The Third Annual RYK/DWN "Mashup"

Are you ready for a third RYK/DWN Mashup? Sure you are. Let’s get the background information out of the way and then get to the meat of the matter. This is, I believe, the third time collector Robert Kanterman and I have exchanged questions and answers about a variety of topics (the first was a two-part article). We’ve covered a lot of ground in the past; some of it warm and fuzzy, some of it, controversial, but all of it interesting and relevant. (Previous "installments" can be found here, here, and here.)

The format for this year is a bit different than in the past. I asked RYK five questions which he answered, and he did the same for me. After each of our respective answers, we each add some pithy comments. Simple, right?

Just remember the code: DW = Douglas Winter, head of Douglas Winter Numismatics, and gold coin specialist, while RYK = Robert Kanterman, collector extraordinaire, and popularizer of the DOG, or Dirty Original Gold coin.

Questions that DW asked RYK:

1. What is the most undervalued series of us gold and what is the most overvalued? Why?

2. If you had unlimited funds, what would you collect?

3. What are three books on us gold you'd like to see written?

4. Has grading gotten more conservative or looser in the last two years?

5. Originality is finally in vogue. How much more are original coins worth versus commercial quality coins?

RYK’s answers with DW’s comments:

1. To be honest, I do not see anything that is truly undervalued at this point in time. If I had to pick one area, I would suggest that the most undervalued series of US gold to be No Motto Philly $5's and $10's. Some of these dates are really tough, and even the more common dates are tough to find in better grades and original condition.

The most overvalued areas to me are New Orleans and Carson City $20's. They are far more common than their valuations would suggest, especially the more prevalent dates (1851-O, 1852-O, 1875-CC, 1890-CC, etc.). I see 1851-O $20's in ugly XF going for $4500—which seems outrageous for an easy date/MM.

DW: Wow, what radiologist got up on the wrong side of the bed this morning? I disagree about the “what’s undervalued” comment. I think there are dozens of good values to be had in the Liberty Head gold series. As an example, Philadelphia quarter eagles from the 1840’s and from the 1867-1877 date range are really good deals right now. There are many San Francisco quarter eagles and half eagles that can be bought for less than $5,000, which are rare both in terms of absolute and condition rarity. I think a case could be made for calling nearly any C or D mint coin in truly original EF and AU grades a relatively good value given how hard they’ve become to find. Even seemingly mundane coins like nice AU No Motto eagles from Philadelphia at $1,000-1,500 are great values for collectors. And I can think of many more examples!

I see RYK’s point about calling O mint and CC double eagles “overvalued,” but you have to remember that the demand for these coins is huge. When you could buy CC double eagles in EF for $1,500 these were just flat-out undervalued coins. At today’s levels they are clearly not cheap anymore. But always remember these coins are big, have a great story, and are promotable. To a new collector, a nice CC $20 at $3,000-5,000 still seems like a fair value.

2. My first stab at this was to pick proof $20 Libs—a big, beautiful trophy coin, if ever there were one. However, as infrequently as these appear on the market, and if you add some criteria for quality and originality, despite the unlimited funds, you might not be buying many coins.

More realistically, I think that I would rebuild a series like Dahlonega $5's in MS-62/3/4 and model it after the original Duke's Creek and Green Pond collections.

If I am allowed to stray outside US Mint gold coins, I would probably do something in territorials, perhaps a high-end type set.

Finally, outside US coins completely, and not requiring a huge budget, a Pillar dollar date set in original XF/AU is something that would be really cool and interesting to me.

DW: I’m a little surprised that RYK mentioned Proof $20 Libs as this doesn’t strike me as a very RYK-esque series. I would have actually guessed he’d have picked a date run of early gold; possibly Fat Head half eagles.

Love the idea about re-building the Duke’s Creek and Green Pond collections. Just let me say that if you decide to do so, I’m here to help!

Like the idea on Territorials, but I’d caution that buying these coins requires extreme knowledge of the series and a good working relationship with an informed, savvy dealer.

And I’m crazy about the Pillar Dollar date set. That would be something that I would actually like to do for myself. Or maybe a date run of Mexican 8 Escudos gold coinage.

3. A Collectors Guide to San Francisco Gold Coins (1854-1880) — notice the date range.

An Encyclopedia of Original XF Branch Mint Gold Coins, 1838-1861.

Gold Coin Collectors and Dealers of the 19th and 20th Centuries.

DW: I’ve been kicking around a SF gold coin book for years. I’d need help to do it and, unfortunately, the two dealers I asked to help have contributed a collective sum of zero pages. I agree with RYK that the post-1880 coins tend to be easily over-lookable and the real interest lies in the earlier issues.

