Posted on 08/25/2005 9:52:28 AM PDT by LibWhacker
PHILADELPHIA - The U.S. Mint seized 10 Double Eagle gold coins from 1933, among the rarest and most valuable coins in the world, that were turned in by a jeweler seeking to determine their authenticity.
Joan S. Langbord plans a federal court lawsuit to try to recover them, her attorney, Barry H. Berke, said Wednesday. Langbord found the coins among the possessions of her father, longtime Philadelphia jeweler Israel Switt, who had acknowledged having sold some of the coins decades ago. She now operates her father's business.
David Lebryk, acting director of the Mint, had announced in a news release that the rare coins, which were never put in circulation, had been taken from the Mint "in an unlawful manner" in the mid-1930's and now were "recovered."
The coins, which are so rare that their value is almost beyond calculation, are public property, he said.
But Berke said Mint officials couldn't prove the coins had been stolen, or were subject to forfeiture.
In 2002, Sotheby's and numismatic firm Stack's auctioned off a 1933 Double Eagle coin for $7.59 million, the highest price ever paid for a coin. That Double Eagle, which is believed to have been part of a collection belonging to King Farouk of Egypt, surfaced when a coin dealer tried selling it to undercover Secret Service agents.
After a legal battle, the dealer was permitted to sell the coin at auction on the condition he split the proceeds with the Mint.
In its statement, the Mint said officials were still deciding what they would do with the seized coins, which are being held at Fort Knox. They said they had no plans to auction them but would consider saving "these historical artifacts" for public exhibits. Other double eagle coins seized in the past were melted down.
Double Eagles were first minted in 1850 with a face value of $20. The 445,500 coins minted in 1933 were never put into circulation because the nation went off the gold standard. All the coins were ordered melted down, but a handful are believed to have survived, including two handed over to the Smithsonian Institution.
Langbord declined to discuss how the coins might have come into the possession of her father, who operated an antiques and jewelry shop for 70 years and died in 1990 at 95.
The Mint contends Switt obtained a cache of the gold coins from his connections at the Mint just before they were to be reduced to bullion in 1937.
Switt admitted in 1944 that he had sold nine Double Eagle coins, but he was not charged in connection with those transactions, according to the Mint.
The family attorney said the coins were found recently, and Langbord and her son, Roy, notified the Mint of the discovery in September. Mint officials asked to authenticate the coins, then confiscated them after doing so, Berke said.
He contended Langbord and her son never relinquished their right to the coins.
"Looks like the majority of responses so far are from FReepers unclear on the concept of "property"."
That was a little oblique. Are you saying the government was justified?
Because I am. The owner cannot provide a legitimate provenance, therefore likely came by the coins nefariously--either actively or indirectly. Liken it to Holocaust booty which has taken a half century to recover, for descendants. Just because someone has something of value in his possession for a long time, doesn't mean that it becomes his, at some point. Time actually has no meaning, if it was taken.
They have admitted nothing of the sort. The person quoted in the article regarding proof was the lawyer of the coin dealer, not the Govt. "But Berke said Mint officials couldn't prove the coins had been stolen, or were subject to forfeiture. "
BULL!!!! The coins weren't melted down because the US "went off the gold standard!" It was because the private ownership of gold coins and bullion was outlawed by FDR!
Mark
Excellent!! Please notify me via freepmail when you've secured one ounce of 1933 Double Eagle gold coin and I will promptly make arrangements for delivery and payment. In fact, I'll make you a deal. Just .9675 ounces will do.
I've seen you make that assertion elsewhere on FR. Can you provide a web link for your claims. If true that implies that there is downward pressure on the price as new stocks are brought on line.
Of course there is upward pressure from a number of places. These include India and China which have larger numbers of middle class and rich who historically like gold (jewelry and coin), the needs of the two new gold backed indexes (not sure what the fractional reserve is on GLD and IAU, but it's high) the E-Gold online currency (which is a 100% reserve currency) and the possible needs for the gold brokers who have had gold lent to them by central banks to cover their short positions as prices begin to rise.
I think it's been pretty well established that the central banks (including the Fed) hate gold and have secretly (it slipped out) been selling to keep the price down for a few years now. That can't go on indefinately, either.
(The latest plan it to raid the IMF.)
That's assuming no 'nuclear' events, like large OPEC members wanting payment in gold for their oil, or a linkage of some currencies to gold for foreign exchange as Bretton Woods provided for prior to Nixon's change. These things are all being discussed in the Islamic world. Google "gold dinar" for more info.
How much you wanna bet some upper level bureacrat with a bad comb over gets them for their own private collection.
Bastards.
March 29, 1944
Secret Service interview Ira Reed and James Mcallister in which Mcallister stated he bought 5 coins from Israel Switt (Gold dealer with history of violations of 1934 Gold Reserve Act)
March 30, 1944
Secret Service interview Israel Switt who admitted a one time possession of 9 - 1933 Double Eagles. 5 sold to Mccallister, 2 to Ira Reed and 2 to Abe Kosoff. Switt professed no recollection of his source for the coins but admitted to being a frequent visitor of the Philadelphia Mint.
I wouldn't bet against you. I'd lose.
Wow. Selective recall, anyone?
The due process reminder can't be insinuated into the argument often enough, imo.
I tend to agree with those who say these coins were stolen in the first place and that, therefore, the gentleman's children ought not to be allowed to claim ownership. However, that's neither here nor there; due process is an absolute right, even for criminals (and their children), and the gov't is clearly trying to circumvent that requirement in this case, imho.
Plus I have a nagging suspicion that there ought to be some kind of statute of limitations on this kind of "loss." Nothing more obscene than the Spanish crown trying to claim rights to a galleon full of looted treasure 500 years after it went down.
Just damn!
So? Berke is the lawyer for the coin dealer. What would you expect him to say? If it comes to trial, Berke will say the same thing to a jury. That doesn't make it the truth.
What? Taking advantage of this person's stupidity? Stealing is stealing.
I'm just guessing... Isn't it possible that property would reasonably have been considered abandoned at the bottom of the sea after some passing of time? I hardly think anyone would say the 1933 Gold Eagles were abandoned at any point (and certainly at no time before they left the mint).
Speaking of which ... Anyone here know Lawyerspeak well enough to translate? Is "forfeiture" the same as seizure of stolen property? IOW, is this mouthpiece legally correct, but deliberately misleading the meaning?
Try not to be so clever...it's not working.
You know we're not talking about a nine-year-old humidifier from WalMart.
We're talking about rare or even unique items of surpassing or even extraordinary value. And yes, if you are holding something of special value that was once mine, you'd better be able to account for it.
I think Spain and its insurers even argued against that. But yes, I'm in agreement with you on this; I don't think Switt's kids have a leg to stand on. They're going to go to court and lose it all there -- unless the gov't cuts a deal with them.
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