Okay, had a talk with my Brother, who is a coin collector and knows a lot more about coins than I do.
The issue with THESE coins was that they were 1933 Double Eagles, minted in 1932 but never supposed to be put into circulation because the US went off the Gold Standard and they could no longer be used as legal tender.
The aforementioned "Kind Farouk" specimen was given as a gift by FDR to King Farouk of Egypt. When it found its way onto the market, it was exempt from the ruling because it was a gift to a foriegn head of state. As such, it was sold and is now on display at various museums, which is where the 8 million figure comes from.
These coins were illegally issued at the time. Possibly because they were given out by the mint before the order came down or a mint employee smuggled them out. In any event, they were never supposed to have been in private hands. That is what gives the government the right to confiscate them.
The issue with THESE coins was that they were 1933 Double Eagles, minted in 1932 but never supposed to be put into circulation because the US went off the Gold Standard and they could no longer be used as legal tender.
The aforementioned "Kind Farouk" specimen was given as a gift by FDR to King Farouk of Egypt. When it found its way onto the market, it was exempt from the ruling because it was a gift to a foriegn head of state. As such, it was sold and is now on display at various museums, which is where the 8 million figure comes from.
These coins were illegally issued at the time. Possibly because they were given out by the mint before the order came down or a mint employee smuggled them out. In any event, they were never supposed to have been in private hands. That is what gives the government the right to confiscate them.