The second book seems a little self-serving (bad RYK, bad!), but it gives me an idea. It would be neat to do a web-based photographic record of totally crusty individual coins filed by date. A photographic record, if you will, of DOG gold. I probably have enough photos already available to partially complete this project and, in fact, if you go to my "Coinapedia," you can get an idea of how many of these photos I already have. Anyone with web savvy care to help…?

The third project is kind of interesting as well; I’m assuming RYK would want biographic sketches of collectors and dealers who specialized in US gold coins. Pete Smith did a project along these lines around a decade ago that was outstanding.

4. To be honest, I submit very rarely, and only to PCGS. I think that there is a psychology to grading that leads to grading decisions that are greatly affected by the other coins that the grader has seen on a given day, in a given session, immediately before and after your coins, the mood, the last phone call with the spouse, the time of day, etc. That said, I will have to say that when grading my coins, the grading service seems more conservative than when they grade the next person's coins. ;)

On a more serious note, I have seen some overenthusiastic grading of special collections when they get evaluated as a group. I am not going to call anyone out, but most people will know what I am talking about.

I would say that grading has become more conservative over the last five to seven years, and I am not sure that I have noticed much change specifically in the last two. I do see fewer obvious problem coins in newer holders. Maybe we should say that the grading services are getting better (and maybe Don Willis and Scott Schechter will remember I said so next time I submit some coins).

DW: That is an excellent answer and there isn’t much I can add to it. I like RYK’s point about special collections being graded “specially,” but if I had a $5 million deal of, say, fresh Dahlonega half eagles, you are darn tootin’ that I’d expect the grading to be “enthusiastic.”

5. Originality is indeed in vogue, and I am going to take some credit for spreading the gospel. DOGs (Dirty Original Gold coins) rule!

That said, the premium is complicated but certainly exists in ways that are difficult to characterize or articulate. I will attempt to make my point:

1. Original gold coins will sell much faster than non-original gold coins of the same grade. This is indisputable.
2. The premium for the original coin can range from zero (if purchased from a seller who does not appreciate originality) to 100% or more. I think an average would be around 20-25%.
3. Sometimes the obviously unoriginal coin lingers on the market for a very long time, and it is hard to ascribe a value to it.
4. There are an increasing number of collectors, like myself, that are buying the right look, irrespective of the grade, and it is very hard to say what the premium for doing so is.

DW: Wow, this guy RYK, he’s a confident fellow, no? Taking credit for spreading the Gospel of Crust…wonder where he learned that from?

I couldn’t agree more with answer #1. If you look at what sells on my website, the crustiest coins are the best received. Duh.

What sort of premium do these coins sell for? Let’s take a random example. A decent, but not really nice, common date C mint half eagle in PCGS EF40 is worth around $2,000. The same date in EF40 but with a deserved CAC sticker (dark, mellow surfaces and few appreciable marks) is easily worth $2,300; maybe even $2,500. For a coin like an 1861-D gold dollar or an 1864-S half eagle, a completely crusty example could sell for a much bigger premium than this.

As a rule, I’d say that True Crust certainly adds 10-20% and in certain exceptional cases, the premium could easily be 50% or more.

Questions that RYK asked DW:

1. Four gold coins that have risen dramatically in value over the last ten years are the 1861 branch mints. If you had to pick four to hold for the next ten years, and could not pick these, which four coins would you pick? Which group of four would you rather have?

2. Many people say that today's modern coins are tomorrow’s classics. Do you see any future classics among today's moderns (post-1986)? If I made you choose one…

3. Pocket change is becoming less and less a part of daily life. What impact, if any, will this have on specifically gold coin collecting, in your opinion?

4. The current high-end coin marketplace is strongly influenced by the duopoly of PCGS and NGC (with some nudging from the CAC). 80 years ago, Ford and GM dominated the car marketplace. Under what circumstances do PCGS and NGC become lesser players, or even inconsequential? Same question for Heritage and Stacks-Bowers.

5. What is the most expensive-liquid (high demand) gold coin and least expensive-illiquid (low demand) gold coin that surprised you among coins that you have owned, bought, or sold in the last couple years?

And a special “mulligan” question to be named later…you’ll have to read on to see the question and the answer!

