Rosen Report Answers, 2013

Every year, I participate in the Rosen Report in which I (along with an impressive panel of fellow dealers) answer a series of timely and interesting questions which pertain to the rare coin market. This year's version of the report was interesting and I think that you will find my answers to be informative. Please note that all of the questions are as asked by Maurice Rosen; the answers are the exact ones which I gave to him. These answers were published in December 2012 and January 2013. Out of respect for the "freshness" of Mr. Rosen's newsletter, I waited a while to publish them.

1) Much has been said and written about the glut of off-grade and problem slabbed coins (due to sloppy grading, doctoring, and just very low-end coins for the grade). The comparison of those coins in the market versus truly high-quality, eye-appealing coins --the ones we constantly look to buy-- is striking.

 A)   Will we always have this glut?

     I’m guessing that in the 1880’s, the collectors of that era were complaining that there were a lot of not-very-nice coins around so this “complaint” is not new. Also, you have to realize that grading is a continuum. MS63 is actually a series of grades, ranging from 63.0 to 63.9. You never see the 63.7, 63.8 and 63.9 coins because they are being tried and re-tried for higher grades and the 63.5 and 63.6 coins are being sold by retailers like myself, Legend and Pinnacle to our best clients and don’t get offered to the average collector. So what most collectors see is the “dreck”—i.e., the 63.2 and 63.3 coins that just barely made it. It’s no great conspiracy and not at the fault of the services; it’s more the dynamics of the marketplace.

 B)   What would reduce or even eliminate it? And, what needs to be done to achieve that?

 You will never reduce grading mistakes by the services. The coins are being graded by humans and even the best grader gets a few things wrong every day. Multiple this by three graders, all making a few mistakes every day, and at the end of a decade or two of grading you have a few thousand egregious errors. A few things the services can do is 1) be more proactive about cleaning up their mistakes  2) use more outside consultants for esoteric coins that they don’t really understand  3) rotate the graders more frequently  4) shame the blatant doctors of coins by outing them.

 C)   Isn't it true that there's always been a glut of inferior slabbed coins but it is due to our heightened awareness to grading and improved tastes that the situation is magnified?

 I disagree with this. I think the number of dealers and collectors who really, truly know how to grade (like at the level of a Jason Carter or a Ryan Carroll) is always going to be very few, just like only a few athletes are ever going to be able to run like Usain Bolt or hit like Miguel Cabrera. The seeming “glut” of crappy coins is mostly because so few nice, fresh coins are available and the 10-15% of coins in any series that are “A” quality are so amazingly easy to sell right now, most collectors (and many dealers) never see them. Remember: even before third-party grading there were still a lot of schlocky coins in the market.

 2) Is it time to recognize Modern Coins as a more legitimate part of numismatics, therefore worthy of an investor's consideration? Or, do you regard those coins as largely a hustle of sorts, too speculative and over-exploited? And, whether you like Moderns or not, are there any you see that are worth investing in?

            I’m not a big fan of modern coins but I totally understand why people collect them and can understand their appeal, such as it is. I don’t think that modern coins in PR70 or MS70 are worth such big premiums but, then again, I think common date Walkers in MS68 or PR68 are bad deals as well.

            If I had to select an area in the modern coin market to invest in, it would be the Spouse coins. Some of these have very low mintages and if the market for these were created and nurtured by a legitimate modern coin dealership, I think they could see good long-term growth. My main caveats in modern coins are don’t overspend for quality and stay with low mintage issues.

 3) A) Of all worthy slabbable coins (pre-Moderns of sufficient economic value to be submitted) what percentage would you say have been slabbed? Indeed, have the services pretty much penetrated the universe of those coins?

            Not including Morgan Dollars and Saints (which still seem to exist in significant quantities as raw coins), I would say that over 75% of all the worthy coins have been slabbed. In the case of areas such as early gold or Proof gold, the percentage of slab-worthy coins that have been graded at least once by the services may be as high as 90%

  B) If so, what are the implications here?

            I can think of at least two major implications here. The first is that if NGC and PCGS clean up their population figures reasonably well, we can, for the first time, have a pretty good idea of the absolute rarity for many issues. The second implication is that really “fresh” coins (and by this I mean stuff that has never been to the services) are probably even rarer than we think they are. The next time a really great really fresh deal (like the remainder of the Bass collection or Eric Newman’s coins) come on the market, you will see a level of demand for cons like this unseen in numismatic history.

 4) What one series of reasonably moderate cost to complete (say, under $25,000) would you recommend an investor look into? Please explain your selection.

            $25,000 is a pretty limiting amount for working on a set but if this is all that I have to work with, I’m going with Proof 64 Barber Dimes. Let’s see…there are 24 different dates and at an average cost of around $750-1000 per coin (and no key dates with big premiums. That means a set of reasonably scarce coins with good eye appeal could be done well within budget. I would focus on nicely toned coins with cameo designation that were just a hairline or two away from grading higher. And at just a few hundred bucks more for 65’s, you could throw a few Gems into the set.

 5) The premiums for generic U.S. gold coins are coming back slightly from their lows of a year ago. A) Have the dynamics of this market changed so much that it is wishful thinking to expect premiums to expand much more? Why so?

     In the past, there were a number of large marketers who sold generic gold. Now they sell modern coins. The supply of generics has stayed constant but there is a pronounced lack of demand. It’s understandable why the marketers have punted generics from their programs. Other than Saints, most generics just don’t have a really compelling story. Modern coins can be sold in MS69/PR69 and MS70/PR70 grades, they have reasonably attractive designs and they have performed fairly well over the course of the last decade.

 B) If you think premiums can increase a lot, please explain why and what conditions would arise to bring that about. Also, please state which issues here offer the best investment potential.

            Unless the large marketers decide to re-focus on generics, I don’t see this market doing that well. This was always a very heavily manipulated market with periodic “shortages” created by the suppliers and market conditions generated by promotions. If a firm suddenly starts a promotion on, say Indian Head half eagles in MS64 and they need 500 coins, you’ll see prices shoot up. But the way the market is now, there is no real reason for most generics to increase in value. I don’t really care for the “investment potential” of generics but I do buy MS66 Saints for my personal holdings as I like the supply/demand ratio of these coins.

 6) There's talk about the government phasing out the use of coins and paper money as technology provides digital and other forms of payment.

A) How would such a development effect the coin market?

       My first reaction was if coins and paper money are phased out, this will add a flavor of “uniqueness” to our markets as we are suddenly dealing in obsolete products. But as I thought more about this, I thinking phasing out coins and paper money would harm the market(s). Even though no one searches their change for interesting coins anymore like we did as kids, getting a new generation of collectors interested in coins will be a lot harder if they don’t even know what a “coin” or a “bill” is.

 B) Would it open the door to certain oppressive government actions bearing down on the coin market?

     I think any of the (potential) oppressive government actions on coins in the future are going to be based on VAT’s or comprehensive interstate internet taxation.

7) Some folks have the feeling that the U.S. coin market has been so researched and exploited that every stone has been overturned and there are few, if any, areas left with standout potential.

 A) What are your thoughts here?

            If you think about it, the majority of the research on US coins has been focused on a few areas. There are plenty of series that have next to no research. And even areas that have specialized books about them often lack good general information. An example: if you collect bust half dollars, the Overton book is great. But it is solely about die varieties. What if you want basic information about, say, an 1812 half dollar and don’t care about die varieties. No one has ever written a good general collector’s guide to Bust Halves that discusses the rarity of the coins (date by date), how they should look, which coins are the finest known for each year, how to tell Proofs from business strikes, etc.

 B) What area or areas seem relatively unexploited to you?

            A few areas that come to mind are Proof bust silver coins (someone should write a book on these…), San Francisco Liberty Head gold (especially quarter eagles, half eagles and eagles), Philadelphia gold and early gold.

 C) Any favorite issues there?

            Just about any 100% no-questions-asked Proof bust silver or gold coin is a great value. Same goes for many pre-1878 San Francisco quarter eagles and half eagles in EF45 and better with original color and surfaces.

 8) The commem market (silver and gold) has been in the doghouse since the wild highs of 1989.

 A) What will it take to revive it?

            Commemoratives aren’t marketed properly. Sellers always describe coins with comments about how cheap they are relative to 1989. Who cares! That’s not a smart approach. They need to be marketed for their beauty, their relative scarcity and their collectability, not because they are thirty cents on the dollar when compared to 1989. If a large firm like Blanchard suddenly got interested in commems, the coins could increase in value. Perhaps a really good new how-to-collect book might help this series as well.

 B) What specific issues have noteworthy potential?

            I’ve always been fond of the issues from the 1910’s and 1920’s in MS65 and MS66. I also like coins with really nice color but not enough of a “wild” appearance that they bring huge premiums.

 9) Are Morgan and Peace $1s still a great choice for investment gains? Which issues do you like best.

            Scarcer date O mint dollars in MS65. For Peace Dollars, I like nearly any non-Philadelphia issue in MS65 with original surfaces.

 10) CAC coins:   A) Is the market warming more and more to CAC'd coins such that investors should focus almost exclusively on them?

            In my opinion, CAC has made extremely strong inroads into the high end of the coin market. If you look at auction results for CAC, they inevitably bring higher prices. When I have a CAC and non-CAC example of the same issue on my website, the CAC coin inevitably sells first. I don’t agree with the thought that a non-CAC coin is a “bad” coin but I feel that people who are buying coins primarily as an investment are probably better off focusing on CAC material, especially if they are not comfortable with their ability to distinguish an A coin from a B coin.

 B) In what areas do CAC'd coins have the greatest impact?

            The areas that CAC has made the greatest impact are the areas which the grading services are most inconsistent on: common date St. Gaudens double eagles in MS66 and MS67, better date 20^th century gold issues in MS65, Proof gold, high end early gold.

 C)  The least impact?

     Collector coins such as colonials, early copper, rare date bust and seated, EF-AU early gold, certain areas of the rare date gold market.

 11) Since 2001, gold has risen 7-fold from the 250's to as high as the 1900's. During these last 12 years the government has largely not changed the climate or rules under which transactions take place, nor taxes on or ownership of gold. Something tells me that the next multi-fold increase in gold's price will see the government taking a much more aggressive and oppressive role in the market. A) What are your thoughts here?

            As state and federal deficits increase, the government is going to have to get more create about producing revenue without raising taxes. I would imagine that large profit-taking in gold, should metal prices rise to, say, $3,000 per ounce, would put these gains on the radar for the government.

 B) How might the rare coin market behave with such heightened presence of the government in the gold market?

            For many collectors, one of the beauties about the coin market is that it remains essentially unregulated. Regulating it certainly won’t be a way to attract more people into the hobby.

 12) What's the one coin that could come onto the market that would cause the biggest splash in and out of the industry? Why so? (Examples: 1873S Seated $1, 1849 $20).

            The currently missing third known example of the 1854-S half eagle would be a pretty big deal for me or the second 1870-S three dollar that was supposedly placed in the mint cornerstone. But I think the coin that would actually cause the biggest splash would be an 1849 $20 that someone could own. That coin would bring a lot of money!!

 13) You have $1 million in fun money. What one coin or series would you buy to hold for the next ten years? Please explain your selection.

            Ah, the old million dollar fun money scenario… My answer would be predicated on what was available for sale at the time this money became available. If, for example, a fresh deal of early gold became available and I could spend the million dollars at an auction (and provide my client with fair value), I’d go in that direction. Or, if there was a great collection of Saints, I’d focus there. The main thing is that I would be looking for outstanding quality coins with great eye appeal and true overall rarity.

 14) Are generics dead? Are there any issues here that offer good value, if not speculative appeal for someone looking to amass a position?

