Sometimes I wonder if our government has a Department of Tantrums. This has nothing to do with present politics or congressional hearings. Rather, it involves capricious rules, penalties and decisions.
Case in point, the Covid pandemic has resulted in widespread joblessness. Both state and the Federal governments have provided unemployment payments to affected individuals. But, how were these monitored? Evidently, some people were overpaid what was intended. The result? Governments now want the money back....
If someone received unemployment under false pretenses, that’s one thing. It’s wrong and should be pursued. But, if the government carelessly gives something away, getting it back may not be an option. It’s happened too with collectibles.
Over the years, eagle-eyed collectors have scoured their pocket change and sheets of postage stamps in search of curiosities. Those keen enough to spot errors often profit handsomely.
Similarly, the Mint sometimes accidentally releases an errant or unintended coin or proposed coin in insanely limited quantities. Those rarities can skyrocket in value.
Such was the case in 1933. That year, the US government required citizens to turn in any gold they had. Seriously. People had to cash in their gold. The government said it was because "hoarding of gold stalled the economy and worsened the depression.” (Here’s a shocker…if they want, the government can legally do that again right now. But, that’s a whole ‘nother column.)
That year, the government had already minted the 1933 gold coins to be released including the coveted $20 gold double eagle. Before any could be officially distributed, the gold ban went into effect. Nevertheless, a few of those coins got out. The government said they were not valid. Well, they were gold, they were coins and, with only a handful known to exist, they were the stuff of dreams for collectors. One of the “invalid” gold $20 coins had been acquired by King Farouk of Egypt who spirited it out of the country. US agents worked tirelessly to find and retrieve it, but failed.
In 1996, it was learned one of the coins was going to be sold. It was the King Farouk specimen. Federal agents swooped in The coin was withdrawn from the sale but disappeared. Negotiations began. The owner and his lawyers finally cut a deal with the US government. That one coin could be sold. Let the bidding begin.
Could it happen again? It has.
In 1974, instead of a gold coin, the US government was toying with changing the composition of our penny form copper to aluminum. That incredibly cheap metal would drop the cost of production to next-to-nothing. Of course, a prototype and approval were needed.
The Mint produced hundreds of sample 1974 aluminum pennies for government officials to examine. (For the record, two examples were delivered to then-Senator Joe Biden.) Most were struck in Philadelphia. About a dozen were struck at the Denver Mint. In the end, it was decided not to pursue the aluminum pennies. The idea was scrapped.
Recently, one of those rare Denver aluminum pennies turned up in the possession of a California man. He had obtained it from his government-worker father. The man opted to sell it. Not so fast. Once again, the government got wind of the sale and stepped in. Agents claimed the government owned the penny which is expected to bring upwards of $250,000. One more time, the sale was canceled.
So, here we are again – this time over an aluminum penny.
How it will end is anyone’s guess. If history is an indicator, the government will spend a substantial sum trying to retrieve the coin. It’s happened before.
The government finally agreed to allow the aforementioned 1933 gold double eagle coin to be sold. In 2002, it went at auction for a record-setting $7.59 million. But wait! The government felt it was still out the original $20 face value for the coin. They required an extra $20 be tacked on and paid to them to compensate for that. So, the final sale price was $7,590,020. Our government at work. They got their $20 back. Now, that’s something worthy of a tantrum!
In the meantime, if you knew any DC legislators or government officials back in the early 1970s, it would be worth having them check their old desks and drawers. They just may be sitting on a small aluminum fortune.
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