My Favorite Year: 1842
/If you are a serious collector of vintage United States gold coins, you no doubt have a specific year (or—more likely—years!) which you find fascinating. This may be due to its being a transitional year in which two different types were made (1834,1866, and 1907) or it may be due to its representing the first year of issue for a design type (1838, 1840, and 1877). Other collectors are attracted to a specific year due to the rarity of the coins (1873 and 1875).
I have been a keen student of US gold coins struck in the decade between 1834 and 1844 for many years. This was a period of experimentation at the US Mint; mainly the result of the steam press being introduced to the mint in March, 1836. During this decade you get the transition between the old Fat Head design on quarter eagles and half eagles to the classic Head followed by the two Liberty Head designs; an unparalled four different design types on half eagles and three on quarter eagles. You also get the reintroduction of the $10 after it had been scrapped in 1804. And this doesn’t even begin to scrape the surface of the Mint’s experimentation with other important subvarieties such as Plain 4 and Crosslet 4 half eagles, Script and Block 8 quarter eagles and half eagles, Small Date and Large Date varieties, large and small letters varieties, broad and narrow mill varieties, and others. There is no other time in the history of US gold coinage that this many significant varieties were produced.
Over the years, I have gravitated towards 1842 as being the most interesting year of this decade from a collectability standpoint. You could argue that 1839 is more interesting from a design standpoint and that 1838 is more numismatically significant but, for my money, 1842 is the year in which a number of the most interesting US gold coins were made.
During this year, the following major varieties were produced:
1842, 1842-C, 1842-D, and 1842-O quarter eagles (Total: 4 coins)
1842 Small Letters, 1842 Large Letters, 1842-C Small Date, 1842-C Large Date, 1842-D Small Date, 1842-D Large Date, and 1842-O half eagles (Total: 7 coins)
1842 Small Date, 1842 Large Date, 1842-O eagles (Total: 3 coins)
A total of 14 issues are known across three denominations.
Before discussing the coins on an individual basis, let’s look at the PCGS population figures as of 1/2024.
| Denom / Mint / Variety |
# in High Grades |
MS (total) | Total Graded |
|---|---|---|---|
| $2.50 / P | 18 | 2 (20) | 42 |
| $2.50 / C | 19 | 3 (22) | 94 |
| $2.50 / D | 28 | 0 (28) | 81 |
| $2.50 / O | 57 | 16 (73) | 153 |
| $5.00 / P / Lg. Letters | 18 | 3 (21) | 30 |
| $5.00 / P / Sm. Letters | 27 | 4 (31) | 52 |
| $5.00 / C / Sm. Date | 20 | 2 (22) | 52 |
| $5.00 / D / Sm. Date | 45 | 9 (54) | 125 |
| $5.00 / D / Sm. Date | 77 | 16 (93) | 217 |
| $5.00 / D / Lg. Date | 24 | 1 (25) | 81 |
| $5.00 / O | 14 | 1 (15) | 38 |
| $10.00 / P / Sm. Date | 60 | 8 (68) | 145 |
| $10.00 / P / Lg. Date | 38 | 6 (44) | 84 |
| $10.00 / O | 66 | 6 (72) | 200 |
Based on these figures, the overall rarity of all 1842 gold coins is as follows:
| Ranking | Date / Denom | Total Graded |
|---|---|---|
| 1 | 1842 LL $5.00 | 30 |
| 2 | 1842 $2.50 | 42 |
| 3 | 1842 SL $5.00 | 52 |
| 3 (tie) | 1842-C SD $5.00 | 52 (tie) |
| 5 | 1842-O $5.00 | 68 |
| 6 | 1842-D $2.50 | 81 |
| 6 (tie) | 1842-D LD $5.00 | 81 (tie) |
| 8 | 1842 LD $10.00 | 84 |
| 9 | 1842-C $2.50 | 94 |
| 10 | 1842-C LD $5.00 | 125 |
| 11 | 1842 SD $10.00 | 145 |
| 12 | 1842-O $2.50 | 153 |
| 13 | 1842-O $10.00 | 200 |
| 14 | 1842-D SD $5.00 | 217 |
And based on these figures, the high grade rarity (AU and better) of all 1842 gold coins is a follows:
| Ranking | Date / Denom | Total Graded |
|---|---|---|
| 1 | 1842-O $5.00 | 15 |
| 2 | 1842 $2.50 | 20 |
| 3 | 1842 LL $5.00 | 21 |
| 4 | 1842-C $2.50 | 22 |
| 4 (tie) | 1842-C $2.50 | 22 |
| 6 | 1842-D LD $5.00 | 25 |
| 7 | 1842-D $2.50 | 28 |
| 8 | 1842 SL $5.00 | 31 |
| 9 | 1842 LD $10.00 | 44 |
| 10 | 1842-C LD $5.00 | 54 |
| 11 | 1842 SD $10.00 | 68 |
| 12 | 1842-O $10.00 | 72 |
| 13 | 1842-O $2.50 | 73 |
| 14 | 1842-D SD $5.00 | 93 |
After studying these numbers and rankings, I actually disagree with a number of them. This is due to two things: overgrading/gradeflation, and incorrect populations due to resubmissions. In the coin-by-coin analysis which follows, I’ll give my thoughts on the overall and high grade rarity for all US gold coinage dated 1842.
