Type One Double Eagles: 2013 Market Update, New Orleans

Last month, I looked at the current market for Type One Philadelphia double eagles and compared it to the market(s) of five and ten years ago. In this month’s installment, I’m going to look at the popular New Orleans double eagles struck between 1850 and 1861 and analyze current market conditions with those seen a decade ago.

In 2003, the market for New Orleans double eagles was much different than it was today. There were many more nice coins available and the demand level was a fraction of what it is today. Looking back a decade ago, it seemed that coins like 1855-O doubles eagles or 1859-O double eagles were readily available and I can remember pleading with clients to buy them because they seemed liked such good values compared to other double eagles of lesser rarity.

Would a collector be making a mistake to decide to begin a set of New Orleans double eagles in 2013? It depends at how you look at it. Obviously, it was a “better” market for buyers of these coins ten years ago; they were cheap and relatively plentiful. But a decade ago, if you were collecting these coins you were a bit of a contrarian. I’d like to say that I foresaw the halcyon days that lay ahead for this area of the market but even I didn’t anticipate some of the prices that we see in 2013. That said, given the popularity and depth in the market for New Orleans double eagles, this is a market area that I remain enthusiastic about.

Let’s take a look at market trends for each specific date, comparing prices and availability of coins in 2003 versus today. The two grades I am going to focus on are EF45 (a popular collector grade) and AU58 (the highest available grade for many of these New Orleans issues).

1850-O:  Ten years ago, this was considered a common date and it received little fanfare except on the rare occasion that a relatively high-grade piece was available. Today, it is recognized as a condition rarity which is not easy to locate in properly graded EF45 and which is very rare in AU58.

In 2003, it was possible to buy an EF45 1850-O in the $2,500-3,500 and I can recall that it was hard to get collectors to pay a 25-50% for these over the more common 1851-O and 1852-O. Today, a solid-for-the-grade EF45 is an $8,000-10,000 coin with a comparative valuation which is around 50% greater than the 1851-O and the 1852-O.

An AU58 1850-O was very hard to locate in 2003 and was available maybe once or twice a year in the $22,000-25,000 range. Today, such a coin will cost at least $30,000-35,000 and generally the quality seems, at least to me, to be much lower end for the grade than for other issues from this mint.

1851-O:  This has long been recognized as one of the two easy dates in the series to acquire. Back in 2003, it seemed like decent quality 1851-O double eagles were everywhere and they were cheap. Today, they seem harder to find, especially in higher grades. And they aren’t so cheap anymore.

If I recall correctly, a collector could buy a solid EF45 1851-O double eagle for $1,500-2,000 back in 2003. If he were patient, he would be rewarded with a sharply struck, reasonably mark-free example with good color and some remaining luster. Today, an EF45 which is likely to be less lustrous, less original and more “marky” will run in the $4,500-5,500 range.

Properly graded AU58 1851-O double eagles were never easy to find and in 2003 it might take a while for a collector to locate a satisfactory example. Such a coin would cost between $5,000 and 7,000 back then, depending on quality. Today, an AU58 will run in the $14,000-18,000 range.

1852-O:  As mentioned above, the 1852-O is one of the two most available New Orleans double eagles. I have always found it easier to find than its counterpart but other dealers/collectors may have a different perspective.

In 2003, an EF45 1852-O double eagle was priced similarly to an 1851-O and a collector could expect to buy a nice one for $1,750-2,000.  Today, an example in this grade will cost around $4,500-5,500.

Properly graded AU58 1852-O double eagles have always seemed to me to be a bit easier to find than the 1851-O. In 2003, a collector could buy one for $6,000-8,000 and I can remember handling some really pretty pieces with great color and comparatively choice surfaces. In 2013, such coins seem non-existent (or in MS60/61 holders). When available, a decent quality AU58 costs $15,000-19,000 and they are popular with non-specialists as type examples of this design/mint.

1853-O:  The 1853-O was probably the least-understood Type One double eagle a decade ago. It was still lumped with the 1851-O and 1852-O as a common issue but specialists realized it was uncommon in EF45 and very rare in AU58. Today, it is more widely appreciated and prices reflect this.

You could buy a decent EF45 1853-O for around $2,000 in 2003. Today, a similarly graded coin will cost in the $6,000-8,000 range and it is far less available.

Surprisingly, AU58’s of this date have not shown as much price appreciation. A decade ago, I would have been happy to pay $12,500-15,000 for a nice, original example. Today, an AU58 would sell for $17,500-22,500.