DW’s Answers with RYK’s Comments:

1. It’s hard to narrow this down to four coins, but the following four were chosen for one or more of the following reasons: popularity, “uniqueness,” multiple levels of demand, standalone qualities. The four coins that I would pick, and some reasons why, are as follows:

• 1854-S quarter eagle: This date has finally been recognized as a Classic Rarity but it is still wildly undervalued when compared to a coin like an 1894-S dime. I just bought the fifth finest known of 12-14 known for under $300,000 and, in the rarified air of Classic Rarities, this seems cheap to me.
• 1870-CC eagle: Here is a coin with so much going for it: rare in all grades, first-year-of-issue and history out the wazoo. A lovely EF40 just sold for less than $50,000 and I think this is cheap, especially when compared to the only slightly rarer 1870-CC double eagle.
• 1854-D three dollar: This is another issue that has everything going for it: low mintage, odd denomination, one year status, etc. It’s not as rare as you think it might be but most of the “AU” examples are stripped-n-dipped and a really nice, wholesome example at its current market value seems like good value.
• 1875 eagle: This is not a cheap issue but I don’t think many people know how rare it is (well under 10 known business strikes) and how scuzzy most of the survivors are. Given how wildly popular Ten Libs have become, this is a coin I could expect selling for $500,000 or more in the near future with just a wee bit of promotion.

RYK: Those are all excellent choices, but in the spirit of one of my favorite Thanksgiving activities, I am going to throw the yellow flag for roughing the collector by including coins that are as scarce as 94-S dimes! I like the 70-CC $10 as a choice—I wish I purchased the XF-45 example one you had on your website when I first started coming around 11+ years ago. I am less enthusiastic about the 1854-D $3, in part because my enthusiasm for $3's has waned over the years. I might include such coins that are more available like the 1795 $5 (which seems to have backed off from recent highs), the 1838-D $5 (which continues to lose ground to the 1838-C $5), the 1838 $10, and the 1861-O $20.

2. Oh, great, you would have to ask me a question about moderns…a subject I know absolutely nothing about. So, how about those Blazers…

I’m sure there are future scarcities among the post-1986 coins, it’s just that I have no idea which these are.

And please make sure to take a breath mint on your way out the door….

After taking the Modern Coin Walk of Shame, the ever generous RYK asked me a question about a subject I actually know something about.

SECRET HIDDEN QUESTION ALERT!!!

2a RYK: If you could have the entire series of Dahlonega $5's except, the 1861 (1838-1860), in circulated condition OR own only the 1861-D $5 in MS-62 from the series, which would you prefer? Assume the sum of the value of the 25 coins is roughly the same as the value of the 1861-D.

2a DWN: Hmmm…that’s a great question. My answer would depend on the quality of the coins themselves. If the 1861-D was just a so-so coin, I’d probably go for the quantity option. If the majority of the other coins were nice, I’d select that option. As an “investment” option, I’m pretty sure I’d want the 1861-D but from the standpoint of being a collector, I’s want the virtually-complete set of D mint fives.

RYK: In my question, I am assuming that all coins are quality for the grade and the sum of the value of the first 25 was about equal in value to the higher grade 1861-D...and I would select the One Coin (to rule them all...).

3. I don’t think that the direction we are taking to becoming cashless will impact collecting. I am not that old, but I can’t remember finding cool coins in change, and I still fell in love with coins at an early age.

Here in Portland, I am seeing a renaissance of old things. Young adults in their 20’s here love vinyl, they dig typewriters, and they go gaga for books and ‘zines. I can see this happening with coins as well. No more change makes these little round discs a lot more interesting.

RYK: I am going to agree with my friend from Oregon. Things that are obsolete become collectibles, and despite the fact that gold coins have not truly circulated for generations this has not limited their popularity. Just in case, I am going to buy my own smelter...

4. I could see something happening in the next decade to shatter the PCGS/NGC duopoly. What if exceptionally good counterfeits pass through the graders undetected? How would PCGS or NGC explain their inability to detect these coins? What if an insider trading/insider grading scandal rocked one of the services? It isn’t likely but it could possibly happen.

Or what if a better mousetrap is invented? Say someone patents really effective computer grading with the ability to interpret eye appeal?

Heritage and Stacks Bowers certainly control a good share of the market but they aren’t infallible. Say a hedge fund saw opportunity in the coin market and threw a lot of money at creating a firm to directly compete with the Big Two. It would be expensive but there is enough talent out there to topple them. And don’t forget about good old fashioned hubris. As you pointed out in your example above, Ford and GM seemed infallible but they never considered that the Japanese would make a better, cheaper product.

RYK: I am usually the last person to see the end of the line for a company, a fad, species, etc. That said, counterfeit holders (containing counterfeit or misrepresented coins) seem to be more likely to be a threat than counterfeit coins, at least in the near future. While on the surface, business seems to be booming at the Big Two, business conditions could change on a dime (no pun intended!), possibly leaving one of the other - or both - flatfooted. Perhaps if a consortium of very well respected numismatists came up with a better mousetrap, they could give some competitions, especially in the wake of a scandal or public controversy.