Quarter Eagles
1842 $2.50 PCGS AU58+ CAC
1842: In my opinion, the 1842 quarter eagle is among the rarest gold coins made in this year; both in terms of high grade and overall rarity. An estimated 45-55 are known from a small original mintage of 2,823. There are fewer than 10 in AU, with three or four in AU55, two or three in AU58, and two in Uncirculated which are as follows:
PCGS MS62: Kansas Collection, ex Douglas Winter Numismatics, Nevada Collection, Superior 9/1999: 1863 ($31,050).
PCGS MS61: DL Hansen Collection.
The next best coin is a PCGS/CAC AU58+ which I sold to a New York collector around five years ago.
This issue is extremely challenging to locate with natural color as most have been scrubbed at one time.
Although I once owned three nice AUs at a single time (!), I feel that this remains in the top three rarest dates in this set in properly graded AU55 and finer.
1842-C $2.50 PCGS AU55+ CAC
1842-C: This issue is more of a condition rarity than the 1842-P as there are a number of well-worn pieces (Fine to Very Fine) known. However, in AU55 and finer, the 1842-C compares very favorably to the 1842. There are three known in Uncirculated with one of these a superb PCGS/CAC MS65 (DL Hansen Collection, and ex Elrod). The other two are a PCGS MS62 which last sold as Heritage 1/2017: 5805 (at $37,600), and the Eliasberg PCGS MS61 coin which I purchased for $21,850 as Heritage 2/2009: 2245 and placed in the Kansas Collection.
All known examples show weakness on the stars and at the central reverse.
I estimate that well over 50% of the extant 1842-C quarter eagles are either “no grades” (due to problems) or are straight graded but very unappealing. It has been at least five years since I’ve handled a solid EF 1842-C and the last nice AU I can recall was a PCGS/CAC AU58 which brought $20,400 as Heritage 7/2021: 3073.
1842-D $2.50 PCGS AU58 CAC
1842-D: The 1842-D is more available than the 1842 and the 1842-C with as many as 100 or so known. I believe that this issue is unique in Uncirculated with the sole piece known an NGC MS62 which I purchased as the agent for the Kansas Collection in April 2006 for $57,500.
In AU grades, the 1842-D is more available than the 1842 and the 1842-C. There are around 20 or so known in AU and this includes at least five in AU58, including three which have been approved by CAC.
It is extremely difficult to locate an 1842-D quarter eagle with natural color and surfaces. A number of pieces show a mint-made depression the cheek of Liberty which was caused by a foreign object adhering to the die which was struck into the planchet.
1842-O $2.50 PCGS MS62
1842-O: It is a testament to the scarcity of the four quarter eagles made in 1842-O that the New Orleans issue is considered merely “scarce” when compared to the other three dates. New Orleans made more quarter eagles this year than from the other three mints combined and thus it is more available. However, it is quite rare in Uncirculated and many of the “16” slabbed by PCGS are either resubmissions or are not fully Mint State coin, in my opinion.
I have personally seen or sold around four or five Uncirculated 1842-O quarter eagles with the best being a PCGS MS62. The finest graded by PCGS is an MS64 (formerly in an NGC MS64 holder) which has a detracting mint-made obverse flaw from the chin to the rim between stars one and two.