            Generics aren’t necessarily dead but if you invest in them, you better have a way to market them or access to information about who is planning a big promotion. As an example, if a little birdy tells you that a TV shopping network is planning on promoting MS64 Morgans in a big way, then it might make sense to invest in these coins before prices go up. But that seems highly unrealistic for most collectors—even those with good connections

 15) Two investors come to you to assemble a portfolio to hold for the next 5 to 10 years. One has $25,000 to commit, the other $250,000. What would you put into each of their portfolios? Why make those picks?

            a)  $25,000 portfolio:  one each of the following:  Reduced Size Capped Bust Dime (1828-1837) in MS65 with CAC approval (around $10,000), No Motto Seated half Dollar in MS65 with CAC approval (around $7,500), Indian Head half eagle in MS65 with CAC approval (around $12,500). Yes, I realize that adds up to $30,000…

 b) $250,000 portfolio: one each of the following, most or all with CAC approval:  a nice MS65 Red and Brown Matron Head Large cent from the 1820’s or 1830’s, no 1820 (around $10,000), an MS64 Large Size Bust Quarter 1815-1828 (around $15,000), a true Gem MS65 Capped Bust Half Dollar 1807-1836 (around $10,000), an MS64+ No Motto Seated Liberty Silver Dollar, 1840-1865, (around $10,000). That would be a total of around 50k on a group of nice type coins. Combined with the 30k portfolio above, this would be around 80k on type coins

       Three Dollar Gold Piece, 1854-1889, an MS66 example (around $20,000), MS64 Classic Head Half Eagle, 1834-1838 ( around $20,000), No Motto Liberty Head half eagle, 1840-1865 in MS64 (around $15,000), a nice piece of Proof gold in PR64 or PR65 struck before 1900 and withy a mintage of less than 100 (around $35,000) and one really nice MS62 to MS63 Dahlonega quarter eagle or half eagle (around $20,000) That would be a total of around $110k+ on nice gold coins.

            One great $50,000 coin, preferably in gold. Maybe something like a finest known Liberty Head eagle or a rare date Saint (has to be CAC approved) or an important Type One or CC Liberty Head double eagle.

            The remaining 10k on hand selected MS65 Saints, all CAC approved.

   Do you have any comments or further questions about my Rosen Report 2013 answers? If so, please contact me via email at dwn@ont.com

Three Great New Orleans Coins

I’ve heard it said many times that, “All the great coins can only be found at auction.”

As my recent experience at the 2013 FUN show in Orlando will prove, this is far from the truth. At this show—and at most other major conventions—I am able to purchase great coins via private treaty from dealers and collectors. Many of these are fresh as the proverbial daisy having either never appeared at auction before or, if they have, many years ago.

As a dealer who specializes in choice and rare 18th and 19th century United States gold coins, I have a special place in my heart for important coins from the Eliasberg sale. Held in October 1982 by Bowers and Ruddy, this was arguably the single greatest collection of gold coins sold in the modern era. Unlike many other great gold sales, the Eliasberg pedigree is synonymous with high quality and, in most cases, when I see a coin is ex: Eliasberg, I get the mental picture of a very high end piece for the date.

On the first day of the FUN show, I got a text message from a dealer who I have known for many years and who I do business with from time to time. He told me to come to his table to look at a group of coins and I went there quickly as I know this dealer isn’t someone who will waste my time with marginal stuff.

When he showed me the small group of coins, my heart skipped a beat as the group contained a number of New Orleans gold coins that I immediate recognized as being from the famous Eliasberg sale. One of these coins was something that I had been chasing since the mid-1990’s. That was the good news. The bad news was that this dealer is one of the very smartest guys in the coin business and he is not exactly known for giving things away. I knew I had to buy these coins; it was just a question of how much would I have to pay.

I’m going to discuss these coins in some detail. Since they are already sold, I’m not going to reveal what I paid for them but I will discuss how I figured values for each.

1842-O Half Eagle, Graded MS63 by NGC/CAC approved

The New Orleans mint produced a total 16 Liberty Head half eagles from 1840 to 1894, in two different designs. The No Motto coins, issued from 1840 to 1857, tend to be scarcer than their counterparts from Charlotte and Dahlonega and nearly all are very rare in Uncirculated.

The 1842-O is the second rarest half eagle from this mint. Of the 16,400 struck there are around five or six dozen known. When available, the typical 1842-O is very well-worn with most in the VF-EF range. In About Uncirculated, the 1842-O half eagle is quite rare with probably less than a dozen properly graded pieces known. But in Uncirculated, this date is of the highest rarity.

There are exactly three 1842-O half eagles known in Uncirculated: an NGC MS63 (the present coin), a PCGS MS61, and an NGC MS60. Remarkably, I have now sold all three of these coins, meaning that there are no longer any Uncirculated pieces available.

Of the three known in Uncirculated, this example is the finest and it has a wonderful pedigree. It was last sold in Stack’s May 1995 auction for $31,900 as part of the famous collection of No Motto half eagles owned by the late dealer Ed Milas. It was earlier in the Eliasberg collection where it brought a whopping $3,850 in October 1982. Eliasberg obtained the coin from the Clapp collection and it was first recorded in the George Earle collection sale of June 1912, conducted by Henry Chapman.

A number of things appealed to me about this coin as I made the decision to purchase it. The first was that I would be able to sell it. I had a specific collector in mind but even if he passed on it, I had enough confidence in the coin to buy it “on spec.” Probably even more important was that I loved the coin when I first saw it two decades ago and I loved it even more when it reappeared. It was still in the same old NGC “fatty” holder in which it appeared in the 1995 Milas sale and, even without having access to that catalog, I knew that it had not been messed with.

As you can see from the photo above, the most remarkable thing about this coin is its color. Both the obverse and reverse have splendid rich orange-gold and coppery color. If you don’t know what “real” color on a gold coin of this era is supposed to look like (and many collectors, I’m afraid, do not…) take a careful look at the toning pattern and the hues on this coin. Note how the color is perfectly blended and how it lays on the surfaces. Note how it doesn’t suddenly become darker exactly where there is a mark (as on coin where color is applied to masks flaws). And note the richness and the “purity” of the color.

Having sold the other two Mint State 1842-O half eagles, I had a good idea of the “base line” value for a high grade 1842-O. Knowing this, I factored in the amazing appearance of the coin, its pedigree and its numismatic significance as the finest known example of a truly rare coin. This was an easy decision for me to make and I doubt that there will be many New Orleans half eagles that I buy in 2013 with more panache than the Eliasberg 1842-O half eagle.

1844-O Half Eagle, Graded MS64 by NGC/CAC Approved

By the standards of New Orleans No Motto half eagles, the 1844-O is a “common” coin. It is plentiful in circulated grades and available, from time to time, in the lower Uncirculated grades. There are an estimated two to three dozen in Mint State with most in the MS60 to MS62 range. In MS63 the 1844-O is rare and it is very rare in MS64 with around five or six known to me. There is a single Gem known (graded MS65 by PCGS) and it is ex Bass II: 937 where it sold for a reasonable $34,500. A few years ago, it was re-offered to me by a Midwestern dealer for a six-figure sum.

In my opinion, this NGC MS64 has the best pedigree of any 1844-O half eagle. It was last sold as Lot 457 in Stack’s Milas collection in May 1995 where it brought $20,900. Before this, it was Lot 434 in the October 1982 Eliasberg sale, where it brought $4,620. It was earlier in the Clapp collection and it is not pedigreed prior to be obtained by the Clapp family.

As with the 1842-O half eagle described above, this coin was in the same old NGC “fatty” holder in which it had resided when offered in the May 1995 Milas sale. It was a degree of comfort to me to know that it hadn’t changed in appearance since then.

This coin had a very different look than the 1842-O. Where the first half eagle was all about its color, this 1844-O was more about its blazing mint luster. Unlike some of the high grade 1844-O half eagles which I have handled, this piece was very frosty in texture; most of the others are grainier and present a different appearance. The Milas/Eliasberg 1844-O half eagle had lovely light to medium yellow-gold color and really the only thing keeping it from an MS65 grade was a few small marks in the left obverse field.

While the purchase of the 1842-O half eagle was a no-brainer, I had to think a little bit harder about this coin. I generally don’t care for common dates in uncommon grades. But how often do you see any No Motto half eagle in real MS64, let alone one from New Orleans? So I thought for another two or three seconds…then happily bought the coin.

1841-O Eagle, Graded AU58 by PCGS/CAC approved

Every dealer and many collectors have coins that are White Whales. If you don’t get that Ahab-ian reference, I mean an elusive coin that you are literally on a quest to buy, even if it takes years to track down. And when it becomes available…Ahab-ian things can and will happen.

While still not that widely known, the 1841-O eagle is among the most numismatically significant gold coins from the New Orleans mint. It is the first eagle struck at this mint and only 2,500 were made. It would remain the largest coin struck at a southern branch mint until 1850, when the double eagle denomination was introduced to New Orleans.

Of the 21 No Motto eagles from New Orleans, the 1841-O is the second rarest in overall rarity with around 60-70 known. This is an issue which was placed immediately into circulation and it saw hard use. When available, an 1841-O is likely to grade VF and a decent-looking EF coin is very scarce. In higher grades, I regard this issue as the single rarest eagle from New Orleans. It is unknown in Uncirculated and I believe that there are only two properly graded AU55 and finer pieces known: a PCGS AU55 in a California collection which I sold in 2007 and the present example. Having now owned both of them, I can pretty boldly pronounce that the PCGS AU58 is clearly the finest known.

If you have ever seen a typical quality 1841-O eagle, you are aware that this date just doesn’t have very good eye appeal. Most are very heavily worn and extensively abraded. More significantly, most have been processed and stripped to the point where they have zero original luster or surfaces. And that fact makes the existence of this choice 1841-O so miraculous.

While it is “only” graded AU58 by PCGS, I feel that this coin is actually Uncirculated as it has no real wear. Because of the fact that it is semi-prooflike, the surfaces appear a bit more abraded than they are in person. When I first saw this coin two decades ago, I thought it was a “baggy Unc” and I still believe this today; probably even more so.

The pedigree of this 1841-O is impressive. It was last sold as Lot 6238 in the Heritage 10/95 auction as part of Warren Miller’s collection (a set of Liberty Head eagles that is still probably the finest ever assembled). It was earlier sold as Lot 934 in Stack’s 10/86 auction and before this it was Lot 665 in the Eliasberg sale where it brought $4,400. Eliasberg bought it as part of the Clapp collection in 1942 and it was earlier purchased from the Massachusetts dealer Elmer Sears in 1920.

Of the three coins, this was the hardest to buy as it was many multiples more expensive than any other example of this date which has ever sold. But it was the coin I wanted the most. So how did I justify paying what I did?

In the last few years, the 1883-O has become the coin du jour of all New Orleans eagles. At least two AU58’s have sold for over $100,000 and this is a coin that is clearly more available in comparably higher grades than the 1841-O. I asked myself: “Self, what coin would you rather have: an AU58 1841-O eagle or an 1883-O eagle?” The answer was almost immediate: the 1841-O is an issue which I think has more upside than the 1883-O and it is an issue that is rarer; despite the very low mintage for the latter. I sucked it up, wrote a check and haven’t looked back since…

So how was your FUN show? Mine was pretty incredible actually. I was able to buy many, many impressive coins there but the three which will stand in my memory are these wonderful New Orleans pieces from the Eliasberg. This is what makes being a coin dealer fun and why I still look forward to major coin shows even after all the years I’ve spent going to them.

For more information on great New Orleans gold coins, Eliasberg pedigree gold coins or cool coins in general, please feel free to contact me by email at dwn@ont.com.

How NOT to Assemble a Great Collection

     While looking through thousands and thousands of coins recently in the 2013 Heritage FUN sale, I took a brief pause and read the preface to the catalog, where collectors are introduced and given the opportunity to write briefly about their collections. Some of these collectors, like John Adams, are incredibly sophisticated and operate within narrow specializations in which they are probably more knowledgeable than all but a tiny handful of dealers. Other collectors are clearly products of the Internet era of coin collecting and they make mistake after mistake. This got me to thinking...how does the mindset of a confirmed I Can Do This By Myself  collector work and why, in my opinion, does it often spell disaster?      In the spirit of these thoughts, let's take a look at how NOT to build a great--or even a good to very good--collection of coins. The spirit of this article may be snarky but I think there a lot of good points that are raised.

     1.  Choose a Complex Series.

     If you are going to collect a series like American Silver Eagles, you can be an I Can Do This Myself type of collector who lives on the plains of Montana, never goes to a coin show and seldom even visits a local brick and mortar coin store. And I wouldn't limit this simplicity factor to modern coins. I think you can build a reasonably complex set like Red and Brown Two Cent Pieces or PR64 to PR65 Barber Dimes going it alone.

     There are series that are complex either because of they way that they were produced (many Colonials as an example) or because they can be "messsed with" or misrepresented so easily (red copper coins or 20th century Proof gold as just two examples). These are not series that lend themselves to rugged individualism and I'm not certain that I've ever seen or heard of a savant who learned the ins and outs of a really complex series totally on his own.