As for the auction environment, the Legend-Morphy entry, at the high end, and Great Collections, as a soup-to-nuts entry, both seem to have legs and are clearly taking away business from the Big Two. Neither of the new entrants currently seems to be a major threat to the dominance, but they are certainly chipping away.

Bottom line: ten years from now, Heritage and the latest iteration of Stacks-Bowers will still remain the Big Two, as will PCGS and NGC.

5. The most expensive ultra-liquid gold coin, in my opinion, is probably a Stella. They are worth $200,000+ for a nice one, but I could sell a bunch of them right now for a fair price and get paid within 72 hours. The least liquid would have to be in a very thinly traded area like patterns. If you had a High R-7 pattern (around 3-4 known) is might be a surprisingly hard sell if the one or two major collectors already had one.

RYK: I do not know much about Stellas (other than the fact that I once held five in one hand at lot viewing), but I probably should throw a penalty flag for illegal use of the pattern in a numismatic conversation, not once, but twice, in the same paragraph. My first thought was that the High Relief Saint was the most expensive and liquid gold coin, but coins like 70-CC $5 and $10, and 1861-D $1 and $5 sell very quickly when offered for a fixed price—almost no matter the price! I also continue to be surprised by the shipwreck coins, especially from the SS Central America, that sell for higher and higher prices as time goes by.

As far inexpensive but illiquid, in the context of gold coins, I would say that there seems to be a cadre of ugly, puttied, and/or otherwise abused gold coins from the southern branch mints that is perpetually available for sale.

So, there you have it. Another installment of the RYK/DWN Mashup!

Do you buy rare gold coins? Do you have gold coins you care to sell? Would you like to have the world’s leading expert work with you in assembling a set of coins? Contact Doug Winter via phone at (214) 675-9897 or email him at dwn@ont.com.

The Carson City Double Eagle Market: An Analysis

It’s been a while since I’ve done an in-depth article on any Carson City gold coins and, as they are the most popular issues from this mint, I thought this would be a good time to write about the double eagles from Carson City. Before we get into date-by-date mode, let’s look at some big picture issues which concern collectors of these coins.

1. Popularity levels have clearly risen. CC double eagles have always been popular with collectors. But they have become an investor favorite as well. I am aware of at least three large marketing firms who are selling CC double eagles and not just mundane common dates in VF and EF. This has pushed interest up for all dates in virtually all grades.

2. Prices have risen.Without a statistical study, I can say intuitively that prices for most CC double eagles have risen between 10 and 50% in the last five years. I used to be able to buy quantities of nice EF coins for less than $2,000; today, these same coins cost me closer to $3,000. This seems to be even more so with higher grades coins. As an example, an MS61 1875-CC was a $7,500 coin around five years ago and not always an easy sale at that level. Today, I get $12,000 or more for one and they disappear as soon as I list them on my website.

3. Fewer coins seem available. My intuition tells me this is true based on what I am able to buy. At a typical big show five years ago I would return with anywhere from five to ten nice CC double eagles. I’d see them in dealer’s cases and I’d see them offered not only by the usual suspects but by smaller mom-n-pop dealers. This is clearly not the case in 2013 and I might come back from a show like Long Beach with no more than one or two CC double eagles in my newps.

4. CAC has had an impact. At first, CAC approved examples of CC double eagles didn’t seem to have a big impact on the market. This has changed and even common dates in EF sell for a premium. The coins with potentially big CAC impact are the rare dates which don’t typically come nice. As an example, I have seen virtually no AU50 examples of the 1870-CC which I thought were choice original coins. Currently, CAC has never approved an 1870-CC in grades above EF40 (and just two at that level). If an average quality 1870-CC in AU50 is worth, say, $325,000 what is one worth with CAC sticker? $350,000? $375,000? Maybe even $400,000?

Let's now take a quick look at each date and see what's happening on a coin-by-coin basis.

1870-CC:

Between 2005 and 2010, there were two or three examples of this date per year appearing at auction. This has slowed done considerably and in the last three years, only one non-no grade 1870-CC has sold at auction. This doesn’t mean this date has stopped selling; I know of a Nevada-based specialist dealer who owned multiple examples of the 1870-CC at one time and I believe he has sold them all via private treaty in the last year. This date cratered at around $200,000-225,000 for a typical quality EF coin a few years ago and prices have risen, slowly but surely. To own a decent 1870-CC today, you are going to have to write a check for at least $250,000 to $275,000. There are two above average examples in the Heritage 2014 FUN sale and it will be interesting to see what these bring.

