Two newly discovered high grade 1840-C half eagles in the Heritage 2011 Platinum Night session of the FUN auction give interesting insight to the emission sequence and striking characteristics of the rare and popular 1840-C half eagle. Prior to the discovery of these two coins, which were graded MS63 and MS64+ by PCGS, there were an estimated three to five known in Uncirculated. The previous finest known, pedigreed to the Pittman sale, is graded MS64. Ironically, that coin was in the sale also (and how thrilled was the consignor of the Pittman coin when he opened the catalog?) and this gave students of Charlotte half eagles an unprecedented opportunity to study the three finest known examples of the 1840-C in one fell swoop.

The two varieties are designated as Variety 1 and Variety 2. The varieties share a common obverse and one that is characterized by a rather amazing mispunched date with one appears to be the tops of a 1 and an 8 coming up from the denticles. The reverse of Variety 1 has a large mintmark placed closed to the stem that is slightly tilted to the right. On the second variety, the mintmark is tilted more towards the left.

Here's a photo of Lot 5108 which is a Variety 1 coin in PCGS MS63. There are a couple of interesting things to note about this coin. The first is the poor overall quality of strike. Look at the weakness on the stars, the hair around the ear of Liberty, the neck feathers and the horizontal lines in the shield. Note as well the roughness at the peripheries. This is a characteristic of this variety: considerable roughness at the borders which is, of course, mint-made.

Even more interesting on the reverse are the extensive die cracks that can be seen at 4:00 and 9:00. This is a very late die state and, clearly, there were very few more coins produced before the reverse literally fell apart and was discarded.

Now let's take a look at Variety 2.

This Variety 2 coin is graded MS64+ by PCGS and it is easily the finest known. In fact, the coin is really "as struck" but probably didn't grade MS65 because of the roughness at the obverse center, as made.

The first thing you will probably gauge is how sharp the strike is in comparison to Variety 1. The stars have full radial lines, the denticles are complete and separated and the roughness seen at the inner border on the previous coin is lacking. Note, as well, how sharp the details are on the eagle in comparison to the previous coin.

But the most intruguing thing about this coin is the lack of reverse die cracks, except for a small one at the eagle's right wingtip.

Perhaps the most interesting thing about the two coins is, in some ways, one of the most subtle. You probably won't be able to tell from these photos but on the earlier use of this obverse (lot 5110) there are small die lines that run in from the border. On the second coin (lot 5108) these lines do not exist and they have been removed by the mint (this process is known as "lapping.")

What does this prove? That the sequence of these coins, as proposed by me, is incorrect and Variety 2 was actually made first. The reason that Variety 1 coins look so worn and weak is that they were made later in the production run, probably after the obverse die was lapped.

Ironically, neither of the two newly discovered 1840-C half eagles sold at the auction. This wasn't the result of a lack of bidder interest (I would have been thrilled to buy both coins) but because the reserves placed on both lots by the consignor were too high.

I can't imagine there will be many other times that collectors will be able to see such fresh, high grade Charlotte half eagles in one place and that each coin will not only be a different die variety but will have an entirely different "look" as a result.

Thanks to Heritage Auctions for allowing me to use the images of the two 1840-C half eagles above.

I recently attended a dealer-only pre-ANA show in Beverly Hills. I’m not usually a big fan of these pre-shows but I made an exception for this one as it was held in a location that was easy enough for me to get to and still go home for a weekend rest before the Big Show begins next week. Also, for better or worse these shows are an excellent opportunity for me to get an early shot as some major dealer’s coins. I was able to buy a few very interesting pieces (all of which are now imaged and described on my website, www.raregoldcoins.com) These pre-shows don’t really give a great indication as to how the “real” show is going to turn out. My take on the market right now is that it is harder than ever to buy interesting coins and when nice stuff does show up, price levels are a bit stronger than they were a few months ago.

I sold quite a few coins at the pre-show. I noted demand for nice early gold, CAC-approved issues, Proof gold and anything that was “special.” No surprise there, of course...

On Friday, I attended the Heritage Platinum Night sale. The auction contained some very interesting early gold, quarter eagles and eagles and some of the results are worth a quick analysis.