     Despite this, many beginning collectors outsmart themselves and choose a series that is far more complex than they realize. They don't know that the preferred look for Southern gold coins is dark and dirty; not bright and grainy. They never learn that there are different levels of "redness" on Indian Cents and Lincoln Cents and that a red MS65 example of a certain date can be worth anywhere from $2,500 to $7,500.

     So what exactly am I saying here? Do I mean that all beginning collectors should start with PR69 American Silver Eagles and gradually work their way towards Dahlonega half eagles? Absolutely not. What I'm suggesting is that if you do choose a series that is complicated (and I can make the case that virtually all pre-1964 American coins have some degree of mystery that can not be unlocked in a few weeks) you need a mentor and/or a good dealer to work with.

     Or better yet, outsmart yourself and pick a series you don't really understand. You'll be on your way to NOT assembling a great set...

     2.  Go it Alone; Don't Have an Expert Dealer Working With You.

     Some collectors look at dealers as a necessary evil. They don't like dealers, don't trust dealers and work with them because they have to. (I feel the same way about lawyers but the last time I was involved in a legal issue, I was happy to hire a great lawyer and not read "Law for Dummies" and represent myself). This attitude is unfortunate as there are many good dealers.

     I'm a student of coin collectors and the coin market as well as coins themselves and in the modern era of numismatics (let's call this 1945 and onwards) there have been many great collectors but few "mavericks" who have bypassed the typical collector/dealer relationship. Some collectors like John Pittman were able to buy great coins at auction without a dealer's guidannce but even Pittman had a few dealers with who he had a good working relationship. One wonders how Pittman would view the current generation of sight-unseen Internet buyers, especially those who buy sophisticated, expensive coins without a trained set of eyes working with them.

     (If your answer to this is "much of what Pittman bought was sight unseen through mail bids at auctions he never attended" I would agree with this to an extent. Big difference: today, a slight variable in a coin's appearance can equate to tens of thousands of dollars--which was not the case in the 1940's or 1950's. Also, many of the coins sold today have been doctored while during Pittman's heyday, original coins were, more often than not, the norm in the market).

    Well-connected, educated dealers are of little value to collectors who are NOT assembling a great collection.

     3.  Buy Only Online Based On Images

     I've made this point a dozen times in other articles but I think it is tremendously important and it bears repeating. Again. Collections that are built by collectors who buy coins through auction based solely on images are destined to be full of problem coins. Auction sales are sight-unseen and most of the images that I see online are not sufficient to make important decisions, especially on high grade coins. (NOTE: I feel differently about circulated coins as it seems possible to get a clear enough image of an EF or AU piece that I would personally feel OK bidding on it although not necessarily aggressively).

     Buying a coin off a dealer's website is different as you have a return privilege.

     If you do buy sight-unseen at auction, try to at least establish a rapport with a friendly, knowledgable person at the firm and ask his opinion on the coin(s) that interest you.

     Or just buy based on the images since you do NOT want to assemble a great collection...

    4.  Don't Learn What Original Surfaces Look Like.

     If no one ever takes the time to teach you what an original coin looks like, you are not going to have any reference point in determining originality. I was lucky enough to learn about originality back when there were still a decent number of non-processed coins in the marketplace. This is not the case today. To learn this today requires a real effort and real connections in the market.

     I had an interesting conversation about originality the other day with a collector of Proof gold. He told me that when he was  less experienced, he returned a few high grade Proofs because they were "dirty." He was so used to seeing bright, shiny Proof gold that when he finally had a chance to add a few totally original coins he returned them to the dealer who sent them. But this collector was smart enough to ask his mentor why the coins were tarnished and what made them desirable. Then he learned: the "dirty" coins had a nagtural haze and had yet to be dipped. These were the "good" coins he needed to be buying.

     As I looked through the Heritage 2013 sale, I saw gold coin after gold coin that had been stripped including at least two high six-figure collections that didn't contain more than a handful of coins that were original. The owners of these coins never were able to determine what constituted an "original" (or even a semi-original) coin and never had the foresight to ask a knowledgable expert.

     Keep buying bright and shiny coins--they are the cornerstone to NOT assembling a great set!

     5.  Race Through Your Collection.

     I just sold a very significant gold dollar to a collector who has been working on his set for close to two decades. As we concluded the transaction, I commended him for his patience and got to thinking about how the old-school method of slowly assembling a collection has changed along with the way that collectors build sets and acquire individual coins.

     A few days later, as I viewed the Heritage FUN sale, I noticed that a few of the major collections had been assembled in two to five years. And these were not sets that ordinarily could be assembled quickly. Clearly, shortcuts were taken...and they showed.

     Great collections are the result of opportunity. Let me give you an example. A month ago, I began selling a superb collection of gold dollars. I gave first shot to a dedicated, persistent collector who I knew was not only going to buy a number of coins, he was going to appreciate them and (hopefully) sell them back to me a number of years down the road. Here's a collector who was probably expecting to buy two or three coins for his set this year and suddenly he was given the opporunity to buy no less than eight coins that he needed and knew he was unlikely to find again in many years of searching.  Was his purchase of eight coins at one time an example of "racing" through his set? Clearly not; it was, instead, a moment of great opportunity.

     This is an example of "positive opportunity." There are examples of negative opportunity where collectors bury themselves in a mound of problem coins in a short period of time. And there are clearly scenarios where well-meaning collectors have chosen the wrong dealer(s) and proceeded to be bombarded with crappy coins.

      Try to assemble your collection as quickly as possible; that's how NOT to assemble a set!

     6.  Overpay for Mediocre Coins and Underbid for Nice Coins.

     In the aforemtioned Heritage FUN sale, it was interesting to note on coins which pedigrees were given, what the (ex)owner paid for them. It served to reinforce an old belief of mine: misguided collectors tend to pay too much for mediocre coins and they never get to buy really nice coins as they a) either lacks the dealer connections to be offered them or b) won't "pay up" for high end pieces.

     I also note a tendency for this kind of collector to "overbuy" the common dates in a set and "underbuy" the rarities. An example: if you collect New Orleans quarter eagles, the coins you should be stretching on (i.e., buying the absolute best possibe pieces you can afford) are the keys such as the 1845-O and the dates with multiple levels of demand such  as the 1839-O. The dates that you shouldn't overbuy (i.e., buying a common date in an uncommon grade) are the 1843-O Small Date and the 1854-O).

     How can you "overpay" for most of your coins? If you are exclusively an auction buyer, I think that's easy: you can misinterpret the auction prices realized data that firms such as Heritage provide.

     Let's say you are looking at prices for a certain Type One double eagle in AU58 and the last three results are $4,500, $4,650 and $7,750. Another example comes up for sale and you figure "hey, the last coin sold for $7,750, I'm fine paying $6,250 for it." If you do not really analyze the $7,750 sale you might not know that the coin was a) in an old holder and undergraded or b) was from a shipwreck and it brought a strong premium as such. Suddenly, your bid 0f $6,250 is way too high, given that the two pertinent results are actually $4.500 and $4,650.

     Nobody actually makes that mistake, right? Uh, think again. They do. And mistakes such as this are ways that you DON'T build a great collection.

     7.  Sell Your Collection As Soon As You Finish It.

     In this New World of Coin Collecting another collector trait that seems suddenly accepted is to sell your collection literally as soon as it is done. In the red hot market of 2006-2008, you could get away with this and sometimes even have a nice score. But in the current market, I don't think the collector is doing himself a service by blowing out his collection.

     Today's market is all about "fresh coins" and it's easy for a knowledgeable collector with a computer to figure out that the coins you just consigned to auction were all bought out of other auctions in the last two or three years. This will hurt the potential resale of your coins, even if they are above-average coins.

     We were blessed with the longest bull market in numismatic history in the 2000's and collectors who were too new to remember the bear markets of 1980's and 1990's are sometimes not entirely realistic with their financial expectations regarding coins. Generally, it takes a full cycle--or two--for coins to realize their full potential.

     Buy coins quickly and sell coins quickly....exactly how NOT to assemble a great collection.

     To me, the ideal collector uses the concepts of collecting that were in vogue in 1913 and marries them with the technology that is in place in 2013. This is how you assemble a great collection.

Dual Rarities: Great American Gold Coins

There are coins that are rare because of their grade ("condition rarities") and there are coins that are rare because only a small number survive ("absolute rarities"). Then there are coins that are a whole different category: I call them "dual rarities." These are coins that stand out as having an amazing combination of date rarity and grade rarity. There are not many of these and even fewer exist in the arena of United States gold coinage. In this article, I'm going to choose one coin from each denomination which I think is the ultimate dual rarity. Before I begin, I want to establish three parameters for true dual rarity. These are as follows:

1.  The coin is a rare date. Whether due to low mintage or low survival rate, the coin is not easily available, even in lower grades.

2.  The coin is exceptional well-preserved for the issue. This is based not only on the date but the type. In other words, if the coin is a No Motto half eagle, it is not only exceptional for the date, it is one of the best of the entire type as well.

3.  Nothing close survives. There are coins that are dual rarities but other comparable examples exist for the date or for the type. An example (non-gold) is the 1845-O Dime, ex Eliasberg, graded MS69 by PCGS. It is the best early date Seated Dime known, its a rare date and the next finest known is somewhere in the AU58 to MS61 range. Now that's a dual rarity!

4.  Only business strikes qualify. Proofs, especially near early dates, are very interesting but they were made in limited editions for collectors and we can expect these to have survived. Branch mint proofs or specimen strikes are another story and despite being controversial and slightly esoteric, I'm going to let them qualify. Its my list and I can be the Dual Rarities Czar if I want to. So there...

1.  GOLD DOLLARS

This was a fairly hard denomination to choose a single coin from because there aren't a lot of truly rare gold dollars and the most famous issues (the 1849-C Open Wreath and the 1861-D) don't have a single really memorable survivor. So with some thought, I chose a coin that I actually had in my hands the other day and which was sort of an impetus for this article: the Brand-Akers 1863 gold dollar, graded MS68 by PCGS.

The 1863 is the single rarest Philadelphia gold dollar despite a mintage of 6,200 business strike. There are a number of branch mint gold dollars with lower mintages but they not to be found in supergrades. There are 14 Philadelphia gold dollars with lower mintages than the 1863 but these tend to have been saved in higher grades. A few of the dates have incredible individual coins known (the 1864 in PCGS MS69 quickly comes to mind) but they are not as rare, overall, as the 1863.

The Brand 1863 gold dollar was purchased by famed dealer-collector David Akers as Lot 29 in Part One of the Virgil Brand auction, held by Bowers and Merena in November 1983. It sold for $15,400. Akers kept this coin as part of his personal collection until a few years ago when he sold it via private treaty to a West Coast collector who is forming an incredible, high grade set of gold dollars.

The Brand 1863 dollar is a true "wonder coin" with amazing surfaces that literally drip with luster. When I was looking at it the other day, my first comment (made out loud) was "wow, what a coin! I'd be impressed with this if it was an 1880's date, let alone an 1863."

As I recall, this was Dave Akers' favorite gold dollar and that's saying something given that he a) saw, owned or sold nearly every great gold dollar in existence and b) personally loved gold dollars and collected them with an unbridled passion.

I love this coin for many reasons. First is the fact that it is one of the most aesthetically pleasing gold dollars that I've ever seen and it just happens to be a rarity. Second, it is the finest known by a long shot. I have personally handled an NGC MS66 and currently own a PCGS MS65 but neither of these is even on the same planet as the Brand 1863. Third, it has a great pedigree. Virgil Brand is probably the most underrated coin collector of all time. He has a reputation today of having been a hoarder and he certainly was happier owning ten of something than just one. But as his notebooks show, he put together a wonderful, sophisticated set that was one of the greatest ever. Brand's legacy has been further diluted by the fact that most of his coins were sold privately after his death but even the small fraction that was sold by Bowers and Merena from 1983 to 1985 was worth millions and millions of dollars. It is staggering to think what his complete collection would be worth today.

2.  QUARTER EAGLES

This was an easy, easy choice for me. The most valuable quarter eagle in existence is the Gem 1796 No Stars that sold for $1,725,000 in Heritage's 2008 FUN auction. It's old, beautiful, rare and gorgeous. But it still isn't my ultimate dual rarity quarter eagle. That honor belongs to....the Byron Reed 1864 quarter eagle.

Depending on whether you think the 1841 was struck in non-Proof format or not, the 1864 is either the first or second rares business strike Liberty Head quarter eagle from the Philadelphia mint and the second rarest issue of this design after the 1854-S. There are a few dozen known 1864 business strikes with most in the EF40 to AU50 range. There are exactly three known in Uncirculated which actually makes it more available than the 1865 quarter eagle but (and this is a big but) the 1864 in question is graded MS67 by NGC.

