New London, Connecticut

A Spanish galleon, the Saints Joseph and Helena, making from Havana to Cadiz in 1753 was carried from her course by adverse winds and tossed against a reef, near New London, Connecticut, receiving injuries that compelled her to run into that port for repairs. To reach her broken ribs more easily her freight was put on shore in charge of the collector of the port, but when it was desired to ship the cargo again, behold! the quarter part of it had disappeared, none could say how. New London got a bad name from this robbery, and the governor, though besought by the assembly to make good the shortage, failed to do so, and lost his place at the next election. It was reputed that some of the treasure was buried on the shore by the robbers. In 1827 a woman who was understood to have the power of seership published a vision to a couple of young blades, who had paid for it, to the effect that hidden under one of the grass-grown wharves was a box of dollars. By the aid of a crystal pebble she received this really valuable information, but the pebble was not clear enough to reveal the exact place of the box. She could see, however, that the dollars were packed edgewise. When New London was sound asleep the young men stole out and by lantern-light began their work. They had dug to water-level when they reached an iron chest, and they stooped to lift it-but, to their amazement, the iron was too hot to handle! Now they heard deep growls, and a giant dog peered at them from the pit-mouth; red eyes flashed at them from the darkness; a wild-goose, with eyes of blazing green, hovered and screamed above them. Though the witch had promised them safety, nothing appeared to ward off the fantastic shapes that began to crowd about them. Too terrified to work longer they sprang out and made away, and when-taking courage from the sunshine—they renewed the search, next day, the iron chest had vanished.

In 2002 I attended Submarine School at the Naval Sub Base Groton, in New London Connecticut.
but I did not buy my first detector until a year later after I got stationed in Bangor, Washington.
Imagine all the good stuff I could have dug in that year 
HH,
     Donny

Did anybody find any of these coins?

What is the latest news?

As far as I would think, this story wouldn't hold water. A "chest too hot to touch", might as well say ghosts were guarding it, it's just too far fetched for me to believe. 

I agree with the last comment.

Here is what I like about these old stories....They might have a ring of truth to them....If you look at them with an open mind...and do your research....then you can start to dissect them....
Was Saints Joseph and Helena, making from Havana to Cadiz in 1753 ?
Was there a wreck near the port of New London in that time frame?

If that part is true...then perhaps there were two men who dug for the treasure...either hiding it and making up a fantastic story to cover their tracks....or because of the very superstitious times...did they imagine things coming at them? Were they half drunk? Did they cover their tracks  and story the next morning by redigging and saying it was gone?
Is there any newspaper record of this seer with her visions in 1823?

#6 has great comments.