More Than Mythical: The Storied History of the Double Eagle Gold Coin

On March 12, 1850, the first US $20 gold piece was issued. From the article:

"More Than Mythical: The Storied History of the Double Eagle Gold Coin
Many gold pieces often take on a life of their own, and avid collectors are almost always interested in understanding the background of a particular piece of minted metal -- in addition to learning about the monetary value of their coins. In essence, each coin tells a unique tale, and owners have the opportunity to become a permanent part of its ancestry. When it comes to an intriguing history, the renowned Double Eagle gold coin is known to have an incredibly storied past, intertwined in the United States economy and often shrouded in some degree of mystery. This is especially true with the famed 1933 Double Eagle, as this coin was never officially released into circulation and is still considered the “Holy Grail” of gold coins by most serious collectors.

The Double Eagle is a United States gold coin that was first minted in 1849 (around the same timeframe as the famous California Gold Rush). At that time, the coin’s face value was $20. The coins were created from 90 percent gold and 10 percent copper alloy, with a total weight of 1.0750 troy ounces (33.4362 grams). In that same year, the mint produced two pieces as “proofs.” One is still held in Washington, D.C. at the Smithsonian Institution, while the second was given to William M. Meredith, the U.S. Treasury Secretary who served during president Zachary Taylor’s brief administration from 1849 to 1850. However, this coin was eventually sold as part of Meredith’s estate and presently, its location is unknown.

Gold American Eagle coins in a pouch
Before 1850, Eagle coins of $10 were the largest denomination of any U.S. coin, these $10 Eagles were first minted in 1795, only two years after the first U.S. Mint was established in Philadelphia, PA. Since the $20 gold piece had twice the value of the original Eagle, these newer coins were (not surprisingly) designated as "Double Eagles." The 1oz of gold in the Double Eagle at current spot price is worth more than $1200.

Early years

Additionally, other U.S. coins, known as the Eagle, Half Eagle and Quarter Eagle were given these names by Acts of Congress in 1792 and 1849, respectively. The Double Eagle coin was in regular production from 1850 until 1933 when President Franklin D. Roosevelt made it illegal to own gold and stopped the coinage of metal. Most 1933 Double Eagles were melted into gold bars. However, coin collectors were still allowed to retain their own pieces. Interestingly enough, although no 1933 Double Eagles were ever legally released, some somehow escaped the Mint and several have been recovered over the years.

The year 1934 saw the introduction of the United States Gold Reserve Act, which required that all gold and gold certificates held by the Federal Reserve be surrendered to the U.S. Department of Treasury. It completely outlawed possession of gold, forcing citizens to sell it to the treasury, who in turn stored the gold in the United States Bullion Depository at Fort Knox as well as other secret locations. According to historians, this act elevated the price of gold from $20.67 to $35 dollars per troy ounce. This price change gave foreign investors an incentive to export gold to the United States, while devaluing the U.S. dollar in an effort to create inflation. This act eventually resulted in a major accumulation of gold in the Federal Reserve and U.S. Treasury, which lowered interest rates as well.

Designs of Double Eagles: Liberty Head and Saint-Gaudens

The intricate design of the Double Eagle coins played an integral role in the coin’s exterior beauty. A number of subtle changes and adjustments were made over the years, affecting the collectible value of this coin as well.

Double Eagle coins were made in two major types: the Liberty Head Coronet (1849 – 1907) and the Saint-Gaudens (1907 – 1933).

The three distinctive Liberty Head styles include several versions: no motto, value "twenty D" 1849 –1866; Liberty Head with a motto, value "twenty D" 1866 –1878; and the Liberty Head with a motto, value written as "twenty dollars" 1877–1907.

Featuring artwork that is considered to be “less desirable” by collectors, the Liberty Head coronet $20 dollar gold pieces demand a lower price than the Saint-Gaudens coins. Several changes were made over the years. For example, in 1866 the motto, “In God we Trust,” was added to the Liberty Coronet Double Eagle, creating a second subtype. In 1877, the denomination design on the coin’s reverse side was changed from "twenty D" to read, "twenty dollars," creating a third subtype for the series."