I first saw this coin in the Spink's October 1996 sale where it brought $132,000. I desperately wanted to purchase it and even offered to do it with no commission for my two biggest clients at the time but I had no luck. It was purchased by a West Coast dealer for his client who was, at the time, putting together an absurdly cool type set with as many dual rarities included as possible. It was graded MS67 by NGC many years ago and, by today's standards, I could easily see it in an MS67+ or MS68 holder.

You see great quality 1900-1907 quarter eagles from time to time. Not that long ago, I had a PCGS MS68 common date in stock that was an amazing coin. But it was a common date in an uncommon grade and a coin that I wouldn't have thought twice of buying in MS67. The Byron Reed 1864 is easily the finest quality early date Liberty Head quarter eagle that I've seen. It is nearly perfect with lovely rich yellow-gold color, razor sharp details and that certain "look" that you only find on very, very special coins.

There are so many reasons to love this coin. Its a Civil War rarity that is a big deal even in EF grades. It has amazing eye appeal. Its pedigreed to the famous Byron Reed collection and has been sold at auction only once since Reed acquired it in the 19th century.

This coin is owned, like many of the pieces in this article, by a major collector who understands the importance of it and considers it to be among the best of his many major rarities.

3.  THREE DOLLAR GOLD PIECES

This was a hard denomination to choose. I was leaning towards the Bass collection's 1854-D but this is a raw coin that I have never actually held in my hands (I've just seen it behind display glass) so I don't know if it is as great as I think it is. So, I'm going to cast my vote for a coin that is a bit more esoteric but which is easily the most valuable three dollar gold piece known: the unique branch mint proof 1855-S. This coin was last sold for $1,322,500 (as an NGC PR64 CAM ; it was recently crossed to a PCGS holder at the same grade and designation) in Heritage's 8/11 auction.

When examining any branch mint proof, you have two ask two basic questions: is the coin really a proof and is there a compelling reason why the issue would exist as a proof. In the case of the 1855-S three dollar, the answers are both resoundingly "yes."

I first saw this coin back in the mid-1980's and even then, knowing a fraction of what I know today, I was totally convinced the coin was a proof. It looks just like a Philadelphia proof of this era and, if you didn't flip it over and see the "S" mintmark on the reverse, you'd swear it was made at the Philadelphia mint. And there is a very compelling reason for this coin to exist as it is the first year of issue for three dollar pieces from San Francisco and there are known proofs for the quarter dollar and half dollar of this date.

The grade of this coin is not as absurdly high as most of the other coins on this list but, in the case of Proofs, I don't think this is as important. Proofs are either nice or not nice; there is little aesthetic difference between a PR64 and a PR66. What really matters about the 1855-S is that it is totally unique and it has a multiple level of demand that no other three dollar gold piece, with the possible exception of the 1854-O and 1854-D, possesses. And given the fact that there are no "wonder coin" 1854-O or 1854-D threes currently known, I give the dual rarity prize for this denomination, in a rout, to the Proof 1855-S.

This coin is currently owned by an eastern collector who added it to his set of Proof Three Dollars. It is almost certainly the most comprehensive set of proofs for this denomination ever assembled and quite likely the finest as well.

4.  HALF EAGLES

It took me about two seconds to choose the dual rarity that I felt was the "essence" of this denomination. It's a coin that I have written about in glowing terms more than once and, in my opinion,  it is one of the single greatest 19th century coins of any denomination. The coin is the Bass/Norweb 1864-S half eagle.

First a little background about the issue. The 1864-S is the second rarest half eagle from this mint after the excessively rare 1854-S and it is the third rarest half eagle of this design after the 1854-S and the 1875. There are around two or three dozen 1864-S half eagles and most are in low grades; typically in the VF-EF range. There is nothing even remotely close to Uncirculated for this date...with one exception and, boy, is it ever an exception.

While first attracting attention back in 1956 in Abe Kosoff's "Melish" sale, the 1864-S half eagle really came to light when it was sold as Lot 875 in the Norweb I auction, held by Bowers and Merena in October, 1987. At the sale, Harry Bass, knowing this was a "have to have it" coin, paid a strong $110,000. It was then sold in Bass II, by Bowers and Merena in October 1999, for $178,250. Since that time, it has been off the market and, as far as I know, it is still in a southern collector's set.

Back in 1999, this coin was graded MS65 by PCGS and I thought, even then, that the grade was very conservative. Other than some weakness of strike, I recall the Norweb/Bass 1864-S half eagle being nearly perfect and other than some later date S mint coins of this type, I also remember it being among the best Liberty Head half eagles of any date that I've ever seen. I'd have to think this coin would grade at least MS66 to MS67 today and with barely any other 1864-S half eagles known in grades above AU50.....well, you get the point. Dual Rarity!!!

5.  EAGLES

I'm not ashamed to admit that I have bias towards pre-1900 issues when it comes to all American coins. As you've no doubt noticed in this article, all the coins--so far--have been dated in the 1850's and 1860's. Well, I'm going to go outside my comfort zone with the ten dollar denomination, especially because there is really no single Liberty Head eagle that stands out to me as a classic dual rarity (although the Eliasberg Gem Uncirculated 1850-O would be the closest thing to this...). I'm going to go into the 20th century with this denomination.

In their March 2007 auction, Heritage sold a PCGS MS67 example of the 1920-S eagle for a record-shattering $1,725,000. This coin was not only one of the single best Indian Head eagles of any date that I've ever seen, it was one of the two or three rarest dates in the entire series and clearly the finest known.

The 1920-S eagle is a much different issue than the other dates listed in this article. It is far more available than, say, the 1864-S half eagle and far more available in Uncirculated than all of the other issues that we are discussing. There are a few hundred 1920-S eagles and a few dozen Uncirculated pieces exist, including at least four or five Gems. But you have to approach 20th century coins differently than 19th century coins as the former tends to be more condition rarity in nature while the latter tends to be more absolute rarity. To me, the 1920-S eagle comes closest to being a true dual rarity as it is a comparably tough issue in all grades and is recognized as one of the keys within this popular series.

There's some pretty cool background information about this coin. Steve Duckor purchased it in the June 1979 Stack's auction for $35,000 which was alot of money for him back then and alot of money for an Indian Head eagle. He held it for nearly three decades and his timing was just right as when he sold in in early 2007, the coin market was very strong, the economy was still rolling along and, most importantly, at least three very wealthy collectors needed this specific coin for their set. I was sitting next to Steve when the coin sold and I can still remember the look on his face after it hammered. To say he looked stunned is an understatement.

Today, this coin is in the Bob Simpson collection where it is part of the finest known set of Indian Head eagles. It is now graded MS67+ by PCGS and it remains one of the most amazing coins of any denomination that I have ever seen.

6.  DOUBLE EAGLES

You're probably thinking I'm going to choose the 1933 double eagle, aren't you. But here's why I'm not: besides the fact that the coin isn't theoretically legal to own (at least yet), I have the sneaky suspicion that the group that was "discovered" a few years ago in Philadelphia might not be the only ones known. Just a hunch but...

The coin I chose as my dual rarity double eagle may very well be the most valuable double eagle in existence but it is probably the least well-known single piece of the six that are featured in this article. The coin I've selected is the 1861 Paquet Reverse that was struck in Philadelphia. There are exactly two examples of this issue known to exist. One, graded MS61 by PCGS, sold for $1,610,000 in the Heritage 8/06 auction. The other, graded MS67 by NGC, was last sold at auction in the Norweb III sale (all the back in 11/88) for a then-strong $660,000.

This coin has an interesting back story. It features a one-year redesign by Anthony Paquet that was created in an attempt to improve the quality of strike for this issue. It failed and most of the Philadelphia strikings were melted; the San Francisco pieces of this design were actually released and over 100 are known today, mostly in lower grades.

The one thing that hurts the 1861-P Paquet double eagle is that it is a slightly obscure issue that could be considered a pattern. My argument against this is that it is widely known enough that the vastly inferior MS61 (mentioned above) brought over $1.6 million in a market that was less appreciative of rarities (and double eagles) that what we are seeing in late 2012/early 2013.

And then there is the coin itself. It is an absolutely smashing Gem that would be a great coin even if it were a common date. It is nearly flawless with the sort of naked-eye appearance that most of the other coins on this list all have and what makes it, in my opinion, so special.

I am virtually certain that when this coin does finally sell, it will set a record price for any coin ever produced. It is currently in strong hands but when it does sell, look out for some fireworks in the auction room.

So there you have it: my list of the ultimate dual rarities. Every coin on the list is a great piece for a variety of reasons and every piece is something that a sophisticated, wealthy collector would love to own. These coins combine grade and rarity like no others do.

How to Collect Dahlonega Gold Coins

One of the real pleasures to collecting Dahlonega gold coins is the variety of ways that the collector can pursue his avocation. Collecting these coins can range in levels of intensity from a mild flirtation to a complete obsession. As someone who has an abiding interest in these coins and who has helped many collectors with their purchases, I would like to present some suggestions on the way to collect Dahlonega gold coins. The Introductory Three Coin Set

The most basic way to collect Dahlonega coins is to purchase a single example of the gold dollar, quarter eagle, and half eagle. This makes sense for the collector who is on a limited budget or who is not certain how deep his interest in these coins lies.

A basic three coin Dahlonega set should consist of nice, problem-free coins. It also makes sense to stick to the more common dates. The grade ranges for these coins will probably fall between Extremely Fine-40 and About Uncirculated-55.

The 1849-D is a logical choice for the gold dollar in this set, since it is the most common and the most affordable date in the series. A nice Extremely Fine coin can be purchased for $2,000-3,000, while About Uncirculated examples range from $3,000-5,000, depending on quality.

The best quarter eagles for this set are the 1843-D, 1844-D, 1846-D, or 1848-D. A nice Extremely Fine example of any these dates swill cost $2,000-3,000, while an About Uncirculated costs $3,000-5,000+ (since no Dahlonega quarter eagle can be considered “common” in the higher About Uncirculated grades, the collector of more modest means should stick with a coin in the Extremely Fine-45 to About Uncirculated-50 grade range).

There are a number of dates in the half eagle series which would fit well in this set. These include the 1843-D, 1852-D, 1853-D, and 1854-D. Any of these dates can be purchased in nice Extremely Fine for $2,500-3,000, while an About Uncirculated will be in the $3,000-5,000 range.

An alternative to this set would be to buy all three denominations with the same date. This is feasible for the issues dated 1849-D, 1850-D, and 1851-D. Sets from 1852-D, 1853-D, 1857-D, and 1859-D could also be assembled, but least one coin in each of these sets is a scarcer, somewhat more expensive issue.

The basic three coin set can be further expanded by adding an 1854-D three dollar gold piece. Only 1,120 examples of this date were struck, and 1854 is the only year in which a coin of this denomination was produced in Dahlonega. An acceptable Very Fine example of this popular and rare issue can be purchased for $15,000-20,000, while an Extremely Fine will cost between $20,000 and $30,000+.

The Basic and Expanded Basic Type Sets

A type set of Dahlonega gold coins includes one example of each major type struck at this mint. Such a set includes the following:

• Type One gold dollar (1849-1854)
• Type Two gold dollar (1855 only)
• Type Three gold dollar (1856-1861)
• Classic Head quarter eagle (1839 only)
• Liberty Head quarter eagle (1840-1859)
• Three dollar gold piece (1854 only)
• Classic Head half eagle (1838 only)
• Liberty Head, obverse mintmark half eagle (1839 only)
• Liberty Head, reverse mintmark (1840-1861)

A set such as this makes for an extremely interesting display. The various designs employed in striking these nine major types provide a graphic illustration of the artistic and historic record of the Dahlonega Mint.

Most collectors who assemble a nine piece Dahlonega type set do so in grades that range from Extremely Fine-40 to About Uncirculated-55. It would be virtually impossible to complete this set in Mint State as two of these types – the Type Two gold dollar and the three dollar gold piece – are extremely rare in Uncirculated.

The specific coins included in a Dahlonega type set are generally the more common dates. Some collectors, however, use better dates in order to make their sets more interesting and potentially more valuable.

A nicely matched set of Extremely Fine-40 to Extremely Fine-45 coins will cost approximately $80,000 and $100,000. The two most expensive coins in this set would be the Type Two gold dollar and the three dollar gold piece. Together, these coins would account for at least half of the total cost.

