Type Two double eagles are not as popular as their Type One and Type Three counterparts. The reasons for this are not exactly clear, as Type Two issues are very collectable as this article will show.Read More
A trend that I have noted in recent years is that a subset of gold issues which have what I refer to as Multiple Levels of Demand (MLD). These are coins with more than one potential set of buyers competing for them. As an example, a coin such as an 1838-D half eagle is sought not only by Dahlonega specialists but by Classic Head half eagle collectors, first-year-of-issue collectors, one-year type collectors and collectors who just appreciate cool coins.
An 1844-D half eagle, in contrast, has a smaller pool of potential buyers which includes Dahlonega specialists and type collectors looking for a single nice half eagle for their set. MLD coins have increased significantly in value in the last five to ten years and this makes sense. Coin values are largely the result of a basic supply and demand relationship: the greater the demand, the more prices increase.
In this blog, let’s take a look at coins which are already stellar MLD’s and also at issues which might be the next wave of multiple level of demand coins.
If I had to choose the one single issue in this denomination which had the highest overall level of demand among collectors it would be hands-down the 1861-D. This scarce, low mintage issue is popular for a host of reasons: it is a coin with verifiable provenance from the Confederacy, it is the final issue from this mint (along with the similarly-dated half eagle) and the rarest gold dollar from any source. These facts (and others) have made it extremely popular and prices have soared as a result.
Other gold dollars which have a high degree of MLD include the Type Two issues: 1855-C, 1855-O, 1855-D and 1856-S. These four coins range from rare (1855-D) to relatively common (1855-O and 1856-S) but they have interesting stories attached to them and, in most cases, they are relatively affordable in circulated grades.
What are the gold dollars which are most likely to become MLD issues in the future? I would suggest that the 1849-C, 1849-D and 1849-O will due to their status as first-year-of-issue from their respective branch mints (side thought: this would make a great three coin set in AU for the collector of average means). I could see the 1870-S becoming an MLD due to it being the final year of issue from the SF mint for gold dollars, its low mintage and the sexiness of this date in general. The 1875, due to its mintage figure of just 400 business strikes, is another possibility as well.
As with many of the multiple level of demand coins, the list is dominated by Classic Head issues. The 1838-C and 1839-C have proven popular with collectors in the last decade as has the 1839-D. Of the three, the 1839-C tends to have the least MLD but this is partly due to the fact that many of the EF and AU examples which appear for sale are grossly overgraded and have problems. The 1838-C and 1839-D are both first year of issue with comparably low mintages and the latter is a one-year type.
A coin which is probably better classified as a Classic Rarity but which is also an MLD issue is the 1854-S. It has a tiny original mintage (246 pieces), very low survival rate and it is the first quarter eagle produced at the San Francisco mint. But this is already a solid six-figure coin and, thus, is not a realistic purchase for most collectors.
Other quarter eagles I regard as having a high MLD include the 1796 No Stars and the 1808; both are popular one-year types. The 1848 CAL is another obvious choice due to its status as a Gold Rush issue and as the first American commemorative issue.
What are the quarter eagles most likely to become MLD issues in the future? I’d look at the four 1840 issues (P, C, D and O) as they would make a fun set to assemble, the 1845-O due to its status as the rarest issue of this denomination from New Orleans, and the rare Civil War issues from 1864 and 1865.
THREE DOLLAR GOLD PIECES:
I think there are really only two dates in this series right now that have MLD status: the 1854-O and the 1854-D and one of these (the 1854-O) has had a lot of its appeal ruined by blatant overgrading by the services.
The 1854-D is the clear MLD favorite right now. It is scarce in all grades but available enough to be a target for Dahlonega specialists, Three Dollar collectors, low mintage fans, and people who just like great coins with a real story to tell.