1854-O:  For as long as I can recall, people have regarded this date as a classic rarity. It wasn’t necessarily always priced as such and back in 2003 I think I could still write that this was a very undervalued date without grimacing. As collecting Type One double eagles as become more and more popular and big money has entered this niche, prices have risen accordingly. That said, I’m still not certain if this issue is “fully priced,” especially given its limited supply and how even a small uptick in demand could make this a million dollar coin in higher grades.

This date was never really available in EF45 as the few “real” 45’s which exist(ed) were always gradeflated into AU holders. If an EF45 were available back in 2003 it would have sold for $75,000-100,000+ and it probably would not have exactly “flown off the shelf” in my inventory. It is hard to estimate the value of an EF45 in today’s market but I have to think a decent looking example priced at $250,000-300,000 would sell with no trouble.

Instead of looking at the market for AU58’s, I’m going to focus on AU55 for this issue and the 1856-O due to their rarity. A decade ago, an AU55 1854-O double eagle was a $125,000-150,000 and I can remember buying a beautiful PCGS AU53 (which later upgraded) in the Bass III sale a few years before this for $103,500. Today, an average quality AU55 would sell for $450,000-475,000 and a PQ example with CAC approval might bring over $500,000.

1855-O:  Back in 2003, I was still touting the 1855-O as an undervalued “sleeper” date but a funny thing happened around this time. Out of the blue, this date became very available and I can remember owning three examples (all nice AU50ish coins) at the same time. This has clearly changed in the ensuing years and now it is hard to find this date in any grade. Finding it with good eye appeal and a natural appearance? You can just about forget this happening although I did see a beautiful original AU55 in a complete set shown in the non-competitive exhibits at the New Orleans ANA convention a few weeks ago.

In 2003, an EF45 1855-O double eagle was around a $20,000 coin. Today, t is worth $30,000-35,000.

As this date is almost unavailable in AU58, let’s use the AU55 grade as our high end. In 2003, an AU55 would have been worth $25,000-30,000 and it might not have been an easy coin to sell. Today, I would value one in the $55,000-65,000 range.

1856-O:  Along with the 1854-O, the 1856-O is recognized as the key issue in the New Orleans Liberty Head double eagle set and it is one of the truly rare 19^th century gold issues. Its price has long been linked with the 1854-O and it is interesting to compare the two now and a decade ago.

As with the 1854-O, the 1856-O is an issue which is not often seen in EF45. If available in today’s market, a nice example would certainly bring $275,000 and possibly more. A decade ago, a similarly graded piece would have sold for $100,000 or so.

For most deep-pocketed collectors, an AU55 example of the 1856-O will be one of the highlights of their New Orleans double eagle set. If available, you are looking at $450,000-500,000 for the chance to own one. In 2003, this coin might have brought $100,000-125,000; I am basing this on the approximate value of a similarly graded 1854-O and the fact that the 1856-O has always seemed to have a value pegged at about 25% higher than its counterpart the 1854-O.

1857-O:  Just as the 1854-O and the 1856-O have long been linked together, the 1857-O and the 1858-O double eagles have commonly been joined in terms of price and perceived rarity. Interestingly, the prices have flip-flopped on these as the 1857-O used to be a more expensive coin than the 1858-O but now the trend has gone towards the 1858-O.

In EF45, the 1857-O is now valued in the $7,000-9,000 range. A decade ago, it was possible to buy an EF45 for $4,000-5,000. I didn’t used to think this date was great value; now I do think it is fairly priced, especially when one considers it is less than double the price of an 1851-O or 1852-O in this grade.

In the last decade, the value of this date in AU58 has basically doubled. Today, an example costs $25,000-30,000. Ten years ago, the same coin was valued in the $12,500-15,000 range.

1858-O:  A decade ago, I regarded the 1858-O as possibly the most undervalued double eagle from this mint. You could buy a nice example in EF45 for $3,000-4,000 and this seemed way to cheap for a coin which is noticeably scarcer than the common 1850-O through 1853-O issues. Today, an EF45 costs in the $10,000-12,000 range and I can no longer state this is an “undervalued” issue.

A decade ago, the 1858-O was somewhat less expensive than the 1857-O in AU58. A nice example in this grade was priced at $10,000-13,000. Today, an AU58 might cost $35,000-40,000. It is interesting to compare this with the 1857-O.

Clearly, from an investment standpoint, the 1857-O and 1858-O were excellent performers with the latter issue tripling in AU58.

1859-O:  For most collectors, the 1854-O and 1856-O are priced out of their range, which makes the 1859-O (and the 1860-O) the most expensive New Orleans double eagles that they are likely to buy.