A set with all of the coins grading About Uncirculated-50 to About Uncirculated-55 could be assembled for approximately $125,000-150,00. The cost of this set could be significantly reduced if the Type Two gold dollar and the three dollar gold piece were nice Extremely Fine coins, as opposed to About Uncirculated-50 or better.

This set can be further expanded if the Liberty Head, reverse mintmark half eagle is represented by an example with Small Letters on the reverse (i.e., a coin struck from 1840-1842) and by an example with Large Letters on the reverse (i.e., a coin struck from 1843-1861). The addition of this one extra coin would increase the cost of an Extremely Fine set by approximately $2,500-3,500, and an About Uncirculated set by $5,000-10,000.

Collecting by Denomination

Some collectors feel a certain affinity for a specific denomination. All three of the primary denominations struck at the Dahlonega Mint have their pros and cons.

The size of the gold dollar is a major turn-off to many collectors. It is hard to justify paying thousands – or even tens of thousands – of dollars for a coin that is about the size of an average adult’s thumbnail.

Another negative about the Dahlonega gold dollar series is the fact that many are among the most crudely struck coins ever produced in this country. They are certainly not pretty enough that they can be shown to admiring friends, and their crudeness puzzles most non-specialists.

The very reasons that cause some people to dislike gold dollars are the same reasons that others like them. Like the runt of the litter, they are so small and can be so ugly that this gives them a certain charm. Their crudeness adds to their allure as well. Just like a classic New England folk art portrait from the 18^th or early 19^th century, a Dahlonega gold dollar paints an accurate picture of the harshness and uncertainty of life in North Georgia in the decade leading up to the Civil War.

Another factor which attracts people to the gold dollar series are the small original mintage figures which many of these coins have. Only one of the thirteen has a mintage of over 10,000 coins, and five have mintages of 3,000 or less.

The Dahlonega gold dollar series is the most expensive of the three denominations to collect on a coin-by-coin basis. A complete set of thirteen coins in nice Extremely Fine grades will cost approximately $100,000+.

Every Dahlonega gold dollar is reasonably available in About Uncirculated grades, and the obstacles to completing such a set are available funds and the level of fussiness that a specific collector has. A complete set in grades ranging from About Uncirculated-50 to About Uncirculated-58 will cost approximately $150,000-200,000+. A complete set in Mint State is a formidable but not impossible challenge if the collector is patient, and  if he works with a knowledgeable specialized dealer who can assist him in locating such rare issues as the 1855-D, 1856-D, 1860-D, and 1861-D.

The Dahlonega quarter eagles are the most challenging of the three denominations. They can also be the most frustrating. Many collectors seek immediate gratification as they build a set. Assembling a high quality, complete set of Dahlonega quarter eagles requires a great deal of patience. A number of dates in this series (such as the 1840-D, 1841-D, 1842-D, and the 1854-D through 1856-D) are quite rare in any grade, and high quality examples are very challenging to locate. This is further compounded by the fact that many are found with crude strikes and poorly-prepared planchets.

The extreme difficulty of putting together a Dahlonega quarter set is what attracts many collectors. They appreciate the fact that they cannot assemble a set merely by making a few phone calls to dealers or attending an auction or two. They believe, correctly, that the best coins to buy are the ones that do not become available with any degree of frequency.

It is a realistic goal to assemble the complete set of twenty quarter eagles in Extremely Fine-40 to Extremely Fine-45 grades. Such a set should cost approximately $125,000-175,000. In About Uncirculated grades, this set becomes very difficult to assemble. A number of dates (such as the 1840-D, 1841-D, 1842-D, 1845-D, 1855-D, and 1856-D) are rare and costly in the upper ranges of About Uncirculated. The cost of such a set is approximately $200,000-300,000+.

The Dahlonega half eagle set is the most popular of the three denominations. One of the reasons is the relatively large size of these coins. Another is the fact that almost every date is fairly easy to obtain in medium grades. And finally, this is the most affordable of the three sets on a coin-by-coin basis.

A complete set of Dahlonega half eagles includes all twenty-four of the dates struck from 1838 through 1861, as well as the 1842-D Large Date and the 1846-D over D mintmark (for a total of twenty-six coins). A set of nice Extremely Fine coins costs approximately $100,000-150,000.

A complete set of half eagles in About Uncirculated is much more challenging. The 1842-D Large Date and the 1861-D are both  rare in any About Uncirculated grade. Other dates, such as the 1840-D, 1846-D Normal Mintmark, and the 1850-D are very scarce, even in the lower About Uncirculated grades, and years may pass before an especially choice piece may become available. A set of Dahlonega half eagles grading About Uncirculated-50 to About Uncirculated-58 costs approximately $200,000-300,000+.

Assembling a Complete Set of Dahlonega Gold

Once people start collecting Dahlonega gold coins, they often get bitten by the bug and decide to assemble a complete set.

A complete set of Dahlonega gold is generally understood to contain the following:

• Gold Dollars: A total of thirteen issues struck between 1849-1861.
• Quarter Eagles: A total of twenty issues struck between 1839-1859.
• Three Dollar Gold Pieces: A total of one issue struck in 1854.
• Half Eagles: A total of twenty-six issues struck between 1838-1861.

For half eagles,this includes both major varieties struck in 1842 (Large Date and Small Date), and both major varieties struck in 1846 (Normal Mintmark and D Over D Mintmark).

This is a grand total of sixty different issues, covering four different denominations.

Assembling a complete set of Dahlonega gold coins is challenging but very popular. Unlike many other mints, there is no single unobtainable issue that is either prohibitively rare, or essentially unobtainable.

I would make the following suggestions to any new collector who is considering putting together a complete set of Dahlonega gold coins:

1. Be patient. You can complete a set in a few months, but the changes are good that by rushing you will make a number of mistakes. Wait for the “right coin” to come along.

2. Stretch for outstanding coins. Truly choice, high end, Dahlonega gold coins are very hard to locate – regardless of date or denomination. Don’t miss the chance to own an important coin merely because you think the price is a little too much. In the long run, the decision to buy high quality coins will pay for itself.

3. Buy the best you can afford. If you are unable to spend $20,000+ on an About Uncirculated 1842-D Large Date half eagle, then wait until you have the chance to purchase a nice quality $10,000 example in Extremely Fine-45. Figure out a budget for each coin, and try to use this as a basis in making your collecting decisions.

4. Buy the rarest coins first. For each denomination, there are certain Dahlonega gold issues that are extremely hard to find. As an example, the 1840-D and 1856-D are often the last two pieces collectors add to their Dahlonega quarter eagle sets. If the opportunity presents itself, try to purchase these coins before the more common issues – such as the 1843-D or the 1848-D. You should always assume the following when assembling a complete set: your opportunities to purchase truly rare coins will be infrequent, while your opportunities to purchase the relatively common issues should be more frequent.

5. Buy with eye appeal in mind. The overall value of a set of coins is greatly enhanced when the individual pieces have good overall eye appeal. As an example, the finest known collection of Dahlonega gold coins (the Duke's Creek collection) was sold to an investor in 2003 for a figure in excess of four million dollars. Every coin in this set was extremely choice and had lovely, original coloration. This resulted in the collective value of the set being at least 15-20% greater than if the coins had been valued on an individual basis.

The final cost of assembling a complete set of Dahlonega gold coins is within the reach of many collectors. A set which has coins ranging from Extremely Fine-40 to Extremely Fine-45  costs in the area of $300,000-500,000+. A set which consists of coins grading from About Uncirculated-50 to About Uncirculated-58  costs approximately $600,000-800,000+.

As stated above, it would be extremely difficult (but not impossible!) to assemble a complete set of Dahlonega coins in Uncirculated grade. But a few people have managed to complete certain denominations in Uncirculated grade and the famous Duke's Creek set was complete in MS60 and above.

Collecting by Die Variety

Certain types of United States coins, such as large cents struck from 1793 to 1814, and half dollars produced from 1794 to 1836, are avidly collected by die variety. There are very few die variety collectors who focus on gold coins. This could possibly change in the future as more information about these varieties becomes available.

There are already some significant die varieties from the Dahlonega Mint that have made their way into the mainstream. Two examples of these are the 1842-D Large Date half eagle, and the 1846-D Over D Mintmark half eagle.

There are a number of other Dahlonega varieties that have yet to become regarded as essential components of a set. Some are very important and will probably be accepted in the near future. They are as follows:

1. 1843-D Large Mintmark Quarter Eagle: Of the 36,209 quarter eagles struck at the Dahlonega Mint in 1843, only 3,537 used the Large Mintmark which was to be found on coins dates 1844 and later. This is a significant and easy to recognize variety, which is many times rarer than the 1843-D Small Mintmark. PCGS and NGC both recognize this variety.

2. 1846 D Near D Mintmark Quarter Eagle: A small number of 1846-D quarter eagles were struck from a reverse which clearly shows traces of an errant mintmark to the left of the “regular” mintmark. This variety has is recognized by PCGS and NGC and is already included by most advanced Dahlonega collectors in their sets.

     Are you interested in beginning a collection of Dahlonega gold coins? As the wrold's leading expert, I am well-qualified to assist you. Please contact me directly via email at dwn@ont.com.

3. 1841-D Medium D Mintmark Half Eagle: Of the 29,392 half eagles struck at the Dahlonega Mint in 1841, only 4,105 used the Medium Mintmark which had been employed on coins dated 1840-D. This variety is quite rare and easy to recognize. It should sell for a significant premium over the 1841-D Small Mintmark. It is recognized by PCGS and NGC.

4. 1843-D Small Mintmark Half Eagle: This variety uses the same reverse as on the 1842-D Small Date half eagle. It is much scarcer than the 1843-D Large Mintmark, and may someday be recognized as such. This is another variety that PCGS and NGC both recognize.

5. 1848-D Over Low D Mintmark Half Eagle: This variety is similar in origin to the better known 1846-D Over D Mintmark half eagle, except that it is much rarer. On many examples, it is hard to see the first mintmark punch. Coins which clearly show the errant first punch are rare and desirable. This variety has recently been recognized by PCGS and is already included by most advanced Dahlonega collectors in their sets.

Major Varieties of Type One Liberty Head Double Eagles

     The true test of popularity for a series is when collectors begin to focus on varieties within the series rather than just dates. Some series, like Capped Bust half dollars, are actually more avidly collected by variety than they are by date. As a rule, gold coins are collected by date, not variety. This is due to the fact of the high entry cost per coin for most gold issues and the fact that many series of gold coins do not have interesting varieties.      Even though Type One Liberty Head double eagles are an expensive type with a number of very rare and/or expensive individual issues, there are a decent number of individuals who have begun to either specialize in varieties or who have decided to add certain varieties to their date collections.

     What are the major varieties of Type One Liberty Head double eagle? How rare are they and how significant are they? In this article, I'm going to focus on the varieties that I think should be included in any collection of Type Ones and offer my insights into them.

     1852/1852:  The 1852 is among the most common issues in the entire Type One series with a mintage of over 2 million coins. There are a few minor varieties and one obvious one: the Repunched Date. On this variety, the date was first punched too high and all four of the digits are doubled at the top. What makes this variety fairly easy to recognize even with the naked eye is the fact that this doubling has made the date quite heavy.

    I would say that around one out of every 25-50 1852 double eagles that I see is the 1852/1852. It is obvious enough that it can be seen on comparatively low grade coins. I regard it as being very collectible and it seems to have a current premium of around 25-50% above a common date in circulated grades; in Uncirculated it is very rare.

     Most of the 1852/1852 double eagles that I have seen grade in the EF45-AU53 range. This variety is very scarce in properly graded AU55 and rare in AU58. It is very rare in Uncirculated with probably fewer than ten known; the best I have seen are a pair of MS61's.

     Both NGC and PCGS recognize this variety. The population statistics at both services are very low due to it having been recognized for a comparatively brief amount of time.

     Catalog Numbers:  Breen 7152, FS-301

     Collectability: **** (four stars out of 5)

     1853/2:  There are numerous interesting varieties seen on the 1853 double eagle. This include varieties with a repunched 1, a repunched 3 and a blundered date with traces of an erroneous 3 between the 53 . But the variety that is the best known and which is the most sought-after by collectors is the 1853/2 overdate.

