In the most recent (April 2020) Heritage auction, I purchased a very interesting 1840-O Narrow Mill half eagle graded MS62 by PCGS. This coin, which I bought for $19,200, lends itself to a number of discussions.

First, let’s look at this issue as a date. The 1840-O is the very first half eagle struck at the New Orleans mint. New Orleans rolled out the first three gold denominations they produced over a three year period with the first quarter eagle in 1839, the first half eagle in 1840, and the first eagle in 1841. Of these three coins, their rarity ranking, both in terms of overall and high grade, is the eagle (which is rare), followed by the half eagle, and with the quarter eagle (which is common) bringing up the rear.

The 1840-O half eagle is much more available in circulated grades than its first-year counterparts from Charlotte and Dahlonega. But the 1840-O half eagle is a strangely underappreciated issue which is fairly difficult to locate in About Uncirculated; especially in AU55 and AU58 with natural color and choice surfaces. In Uncirculated, the 1840-O is very rare with an estimated 8 to 10. Many are in the MS60 to MS61 range and were likely not viewed as Uncirculated coins as recently as a few years back. I am aware of two coins which grade MS62 (both PCGS), two which grade MS63 (one each at NGC and PCGS), and an NGC MS65 which was graded over 25 years ago but which seems to have never sold publicly.

The coin which I just purchased is the first Uncirculated 1840-O half eagle to sell at auction since the 2016 ANA sale (where a PCGS MS61 was offered), and it is the only PCGS MS62 to have ever sold at auction.

Now, let’s look at its sales history, which is as follows:

April 2020, brought $19,200 as Heritage 4/20: 3795
October 2012, brought $22,325 as Heritage 10/12: 5861
May 2005, brought $25,300 as Heritage 5/05: 8607
October 1999, brought $14,950 as Bowers and Merena 10/99: 892 (Bass)
October 1982, brought $3,080 as Bowers and Ruddy 10/82: 415 (Eliasberg)

This coin was purchased out of the Eliasberg sale in 1982 by Harry Bass (at a strong $3,080) and held until his death when it brought $14,950 in Bass II. It did very well in its next appearance, bringing over $10,000 more and setting a record for this date in MS62. It brought less in 2012 and even less in 2020.

How come?

I’d point towards the fact that this was sold during a Pandemic Auction, and it was at a price point which represents a little more money than most collectors want to spend right now. It’s also a coin which doesn’t (currently) have a CAC sticker, and many buyers at this price point want the comfort of CAC approval. I personally think this 1840-O half eagle is very choice for the date and for the grade.

Mainly, though, I think the coin fell through the cracks. It was sold with a reserve which is a huge turn-off for about 90% of all auction bidders (personally I could care less as long as the reserve makes sense), and the fact that I bought it for one increment over its reserve is interesting.

Third, let’s look at what I think is the most interesting feature about this coin: it’s a unique mint error.
According to the Heritage catalog: “One of the most intriguing aspects of this coin is what cannot be immediately seen. The edge is a partial collar striking or “railroad rim” error. Close examination through the edge of the PCGS encasement with a loupe shows that the obverse portion of the rim is plain, while the reverse shows milling. This error occurred when the collar only partially covered the planchet, and therefore partially reeded the edge.”

One would expect there to be some error 1840-O half eagles as this was the first year in which this large of a coin was produced in New Orleans. But as far as I know, this coin is absolutely unique.

Third-party slabbing has been great for numismatics but it hurts a coin such as this 1840-O half eagle which really needs to be seen raw to be fully appreciated. It would be great if PCGS could develop a slab which the edge (which is, of course, “the third side of a coin”) could be clearly seen.

As you can see from this blog, there is a lot going on with this coin. It’s a first-year-of-issue, it’s a condition rarity, it has a fantastic pedigree, it’s a unique mint error, and it has an interesting sales record with five different APRs recorded since 1982. Phew!

Douglas Winter Numismatics specializes in coins with a story like this 1840-O half eagle. For more information, please contact us at (214) 675-9897 or email Doug at dwn@ont.com

New Orleans Gold