Lot 1199 was an 1861-D gold dollar that was in an NCS “Uncirculated details” holder. This was a really intriguing coin. It had the look of an MS62 but it had been lightly wiped on the reverse years ago. I had thought the coin would bring around $20,000 but it was bid all the way up to $29,900. I’m guessing a dealer bought it and he thinks that with a little “improvement” it will be in an NGC or PCGS holder in the near future.

A group of early quarter eagles ran the gamut from truly exceptional to downright ugly. The ugliest of the ugly was a holed and plugged 1796 No Stars that brought just $19,550; probably the cheapest example of this celebrated issue to sell in a decade or more. The highlight was what is likely the finest known example of the exceptionally rare 1804 13 star reverse, graded AU58 by PCGS. I purchased it for $322,000 which is exactly the same amount as the Price coin, graded AU55 by NGC, sold for last year.

Prices for the Capped Head issues were strong. A nice NGC AU58* 1825 (which was accompanied by an old PCGS MS61 tag!) sold for $23,500 and a pleasing NGC AU53* 1827 realized $21,850. Even though I usually steer clear of cleaned coins, I did buy an NCS “AU details” example of the extremely rare 1834. This coin showed the detail of an AU53 to AU55 and, despite the cleaning, it was a presentable example of this great rarity. It sold for $25,300.

My favorite coin in the sale was an NGC VF35 1854-S quarter eagle. This coin had been off the market since 1991 and it was probably the nicest VF Liberty Head quarter eagle of any date I can recall seeing; let alone a great rarity like the 1854-S. Only a dozen or so are known and all of the pieces graded higher are off the market in private collections or museums. This one brought $253,000 which is exactly the same price that I paid for an NGC 45 example back in 2005. This price seems a bit on the high side but I would contend that the 1854-S remains one of the most undervalued of the Classic Rarities and, when compared to issues like the 1894-S Dime and the 1876-CC Twenty Cent Piece, it is a great value. My hats off to the new owner of this coin...you bought a great 1854-S!

One coin that surprised me was the 1864 graded AU53 by PCGS. This was a solid coin for the grade and the 1864 has finally been recognized as a major rarity. But this piece sold for $32,200 which has to be a record price for a circulated 1864 quarter eagle.

Another notable quarter eagle was an NGC AU58 1841. This very rare Proof-only issue has just 15-18 known and the example in the Platinum Night session was exceptional with lovely original color and just a touch of rub on the high spots; in other words it was a real 58 and not some ugly processed “faux-slider.” It sold for $132,250 which I think is a pretty strong price but I thought it could have brought as much as $150,000.

The extremely rare 1880 Coiled Hair Stella was offered as Lot 1246. One of just eight or nine known, it was in an NGC PR62 holder and it had brought $618,125 back in 2005. At the Heritage sale it $546,250 which I actually think is a pretty strong price.

A run of early half eagles tended to bring prices commensurate with the quality. Low end coins were a bit on the cheap side while nice higher end CAC coins were stronger.

The sale also featured a run of damaged or cleaned early eagles which, I’m sorry to say, was one of the less impressive early gold collections I have seen. The prices realized were on the (very) cheap side and I think this was an example of the “you get what you pay for” philosophy of coin pricing.

Two 1799 eagles, lots 1289 and 1290, offered a good example of the intricacies of the early gold market. Lot 1289 was a 1799 eagle in PCGS AU58. It was original and gorgeous with lovely color and the “look” that I strive for when buying early gold. It brought $20,700. The next lot was a 1799 in NGC AU58 that was low-end with zero originality. It brought $18,400. Here was an instance when spending a few thousand dollars more would have meant a huge difference in quality.

The last coin I had interest in was a lovely 1873-CC eagle in NGC AU55*. This was probably the second finest known example of the second rarest eagle from this mint. It brought $63,250 which is far and away a record auction price for the date. Here’s proof that in a popular series like CC eagles, a great coin can still bring a great price.

I left soon afterwards, happy to be done with an auction by 9PM and ready to go home for a weekend of relaxation before the Big Show.