1871-CC:

For most collectors, this date remains the single most expensive coin in their set, given that they won’t purchase an 1870-CC. I recently sold an NGC AU55 for well over $50,000 which is a record for me. Demand for the 1871-CC continues to increase and a choice PCGS EF45 could bring over $30,000 if available.

1872-CC:

The pattern of availability for this date has changed over the last few years. It used to be an issue that I handled regularly in EF45 and these sold well for me. Today, these same coins now grade AU50 or even AU53 and seem more available than before. Properly graded AU55 to AU58 1872-CC double eagles remain rare to very rare and other than the fantastic Battle Born coin, no Mint State pieces have been sold in some time.

1873-CC:

The finest known 1873-CC, variously graded MS62 and MS63, sold five different times between 2004 and 2008. Since then, not much in the way of exciting high grade 1873-CC double eagles have sold but Stacks Bowers 1/13: 13337, graded MS61 by NGC, brought a record-breaking $55,813 earlier this year. Prices for this date in all grades have risen as well.

1874-CC:

I was recently offered an NGC MS60 example of this date for $20,000 and, gulp!, I almost pulled the trigger. After years of being undervalued, the 1874-CC is a sleeper no more an even nice AU58’s are selling at close to the $10,000 mark. This brings us to a quick rhetorical question: is it is possible for there to be a sleeper in an extremely popular series such as Carson City Liberty Head double eagles? My take…yes there is but only a very few and only in the specific instance where the holder means nothing. In other words, population figures for AU58 1874-CC double eagles would suggest it isn’t rare. But real world experience shows that properly graded CAC-caliber examples are in fact very scarce if not actually rare.

1875-CC:

I mentioned in the beginning of this article how MS61 1875-CC double eagles have soared in price in the last few years. This is true with examples of this date in AU grades as well. I think nice 1875-CC double eagles will remain popular and in demand due to this issue being the only quasi-affordable Type Two issue from this mint.

1876-CC:

It’s been at least two years since I’ve handled an 1876-CC $20 in a grade higher than MS60 and this is surprising as nice MS61 and MS62 pieces used to be around. This, to me, is another good indication that CC double eagles are truly a collector-oriented series. The nice coins seem to be going off the market into long-term holdings unlike in the past when they would be held for a year or two and then flopped.

1877-CC:

The comments I made for the 1872-CC (see above) are pretty much the same for the 1877-CC. AU50s and AU53s seem a touch more available than in the past but that is primarily the result of gradeflation. The Battle Born: 11046 coin, graded MS62 by PCGS, is the only Uncirculated 1877-CC to come on the market for at least two years and I have handled just one Uncirculated piece myself (a PCGS MS61) in this time frame. Just as an FYI, if you can find a nice EF example for anywhere near $4,000, I think this is still a great value.

1878-CC:

This was a date that was always appreciated by collectors due to its small mintage but the lack of decent examples in the last few years is, to me, a tribute of the 1878-CC’s true scarcity. I like the value that this date offers in EF grades (still less than $10,000) assuming that you can a) actually find one and b) it isn’t dreadful.

1879-CC:

Ditto. Here’s another date which has seen almost no nice pieces sold since Battle Born: 11048. I have privately placed an AU58 and an MS60 and for both coins I had to pay what I believe were record prices.

1882-CC:

I’ve never been a huge fan of this date, so what I have to say might show an anti-1882CC bias. But I have noticed a pretty healthy supply of examples this year, including a few decent to choice Uncirculated pieces. I still think the 1882-CC is fairly valued in AU50 to AU55 grades (especially if the coin is CAC quality) but I’m going to officially go on record and state that Mint State 1882-CC double eagles are spendy. I still can’t get over the fact that the PCGS MS63 in Battle Born brought over $80,000.

1883-CC:

If I were assembling a CC double eagle set for friends or family, I’d look at a PQ AU58 with CAC approval at around $7,000 or a touch more. That seems like better value, to me, than a so-so MS60 or MS61 at $12,000-14,000.

1884-CC:

Along with the 1883-CC, this is one of my favorite CC dates for type purposes. It tends to come well made and if you can find an example with original color and surfaces, the visual appeal for this issue tends to be better than average. Uncirculated 1884-CC double eagles are no longer affordable for most collectors as a nice MS61 will cost you around $12,500 and if you can find an MS62 you are looking at $20,000 or more.