     In my opinion, this is a controversial variety. Both PCGS and NGC recognize it but designate it as an 1853/'2' which shows that they are not totally convinxced it is an true overdate. In my opinion, its status remains debatable. The two lines in the lower loop of the 3, ostensibly from an effaced 2, don't convincingly match the former digit. Also, the major diagnostic of this variety, a dot below the R in LIBERTY, is sometimes seen on normal date 1853 double eagles with absolutely no trace of the supposed overdate.

     Whatever the true status of this variety is, it has been collected along with the regular issues since the 1970's and high grade examples have commanded strong prices since the late 1980's/early 1990's. The current  price record for this variety is $48,875 for a PCGS MS61 that was sold by Heritage in their 2005 ANA auction.

     The 1853/2 double eagle is probably overvalued in comparison to the other varieties on this list. It is interesting to note that its price levels did not drop after both NGC and PCGS changed its designation to 1853/'2' a few years ago. My thought at the time was that it would hurt this variety's creditability given the fact that the services were basically implying that they doubted its veracity.

     Catalog Numbers:  Breen 7162, FS-301 (previously FS-008)

     Collectability:  ***1/2* (three and a half stars out of five)

     1854/184 Repunched Small Date:  The 1854 double eagle is seen with a Small Date and a Large Date (for more information on this variety, see below). The Small Date is the more common of the two but there is an interesting repunched date variety that is beginning to gain traction with Type One double eagle collectors. On this variety, the tops of the 1 and the 54 are noticeably repunched at their tops while the 8 is not. On early die state examples of this variety, the repunching can be seen with the naked eye.

     When compared with the 1852 Repunched Date, the 1854/154 seems to be the scarcer of the two, especially in higher grades. It is seen most often in the EF40-AU50 range and it is rare in AU55 and above. I have seen just a few Uncirculated examples of which the best was a single NGC MS61. Others probably exist in Uncirculated but these have not yet been designated by NGC. PCGS does not recognize this variety (yet) while NGC does.

     This is a good variety for the sharp-eyed collector to try and cherrypick. It is hard to figure out accurate values for lower grade coins but examples in AU50 and above already command premiums over normal Small Dates and I would expect this premium to increase as this variety becomes better known.

     Catalog Numbers:  Breen 7167,  FS VP-001

     Collectability:  *** (three stars out of five)

     1854 Large Date:  No variety of Type One double eagle has increasded in popularity or price more in the last decade than the 1854 Large Date. After being more or less unknown for decades, this variety went on collector's radar screens in the 1980's and since the early 1990's it has at least doubled--if not tripled--in value.

     The Large Date used a silver dollar logotype and it is appreciably bigger than the more often-seen Small Date. My guess is that it is at least six to eight times more scarce than the Large date. As recently as five years ago, I was still able to find undesignated Large Date coins in third-party holders (or raw) but at this point, it has become extremely hard (and lucrative!) to cherrypick examples. This variety is seen most often in EF45 to AU53 grades. It is very scarce in AU55 and rare in properly graded AU58. Interestingly, the few nice AU's I have seen have a "Euro" appearance and likely were found overseas. The finest known is an NGC MS64 that was last sold as B+M 9/08: 831 where it brought a record $96,600.

     The 1854 Large Date is designated by both PCGS and NGC. The population figures at both services are misleading as this has only been attributed for a few years. This is especially true at PCGS where the variety is newer than at NGC.

     The 1854 Large Date is widely accepted and it is an integral part of the Type One set. While I do not think it will continue to show the rise in value that it has seen over the last decade to decade and a half, I d feel that it is a savvy purchase for the advanced collector, particularly in AU50 and above.

     Catalog Numbers:  Breen 7168

     Collectability:  ***** (five stars out of five)

     1856-S and 1857-S Varieties:   After the discovery of the S.S. Central America, a number of varieties were discovered for the 1856-S and 1857-S double eagles. These are mostly positional and are very minor in nature. The SSCA coins that are designated by PCGS do not sell for any premium over other 1856-S and 1857-S double eagles from this source.

     There are a few varieties, though, that are worth a short mention.

     The 1856-S is known with a sharply double punched 56 in the date (Breen 7184) that can be seen with light magnification. In my experience, this is a scarce variety in higher grades but it has little collector premium.

     The 1857-S is known with a Medium S mintmark and a Large S mintmark. Before the discovery of the SSCA hoard, the Large S was considered to be very rare in higher grades but it is now available. Ironically, PCGS does not use this designation and instead focused on very minor varieties such as the "spiked shield," etc.

     Catalog Numbers:  1856-S Repunched 56 (Breen 7184), 1857-S Medium S (Breen 7187), 1857-S Large S (Breen 7189).

     Collectability:  ** (two stars out of five)

     1859-S Double Die Obverse:  This variety shows clear doubling on the BERTY in LIBERTY. This doubling is mostly on the lower portions of the letters and it is farily easy to see with light magnification.

     I remember having an interesting "debate" with a very savvy double eagle collector a few years ago about this variety. He claimed it was reasonably common while I believed it was very scarce to rare. Sine then, I have examined close to 100 examples of this date and have not seen more than four or five of the Double Liberty variety. This may be because other people are looking for them as well but it is my belief that this is a very hard coin to find.

     NGC recognizes this variety (and has for a few years) while PCGS only just started recognizing it. This means that at both services the number graded are unrealistically low and collectors shouldn't think that this variety has the same level of rarity as an issue like the 1854-O or the 1856-O.

     The 1859-S Double Die Obverse (also known as the Double Liberty) is seen most often in the EF40 to AU50 range. It is rare in AU55 and very rare in AU58. I have only seen two or three in Uncirculated and none better than MS61. NGC has graded just a single coin in Uncirculated (an MS60) which I sold to a specialist collector around three or four years ago.

     My guess is that this variety will become a key addition to the Type One set as the years go forward. Once it is better recognized and people are certain what sort of premium they must pay for it, its popularity will increase.

     Catalog Numbers:  Breen 7199, FS-101.

     Collectability:  *** (three stars out of five)

     1861-S Paquet Reverse:   Early in the life of the Type One design, it was determined that it was hard to strike and it did not always wear properly. Nothing was done about this until 1859-1860 when the assistant Mint Engraver Anthony Paquet produced a new reverse with tall, narrow letters. Coins were produced early in 1861 at the Philadelphia mint but it was quickly determined that this design was faulty due to the fact that the inner border was too narrow which allowed the surfaces to easily abrade. Coinage at Philadelphia was quickly stopped but by the time this information reached the San Francisco mint, close to 20,000 1861-S double eagles with the Paquet Reverse had been produced.

     The 1861-S Paquet reverse was mostly unknown until the early 1950's when examples were found in Europe. Today there an estimated 100-125 known with most in the EF40 to AU50 range. The best that I have seen are two or three that I grade AU58; most of the coins in AU55 and AU58 holders, in my opinion, are overgraded. The current auction record is $184,000 for an NGC AU58 sold as Lot 5039 in Heritage's 1/12 auction. I know of at least two that have sold for over $200,000 via private treaty.

     Values for this issue increased dramatically during the late 1990's and early 2000's; to the point where the average quality example was probably overvalued. In 2012, I see very few offered for sale and I believe that a nice AU is worth at least what it was during the strong mafrket of 2007-2008, if not even more.

     The 1861-S Paquet reverse double eagle has been accepted as an integral member of the Type One set since the early 1960's and it will continue to be a highly prized issue. It is the rarest double eagle of any date or type from the San Francisco mint and I expect that the current low range of $40,000-50,000 for a presentable example is coming to an end. In the not-so-distant future, expect to pay in the $60,000-80,000+ range for the "right" coin.

     Catalog Numbers:   Breen 7205, Breen 7206

     Collectability:  ***** (five stars out of five)

     1863-S Mintmark Varieties:  Other than a minor date repunching variety on the 1862-S, there aren't many other post-Paquet varieties in the Type One series worth a mention. Probably the most interesting are the two mintmark varieties seen on the 1863-S.

     The more common 1863-S double eagle has a Medium mintmark, as on the reverse used in both 1861 and 1862. The more common has a Small mintmark, as seen on the 1864-S and 1865-S reverses.

     While somewhat interesting, I doubt if minor varieties such as these will ever catch on with Type One double eagle collectors.

     Catalog Numbers:  Breen 7126 (Medium S), Breen 7127 (Small S)

     Collectability:  * (one star out of five)

     I expect the varieties listed above that are four stars or higher to have significantly increased demand over the next decade. I don't expect any other varieties to have such widespread appeal but you never know; the blessing of PCGS or NGC would go a long way in creating collector demand.

     For more information about Liberty Head double eagles, please feel free to contact me directly ar dwn@ont.com.

The Battle Born Gold Coins: A Quick Analysis

The recently concluded Battle Born sale, held by Stack's Bowers at the 2012 Philadelphia ANA convention, was clearly a benchmark for collectors of Carson City coinage. It was probably the finest collection of gold from this mint that has been sold at auction during our lifetime; only the Bass sales of 1999-2000, the Old West sale held in 2006, and the Lang collection in 2003 are comparable. I attended the sale and would like to share some quick impressions of each denomination in the gold section. (NOTE: All of the prices below reflect a 15% buyer's premium and not the 17.5% that was charged to buyers who spent less than $50,000, cumulatively, at the auction). Half Eagles: On a coin-by-coin basis, the half eagles were the strongest individual series in the gold portion of this collection. Fifteen of the nineteen coins were Uncirculated and at least seven or eight were either finest known or tied for finest. But this series is not currently being contested by multiple numbers of wealthy collectors (as are, for example, Carson City Dimes and Carson City eagles). I felt that prices for the half eagles were disappointing at best, and that there were some great values for bidders.

A few coins stood out as great values. The foremost of these was the 1870-CC in PCGS MS61 CAC that sold for $103,500. I expected this coin to bring at least $125,000-150,000 based on the fact the fact that it is possibly unique in Uncirculated and clearly the finest known example of the rarest and most numismatically half eagle from this mint. The 1871-CC, graded MS63 by NGC, sold for $63,250 and I thought this was very cheap as I expected a final price of close to $100,000. The 1873-CC in PCGS MS62 sold for $103,500, and this seems low based on its Heritage 2011 record of $161,000 but I always felt that price was an anomaly. The 1874-CC in PCGS MS62 CAC and the 1875-CC in PCGS MS61 CAC, at $43,125 and $37,375, were both very cheap and I expected them to sell for considerably more.

Which brings us to my favorite coin in the sale, the 1876-CC graded MS66 by PCGS and approved by CAC. When I bought this coin in 2003 for $138,000, it was a piece that I really wanted to put away for a decade as I thought it was an amazing coin and the sort of "freak" that could bring a lot of money in a more appreciative market. But I sold it to the owner of the Battle Born collection and it has stayed off the market since then. I bid up to $350,000 for it this time but was left in the dust as it sold for $415,000 plus the buyer's premium, or $477,250. I'm certain that this is a record for any Carson City gold coin at auction and the buyer of the coin is a dealer I greatly respect who will, thankfully, not mess with this wonderful piece or worry about regrading it.

There were a few other half eagles that must have been disappointing for Mr. Born. The 1879-CC, graded MS62 by PCGS and approved by CAC, had sold to the collector for $69,000 in the Heritage 2/11 auction. This time around it brought $37,375. The 1881-CC in NGC MS63+ sold for what was close to the mid-way point of my pre-sale estimate of $40,000-50,000. A coin I really wanted to buy was the glorious PCGS MS65 CAC 1890-CC. I figured this coin would bring around $50,000 and it sold for $46,000 in the sale. Perhaps the biggest bargain, though, was the NGC MS65 1893-CC that sold for $18,400. I didn't especially like the coin, but I estimated that it would bring around $25,000.

Eagles: I expected this to be a strong part of the sale but was curious to see what impact the mixed quality would have on prices. There were some PCGS coins with CAC approval that I thought would do well. There were other coins that I thought were a bit generously graded and which were the sort of pieces that generally need to be priced at some sort of discount to sell to advanced collectors. At this sale, it didn't matter about the holder. As long as the coin had a "CC" on the back, the price was strong.

I disliked the 1870-CC in PCGS AU55 and strongly disagreed with the cataloger who claimed it was the finest known (the Old West: 1341 coin is clearly finer). It sold for $126,500 which in theory seemed like a marginal price but I would have passed at $100,000 if the coin had walked up to my table for sale at a show. The 1871-CC in PCGS MS62+ CAC seems pricey at $126,500 until you realize that it is the finest known and the only true Uncirculated example. One coin that sold for nearly double my pre-sale estimate was the 1874-CC in PCGS MS63. I thought bidders would be scared off by the two big scratches on the obverse (otherwise, it was a Gem...) but two collectors had to have it and the coin sold for a crazy $195,500.