If I had to choose the dates most likely to have MLD status in the future, they would be the 1855-S (due to its status as the first Three Dollar from the San Francisco mint), the Civil War issues from 1861-1865 (all are collectible and could be turned into interesting subsets) and maybe the 1873 Closed 3 (very low mintage).
There are more issues of this denomination with high multiple levels of demand than nearly any other and this includes coins from the 18th, 19th and 20th century.
The first issue I’d place in the MLD category would be the 1795 Small Eagle. It’s available enough to be realistically obtainable by advanced collectors and it has a high “cool factor” as a first-year-of-issue with a great design.
Nearly any sub-$10,000 early half eagle has a high MLD factor, especially if the coin is choice and original. The reasons are obvious: old, gold, semi-affordable and very appealing from an aesthetic standpoint.
The 1838-C and 1838-D have oodles of demand due to their first-year and one-year type status. The 1839-C and 1839-D do as well but to a slightly lesser extent; both have, however, shown nice price increases in collector grades over the last decade.
The 1861-D certainly receives consideration as an issue with lots and lots of MLD and its counterpart the 1861-C has suddenly become quite popular as well. Both of these issues have demand that far exceeds the Southern branch mint box which other C and D half eagles are trapped within.
The 1870-CC, desirable as the first half eagle from this mint, is a coin with a high MLD. The same is true for the 1909-O as it is the only half eagle from New Orleans with the Indian Head design and it is a final year of issue. The 1929 Indian Head half eagle has become very popular in recent years due to its being the very last half eagle made.
Which half eagles have a good shot as showing high MLD in the next few years? A few of my choices might surprise you. Due to its status as the only semi-affordable date of its type, the 1813 could have MLD. The same goes with the 1834 Crosslet 4 which is the key issue in the Classic Head half eagles; a set which is beginning to see appreciation by date collectors. The 1839-P is a neat, affordable one-year type coin which has lagged the market as has the first-year-of-issue 1840-O. The rare to very rare Civil War era half eagles from Philadelphia and San Francisco have new-found, widespread appeal and increased price levels to match.
The first-year-of-issue 1795 has to be considered one of the most desirable eagles of any date or design. As with the similarly dated half eagle, it isn’t a really rare coin but it is an issue which “checks the boxes” for a host of collectors and has strong MLD as such. To a lesser extent, this is true with the 1799 as it is an 18th century-dated “big coin” which is still within reach of many advanced collector’s budgets.
The 1838 eagle has become exceptionally popular in recent years and it has soared in price. It is a first-year-of-issue with a low mintage and a very cool design which appeals to many different collectors. To an extent, the 1839 Head of 1838 has a degree of MLD but not as much as its earlier counterpart.
Many of the rare Civil War Liberty Head eagles have a high degree of appeal might they are probably not quite yet what I would consider MLD coins. An issue that clearly does have multiple levels of demand, though, is the 1870-CC which is desirable for a number of reasons. There are a few Indian Head eagles which have a strong MLD profile. The first is the 1907 Wire Edge, a coin of unparalleled beauty which has a great back story and which is rare but not impossibly so. The second is the rare and high valued 1933 which is the only American gold coin of this date which is legal to own.
I can think of numerous eagles which could have expanded levels of demand in the coming years. The key New Orleans issues, 1841-O, 1859-O, 1879-O and 1883-O, are beginning to show demand which exceeds the specialist community. The ultra-low mintage Philadelphia issues from 1873, 1876 and 1877 are becoming very popular as is the 1879-CC which has the lowest mintage of any Carson City gold coin.
You can make a case that many Type One Liberty Head double eagles have some degree of MLD as they are pursued by general collectors, specialists and “double play” investors. If I had to select one specific Type One issue as having the most widespread appeal, my experience would suggest the 1861-S Paquet Reverse. The Philadelphia issues from the Civil War years (1861-1865) are quite popular as well.
The rarest Type Two double eagle is the 1870-CC but this doesn’t have the widespread appeal that the similarly dated half eagle and eagle do because it is very expensive and tends to be found with poor eye appeal.
