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There is a big court battle going on right now over what could be some of the most valuable gold coins ever produced by the U.S. Mint. And that’s part of the battle…whether or not the 1933 gold coins were really legally produced by the U.S. Mint, and there are therefore legal to own.
A similar battle was waged in the courts when I was U.S. Mint Director. A British coin dealer brought a 1933 gold Double Eagle into the United States and it was confiscated in a “sting” operation by the U.S. Secret Service. The U.S. Government and the Mint claimed it was illegal to own because President Roosevelt had ordered a halt to production of all U.S. gold coins in 1933 and made it illegal for U.S. citizens to own gold. But the coin dealer sued, claiming the 1933 gold coin had been legally sold to a world collector, King Farouk of Egypt. After both the U.S. government and the coin dealer made their cases in court, they agreed to a compromise, which as Mint Director I signed in 2001. Both sides agreed to auction off the coin and split the proceeds. The only known private 1933 gold Double Eagle sold for $7.5 million dollars in 2002.
But, a few years later, another collector showed the U.S. Mint ten more 1933 gold Double Eagles and asked the Mint to authenticate them. The Mint kept them, again claiming they were illegal to own and a battle over them is slowly making its way through the courts again.
Both of these cases help illustrate the huge interest (and thus collectability) in gold coins, especially historic U.S. minted gold coins.
The ban on making U.S. gold coins was lifted in 1986 when the U.S. Mint again started making genuine gold coins. Demand has never been higher than right now. And the Mint has helped fuel that demand by creating a new, thicker ( called Ultra High Relief) gold coin as well as a gold coin using the image of one of the most popular images ever to appear on U.S. Mint coinage, the American Buffalo.
Though you won’t find any 1933 gold coins in the Franklin Mint catalogue, you will find some historic gold coins, from the Civil War to the present 2009 Gold Eagles and the great American Buffalo $50 gold pieces.
Americans just love gold…from gold jewelry to gold watches to gold coins. And why not? Gold has been a treasured and highly valued metal since ancient times. It is one of the most malleable metals that we know of and thus can be made into objects of beauty and formed into the finest coins and jewelry.
You know Americans hang onto a lot of gold when you see numerous TV ads for companies that will buy your old gold coins and jewelry. You also know the economy is bad when so many people think it’s time to sell their old gold to get some quick cash. But, in the same sense, it also makes it a good time for those collecting and looking for historic and valuable gold coins from key times in our history.
Investors and others are predicting that the price of gold will continue to rise in this uncertain economy, as people look to gold as a stable, solid, ‘real’ form of currency. And this means that even old gold coin prices are likely to go up, as well as coins layered in gold. From shiny and new gold coins to historic gold and layered gold coins, the future is definitely looking up!
Jay Johnson was the 36th Director of the United States Mint, appointed by President Clinton and serving until August of 2001 at which time he became a Senior Advisor to the Department of the Treasury. During Mr. Johnson's tenure, the Mint set new and unbroken records by producing more than 28 billion coins and returning a $2.6 billion profit to the U.S. Treasury. He oversaw the most successful coin program in history - the 50 State Quarter program - which was collected by nearly 150 million Americans, or roughly half the U.S. population. He also managed the Sacagawea Golden Dollar program (of which a record of over one billion was produced) as well as the launch of the Buffalo Silver Dollar, which became the fastest-selling commemorative coin in history. Mr. Johnson also oversaw the operations of the gold depository at Fort Knox.
Prior to his becoming Mint Director, Johnson was a U.S. Congressman from Wisconsin (8th District) and had a 30-year career as an award-winning local TV newscaster in Wisconsin, Michigan and Florida. In addition to his role as Chief Numismatist, Mr. Johnson will serve as the spokesperson and "face" of The Franklin Mint for any future television programs for medallic art and coin products.