1885-CC:

When I first started making a market in CC double eagles, this date seemed to be more of a “key” than it does now. Not to cast aspersions on the 1885-CC and its friends and family but this date just doesn’t feel like a rarity anymore. Sure, it’s a better date in the series but it seems more plentiful than it was back in the day. One quick observation: this date used to be priced in tandem with the 1878-CC and 1879-CC in higher grades but it now lags both of these issues. The last nice coin to sell, ex Stacks Bowers 4/13: 1401 and graded PCGS MS61, at $35,278, actually seems like a good value to me within the context of this series.

1889-CC:

I just sold a nice PCGS AU58 example for over $8,000 to a savvy wholesaler and this was sort of a “gulp!” moment for me. I looked at my old records and saw that I was selling the same date in this grade for around $5,000 around three years ago. The gulp wasn’t so much that I thought these were now overvalued at $8,000; I leave that to the market to decide. The gulp was more that I wistfully thought “why didn’t I just put four or five of these away for a few years and sell into a market I knew was going to be strong.” Sigh…

1890-CC:

I’m now pretty certain that this is the most available date in the series in lower grades. I still see 1890-CC double eagles coming out of Europe and even some pretty decent EF45 to AU55 examples from these sources. This is one of the few CC double eagles that are still comparably affordable in AU58. I have sold a few nice examples in the last couple of months for around $6,000. Not cheap but not as pricey as some of the other common dates in this series.

1891-CC:

This date has proven itself to be scarcer than the 1885-CC and it seems far less available in the current strong CC double eagle market. No Uncirculated examples have sold at auction since the nice MS62 in Battle Born (it sold for a reasonable $48,875) and I don’t think I’ve handled more than two or three nice AU’s this year. Presentable AU’s at less than $20,000 seem like good value to me in the context of this market.

1892-CC:

Let’s say you bought a nice PCGS MS62 1892-CC in 2008. You probably paid around $16,000-18,000 for it. Fast forward to today. You send your coin to CAC and since it was nice for the grade, it is approved. If you go to sell the coin, the chances are good you’ll get around $25,000 for it and possibly more if someone like me thinks it has a chance to upgrade to MS63. Not a terrible return, especially given the fact that many non-CC Type Three double eagles have had spotty price performance during this five year period.

1893-CC:

The rumor about this date used to be that there was a bag of them and someone was quietly selling them two or three at a time. True? I doubt it but there were certainly a lot of similar looking Uncirculated 1893-CC double eagles on the market a few years back. There are still some nice coins around but they tend to have a bleached-out look as they have been processed to remove the deep peripheral color you used to find on this date.

Do you collect Carson City double eagles? If so, I would be pleased to help you assemble a great set. Feel free to contact Doug Winter by email at dwn@ont.com.

What Killed the New Orleans Quarter Eagle Market?

If you had asked me a decade ago which series of New Orleans gold coin had the most upside potential I would have replied, “quarter eagles.” This was a series which has everything going for it. It is short-lived (a total of 14 issues were struck from 1839 through 1857), affordable (at the present time, nearly every issue can be found in nice AU grades for less than $3,000), interesting from a historic and numismatic perspective, and much easier to complete than the half eagle, eagle, and double eagle series from this mint.

A decade ago, interest was soaring in the New Orleans quarter eagle series and prices appeared to be rising as well. But something went terribly wrong and this series, in many cases, is worth less than it was ten years ago; at the same time when many other New Orleans gold coins have shown excellent price appreciation. What killed the New Orleans quarter eagle market?

To answer this question, I am going to look at some theories of mine. I am also going to randomly choose four different issues in four different grades and compare prices from a decade ago to today.

1. Grading Standards Were Not Upheld by Both Services

A decade ago, standards for New Orleans quarter eagles were fairly tight. As an example, if you were offered an AU55 1852-O quarter eagle in 2003, the chances were good that this was a decent to choice coin with some luster present. Today, many of the 1851-O quarter eagles that I see in AU55 holders are, in my opinion, not much better than EF45 in terms of sharpness and overall quality. While this inflating of grades has occurred in many dated gold series, for some reason it has always seemed more obvious in the New Orleans quarter eagle series. Coupled with the fact that certain New Orleans quarter eagles have strike and manufacturing problems, this gradeflating has made the series fairly unappealing to new collectors and purists alike.

2. Populations Are Hugely Inflated

I don’t have immediate access to population figures from 2003, but it seems to me that both NGC and PCGS have hugely inflated numbers for coins like the 1851-O in AU55 that I mentioned above. A quick look at this month’s online figures show that PCGS has graded 20 in this grade while NGC has graded 102. I can live with the PCGS figure, although I think the actual number of accurately graded coins in this grade is fewer than ten. But the NGC figure of 102? Not only is this grossly inflated, it gives the impression that an AU55 1851-0 quarter eagle is a relatively common coin. Interestingly, CAC has only approved three AU55 examples of this date. One would think that a coin with an NGC/PCGS population of 122 coins would have more than three approved by CAC…unless not many of these “122” coins are CAC quality.