In studying auction records (and reviewing my own purchases) one thing becomes clear about the New Orleans double eagle series: this market seems to have literally caught fire in 2004-2005. Prices were very reasonable through the 1990’s and even up to the first few years of the 2000’s. The price jump even from the small window of 2002 to 2004 is interesting to note and the savvy collector/investor could have done amazingly well in the short term just by purchasing nice O mint double eagles in, say 2002 and “flopping” them in 2005.

In 2013, an EF45 1859-O is going to run the collector at least $27,500-32,500. A decade earlier, this date was still not completely recognized as the rarity it is today and it was possible to purchase an example for $7,500-12,500.

The price of this date in AU58 has increased considerably in the last decade. In 2003, an AU58 was valued at $30,000-40,000. Today, a coin will cost $70,000-90,000. Why, you ask, is there such a wide disparity in prices for this date in AU58? This has to do with quality. Some of the slabbed AU58 1859-O double eagles are atrocious; others are nice or at least solid for the grade. I believe that the premium for a very nice example versus a not-very-nice example is very significant for both this date and the 1860-O.

1860-O:  The 1860-O has always been priced a bit higher than the 1859-O even though it is, in my opinion, a slightly more available coin.

As with the 1859-O, this is a date where good eye appeal is almost unknown and that’s why the price range(s) I provide are quite broad. I, for one, would pay a strong premium for an EF45 example which was choice and original versus an EF45 which was processed and unappealing.

The current value range for an EF45 is $30,000-35,000 and I could see a choice PCGS/CAC example bringing over this. In 2003, an EF45 was valued at $10,000-15,000.

An AU58 would be priced in 2013 at anywhere from $65,000 to $85,000 based on its appearance. In 2003, the range was more likely to be $20,000-30,000.

1861-O:  As I began to write this article, my guess was that the 1861-O saw a greater jump in price, on a percentage basis, than any other Type One New Orleans double eagle in the last decade. To me, there were a few obvious reasons: it was hugely undervalued back in 2003, it is really the only Type One double eagle from this mint with multiple levels of demand and it has a Civil War-related issuance which has made it a “fashionable” coin in the last few years.

In 2003, the 1861-O was a $7,500 coin in EF45. You didn’t see a ton off them back then but they were available from time to time and not that easy to sell; even when I would tell collectors: “this coin is a tremendous value!” Today, this coin is worth $25,000-30,000 in EF45 and I could sell as many as I could get my hands on in this price range.

The real price increase for the 1861-O, though, is in higher grades. In 2013, a nice AU58 is valued in the $70,000-90,000. A decade ago, this was a $20,000-30,000 coin.

There are few areas in the 19^th century United States gold coin market which have seen price increases and increased demand like the Type One double eagles from New Orleans. It seems unlikely that these coins can sustain the increase they have shown but, hey, I couldn’t have guessed in 2003 that we’d be seeing today’s prices in 2013.

This is an area which requires care and guidance for the new collector and if you have an interest in assembling a set of New Orleans double eagles, I would love to work with you. I can be reached via email at dwn@ont.com.

The Type One Double Eagle Market, An Update: Part One, Philadelphia

It's been a few years since I've written in depth about the Type One double eagle market. But in double eagle time "a few years" is equal to a considerable amount of time when compared to other less popular series. This is a changing, dynamic market which continues to impress me with its demand for coins and its ability to attract collectors with budgets ranging from medium to jumbo.

Let's take a look at the 18 Philadelphia issues and see what's happened to the market in the last three to five years, where it is headed and what my feelings are about the pros and cons of each issue. I'm going to focus on two grades in this article: AU58, due to the relative affordability of these coins versus Uncirculated examples and MS62, due to the fact that this is usually the "best available grade" for Philadelphia Type One issues.

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1850: This numismatically significant issue is the first double eagle from the Philadelphia mint. Many years ago, I strongly pushed this date and felt it was well undervalued. In 2013, I think it is actually sort of pricey in comparison to other comparable Type One issues, particularly in AU58 and higher grades.

The 1850 has been readily available of late in EF45 to AU55 grades and I wonder if some sort of hoard hasn't hit the market as I don't recall this issue being this easy to locate in the past. Two grades that I find interesting for this date are AU58 and MS62.

Around three to five years ago, it was possible to buy a decent-looking 1850 double eagle in AU58 for $6,000-7,000. Today, the same coin will cost $8,000-10,000 and I think a really choice PCGS coin with CAC approval could bring $11,000+. To me, this seems like a lot of money for such a coin.

Three to five years ago, an MS62 1850 double eagle would be a $22,000-25,000 coin. Today, if you can even find one, an 1850 in this grade will run $32,500-35,000. Given the relative unavailability of this date in grades higher than this, a nice MS62 actually seems like better value than an AU58 (!)

