WE TRUST“.
On the reverse of the gold coin is a female figure symbolizing freedom. In her right hand she holds a torch, and in her left an olive branch. Above is the semicircular inscription: „LIBERTY“. At the bottom right is the year and mint mark, and along the rim of the coin are stars.
Abolition of the gold standard in the US
The 1929 New York Stock Exchange crash marked the beginning of the Great Depression, which was followed by a banking crisis. Specifically, between 1929 and 1933, 40% of American banks failed.
To stop a banking crisis that threatened a catastrophe of unprecedented proportions, the U.S. government, under the leadership of President Franklin Delano Roosevelt, decided to abandon the gold standard, thus attempting to prevent the outflow of gold from the country, which had begun to accelerate.
All gold coins were demonetized, and owning monetary and investment gold was practically banned. All gold coins, gold bars, and gold-backed certificates had to be forcibly exchanged for paper dollars, and those dollars no longer had a gold backing.
There were a few exceptions to the forced surrender, such as small amounts of gold coins (up to 100 dollars), jewelry, gold coins of numismatic value, gold for industrial use, and the like. They were spared from the forced surrender.
This regulation remained in force for many years, until 1974, when the ownership of monetary and investment gold was permitted again.
1933 twenty-dollar gold coin issue.
As previously stated, the largest gold coin in circulation until the abolition of the gold standard was the 20-dollar coin, the so-called „Saint-Gaudens Double Eagle.“.
Before Roosevelt's ban took effect, as many as 445,500 of these gold coins were minted with the year 1933. However, once the demonetization decision took effect, all of those gold coins were melted down. Only two specimens were preserved for the museum, and not a single specimen was put into circulation.
The theft of gold coins from the Philadelphia Mint
Before the entire issue of 20-dollar gold coins dated 1933 was melted down at the Philadelphia Mint, a number of specimens were stolen and made their way illegally onto the numismatic market.
Those gold coins were most likely stolen by George McCann, a cashier employed at the mint, by simply exchanging the 1933 specimens prepared for melting with other older gold coins. The number of gold coins matched the quantity of melted coins, so no one initially suspected that it was a theft.
Be that as it may, those gold coins found their way to the numismatic market through Philadelphia jeweler Israel Switt, with whom McCann had established contact. Switt then sold them through his channels to interested collectors and numismatic dealers. Those rare gold coins were on the numismatic market for as long as 11 years.
The discovery and search for gold coins
One specimen of this rare gold coin appeared at the Stack’s Bowers numismatic auction in 1944. The appearance of that specimen attracted the attention of an investigative journalist who became interested in the origin of that coin.
Namely, it was a well-known fact that two copies were in the museum and no other copies were allowed to exist. Officially, all of them had been destroyed.
The journalist immediately contacted the Philadelphia Mint, and it was subsequently determined that the coins had been stolen and replaced with other specimens during the destruction process. The U.S. Secret Service also became involved in the story and launched an official investigation in March 1944.
During the first year of the investigation, the Secret Service managed to locate and seize 7 copies of this coin. All 7 copies were destroyed at the mint as required by regulation. The following year, another copy was found, and it was destroyed as well.
In 1945, a suspect cashier of the Philadelphia Mint and his accomplice Switt were arrested. Before the investigative authorities, Switt confessed to selling only 9 of the 1933 Double Eagle gold coins. During the investigation, he also claimed that he could not remember where he had acquired them. Since the statute of limitations had expired, the suspects could not be prosecuted, so they remained free.
The ninth gold coin was found in 1952 and was destroyed just like the previous specimens. The same fate awaited all other gold coins that were on the market and not yet in the hands of the American authorities.
Farouk's gold coin specimen
Despite a thorough investigation and the dedicated work of the U.S. Secret Service, one still managed to „slip away“ from American authorities and legally find its way onto the numismatic market.
Egyptian King Farouk was a passionate collector of various items, including numismatics. His collection contained as many as 8,500 pieces of top numismatic specialties, and Farouk himself spared no expense to acquire whatever he found interesting and necessary.
Among other things, King Farouk also wanted to acquire a 1933 American Double Eagle. He succeeded in doing so in February 1944. He found the gold coin at a dealer's in Texas and paid for it properly. To ensure everything was in accordance with the law, an export permit was requested for the gold coin.