3. Small Coins Lose Popularity

Clearly, small coins like gold dollars and quarter eagles have lost some popularity in the last decade as collectors get older and little coins grow harder and harder to see. Just as New Orleans double eagles have taken on an unprecedented degree of popularity in the last decade, small coins like New Orleans quarter eagles (and gold dollars) have ebbed in demand. Not that this is not true across the board: popularity levels for Dahlonega small-sized coins are at an all-time high, and Charlotte gold is becoming more popular after years of neglect. But in the New Orleans arena, it is clear that the focus is on big coins and small coins, at least for now, are the losers.

4. Quarter Eagles Never Had a Promotion

You can make a strong case that the New Orleans double eagle market got jump-started by a promotion a decade+ ago and has since become a fully functioning, collector-based market. The New Orleans eagle market has been promoted to the extent of the double eagle market but it has found a solid collector base. The same can be said, although to a lesser extent, for the half eagles from this mint. This just hasn’t been the case for the quarter eagles. No one has gone out and bought 50 or 100 nice AU to Mint State quarter eagles, written a compelling script and sold them on TV (don’t snicker; it could and probably should be done…) This lack of promotion, combined with a general market malaise towards quarter eagles has made this the softest single series of gold coins from this mint (with the exception of two dates which we will discuss later in this article).

Now that I’ve dispensed with my theories, let’s take a look at some specific dates/grades in this series and see how they have performed in the last decade. Be aware that the sample size I am using is very small, but the prices are based on average quality coins trading at public auction; all are coins which I have viewed in person.

 1840-O Quarter Eagle, AU55

The 1840-O has some degree of numismatic significance as it is the first Liberty Head issue from this mint. It is relatively scarce in AU55 and this is a popular grade as this date becomes very expensive in Uncirculated.

• NGC AU55: $2,070; Heritage 2/11: 4377

• PCGS AU55: $2,760; Heritage 1/10: 3818

• NGC AU55: $2,588; Heritage 3/04: 6093

• PCGS AU55: $2,875; Heritage 11/03: 7143

The price performance of this date in AU55 has been mediocre at best. An NGC coin is probably not an easy sale at just a touch over $2,000, and part of this has to do with the current population of 20 in this grade with a whopping 41 finer. A PCGS coin at $2,500 would probably be an easier coin to sell as the population in this grade is just eight (with 18 finer). It is interesting to note that CAC has approved just one in AU55, and my guess is that a choice, original piece with a CAC sticker might be worth as much as $2,750-3,000, regardless of whether it was graded by NGC or PCGS.

1843-O Small Date Quarter Eagle, MS62

The 1843-O Small Date is the most common New Orleans quarter eagle, and the second most available in Uncirculated. In MS62, it is fairly scarce and I have always felt it was undervalued. What makes this coin interesting, to me at least, is that it is the only affordable O mint quarter eagle from the 1840’s in MS62, and I’ve always felt that this should expand its desirability beyond specialists.

• NGC MS62: $2,585; Heritage 4/13: 5494

• PCGS MS62: $2,291 and $2,585; Heritage 6/13: 2585, and Heritage 10/12: 5546

• NGC MS62: $2,185; Heritage 1/03: 4667

• PCGS MS62: $2,530; Heritage 1/03: 8447

These auction prices are a bit misleading as they don’t show that for a few years between 2006 and 2009, a nice MS62 example of this variety was worth in the $3,000-3,250 range. Prices have stayed flat over the past decade and I don’t attribute this to gradeflation as the PCGS population has stayed at a reasonably low 14 coins in MS62, while NGC has graded 26. I’ve owned most of the PCGS MS62’s and the quality is usually pretty presentable; certainly nice enough to be appealing to a non-specialist who wants a cool, higher quality branch mint quarter eagle from the 1840’s for not a lot of money. I’m kind of at a loss as to why this isn’t a $3,500-4,000+ coin.

1852-O Quarter Eagle, EF45

To avoid being pegged as an elitist, I thought it would be interesting to take a quick look at prices for an inexpensive yet reasonably interesting coin like an 1852-O quarter eagle in EF45. This is one of the more common quarter eagles from this mint in a lower than normal grade, but at less than $1,000 it provides a good amount of bang for the buck.