I continue to buy this date but I am very selective. I avoid any 1850 which is not choice and original and tend to purchase coins which grade EF45 to AU50 (as good introductory pieces for new collectors) or great quality MS62's (for deep-pocketed date or type collectors).

1851: The 1851 is actually a harder coin to find than the 1850 but it doesn't get the recognition that its predecessor does. It remains very easy to find in grades up to AU55 but it has becomes harder to locate in AU58. As with nearly any non-shipwreck Type One, properly graded Mint State coins are rare.

Three to five years ago, it was possible to buy quantities of AU58 1851 double eagles for around $2,500 per coin. Today, so-so AU58's sell in the $4,000-4,250 range and nice CAC-quality piece can run as high as $5,000-5,500. A wholesome, original "slider" at five thousand bucks still seems to me to be comparatively good value and I will buy anyone one I see for my inventory.

MS62 and finer examples of the 1851 have all but disappeared. None have sold at auction since November 2011 and I think a fresh, original PCGS example with CAC approval could bring $16,000 or more if offered today. Given that the market for this coin was in the $11,000-13,000 three to five years ago, I think this remains an excellent value.

1852: The 1852 is now probably the single most available Type One Philadelphia double eagle. It used to be similar in availability to the 1851 but I see it more often.

In Heritage's 8/12 sale, an auction record was set for this date when a PCGS MS64 with CAC approval brought a robust $82,250. What's really impressive about this price is the fact that the exact same coin sold for $35,650 in a Bowers and Merena auction for $35,650 in 9/08. Nice return on investment for a four year hold, no?

AU58 examples of this date have shown the same price growth as described above for the 1851. You are now looking at $4,000-5,000 for an AU58 depending on quality (still a fair number, in my opinion) against a former value of $2,500-3,000 around three to five years ago. I'm still fine with buying these.

1853: While inevitably lumped with the 1851 and 1852, I find this date to be harder to locate than the 1852 but easier to locate than the 1851. It is clearly the rarest of the three in higher grades and it is nearly impossible to find above MS62.

In AU58, the 1853 is currently selling in the $4,000-5,000 range as compared to $2,250-2,750 five years ago. An MS62 would bring $14,000-16,000 if available and this is not much more than what a comparable coin would have sold for five years ago. Given this fact, I'd personally look for a nice Uncirculated example, especially given the fact that this date is all but unknown in MS63 and above.

1853/"2": You'll note that I placed italics around the 2 in the date; PCGS does this as well and this is because many researchers question whether this variety is actually an overdate. I personally do not and here's why: the major diagnostic on this variety (a die dot below the RT in LIBERTY) is seen on at least one other obverse which is clearly not an overdate...or even a recut date for that matter.

AU58 examples of this date may been relatively flat over the last three to five years although the last two or three that I have seen have garnered prices around $17,000; three to five years ago the same coins might have sold in the $13,000-15,000 range.

Despite this variety's low population in MS61, prices have stayed flat since 2005. In June 2010, a PCGS MS61 sold at auction for $34,500 while in February 2007, a coin in the same grade/same holder realized $37,950. To me, this is the market basically stating that $35,000 is a lot of money for a coin which might not even be an overdate. And I agree.

1854 Small Date: This is the more common of the two varieties of double eagle made at the Philadelphia mint in 1854. It is significantly scarcer than the 1851, 1852 or 1853.

Nice AU58's used to be available with some degree of regularity but they have become harder to find, especially if they are CAC-quality. You are looking at a $4,500-5,500 coin, depending on holder and appearance. I think these are great values. Three to five years ago they were 2,500-3,000.

In MS62, this is an extremely scarce date and prices have remained surprisingly static. In the current market, an average quality MS62 is worth $15,000-17,500; not all that much more than the same coin would have sold for three to five years ago.

Time to interject an observation. For the most part, Type Ones from Philadelphia have performed really well over the last three to five years in AU58. They haven't done that well in MS62; a grade that represents true rarity for most of these issues. I think this has to do with the fact that 58 coins have traded with some regularity while 62's are rare enough that they don't trade often. This may continue to be the case in the future but I think the MS62 coins are a great investment for the collector with a large budget.

1854 Large Date: As recently as a decade ago, there was some question as to whether this variety would be accepted by serious collectors but it clearly has and today the 1854 Large Date is ranked as the third rarest Type One from this mint after the 1859 and the 1862.

