Uncle Sam Wants You To Hand Over That Coin

Uncle Sam Wants You To Hand Over That Coin

Washington, D.C. - Somewhere deep within the underground vault of the Fort Knox Gold Bullion Depository, among the thousands of gold bars and other treasures in the possession of the U.S. Government, sit 10 gold Double Eagle coins from 1933. The story of how they came to rest there could be a word of warning to other coin collectors.

More than 400,000 Double Eagles were struck by the U.S. Mint in 1933, but virtually all were destroyed before being distributed when Franklin Roosevelt took the U.S. off the gold standard, thus outlawing the circulation or possession of gold coins.

It is believed that only a handful now exist worldwide. Only one other coin like these has ever been sold, it went to an anonymous buyer in 2002 for $7.6 million.

The government gained possession of the Double Eagle coins in 2005, when it seized them from the family of a Philadelphia jeweler, Israel Switt. The U.S. Treasury contends the coins were stolen from the Mint and therefore are government property. The family of Mr. Switt argues that they are the legal owners of the coins. The legal wrangling between the two groups continues to this day.

The fight between the government and the Switt family raised questions among other collectors - namely, could the government seize their coin collection, contending that it was illegally taken from the mint more than 70 years ago? The potential exists that there are other coins in circulation now that may be unauthorized by the Mint.

The 1804 Silver Dollar and the 1913 Liberty Head Nickel also are coins that the government could argue have suspicious beginnings, and therefore could be considered stolen property. These coins may have been bought and sold legally dozens of times over the years, yet the Treasury still could determine that the current owners are in the possession of stolen goods. If these coins were in fact taken from the U.S. mint 75 years ago, we are long past finding those responsible for the act.

I've introduced legislation to bring certainty to those owners who fear the Treasury could come knocking on their door. My Numismatic Rarities Certainty Act would prohibit the government from claiming possession of any coin minted before 1933.

Coins minted 1933 or later that were struck or obtained illegally would still be considered the property of the U.S. government, but my legislation would require the Mint to preserve and display a portion of the pieces of which it regains possession. In the past, the Mint has destroyed these unauthorized coins.

And if extra coins are found, the bill requires the Treasury Department to put them up for auction, with the proceeds going toward preservation and display of the Smithsonian's collection of more than 900,000 pieces. These potential auctions of extra coinage could bring tens of millions of dollars into the preservation fund to display the Smithsonian's collection. It's time the Smithsonian dusted off its extensive collection so that these historic pieces can be enjoyed by the public.

The ownership of the Double Eagles will likely be decided by the courts, but other coins shouldn't suffer the same fate. We should ensure that future generations can continue to enjoy these rare coins, without fear of reprisal from Uncle Sam.

http://www.house.gov/list/speech/ok03_lucas/coinseizure.html