Half Eagles
1842 Large Letters $5.00 PCGS AU55
1842 Large Letters: I’ve touted this variety for many years as a true rarity, and the rarity charts above do nothing to dispute this. I believe that fewer than 40 are known, and the 1842 Large Letters is either unique or there are two known (if the MS63 and the MS64 at PCGS are different coins). It is even rare in AU with as few as seven or eight known. Despite this fact, the 1842 Large Letters in AU55 is priced at just $11,500 in the current PCGS Price Guide.
As an interesting aside, the fears that this date would get “Fairmonted” appear to be for naught as, so far, only a single coin from that source (a PCGS AU53) has sold.
Both varieties are well-made but are usually marked and scrubbed. The natural color is a soft golden-orange or green-gold with excellent luster and a strong strike.
1842 Small Letters $5.00 NGC MS62
1842 Small Letters: The rarity of this variety is also misunderstood. It is somewhat more available than the Large Letters but it is still very hard to locate with around 60 or so known. This includes one Gem: a PCGS MS65 owned by DL Hansen (and formerly an NGC MS65) which is ex Ed Milas. Another Uncirculated coin exists: a PCGS/CAC MS61 (ex NGC MS62) from the Eliasberg Collection. There aren’t more than 9 to 11 AU’s known and with the current PCGS Price Guide showing values of $5,000 in AU53 and $7,500 it isn’t a stretch to call this among the most underpriced of all US gold coins.
As with the 1842 Large Letters, a single Fairmont coin has sold: a PCGS AU58 which I paid $13,200 for in April 2022.
1842-C Small Date $5.00 PCGS AU55+ CAC
1842-C Small Date: This variety is the single rarest half eagle from Charlotte but it is also the only member of the 1842 gold set which I regard as overpriced. As far back as the early 1990s, the leading price guides assigned the 1842-C Small Date massive suggested values in all grades but especially in AU55 and AU58. The trouble was, whenever a coin graded as such was offered at auction, it would bring around 40% of its purported value.
I think I’ve seen fewer AU55 and AU58s of this date that I’ve liked than I have Uncirculated coins. This is borne out by the following statistics:
Number of AU55 to AU58 examples approved by CAC: just one (an AU55)
Number of Uncirculated examples approved by CAC: also just one (an MS63+)
The good news is that if you strive for originality, there are a decent number of reasonably choice, original VF and EF’s known (CAC has approved three in VF and four in EF) and these don’t bring anywhere near the premium over scrubby junk which they really should.
1842-C Large Date $5.00 PCGS MS64 CAC
1842-C Large Date: This is by far the more available of the two varieties of Charlotte half eagles dated 1842. In higher grades, the Large Date is reasonably available with around 9 to 11 known in Uncirculated. This includes an NGC MS65, a PCGS MS64, an NGC MS64 and another two or three nice MS62 to MS63 coins.
Along with the 1842-D Small Date, it is one of just two 1842-dated half eagles which an advanced collector is likely to have a shot of buying in Uncirculated. However, it has been almost 15 years since a nice PCGS Uncirculated 1842-C Large Date half eagle (an MS63) was sold at auction while the last high grade NGC coin was an MS64 which brought $33,614 in January 2018.
This is a well-made issue which, when found with it natural surfaces, has great luster and color. Nice EF and AU coins are available with patience and good connections.
1842-D Small Date $5.00 PCGS MS61
1842-D Small Date: Unlike the Charlotte half eagles where the Small Date is rare and the Large Date is common, the exact opposite is true with the Dahlonega 1842 half eagles.
Many collectors will be surprised to learn that of the 14 coins which make this set, the 1842-D Small Date is actually the most common, Around 300 exist in a wide range of grades. This issue saw active circulation and it is scarce in choice AU and very rare in Uncirculated with only six to eight known. Interestingly, the PCGS MS62 which sold for $26,400 in the 2022 Stack’s Bowers 2022 ANA was only the second Uncirulated PCGS example of this variety to sell at auction since 2006.
The Fairmont Hoard has presented collectors an excellent opportunity to buy a crusty 1842-D Small Date half eagle in AU at an affordable price point. So far, Stack’s Bowers has sold eight different coins from this source in grades ranging from EF45 to AU55.