A coin that really surprised me was the 1873-CC in NGC AU58. I really liked the appearance of the coin but graded it AU55 and thought that bidders would also see it as such. Ummm...wrong. It sold for $92,000 which made the nicer PCGS AU55 I sold a few years ago for a lot less seem like a really good deal.

The exact same scenario played out with the 1878-CC in NGC AU58. It was a fresh-looking and very attractive coin but one I know for sure had been upgraded from AU55. It sold for $80,500 which is more than double what I was prepared to pay for it.

Even though it is a common date in Uncirculated, the quality of the 1881-CC (graded MS64 by NGC and approved by CAC) made it special. I paid $74,750 for the coin in the Old West sale and I imagined that it would bring around that much this time; possibly less. It sold for $97,750 which I think is a ginormous amount for the date.

My "sleeper" CC eagle in the sale was the 1882-CC in PCGS MS61 CAC. It is one of only two known in Uncirculated and I liked the coin a lot due to its fresh appearance and lack of rub or wear. It brought $27,600 and I was the underbidder.

The worst value in the sale? I'm sorry to pick on the buyer of this coin--and I don't know who it was--but the NGC MS65 1891-CC at $57,500 was just not a savvy purchase.

Double Eagles: While I sold many of the half eagles and eagles to the collector, I was not involved in much of the assemblage of the double eagle collection. I thought the overall quality was nice. I wasn't fond of the 1870-CC (the previous 1870-CC in the collection, which I sold many years ago, was far nicer) and a few of the more common dates in MS62 and MS63 did nothing for me, but there were some great coins available.

The 1871-CC, graded MS64, is a coin that has bounced around for years and I've never understood why it hasn't been more appreciated. It was a little overgraded in an NGC MS64 holder (I like it more as an MS63) but it is easily the finest known and extremely rare in Uncirculated. It last sold in the Heritage 2008 auction for $414,000 and this time it went very reasonably at $322,000.

One of my favorite coins in the sale was the finest known 1872-CC in PCGS MS62 with CAC approval. I first saw this coin a few years ago in a bid deal at a coin show and it was in an NGC MS62* holder. If I'm not mistaken it sold then for around $100,000. In the Battle Born auction it brought $161,000 which is a very strong, but not unreasonable, price.

My favorite "sleeper" coin in the double eagles was the PCGS MS61 (with CAC approval) 1874-CC that sold for $28,750 in the Heritage October 2010 auction. This is a common date in circulated grades but it is very rare in Uncirculated. I thought the coin was worth around $20,000 back in 2010 and was willing to pay a touch more today. It brought $24,000 and I was the underbidder.

I don't remember the exact price of what I sold the PCGS MS62 1877-CC for in 2002 when it went into the Battle Born collection, but I'm certain it was less than $20,000. It brought $63,250 today. This is a good indication that nice MS62 and better examples of virtually all CC double eagles have performed extremely well during the past decade, often doubling or even tripling in value.

One coin that I sold to the Battle Born collector (in 2003) that I thought went sort of cheaply was the NGC MS61 1878-CC that was bid up to $48,875. I was expecting it to bring over $50,000 as it is a date that is virtually unavailable finer.

If there was one double eagle in the collection that I expected the owner to lose money on it was the 1882-CC graded MS63 (and approved by CAC). Yes, it is a condition rarity (one of just two in this grade with none better and it is the only one in MS63 with a CAC sticker) but I just didn't care for the coin. It wound-up selling for a whopping $80,500. To me, this shows the strength of the CC double eagle market and it tells me that buyers are very anxious to acquire examples that are very low population.

I was really fond of the 1885-CC graded MS62 and approved by CAC. This exact coin had sold for $37,375 in Stack's Bowers 2011 auction and, just a year later, it realized $57,500 which is easily a record price for the date at auction. Why did it bring so much more this time? I'd attribute it to three reasons: the "hotness factor" of the CC double eagle market, the "frenzy factor" of the Battle Born sale and the "comfort factor" of it now having CAC approval.

From a quality standpoint, the 1889-CC in PCGS MS62 with CAC approval was one of my favorite double eagles in the sale. It was really nice for the grade with good color and luster and choice surfaces. I thought it had no chance whatsoever to upgrade but thought it was a textbook example of a "real" MS62 CC double eagle. The last three auction records for this date in this grade were $20,125, $25,300 and $20,700. The coin in this sale brought $27,600.

A few more thoughts on the sale. Kudos are certainly in order for Stack's Bowers who did a great job promoting the sale and certainly proved that they are a formidable competitor to Heritage in the specialized gold coin market. The catalog itself was extremely well done with great information and lovely graphics. I was pleased to see that my name was totally Stalinized out of the pedigrees as I expected it to be. The overall price realized for the collection was just shy of $10 million (including the silver coinage) and I would have to think that the owner was pleased with the results.

How, then, would I rate the overall health of Carson City gold after the most important sale in this in close to a decade? I would, in a nutshell, make the following observations: the half eagle market is fairly weak and this sale would have been a great time to begin a serious collection of ultra-high quality pieces. The eagle market is extremely strong and there is far greater depth in the high end than I expected. I already knew the CC double eagle market was smoking hot, and this sale just confirmed it.

For more information on Carson City gold coinage, please feel free to contact me via email at dwn@ont.com

all images appear courtesy of Stack's Bowers

San Francisco Liberty Head Eagles 1854-1878: A Date-by-Date Analysis, Part One

After many years of neglect, the Liberty Head gold coinage from the San Francisco mint is becoming popular with collectors. This makes sense as it is, for the most part, affordable and there is no denying the historic connotation(s) of the early issues. In my experience, one of the most collectable groups of gold coins from this mint is the eagle coinage from 1854 through 1878. The first quarter-century of eagle coinage from the San Francisco mint is full of rarities and it makes an especially challenging set for the collector of means. In this two-part article, I'll take a look at each date in the series (from 1854 through 1878) and at some important varieties as well.

In Part One, which is included here, we'll cover the No Motto dates produced from 1854 through 1866. In the second part, which will be published next month, we'll cover the With Motto issues from 1866 through 1878.

1854-S: A popular issue due to its status as the first eagle from this mint but one of the easier gold coins dated 1854-S to locate due to its large initial mintage of 123,826. The 1854-S is mostly found in EF40 to AU53 grades. It is scarce in properly graded AU55 to AU58 and extremely rare in Uncirculated. The only Uncirculated 1854-S eagle that I have seen was an NGC MS62 that was owned by Kagin's around six or seven years ago; it was later sold to a West Coast specialist. This date is most often found with abundant abrasions and impaired luster and any choice, original piece is scarce.

1855-S: The mintage for eagles dropped to just 9,000 during this year and the 1855-S eagle is a rare, under-appreciated coin. I believe that there are around fifty to sixty or so known in all grades with most in the VF30 to EF45 range. In About Uncirculated, the 1855-S eagle is quite rare and of the ten to twelve known, almost all are abraded AU50 to AU53 pieces. I have never seen an 1855-S eagle that graded higher than AU55 and just two or three at that level. PCGS has graded a single coin in AU58 and there are currently none known in Uncirculated. Despite the rarity of this date, it generally trades in the $5,000-7,500 and it seems like exceptional value to me.

1856-S: The mintage for San Francisco eagles rose to 68,000 in 1856 and the 1856-S is one of the more readily available early dates from this mint. There are hundreds known in the EF40 to AU50 range and this date is available--at reasonable levels--even in AU55 to AU58. For many years, the 1856-S eagle was unknown in Uncirculated but a few high grade examples were found in the S.S. Central America treasure. The finest is a PCGS MS63 that is ex Christie's 12/00: 73, where it sold for $19,550. At least one or two others exist in PCGS MS62 including ANR 5/05: 378, which also brought $19,550. Varieties are known with a Medium S (as on 1854 and 1855) and a Large S which is significantly scarcer. As with the 1854-S, this is a date that is very hard to find with original color and minimally marked fields.

1857-S: The rarity of this date is somewhat skewed by the availability of the double eagles dated 1857-S but it is actually a relatively scarce coin. A few hundred are known and these tend to be in the EF45 to AU53 range. Properly graded AU55 to AU58 examples are very scarce, especially with natural color and choice surfaces. There were a few high quality pieces found in the S.S. Central America treasure and the best of these, graded MS64 by PCGS, is ex Heritage 2/09: 2906 ($53,188), Christie's 12/00: 74 ($40,250). There is at least one other 1857-S eagle that has been graded MS63 by both PCGS and NGC. All examples have a Medium S mintmark and there appears to be at least two different date positions.

1858-S: Beginning with this issue, the eagles from the San Francisco mint become rarer than the previous dates (with the exception of the 1855-S) and part of this is attributable to low mintages. Of the 11,800 eagles made at this mint in 1858, it is likely that only fifty or so are known today and most are seen in very low grades. Interestingly, this date is slightly more available in AU grades than one might expect with as many as fifteen known. I have never seen an Uncirculated 1858-S and only one or two AU58's that I thought were accurately graded. No example stands out in my memory as being the clear finest known as nearly all have been dipped and are very heavily abraded. This is a date that the fussy collector is going to have a hard time appreciating and it might be smart to consider a decent EF45 to AU50 instead of the banged-up AU55 to AU58 coins that are seen from time to time.

1859-S: The mintage of this issue is a low 7,000; the smallest amount for any San Francisco eagle produced through this year. There are fewer than fifty known and the 1859-S is a rare issue in all grades. The average example is in the VF30 to EF40 range and an accurately graded EF45 is extremely scarce. In AU grades, the 1859-S eagle is very rare with fewer than ten known. PCGS has graded just one in AU55 with none better while NGC has graded an AU58 and an MS60 (neither of which I have seen in person). All 1859-S eagles have a Large S mintmark which seen on the reverse of the 1859-1862 San Francisco eagles as well.

1860-S: Only 5,000 examples of the 1860-S were made and this is clearly among the rarest gold coins of any denomination from this mint. This is an issue that is generally seen well worn, with subdued luster and with abraded surfaces. There are as many as six or seven properly graded AU examples known as well as two in Uncirculated. The finest is an NGC MS62 that appears to be ex Stacks 9/06: 1491 ($36,800) and the second best is ex Superior 5/08: 132, S.S. Republic ($36,800). All 1860-S eagles have the same Large S mintmark that is seen on all SF eagles made between 1859 and 1862. While not an inexpensive issue, the 1860-S seems undervalued to me and it still does not get the respect that its Civil War counterparts have generated in recent years.

1861-S: Surprisingly, the mintage figure for 1861-S eagles is higher than in previous years and there were a respectable 15,500 produced. This date is scarce but not nearly as rare as the 1859-S or 1860-S. There are an estimated 80-90 known with enough in the VF-EF range to supply most of the collectors in this series. The 1861-S eagle becomes rare in AU and is very rare in properly graded AU55 and above. It is unique in Uncirculated with the only piece currently accounted for being an NGC MS61 that is ex Heritage 1/12: 4977 ($54,625). There are some reasonably attractive 1861-S eagles known with a decent amount of original color and nominally abraded surfaces. All 1861-S eagles have a Large S mintmark.

1862-S: The 1862-S eagle is considerable scarcer than the 1861-S, despite their relatively similar mintages; a total of 12,500 of the 1862-S were made. It appears that many were melted and those that did survive tend to show extensive circulation with the typical survivor grading VF25 to EF40. The 1862-S is rare in EF45 and very rare in About Uncirculated with probably no more than a half dozen or so accurately graded pieces known. The finest, by a huge margin, is the unique NGC MS61 that brought a remarkable $103,500 in the Heritage 4/11 sale. The next best that I have seen after this coin is an AU55 from the Bass collection. The 1862-S typically shows light golden-orange color, flat radial lines within the atars and plenty of abrasions on the surfaces. This is the last year in which the Large S mintmark would be used until it was resurrected in 1865.

1863-S: An even 10,000 eagles were made at the San Francisco mint in 1863. The 1863-S is a bit rarer overall than the 1862-S with around 45-55 known in all grades but it is actually slightly more available in higher grades. There seem to be as many as a dozen extant in AU grades and there are three in Mint State. The finest is Heritage 10/95: 6330 ($27,500), ex Norweb II: 2188 ($7,700) and this is graded MS61 by PCGS. The second finest, also graded MS61 by PCGS, is ex Bass IV: 684 ($18,400). The third finest is an NGC MS61 that was last sold as Goldberg 2/09: 1535 ($37,950). The reverse uses a Medium S mintmark. Despite the overall rarity of this issue, there are some reasonably attractive examples known and with some patience, the collector should be able to find an 1863-S eagle in the EF45 to AU53 range that is acceptable.

