November 2009

CONTESTED 1933 DOUBLE EAGLES GRADED BY NGC

In our August newsletter we reported that a U.S. District Judge had ruled that the Federal government improperly confiscated ten 1933 $20 Saint-Gaudens double eagle gold coins from the family of Joan Langbord. The central issue of the the case is whether the coins are legally owned by the family or are the property of the government. While the outcome is far from final, an interesting recent development is that the U.S. Secret Service has had the ten coins certified by Numismatic Guaranty Corporation (NGC), a major coin authentication and grading company.

NGC has encapsulated the coins in reclosable museum holders and has graded one MS66, two MS65, and six MS64. The tenth coin, which is believed to have been a pocket piece, is described as uncirculated details, improperly cleaned. (MS means mint state, or uncirculated, and higher numbers indicate higher quality.)

Having the coins graded by an independent coin certification company implies that they're unlikely to be destroyed, as were nine 1933 double eagles seized by or handed over to the government during the 1940s, and perhaps that a settlement of the case is being considered. A prior case involving a single 1933 double eagle seized from British coin dealer Stephen Fenton in 1996 was ultimately settled after evidence was presented that the government had issued an export license for the coin to King Farouk of Egypt. The Farouk specimen has been graded MS65 by Professional Coin Grading Service (PCGS). In 2002 it was sold at auction with the proceeds split between Fenton and the U.S. government. The successful but unidentified bidder paid a record price for any coin of $7.59 million, including a 15% buyer's fee. The availability of up to ten more of these coins would likely drive down its market value considerably.

DID YOU KNOW?

Today, U.S. coins are struck for circulation at United States Mint facilities in Philadelphia and Denver. The first U.S. Mint was built in 1792 in Philadelphia, when it was the young nation's capital. Branch mints were later opened as the United States expanded, generally near major discoveries of gold and silver. Gold coins were struck in Charlotte, North Carolina and in Dahlonega, Georgia from 1838-61. A branch mint in New Orleans produced coins from 1838-61 and from 1879-1909. The San Francisco Mint opened in 1854 and made coins for circulation as recently as 1980. The Carson City, Nevada Mint operated from 1873-93. Originally established as an assay office, the Denver Mint began producing coins in 1906.

The San Francisco Mint still makes proof coins for collectors and has produced some commemorative coins issued since 1982. Gold, silver and platinum coins for investors and collectors are struck at the newest U.S. Mint facility in West Point, New York, which has also produced some modern collector coins.

Branch mint coins are identifiable by the presence of a one or two letter mintmark: 'C' for Charlotte, 'CC' for Carson City, 'D' for Dahlonega and later for Denver, 'O' for New Orleans, 'S' for San Francisco, and 'W' for West Point (other than precious metal bullion coins struck at West Point, which do not have a mintmark). Coins struck at the Philadelphia Mint prior to 1980 do not have a mintmark, except for the temporary alloy five cent coins issued from 1942-45 and Susan B. Anthony dollars dated 1979. Beginning in 1980, a 'P' mintmark appears on all Philadelphia Mint coins other than the penny. With a few exceptions, the mintmark (if any) appears on the reverse side of coins issued prior to 1965.

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