You can also make a good case that virtually all Carson City doubles eagles, from both the Type Two and Type Three series, have multiple levels of demand. This is especially true with the more common dates in collector grades.
An obvious MLD issue is the 1907 High Relief. Yes, it’s probably overvalued but there are few American gold coins which have a higher level of demand from a more varied group of potential buyers.
Which double eagles have the potential to be added to this list in the coming years? Two which come to mind (and some observers might state that they already have MLD) are the 1861-O and 1879-O. The same probably holds true for the low mintage Philadelphia issues from 1881-1887 and 1891.
As coins become more expensive and harder to locate, buyers want an item which is special and which justifies what they are spending money on. Coins which have a nice design, a fascinating back-story, a very low mintage figure or some association with an historic event are the exact sort of piece(s) which people are now seeking and this is likely to continue in the coming years.
Do you want to purchase coins with multiple levels of demand? I specialize in such coins. Please contact me via email at firstname.lastname@example.org and we can discuss how you can become a collector of these coins.
In the world of rare American gold coins there tends to be two distinct camps: date collectors and type collectors. I have traditionally been a date collector and tend to value scarce/rare issues as opposed to more common issues in higher grades. But I'm beginning to become more interested in the type collecting option and can see how, for a collector without the desire to become a date collector/specialist, collecting by type can be rewarding. Basically, a type collector buys one higher grade example of a specific design or variety as opposed to a date collectors who tries to complete a set of a specific design. There are some interesting ways to collect by type and I thought I would share a few with a particular emphasis on United States gold.
The most basic--and inexpensive--way to collect by type is to assemble a denomination set. This set would include one example of a gold dollar, quarter eagle, three dollar gold piece, half eagle, eagle and double eagle. Many of these denominations contain multiple types, which range from common to very rare. A basic denominational type set would focus on the most common types in a grade range which makes sense to the collector.
In this set, I would choose a Type Three gold dollar (struck from 1856 to 1889), a Liberty Head quarter eagle (struck from 1840 to 1907), a Three Dollar gold piece (struck from 1854 to 1889), a With Motto Liberty Head half eagle (struck from 1866 to 1908), a With Motto Liberty Head eagle (struck from 1866 to 1907) and a St. Gaudens double eagle (struck from 1907 to 1932). With the exception of the Three Dollar, all of these types are reasonably affordable in MS64 to MS65 grades and some are even available in MS66. At the MS64 level, such a set could be completed for around $15,000; certainly within reach of most collectors. In MS65, the cost doubles.
A standard six coin gold type set is a bit boring, though. What are some of the things that can be done to spice up such a set? In many of these types, it is possible to purchase dates which are scarcer for little or no premium. When the market for MS64 and MS65 gold type is strong (which it currently is not) there are dates which can bring a 10%-30% premium. When the market cools off, many of these issues lose their market premium factor and can be bought for little or no premium. They may or may not regain this market premium factor in the future but when they can be bought as common dates, why not?
Or better yet, consider a legitimately scarcer date which makes sense. As an example, in the Type Three gold dollar series, all of the 1879-1889 issues are available in MS65 for around $2,000. For $3,500 or $4,000 you might be able to buy a very scarce gold dollar from the 1868-1878 range in this grade.
How important is it for all the coins in this set to have been graded by one service (NGC or PCGS) and to have CAC verification?
I believe that both NGC and PCGS do a good job grading MS64 and MS65 gold type. One service might be a little tighter than the other on small coins but, for the most part, there is not much value differential between the two when it comes to coins like a 1901-S Liberty Head eagle in MS65.
I would recommend CAC approved coins for most gold types. In the case of certain series like Type Three gold dollars in MS65, the premium is very small but probably worth it. In the case of a popular coin like a St. Gaudens double eagle in MS66, the premium is significant from a percentage basis but from what I've seen, a CAC-approved MS66 Saint tends to be a very high. By the same token, the standard of quality for CAC approved MS66 Saints is very high and these coins are generally far nicer than "standard" MS66 coins.