The 1854 Large Date is virtually unknown in Uncirculated but it is offered for sale from time to time in AU58. An example in this grade now trades in the $20,000-25,000 range. Five years ago, the same coin might have fetched $16,000-18,000.

I think this variety has a good amount of growth potential in the AU53 to AU55 range. Three to five years ago, a nice quality example might have been available for $7,000-9,000; today this coin is $9,000-11,000. But one must remember that the price spread between a 53 and a 58 is now close to 2.5x which means that the typical collector will shy away from the 58 and seek a nice 53.

1855: The 1855 and the three issues which follow it (1856, 1857 and 1858) are all what I would describe as "slightly scarce" issues. The 1856 is the rarest, followed by the 1855, 1858 and 1857. Of these four, the 1855 is by far the hardest to find in high grades.

Three to five years ago, the 1855 double eagle was not recognized as a scarce issue in AU58 and I can recall buying decent examples for $3,500. Today, an average quality AU58 will cost in excess of $5,000 and a PCGS/CAC example could bring over $6,000. In my opinion, these are still good values and I would buy everyone I could find.

In MS62, this date is extremely rare and none have sold at auction since early 2005. So, MS61 is about as nice as this date comes. In 2013, a nice quality 1855 in this grade would sell for $16,000-18,000+. Five years ago, this coin might only bring $10,000-12,000.. I would not be surprised to see a similar increase in price for MS61's over the next five years as this date is in strong demand.

1856: I'd sort of like to take credit for "discovering" this date but there were other people looking for nice quality 1856 double eagles as far back as a decade or two ago. It remains a very hard issue to find in the higher AU grades and a rare coin in Uncirculated. The population figure shown by PCGS seem to me to be inflated as there are 14 in MS61 and 8 in MS62 but far fewer auction records than one might assume for a date with a population as high as suggested by PCGS.

A nice quality AU58 will cost in the $5,500-6,000 range and a PCGS coin with CAC approval could bring more. Five years ago, a high end 58 was worth around $4,000-4,500. Given how popular this date has become, it seems to me to be good value at current levels.

No nice Uncirculated 1856-P double eagle has sold at auction since a PCGS MS61 appeared in April 2011. Given the paucity of appearances and given the potentially strong demand for a nice piece if it became available, I'd be ready to pay a record-setting price for any 1856 double eagle graded MS61 or better should one become available.

1857: As I mentioned above, the 1857 is the most available of the 1855-1858 Philadelphia double eagles. It remains fairly affordable, even in higher grades, but it has performed well over the last five years.

I have sold a number of 1857 double eagles in AU58 over the past few months and I can't recall having ever priced a PCGS/CAC example at more than $4,250-4,500. Five years ago, I would have priced a similar quality example for $2,500-3,000. I think this date remains a good value in properly graded AU58.

No 1857-P double eagle graded MS62 has sold at auction since early 2006 and I haven't handled one in close to three years. An MS61 is still worth less than $10,000 and I would personally have no problem recommending a nice MS61 at, say, $8,500 or $9,000 to a collector.

1858: This date seems to have become a bit more available in circulated grades than I recall it being three to five years ago. That said, nice AU58 coins are harder to locate than before and Mint State pieces are rarely offered any more.

The price performance seen for this date has actually been better than that for the 1855 and 1856, despite it being far less scarce. In today's market, a nice AU58 example will sell for $4,750-5,250. Five years ago, it was possible to find AU58's for $2,750-3,000.

Remember the comments I made above on the population figures for the 1857 in MS61 and MS62? The same holds true for the 1858. The PCGS figures make this date appear to be somewhat available but it is actually almost never offered. No MS62's have been sold since 2005 and just a handful of MS61's. An average quality MS61, if available, would sell in the $13,000-16,000 range; five years ago it would bring $9,000-11,000. For the money, I'd personally rather have a nice 1855 or 1856.

1859: This is my favorite sleeper date in the Philadelphia Type One series and I have watched demand for this issue soar in the last few years. Despite significant price increases, I still think a nice mid-range AU 1859 is a good value.

In AU55, an 1859 double eagle is a $10,000 coin, give or take a few bucks. This isn't actually that much more than this date was bringing in this grade five years ago. The difference is that I could sell ten of these in AU55 for $10,000 today; five years ago this would have been a big stretch for most collectors.

I just set a record price for the 1859 in AU58 when I paid $23,500 for a PCGS/CAC AU58 in the March 2013 Stacks Bowers auction. This was by far the best AU58 I'd seen and I though the coin had better eye appeal than most of the MS60 to MS61's of this date. An average quality AU58 would sell for $15,000 or so today; five years ago it might bring $11,000-13,000 to a savvy collector.