The US Department of the Treasury approved the export of the gold coins just a few days before it was discovered that the gold coins had been stolen from the Philadelphia Mint.
It was already too late to seize this gold coin; the 1933 Double Eagle had legally left the US, entirely in accordance with the law.
The US Department of the Treasury attempted to diplomatically return the stolen gold coin back to the US, but the end of World War II delayed these attempts for several years.
In 1952, King Farouk was overthrown in a coup d'état, and his valuables and collection were offered at a public auction. Along with other coins, the 1933 Double Eagle was also offered at the auction.
The US government has once again requested the return of the gold coin, and the new Egyptian government has agreed to the request. However, in the meantime, the coin has disappeared and all trace of it has been lost.
Discovery and legalization of gold coins
In 1996, at the Waldorf-Astoria hotel in New York, US Secret Service agents arrested British coin dealer Stephen Fenton and found a 1933 Double Eagle gold coin in his possession.
During the investigation, Fenton claimed that this specimen came from the collection of King Farouk. However, in practice, this could in no way be verified or confirmed.
The criminal charges against Fenton were subsequently dropped, but he had to fight for ownership of this rare gold coin in court in a civil lawsuit. That dispute only ended in 2001, when a settlement was reached between Fenton and the US government. According to the settlement, ownership of the gold coin was returned to the US government, with the stipulation that the coin would be sold at a public auction, and the US government and Fenton would split the proceeds 50-50.
The US Department of the Treasury issued a special decision declaring the 1933 Double Eagle legal tender once again, all so that it could be legally sold at auction.
First auction and numismatic record
In 2002, an auction was held and the 1933 Double Eagle, the only legal specimen on the numismatic market, was sold for a total of $7,590,020. The auction was held by the numismatic firm Stack’s Bowers. At that time, this gold coin was the most expensive coin in the world.
The discovery of the remaining gold coins
In August 2005, US authorities managed to obtain 10 more of these gold coins from the heirs of jeweler Israel Switt's family, who voluntarily returned them.
Despite this, a legal dispute over ownership arose between the heirs in whose possession the gold coins were and the U.S. government. However, the court confirmed that the gold coins are the property of the U.S. government.
Second auction and a new numismatic record
The buyer of the only legal copy, the one from the 2002 auction, remained anonymous for almost 20 years.
In March 2021, a New York Times article revealed that the buyer of the gold coin was Stuart Weitzman, a wealthy shoe entrepreneur. After many years, Weitzman decided to sell this gold coin through the Sotheby's auction house.
The auction was scheduled for June 8, 2021, and this 1933 Saint Gaudens Double Eagle gold coin was sold for a record 18,872,250 dollars. That is an amount of 15.5 million euros, or 116 million kuna at the exchange rate at the time.
One can only imagine what can be bought for 15 and a half million euros, which is how much was paid for this single coin. The happy new owner of this rarity is still not known to the public.
Unique case on the numismatic market
With this coin, there is only one that can be legally owned. And that is the one that was sold at auction for 15 and a half million euros. All others that might eventually be found later are in principle illegal and as such would have to be confiscated and destroyed.
Therefore, if some „lucky person“ were to eventually find another coin like this, they would get no use out of it. That specimen would be confiscated from them on the spot and melted down, just as was done with the previously seized specimens.
Other Saint-Gaudens Double Eagle gold coins
It should certainly be mentioned here that there are other $20 Saint-Gaudens gold coins with dates prior to 1933. These specimens are not nearly as rare and valuable as this 1933 specimen. Not even close. For the most part, these are gold coins that are very common and available on the numismatic market.
Other valuable gold coins in the world
This most expensive gold coin in the world and its huge price catch everyone's eye. However, alongside it, there is a whole range of other gold coins in the world that can be very valuable and have significant numismatic value.
That is why it is always good to rummage a bit through old drawers, closets, and attics, because you never know what you might find, and it could be valuable.
Author: Zlatko Viščević
Source: NumizmatikaNET Portalhttp://numizmatika.net/)
Image source: Wikipedia (https://hr.wikipedia.org/)
