1931 $20 MS66 PCGS....

Description

1931 Double Eagle, Frosty MS66
Among the Finest Known
Heavily Melted in the 1930s

1931 $20 MS66 PCGS. Leading into the debut of Saint-Gaudens' majestic double eagle in 1907, commercial circulation of this denomination had declined significantly since the days of the Reconstruction when paper currencies were widely distrusted. Eventual abandonment of large denomination gold in circulation was then fated by the establishment of the Federal Reserve System in 1913, which centralized the United States' banking system and standardized circulating currency. Following the Federal Reserve Act of December 23rd, 1913, new series of paper currencies were issued by the federal government in the form of Gold Certificates and Federal Reserve Notes. Unlike today, these early notes were "redeemable in gold on demand." This necessitated heavy production of large denomination gold coins, even if there was little or no commercial need.

The stock market crashed in October 1929, which became known as the over-the-cliff moment of the Great Depression that lasted will into the 1930s for many of the countries affected by the collapse of the United States markets. This also exposed a critical flaw in the Federal Reverse System. By the late 1920s, the number of gold certificates and federal reserve notes issued was nearly at the limit of what could be legally backed by gold in government vaults. The Federal Reserve Act necessitated that enough gold be on hand to back at least 40% of the value of the credit issued in the form of reserve notes and certificates. In short, the government was out of credit. During the massive economic slump of the early Great Depression years, gold certificates were heavily redeemed for their gold equivalent, and gold coin was being hoarded by those fortunate enough to have it. This further shortened the government's gold reserves and lead to President Roosevelt's Executive Order 6102 in 1933, prohibiting the private ownership of monetary gold and gold certificates. Whether or not this unilateral action helped the economy is debated to this day, but one certain result of it was the massive melting of large numbers of gold coins -- out of both government reserves and recalled public holdings -- creating great rarities out of what normally would have been common dates.

The double eagle of 1931 is among the late-series Saints known as "melt rarities." Following the gold melts, it is believed that only about 110 pieces survive in all grades, almost exclusively in Mint State, since none ever circulated to a measurable extent -- most of the mintage never left government vaults but was stored as a reserve until destroyed in the 1930s. The typical coin grades MS64 or MS65. The present piece is decidedly rare at the Premium Gem level, and only a single MS67 coin is finer. We have previously handled only five individually different MS66 examples, the most recent of which was the Duckor/Eliasberg coin, which realized $120,750 in our Long Beach Signature sale (Heritage, 5-6/2012), lot 5394. The present coin is at least as fine. Mint-fresh, frosty luster produces a burst of luminescence when rotated beneath a light, delivering an eye-catching yellow-gold cartwheel effect. Incredibly clean fields showcase sharp devices that are uncommonly free of significant marks or grazes. It may be years before a comparable example of this famous rarity is again offered at auction. Population: 10 in 66, 1 finer (9/16).(Registry values: N10218)

Coin Index Numbers: (NGC ID# 26GN, PCGS# 9192, Greysheet# 10153)

Weight: 33.44 grams

Metal: 90% Gold, 10% Copper

Note for clients in the European Union: This lot is considered by the European Union to be “investment gold”. We believe that it meets the criteria established in Article 344(1), point (2) of Council Directive 2006/112/EC and thus should be exempt from import VAT regardless of the selling price. Any questions or concerns about VAT should be addressed to your accountant or local tax authority.

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