I still love this date and I will continue to support it at higher price points.

1860: This date has performed well in AU58. Today, a nice example will sell for $3,750-4,250. Five years ago, you could find similar quality pieces for $2,750-3,000.

In MS62, the 1860 remains a very scarce date although it is more available than the 1855-1858 issues. If you can find one, an MS62 is going to cost $10,000-12,000. Five years ago, this would have been an $8,000-9,000 coin.

1861: Before the SSCA shipwreck made the 1857-S so common, the 1861 was the most available Type One from any mint. It remains available in AU58 but it seems to have come one of those "when you really need one you can't find them" issues.

Five years ago, you could find nice AU58's for $2,000-2,500 and they weren't easy to sell. Today, these coins are sold to a more enthusiastic Type One market and to Civil War date collectors for $3,500-4,000. I don't necessarily love the value of these at $4,000 a pop but hats off to the smart collectors who put these away at $2,250.

This date hasn't done as well in MS62 but it has certainly appreciated in the last three to five years. Today, it is a $7,000-9,000 coin. Five years ago it was a $5,000-6,000 coin. While I don't love the value of an AU58 at $4,000 I really think a properly graded MS61 at, say $8,000 seems like a good deal.

1862: This remains the rarest Type One from this mint and the level of demand for the 1862 has soared. I used to handle one every month or two; now I'm lucky to buy one or two each years.

As you might expect, this date has performed really well over the last few years. If you want to own a nice AU55, you are going to have to step up and pay in the $17,500-20,000 range. Five years ago, I was still buying this date in AU55 for $10,000-12,500. AU58's have risen in price to $25,000; five years ago if I paid $17,500 for one most people would have thought I was crazy.

With no Uncirculated examples having sold at auction since December 2009 (and whoever bought this coin for $32,200 should take a bow because you ripped it...) I shudder to think what a nice, fresh MS62 would bring today. Loved this date ten years ago, love it today.

1863: After some nice 1863 double eagles were found in the SS Republic shipwreck, I though the price of this date would get wrecked. Wrong. The 1863, which remains a scarce, popular Civil war issue, has done very well in the last few years.

I've handled three nice AU58 1863 double eagles in the last year and my average cost has been around $15,000 each. Five years ago, I was able to buy comparable examples for $11,000-12,000.

Collecting Type 1 Double Eagles

The 1863 has remained strangely unavailable in MS62 and higher grades. For even the most advanced collector, a nice MS61 would be a great find. If one were to become available, I think it would bring at least $32,500-35,000. Five years ago, an 1863 in MS61 was probably a $25,000 coin.

1864: The 1864 is more available than the 1862 and 1863 Philly issues but far more scarce than the 1865. I have some serious questions about the PCGS/NGC population figures for higher grade coins as this date does not seem to appear at auction with the frequency that one might expect. As an example, PCGS shows that 15 have been graded in MS61 but none have appeared since June 2008.

This date seems a little pricey to me in AU58 at its current value of $7,500-8,500+ but a little research reveals that pieces were bringing $6,000-7,000 at auction as far back as 2006.

Uncirculated examples of this date have no recent records. A small group of nice MS62 from the S.S. Republic sold for $25,000+ in April 2005 and it would be interesting to see what they would fetch today.

1865: This is a date which was clearly affected by the discovery of numerous nice, high grade pieces in the S.S. Republic. Five years ago, high grade 1865 double eagles were virtually unknown; in the last year I have owned at least a half dozen grading MS62 to MS64.

In AU58, the price performance of this date has not been impacted as much as I would have expected. Today, a nice AU58 1865 trades in the $4,500-5,500 range. Five years ago, the same coin was trading for $2,500-3,000.

Before I did some price research for this article, I expected that levels had dropped on MS62's of this date due to the many newly graded pieces which have entered the market. This hasn't been the case. Today, an MS62 sells for $15,000-17,000. Five years ago, a similar coin would have brought in the area of $12,000-14,000.

This is actually one of the few Type One dates I'd caution buyers against in MS62. The current NGC population is 57 in this grade with 211 higher (!) and, for the money, I'd rather have a  date like an 1857 or an 1858 in MS61 to MS62.

The overall state of the market for Philadelphia Type One double eagles is better in early 2013 than at nearly any point which I can recall. Prices have shown a nice amount of appreciation, the number of new collectors has increased and the rosier economic picture means that people are less hesitant to buy expensive coins than they might have been in 2008-2009. Despite this, I think a compelling point can be made for calling many of the Philadelphia issues undervalued in nearly all grades, especially AU58 and MS62.