The standard gold type set consist of twelve coins: the Type One, Type Two and Type Three dollars, the Liberty Head and Indian Head quarter eagle, the Three Dollar, the Liberty Head and Indian Head half eagle, the Liberty Head and Indian Head eagle and the Liberty Head and St. Gaudens double eagle.
In this set, the key issue is the Type Two dollar and, for most collectors, this is usually the lowest grade coin included in a gold type set. As an example, the typical twelve piece type set contains coins in the MS63 to MS65 range (sometimes higher and sometimes lower) but due to cost prohibitions, the Type two tends to be at the lowest end of this range. I have always thought that this was an overvalued type in MS64 and MS65 as these pieces always seem to be available yet are priced in five figures. When gold type set collecting was more popular, Gem Type Two gold dollars traded (infrequently) for $50,000 and up. Today, coins graded MS65 tend to bring closer to $30,000. This is due partially to a diluting of grading standards but mostly due to reduced demand.
The other two coins in this 12 piece type set which are elusive in MS65 are the Three Dollar gold piece and the Indian Head half eagle. The former sells for $12,500-15,000 today, well off its former high of $20,000+. In MS64, the price drops to $7,500 or so, making a nice example within reach of most budgets.
The Indian Head half eagle is probably my single favorite individual type in the 12 coin set from the standpoint of potential appreciation. These have dropped in price in recent years down to $12,000 or so for a non-CAC coin and $15,000 or so for one with CAC approval. Not that many years ago, these coins were selling wholesale for $17,500-20,000. If a large marketing firm were to quietly buy 50 or 75 MS65 Indian Head half eagles and then run up prices, we could easily see levels back where they were a few years ago.
If you are assembling a 12 piece type set of U.S. gold, I think it is worth the premium you will have to pay to acquire high end CAC coins. In many cases, you are looking at paying an extra 25-35% but this appears to be money well spent when it is time to sell the coins.
Should you pay extra money for slightly scarcer dates? In this market, as I mentioned above, you can buy a scarcer coin in many series for little or no premium. I wouldn't suggest paying a small premium for a marginally interesting date. What I would suggest is doing the full 12 piece set with significantly better dates. Instead of choosing an 1878 in MS65 as your Three Dollar gold piece, choose an ultra-low mintage date from the 1880's. Study the population figures for Indian Head half eagles and you will quickly see which dates are far scarcer than the 1908 or 1909-D yet do not command a huge premium.
You can add a few more basic types to make the 12 piece set more complete and more challenging. Five which come to mind are the No Motto half eagle, the No Motto eagle and the Type One and Type Two Liberty Head and High Relief double eagles. These are quite rare and expensive in MS64 to MS65 but can be found in the MS60 to MS63 grades for less than $10,000 in many cases.
What if you have a limited budget and can only spend $2,000-2,500 at most. Is a type set a good option?
I think the collector on a limited budget has some great options. Let's take gold dollars as an example. I would suggest buying a nice MS63 or MS64 Type One which will cost $1,000 to $1,500. For the Type Two, the smartest option might be a "super slider" AU58 which will cost $1,000 or so. For the Type Three, I'd go with an MS64 which will cost $1,000 to $1,250 depending on the date and the quality for the assigned grade.
The thing I like most about collecting by type is that every purchase you make for the set brings a whole new design and a whole new series to explore and research. If you are a true collector, you like to learn about new coins and the thought of studying about a new coin such as a Three Dollar gold piece is, in my opinion, pretty interesting.
It's funny how tastes change among coin collectors. In the 1980's and early 1990's, everyone wanted Gem Type. Today, people prefer rarity. Perhaps a combination of the two--type sets which contain scarce to rare issues--might be the collecting wave of the future.