1842-D Large Date $5.00 PCGS AU58 CAC
1842-D Large Date: It is odd to call a five figure Dahlonega half eagle “underpriced and misunderstood” but this is the case with the rare 1842-D Large Date.
Let me present my case. In the last ten years, I’ve sold over 15 1861-D half eagles in grades ranging from EF40 to MS63; eight of these have been CAC approved. In the same time period, I’ve sold just five 1842-D Large Date half eagles in the same grade range; three have had CAC stickers.
One more point to consider. According to the CAC Price Guide (CPG), a CAC approved AU55 example of this variety should have a retail value of $23,000. Two exist with just one finer. The same guide says that an AU55 1861-D should have a retail value of $89,300. Two exist with five finer. Yes, I get it…the 1861-D is an uber-popular Civil War coin. But is it really worth 4x the value of the rarer 1842-D Large Date?
1842-O $5.00 NGC MS63 CAC
1842-O: Be honest: when you read the first chart (see above), did you expect the 1842-O $5 to have the lowest high-grade population at PCGS of any date in this set?
This is another unheralded issue which is really rare in AU and just about impossible in Uncirculated. Of the “14” graded AU by PCGS, I think there aren’t more than four or five nice coins and I have placed every single one of these in tightly-held collections.
Fun facts:
The highest graded CAC 1842-O $5 ever sold at auction is a PCGS VF30 which sold back in January 2018. (P.S. It’s the ONLY CAC approved example of this date to ever cross the auction block…)
Since 1997, just three PCGS AU 1842-O half eagles have sold and the last sale was for an AU50 in August 2017.
Only a single Uncirculated piece has ever sold at auction: a PCGS MS61 in the October 1999 Bass II sale.
Of the 65 1842-O half eagles graded by PCGS as of 1/2024, 51 (or 89%) were EF45 or lower. Factoring in resubmissions, the actual percentage is likely higher.
Eagles
1842 Small Date $10.00 PCGS MS61
1842 Small Date: Until a few years ago, I believed that the overall rarity of the 1842 Small Date was comparable to the other variety of 1842 $10, the Large Date. This was incorrect and the Small Date appears to be quite a bit scarcer.
There are less than 100 known with most in the EF45 to AU53 range. A properly graded AU55 is very scarce and highly undervalued as evidenced by the absurdly low $2,640 ARP for a nice example in the 11/2022 Stack’s Bowers sale.
PCGS has a current population of five in AU58 and six coins have been graded in Uncirculated with the two best a PCGS/CAC MS62+which set a record for the date when it brought $63,000 in the Stack’s Bowers April 2022 auction. The finest known is the choice PCGS MS63 from the Admiral Collection which realized $55,200 in early 2018.
1842 Large Date $10.00 PCGS MS61 CAC
1842 Large Date: This variety has become much more available in recent years, and this is likely the result of examples having been repatriated from overseas banks. It is not at all common in properly graded AU55 yet, when available, a nice non-CAC coin should cost around $3,000.
There are as many as eight or nine which are legitimately Uncirculated and this includes some very high grades pieces. There are at least two and possibly three coins grading MS63/63+, another two in MS64 and one PCGS MS65.
You could put together a neat little two coin set which included both varieties of 1842 $10 for around $7,500 in Choice AU. This seems like terrific value to me.
1842-O $10.00 PCGS MS63 CAC
1842-O: The 1842-O is the second eagle made at the New Orleans mint. With the 1841-O (the first issue) being rare in all grades and extremely rare in any grade approaching MS60, the numismatic significance of the 1842-O becomes strong. However, I regard this coin as being slightly overvalued in comparison to other New Orleans eagles of this era. I’m not saying that a PCGS AU55 1842-O at $8,000 is necessarily a bad deal. But I like the 1845-O in the same grade at $6,000 more.
Locating examples of this date with natural color and choice surfaces is not easy. The Fairmont Hoard has added five nice coins into the mix with the finest so far Stack’s Bowers 4/2022: 5220, a very choice PCGS/CAC AU55 at $19,200.
There are an estimated five or six known in Uncirculated with the best being the lovely PCGS/CAC which I purchased for a record-setting $288,000 in February 2018.
Are you interested in gold coins dated 1842 or other similar years? Would you like to work with me in assembling a high quality year set? I would be happy to work with you and I invite you to phone me at (214) 675-9897 to discuss how we can work together.
