Why MS62 May Be the "Perfect" Grade for Early Gold: An Argument in Four Parts
/I recently sold a really nice 1810 Large Date Large 5 half eagle which was graded MS62+ by PCGS and approved by CAC. As I was writing the description of the coin before putting it up for sale on my website, I came to the conclusion that, for many date and type collectors of early gold, a nice MS62 or MS62+ might well be the perfect grade. In order to make my case, here follows four reasons why:
1. MS62 Coins Are Really “New”
In the realm of early gold, MS60 is a virtually non-existent grade. According to the latest PCGS population figures (5/2020), only 60 (or 3.14%) of a total of 1909 Capped Bust half eagles graded “Uncirculated” were MS60.
In my experience, many MS61 early gold coins are very “rubby” and could just as likely have graded AU58.
It really isn’t until you get up to the MS62/MS62+ level that you can assume that the Uncirculated coin you are considering for your collection is actually “new.”
This, in my opinion, makes MS62 the most realistic Uncirculated grade for the collector who can’t consider buying a Gem.
1810 Large Date, Large 5 $5.00 PCGS MS62+ CAC
2. MS62 Capped Bust Half Eagles Have a Low Spread Versus AU Coins
If we can assume that an MS62 example of this type is superior in appearance to an AU55 or an AU58, how do prices compare? Let’s look at this specific date/variety in four grades along with current (5/2020) PCGS Price Guide levels.
| GRADE | PCGS PRICE GUIDE |
|---|---|
| AU55 | 9,750 |
| AU58 | 11,000 |
| MS60 | 12,500 |
| MS61 | 13,500 |
| MS62 | 15,000 |
Since the specific coin I sold was CAC approved, let’s focus on values of CAC coins. My estimated values for CAC approved examples of coins in these five grades are as follows:
| GRADE | ESTIMATED PCGS/CAC VALUE |
|---|---|
| AU55 | 10,000+ |
| AU58 | 11,000+ |
| MS60 | 12,000+ |
| MS61 | 13,500+ |
| MS62 | 14,500+ |
As you can see the values are very compressed between AU55 and MS62. On coins like gold dollars or silver Commemorative half dollars, price compression occurs due to the fact that the market perceives very little difference in quality between grades. In other words, an AU55 1852-C gold dollar often is not markedly different than an MS61 example of this date. But this is not the case with early half eagles where an MS62 is typically noticeably finer than an AU55. In my opinion, this price compression is not justified on Capped Bust half eagles.
On non-CAC coins, the price spread is greater but this is due to the fact that many early gold coins which are not CAC are low-end for the grade. Comparing a non-CAC AU55 1810 half eagle to a CAC approved MS62 will show a greater distance between values but it will also show a significant difference in quality.
3. The Price Spread Between MS62 and MS63 Capped Bust Half Eagles Suggests a Big Difference in Quality
In past articles and blogs, I have discussed the concept of the” jump grade.” This is the point on the grading scale where the difference in price increases significantly. According to recent PCGS Price Guide data, we can observe the following difference in prices:
| GRADE | PCGS PRICE GUIDE |
|---|---|
| MS62 | 15,000 |
| MS62+ |
16,000 |
| MS63 | 23,500 |
While the difference between MS62 and MS63 Capped Bust half eagles suggested by the PCGS Price Guide, the “real world” difference between CAC approved MS62 and MS63 is even more significant:
| GRADE | ESTIMATED PCGS/CAC VALUE |
|---|---|
| MS62 | 14,500 |
| MS62+ |
15,500 |
| MS63 | 27,500 |
These valuations are based on the fact that I just sold a PCGS/CAC MS62+ 1810 Large Date/Large 5 for $15,250, and that the most recent APR for a PCGS/CAC MS63 example of this variety is Stack’s Bowers 3/2018: 2278 at $30,000.
4. Real World Experience Suggests Little Difference in Quality Between an MS62 and an MS63 Capped Bust Half Eagle
As I posited above, there is a significant difference in actual appearance between most AU58 Capped Bust half eagles and coins graded MS62. But this difference is generally much less significant in coins graded MS62 and MS63. In fact, I would strongly suggest that most collectors (and many dealers) couldn’t tell the difference between a nice MS62 and a better-than-average MS63.
What is the difference between an MS62 and an MS63 Capped Bust half eagle? In my experience, an MS62 shows a few more marks, it might have some luster breaks in the left obverse field, and it will likely have slightly less overall eye appeal than its MS63 counterpart. Does the difference between the two grades merit a doubling in price? I think not, especially when you consider that there is such price compression between AU55 and MS62+.
Thus, I conclude that MS62 (and MS62+) represent the best value grade for this design type.
Are you interested in obtaining early gold coins which represent excellent value? Please contact Doug Winter via email at dwn@ont.com or by phone at (214) 675-9897.
