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Entries in Gold Coins (2)

Thursday
Sep062012

Judge Says 10 Rare Gold Coins Worth $80M Belong to Uncle Sam

Stockbyte/Thinkstock(NEW YORK) -- A judge ruled that 10 rare gold coins worth $80 million belonged to the U.S. government, not a family that had sued the U.S. Treasury, saying it had illegally seized them.

The 1933 Saint-Gaudens double eagle coin was originally valued at $20, but sold for as much as $7.5 million at a Sotheby's auction in 2002, according to Courthouse News.

After President Theodore Roosevelt had the U.S. abandon the gold standard, most of the 445,500 double eagles that the Philadelphia Mint had struck were melted into gold bars.  However, a Philadelphia Mint cashier had managed to give or sell some of them to a local coin dealer, Israel Switt.

In 2003, Switt's family, Joan Langbord and her two grandsons, drilled opened a safety deposit box that had belonged to him and found the 10 coins.

When the Langbords gave the coins to the Philadelphia Mint for authentication, the government seized them without compensating the family.  The Langbords sued, saying the coins belonged to them.

In 2011, a jury decided that the coins belonged to the government, but the family appealed.

Last week, Judge Legrome Davis of the Eastern District Court of Pennsylvania, affirmed that decision, saying "the coins in question were not lawfully removed from the United States Mint."

Barry Berke, an attorney for the Langbords, told ABC News, "This is a case that raises many novel legal questions, including the limits on the government's power to confiscate property.  The Langbord family will be filing an appeal and looks forward to addressing these important issues before the 3rd Circuit."

Copyright 2012 ABC News Radio

Thursday
Sep232010

Witness Lost $60K Following Goldline's Suggestion

Photo Courtesy - Getty Images(WASHINGTON) -- A doctor from suburban New York told Congress Thursday that a salesman for the precious metals firm Goldline convinced him to convert his entire $140,000 IRA into gold coins, and that he lost almost $60,000 overnight by making the switch.

Dr. Julius Bazan's claim before a House committee echoed what a former salesman for Goldline told ABC News in an exclusive interview about the precious metal firm's alleged drive to convert retirement accounts into gold coins.

The hearing, which began Thursday afternoon, is meant to explore the reportedly controversial sales practices of Goldline, the precious metals dealer that pioneered the practice of weaving its sales pitches into broadcasts by popular conservative political personalities such as Glenn Beck, Mike Huckabee and Fred Thompson. Company salesmen have allegedly nudged callers away from buying gold bullion and into purchasing collectable coins, which are unregulated and subject to sizeable mark-ups.

Bazan, a Czech-born neurologist from Lynbrook, New York, said in a prepared statement that in the fall of 2009, having seen Goldline's advertising, he decided he should "look into the purchase of gold" with the funds from a $140,000 IRA account.  Bazan said that he had wanted to buy bullion, but when he talked to a Goldline sales representative, the man steered him toward coins.  Bazan said the sales rep told him gold would likely reach a value of $3,000 per ounce within the year.

Copyright 2010 ABC News Radio







ABC News Radio