1933 Double Eagle

Crapgame: Then make a deal.
Big Joe: What kind of a deal?
Crapgame: A DEAL deal!
--Kelly's Heroes

Yesterday the only 1933 double eagle decreed to be 'legal tender' by the US government sold at a small numbers Sotheby's auction for a record $18.9 million (listing here). It had previously been owned by shoe designer Stuart Weitzman, who bought it in 2002 for a then record $7.6 million.

Although the coin has not been 'slabbed' by PCGS, company experts examined it in-hand and formally assigned a grade of MS65 with a corresponding cert. Similarly, CAC has conferred a virtual 'green bean' on the coin.

In 1933, FDR issued Executive Order 6102 which essentially outlawed private ownership of gold. The mint had already struck nearly 500,000 $20 gold pieces (also known as 'double eagles' or 'Saints' after the coin's designer Augustus Saint-Gaudens) for that year, but none had left storage yet. In concordance with the president's order, issuance of 1933 double eagles was banned and the entire inventory was subsequently melted.

Well, almost the entire inventory. 

A few 1933 Saints snuck out the door. Despite tireless efforts of the 'gold police' to recover the rogue twenties, a few remained at large. One wound up in hands of King Farouk of Egypt, who repeatedly rebuked attempts by federal agents to confiscate the coin. As the mainstream media likes to tell it, after decades of due diligence (and who knows how many million$ in US taxpayer resources), the federal government finally seized the coin in what is sometimes referred to as a 'secret service sting operation.' 

In reality, the feds struck a deal with a British coin dealer with whom the coin surfaced. Rather than melting it down, the feds subsequently accepted a face value payment of $20 from private parties in exchange for a 'certificate of monetization' (above) declaring that the coin was legal tender for public trade and ownership. That ceremonial transaction directly preceded the 2002 auction. 

Did I fail to mention that the federal government and dealer shared the auction proceeds?

A few other 1933 Saints are known to exist. A couple reside at the Smithsonian Institution. About 15 years ago, ten examples were found in a Philadelphia attic and dutifully submitted to the feds by the finder. I'm sure that federal bureaucrats were more than happy to trade ten crisp $20 Federal Reserve Notes for the coins. 

Legal battles involving the the Philly hoard of ten (which, not surprisingly, has not been melted) are certain to intensify now that the market has priced the stakes in the hundreds of million$.

As for any 1933 Saints that have retained their freedom, perhaps yesterday's sale will motivate a few rogues to trade on a market where their freedom is not questioned--the black market.