Do you want more information on Type One double eagles? I would be happy to answer your specific questions, and maybe even sell you a coin or two. Contact me via email at dwn@ont.com.

How To Succesfully Negotiate a Trade With Your Coin Dealer

You see a $25,000 coin in a dealer's inventory and you really want it. The problem is you are short of funds and you are the sort of person who has made a promise  to never take on debt to finance his hobby. Do you pass on the coin? Maybe you don't have to. My guess is that if you are a long-time collector you have at least $25,000 worth of coins in your collection that range from" junk" to" stuff" to "I kind of like this but it really doesn't fit into my collection anymore." I'd like to suggest that you can obtain that $25,000 coin by trading miscellaneous coins with the dealer in order to achieve your goal. And if you do the trade the right way, the best possible thing happens: a scenario in which both you and the dealer are happy and walk away thinking "I liked that trade and I'd do it again."

Some dealers don't like to trade and the advice which I give in this article will be for naught. Others--myself included--like to trade, especially if they have the opportunity to shed some older inventory and bring in some interesting new coins without the effort of going to a show.

A trade is mostly likely going to work if you know the dealer already and the dealer knows you. I have a few clients who, it seems, would almost always rather work out a trade than write me a check for a coin and I am happy to oblige them. They understand the dynamics of trading.

In a nutshell, trades only work if both parties feel they are getting good value. I am less likely to trade a great new coin that I just added to my website than one which has been in stock for a few weeks (or months) . Conversely, collectors want to trade for coins which will improve their collections. They are sophisticated enough to understand that not every great coin owned by a specific dealer sells quickly (that's a topic which deserves a blog...) and ultimately they want a collection that contains more neat coins and less "stuff."

The inherent problem with many coin trades is that collectors want one really good coin from a dealer but are not willing to give up anything in return. It's the numismatic equivalent of a baseball trade in which one team is offering a proven star player while the other team offers either unproven young prospects or overpaid, over-the-hill players on their roster. Some sort of compromise has to be made by both parties for a trade to work.

When someone proposes a trade with me, I immediately have to categorize what is being offered by the other party. Some trades are incredibly easy. I have a $10,000 Dahlonega half eagle in stock and my potential trading partner has two $5,000 Dahlonega half eagles. Those kind of deals are a piece of cake and get done very easily.

But trades are usually more complicated than that.

Let's look at the categories in which potential trade coins can fall into. I'll make a few pertinent comments about each.

1.  Coins Purchased From Me Recently

In theory, the coins I should want most are the ones which he has recently sold, right? Actually this is often not the case and the reasons why are not often so obvious. Let's say I had a reasonably memorable coin in stock a few months ago and it comes back in a trade. My worry is that potential customers will recognize it and wonder "hey, there's that MS63 Charlotte quarter eagle...what's it doing back in Doug's stock?" In the case of really obvious coins,  this is something that might keep me from getting a trade done.    

How do I value coins that I sold within, say, the last year which are being offered back to me in trade? I generally work on a 10-15% margin (sometimes less) so if I sold a coin for $5,000, it is likely that my cost was $4,250-4,500. I'm going to want to take that coin back at my original cost so that when I re-offer I can price it once more at around $5,000.

Some dealers do something disingenuous when it comes to taking coins back in trade. Let's say they sold a coin for $5,000 and their cost was $4,500. They will offer to take the coin back at $5,000 (which is technically a $500 loss for them) and make this up on the sell side where they will quietly jack-up the price of another coin from $5,000 to $5,500.

The bottom line is if you use a recently purchased coin as part of a trade, you can expect to get around 80-90% of what you paid for it but only if you are trading it back to the dealer from who you purchased it. If the coin is not from me, I don't feel the obligation to do this.

2. Coins Purchased From Me a Number of Years Ago

What if I get offered a group of coins which I sold back in 2003? The chances are good that the owner is going to be in a profit position but how much of one can become a grey area. Before I get into that, let me tell you how I'd figure them, value-wise.

Typically, if these are "cut and dry" sorts of coins (say like a common date Dahlonega half eagle in PCGS AU55) I'm going to see what the last few auction trades were and offer somewhere in the middle of the range. In other words, if the last three trades were $3,000, $3,300 and $3,600 I am going to figure the coin at around $3,300.

Let's say I get in a bunch of coins in trade and they are in older holders with a possible chance to upgrade. What do you I then? To me, the ethical thing to do in this situation is to let the collector know that there is possibly some extra value in the coins. I might tell him, "I am going to crack this coin out to regrade it. I'll figure it in the trade at $3,300 regardless of what happens but if it upgrades, I will pay you more."