1864-S: I have written extensively about this issue and have stated before that it is not only the rarest eagle from this mint but the second rarest Liberty Head eagle, trailing only the 1875. The mintage was just 2,500 (the lowest for any San Francisco eagle) and the survival rate is low as well. Around 20-25 are known in all grades with many either very well worn (I have seen examples in grades as low as VF20) or damaged. The 1864-S is unknown in Uncirculated and exceedingly rare in AU with just two or three known. The finest is a PCGS AU55 that is ex Bass III: 656. This will be the single most difficult coin in the set for the specialist who is working on a SF eagle set. The few coins that are available (I have handled just two in the last decade) tend to be cleaned, well-worn and unappealing. As I have said before, if you have a chance to acquire one, throw caution to the wind!

1865-S Normal Date: There are two varieties of 1865-S eagle known. The first, which has a Normal Date, is the rarer with an estimated three dozen or so known. The total mintage of this date is 16,700 and it is possible that around 5,000 to 7,000 were struck with the Normal Date obverse. This variety is usually seen with bright surfaces, multiple bagmarks and a sunken appearance which is especially prominent at the reverse center. I have never seen or heard of an Uncirculated 1865-S Normal Date eagle and am aware of just two or three with claims to the AU55 to AU58 range. While not an inexpensive coin, I think it is still undervalued given the fact that it is among the ten rarest issues in the entire Liberty Head eagle series. An advanced San Francisco eagle collection with a nice mid-to-high level AU will have a coin that is not likely to ever be improved.

1865-S Inverted Date: There are few United States gold coins with a higher "cool factor" than this variety. The 186 in the date was originally punched upside down and was then corrected. This can be seen with the naked eye and it is a variety that is not seen on more than a handful of other United States issues. While more available than its Normal Date counterpart in terms of overall rarity, the Inverted Date is rarer in high grades. It is extremely rare in AU with no more than three or four known and it is exceedingly rare in Uncirculated with exactly two known. The finest is a PCGS MS64 that is originally from the Brother Jonathan hoard. It sold for $115,000 in 1999 and when it was resold by Bowers and Merena in their 8/01 auction it brought only $81,650; the second finest is an NGC MS62 from the S.S. Republic that is now owned by a western specialist. This is an issue that is generally seen with a very flat strike at the centers and heavy wear which impairs the luster. Most are in the VF-EF range and have been dipped as well as showing excessive abrasions. A nice EF-AU example of this fascinating variety would make a great addition to a San Francisco eagle set.

1866-S No Motto: This variety was struck early in 1866, before the changeover to the With Motto variety; the 1866 Philadelphia eagles are only known with the new With Motto reverse. A total of 8,500 No Motto 1866-S eagles were coined and this is rare coin in all grades. There are around four dozen known with most in low grades (VF to EF). The 1866-S No Motto eagle is extremely rare in properly graded AU with maybe a half dozen properly graded pieces known. The finest that I have personally seen is Bass IV: 689, graded AU58 by PCGS, that sold for $21,850 a decade ago. This is an overlooked issue that is comparable to the 1860-S and 1865-S eagles in terms of overall rarity and as rare, if not rarer, in high grades.

In 1866, the San Francisco mint changed over to the With Motto design and this continued until the Liberty Head design was abolished in 1907. In next month installment of this two-part article, we'll look at the 1866-S to 1878-S dates.

Would you like to collect these interesting San Francisco eagles? If so, Doug Winter can guide you. Email him today at dwn@ont.com and let him explain even more about these fascinating coins!

Assembling a Year Set of Civil War Gold Coins, Part Four: 1865

In the fourth and final part of this series about the gold coinage from the Civil War era, we now focus on 1865, the final year of the conflict. Viewed as a whole, 1865 is an interesting coinage year although there are not as many extreme rarities as in 1863 or 1864. That said, 1865 remains a challenging year for the collector of United States gold, as the following article will show.

1865 Gold Dollar: The 1865 is second only to the 1863 in terms of overall rarity in the Civil War gold dollar series. But it is more available in higher grades with a surprising number of Gem and Superb Gem examples known. The finest I have seen is a PCGS MS68 sold as Heritage 3/08: 1356 for $34,500. There are at least two or three others that grade MS67 and a decent number of MS66's. Original examples show good frosty luster and rich yellow and green-gold coloration. Most are struck from clashed dies yet are well detailed overall. This date is not often available in the more affordable collector grades and when a nice AU55-MS62 does come up for sale it brings well over current published price levels. For a high quality set, the grades to focus on are MS65 to MS66.

1865 Quarter Eagle: The final quarter eagle of the rare three year run from 1863 to 1865, this issue has an original mintage of only 1,520 plus 25 Proofs. It is not as rare as the 1864 quarter eagle but it is a very difficult coin to find with few than three dozen known in all grades. The 1865 is unique in Uncirculated with a single MS63 graded at PCGS. The next best available coins are a small group of AU58's, which are currently valued in the $20,000-25,000 range depending on quality. This is a nearly impossible coin to find with original color and surfaces and it is actually a bit more difficult to find with good eye appeal than the more acclaimed 1864. For a high quality Civil War set, finding a choice AU55 to AU58 would be an impressive accomplishment.

1865-S Quarter Eagle: Due to its relatively high mintage figure of 23,376 (and its relative availability in higher grades), the 1865-S quarter eagle is not a highly regarded issue. It is actually extremely rare in Uncirculated with just two or three known including a wonderful PCGS MS64 that sold for $20,700 as Bass IV: 218 in 2000. Most are seen in the EF45-AU55 range with a decent strike but scuffy surfaces and stripped color. Uncleaned examples are rare and tend to show soft frosty luster below rose and orange-gold hues. Most collectors will search for a choice AU58 for their sets but the more stalwart collectors of Civil War gold coinage might hold out for an Uncirculated example; a PCGS MS62 sold for less than $10,000 in a recent Stack's Bowers auction.

1865 Three Dollars: This low mintage date (just 1,140 business strikes made) is by far the scarcest Civil War era Three Dollar issue. Of the 100 or so known, most are in the AU55 to MS61 range. The finest I am aware of is ANR 5/05: 628, graded MS67* by NGC, which brought a record-setting $57,500. This is a well-produced coin that is generally better struck than the earlier Civil War dates and which lacks the vertical striations seen on many of these dates. The luster tends to be satiny or semi-prooflike and the natural coloration is often a rich orange-gold hue. For most Civil War collections, a coin in the MS62 to MS64 range will be the best fit.

1865 Half Eagle: The mintage for the 1865 half eagle is tiny with just 1,270 business strikes and another 25 Proofs. I have only seen one business strike example that I felt was Uncirculated (an NGC MS61 that was last sold as Lot 530 in Stack's Milas auction of 1995 for $18,700) and one or two properly graded AU58's. The NGC population figure of five in Uncirculated includes at least one Proof that has been mistakenly called a business strike and some duplicate submissions. Most 1865 half eagles are prooflike and heavily abraded. Pieces generally are seen in the EF45-AU55 range but seldom have good eye appeal and almost never show natural coloration. Despite this date's obvious rarity, it remains very undervalued with AU examples still selling below $10,000. For most Civil War collectors, a nice, properly graded AU55 to AU58 would be a good purchase for their set.

1865-S Half Eagle: This date is, by far, the most available San Francisco half eagle from the Civil War era. There were 27,612 struck and a few hundred are known with most showing a good degree of wear from use in local commerce. The typical example is an abraded EF40 to AU50. The finest known, by a large margin, is a PCGS MS64 from the S.S. Brother Johnathan which originally sold for $48,300 in May 1999; it has been sold twice at auction since then and was last offered as ANR 1/04: 480 where it brought $43,700. There are one or two others that have claims to Uncirculated but the 1865-S is very rare in properly graded AU55 to AU58. The few known with original color show nice rose and green-gold hues. This is a issue that should be obtainable in the medium About Uncirculated grades and such a coin, when available, will not be that expensive.

1865 Eagle: The mintage figure for this issue is 3,985 business strikes with an additional 25 Proofs made for collectors. There are an estimated 50-75 known in all grades with most showing a considerable amount of circulation. The 1865 eagle is unique in Uncirculated (a PCGS MS63 which I have never seen) and it is very rare in properly graded AU55 to AU58. Most seen are VF and EF coins with heavy abrasions and impaired reflective surfaces. This is a well-produced issue but it saw heavy circulation and, as a result, problem-free, original coins are extremely rare. In my opinion, this is a very undervalued date as presentable examples can still be obtained for under $10,000. For most collectors, an AU55 example of this issue would be an excellent addition to their Civil War set.

1865-S Normal Date Eagle: There are two varieties of 1865-S eagle known. The first, which has a Normal Date, is the rarer with an estimated three dozen or so known. The total mintage of this date is 16,700 and it is possible that around 5,000 to 7,000 were struck with the Normal Date obverse. This variety is usually seen with bright surfaces, multiple bagmarks and a sunken appearance which is especially prominent at the reverse center. I have never seen or heard of an Uncirculated 1865-S Normal Date eagle and am aware of just two or three with claims to the AU55 to AU58 range. While not an inexpensive coin, I think it is still undervalued given the fact that it is among the ten rarest issues in the entire Liberty Head eagle series. An advanced Civil War collection with a nice mid-to-high level AU will have a coin that is not likely to ever be improved.

1865-S Inverted Date Eagle: There are few United States gold coins with a higher "cool factor" than this variety. The 186 in the date was originally punched upside down and was then corrected. This can be seen with the naked eye and it is a variety that is not seen on more than a handful of other United States issues. While more available than its Normal Date counterpart in terms of overall rarity, the Inverted Date is rarer in high grades. It is extremely rare in AU with no more than three or four known and it is exceedingly rare in Uncirculated with exactly two known. The finest is a PCGS MS64 that is originally from the Brother Jonathan hoard. It sold for $115,000 in 1999 and when it was resold by Bowers and Merena in their 8/01 auction it brought only $81,650; the second finest is an NGC MS62 from the S.S. Republic that is now owned by a western specialist. This is an issue that is generally seen with a very flat strike at the centers and heavy wear which impairs the luster. Most are in the VF-EF range and have been dipped as well as showing excessive abrasions. A nice AU example of this fascinating variety would make a great addition to a Civil War set.

1865 Double Eagle: This is the second most available Civil War double eagle from this mint but it is still many times scarcer than the common 1861. The 1865 double eagle is reasonably easy to find in all circulated grades although nice AU55 to AU58 examples with choice surfaces and natural color are harder to find than their population at PCGS and NGC would suggest. Until the discovery of the S. S. Republic shipwreck, this date was unknown in the higher Uncirculated grades. This hoard included a number of MS64 and MS65 examples and there are currently (as of 6/12) 23 graded MS65 by NGC. These high grade 1865 double eagles are gorgeous coins with great luster and surfaces and they would make a great addition to a Civil War set. For collectors who are more inclined to own a coin with natural surfaces, the best available quality will be in the MS61 to MS62 range.

1865-S Double Eagle: Slightly over one million double eagles were struck at the San Francisco mint in 1865 and this is the most common single gold issue produced during this year. The 1865-S is easy to locate in all circulated grades and choice, original AU55 to AU58 examples are still available without a huge effort--or premium. This date was, at one time, very rare in Uncirculated but close to five hundred examples were located when the S.S. Brother Jonathan was salvaged. Today, it is possible to find an 1865-S in grades up to an including MS65. These coins typically show more of a matte-like surface than other shipwreck double eagles from this era but it is possible to find a nice, attractive coin with some patience. For most Civil War collectors an MS64 to MS65 example of the 1865-S double eagle with a shipwreck provenance will be a perfect coin for their collection.

So, there you have it: a four part guide to the Civil War era gold issues from the United States. This is clearly one of the most fascinating--and challenging--sets that a collector can tackle. Due to the rarity and high cost of many coins, the Civil War set is not for everyone. But for the collector with a deep pocketbook and a considerable amount of patience, I can think of few other sets that offer the potential rewards that this one does.

For more information regarding Civil War gold coins, please feel free to contact me via email at dwn@ont.com.

Some of the images above appear courtesy of Heritage.