If a dealer sells nice coins, he should be happy to get back a group which he sold years ago and this would be an ideal scenario for a trade.

3.  Coins I Don't Specialize in But Which I Like

As a dealer who specializes in rare United States gold coins from the 18th and 19th century, these are obviously the sort of coin that would interest me most in a trade. But I wouldn't rule out coins that I don't typically deal in. For me to accept non-gold coins in a trade, they have to be either something that I find interesting enough that I would put them on my website (and hope that it sells) or something that I think would sell for a price close to (or over) what I paid for them if I wholesaled them or put them into an auction.

I recently traded a high quality early gold coin for a group of coins which I don't deal in but found interesting. The main reason I made the trade, however, was because I think the collector who proposed the trade has an excellent eye and he understands value very well. I might not have made the exact same trade if it was proposed by someone who I didn't respect ability-wise. But this was a guy who impresses me and I was happy with the coins I received.

There is a limit to what I will take in trade. As an example, a few months ago, someone proposed a trade in which I would ship him a very cool Proof gold coin in exchange for what seemed to be some good quality Buffalo Nickels and Lincoln Cents. Even though it seemed like a reasonably fair trade, I passed. I don't know the Buffalo Nickel and Lincoln Cent markets very well; certainly not well enough to start taking in $5,000 examples in NGC holders. I suggested that he offer these coins to a specialist who would be more interested in them than I would and then use the proceeds to buy my coin.

4.  Coins I Don't Deal in And Don't Like    

Never say never, as the cliche goes, but it is going to be hard me to take in a bunch of off-quality coins that I don't like and I don't specialize in order to make a trade. I guess if I had a few complete duds in stock which I hated and I was desperate to get out of them...the good news, for me, is that I infrequently purchase disastrous coins and when I do, I tend to wash my hands of them as quickly and painlessly as possible by throwing them into auction and washing my hands of them.

Ready for a brief aside?

There is a well-known but frequently cash-strapped dealer who is (in)famous for trading coins. He is the worst trader that I have ever seen and I know a few dealers (myself included) who have totally gotten the better of him when we make trades. My strategy was to take the oldest, most expensive retreads in my inventory (always gold coins) and trade them for lower priced, reasonably fresh non-gold coins which he owned.  He always botched trades by taking in high priced coins at too high a price (I was always able to steer him towards the coins I owned that were the worst values) and exchanging them for less expensive, far more liquid coins.

5.  Bullion

I don't deal in bullion but I stayed at a Holiday Inn last night and can offer a fair trade price for bullion, knowing that I can lay it off at those numbers or even a small profit. Most dealers are happy to take bullion in trade. I suggest that if you offer bullion, you call a few national dealers and get an idea of what they are paying. I should be allowed to make a small amount on your bullion but I should not be allowed to make 10 or 15%. Don't undervalue or overvalue your bullion!

6.  Modern Crap AKA Your Boxes Full of Junque

This is where most collectors have the greatest amount of unrealized potential trade value in their collections. Let me give you an example.

I have been working with a collector for a few years who is trying to pare down his holdings. He wants to own a small number of really good coins but his business is cash intensive and he doesn't always have the available funds to buy good items as they become available. I went to his house a few months ago and he had pulled out literally hundreds of proof sets, rolls of silver coins, sets of low grade pieces and miscellaneous "stuff."

This isn't the sort of material I typically deal in but I like this guy, we've done a lot of business and I had the feeling that his junk was going to add up to a decent chunk of change. By the time I got his coins home, sorted through them, sent the good coins to PCGS and NGC and taken pen to paper, we were up to close to $75,000. That's a lot of "junk" and that, in turn, bought him a few really good coins which he now has stored in one small box instead of in three huge safety deposit boxes.

As a dealer, this isn't the sort of deal I like to do. It is very labor intensive and I still have nightmares about washing my hands every three minutes as I sortd through bag after bag  of circulated Indian Cents and Mercury Dimes looking for key dates. But I was working on 10% and got the collector to promise that I would be able to trade for his good coins when the time came.

Most times I'm not going to trade, say, a Proof Liberty Head double eagle worth $75,000 for a trunk full of modern crap. But if you are a good client and you do most of the work (i.e, you ship me your stuff neatly packaged and reasonably well-organized) I will consider trading my one great coin for your boatload o' crap.

I've probably made the whole trading process seem more complicated than it really is. If you don't have two compatible trade partners, you'll probably never make a deal work.

I'd love to hear your stories about good trades and bad trades. Please comment on them at the end of this article. And if you have coins which you would lke to trade, please feel free to email me at dwn@ont.com

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.