• NGC EF45: $446; Heritage 3/12: 8726

• PCGS EF45: $403; Goldberg 2/12: 1202

• NGC EF45: $604; Heritage 7/04: 8026

• PCGS EF45: $633; Heritage 11/03: 7196

I’m not totally surprised by this price drop over the last decade. Even though gold has increased from a range of $363-409 in 2003-2004 to four times this amount today, many gold coins like an EF45 1852-O quarter eagle have performed poorly. It all boils down to supply and demand, and there are a lot more 1852-O quarter eagles in EF45 than there are collectors who wants one; even at the bargain price of $425.

1857-O Quarter Eagle, MS62

As our final example, let’s look at a coin that I think perfectly defines the term “condition rarity.” The 1857-O is the final year of issue for New Orleans quarter eagles. A total of 34,000 were struck and survivors are pretty common in circulated grades. But in Uncirculated, the 1857-O is very scarce with just two dozen or so known; mostly in the MS60 to MS61 range. I believe that there are around six to eight properly graded MS62 to MS63 coins accounted for; PCGS has graded 14(!) in MS62 with four finer while NGC has graded seven in MS62 with nine (!) finer. CAC has approved four coins in MS62, suggesting that the typical quality of at least some of these higher grade 1857-O quarter eagles is above-average.

• NGC MS62: $6,038; Heritage 10/11: 4702

• NGC MS62: $8,338; Heritage 2004 ANA: 7152

The population of this date in MS62 was much lower than its current 21 coins, which makes the 1857-O appear to be a somewhat available date in this grade. I would strongly disagree with this statement, however, as in my experience a properly graded MS62 1857-O quarter eagle is very rare and collectors are being misled by the combined NGC/PCGS figures.

I’ve stated throughout this article that the New Orleans quarter eagle market is “dead.” This isn’t wholly true as there are two issues, the 1839-O and the 1845-O, which have increased in popularity and, I would presume, price. Why is this?

The 1839-O is a first-year-of-issue and a one year type so it has multiple levels of demand. This is clearly why other Classic Head coins like the 1838-C half eagle and the 1838-D half eagle have soared in value in recent years.

The 1845-O is a key issue with a low mintage figure of 4,000. It used to be very undervalued but it has become popular in recent years and it now has demand outside of the specialist community; primarily among collectors who like coins that are “cool.”

Let’s quickly look at price levels on these dates for now and around seven-eight years ago.

1839-O Quarter Eagle, AU55

• NGC AU55: $5,581; Heritage 4/13: 5480

• PCGS AU55: $5,581; Heritage 9/12: 4775

• NGC AU55: $2,530; Heritage 5/05: 8427

• PCGS AU55: $4,370; Heritage 91/05: 8767

I think the price increase for this date in AU55 is actually even more dramatic as a CAC/PCGS AU55 would actually sell for $6,500-7,000 today, and a coin of this quality would have only been worth around $3,000-3,500 in 2004-2005. And the increases in price for this date are even more dramatic in AU58 and the lower Uncirculated grades.

1845-O Quarter Eagle, AU50

• NGC AU50: $6,325; Heritage 4/11: 6317

• NGC AU50: $4,025; Heritage 7/03: 10126

Again, this is a coin whose limited auction records for AU50 examples in the time period which we are exploring is misleading. The 1845-O has shown good price appreciation in grades from VF to AU58 and I believe it will continue to do so as a result of its multiple levels of demand.

And what’s the fate for the typical run-of-the-mill New Orleans quarter eagle? It’s probably not a rosy future. I don’t see collectors caring much about coins like 1851-O quarter eagles in AU55, or 1854-O quarter eagles in AU58. Unless there is a sudden influx of collectors wanting to do complete sets, the price appreciation for this series is likely to be limited to those coins with multiple levels of demand, Finest Known, or high Condition Census examples of not-so-interesting dates or specific individual coins with great eye appeal.

If you’d like to learn more about New Orleans quarter eagles or rare gold coins in general, please contact me at dwn@ont.com.

A Collection of Transitional Gold Coins

I am often asked for ideas about what to collect, especially ones that are a little bit "out of the box." I recently had a conversation with a long-time collector about new directions for his set and we discussed the possibility of starting a transitional set of 19th century American gold coins.

By "transitional," I am referring to a coin that was struck as two different types during the same year. An example of this would be an 1854 gold dollar from Philadelphia which was produced as both as Type One and Type Two issue. Let's take a look at some of the transitional coins that are available to collectors who are considering this approach.

A pair of coins which is not a transition would be an 1861-S and 1861-S Paquet Reverse double eagle. This is the case because the 1861-S Paquet reverse was not used in any other year. An 1866-S No Motto reverse and an 1866-S With Motto are a transitional pair because the newer reverse was used in the following year(s).

1.  GOLD DOLLARS

The Liberty Head gold dollar was produced from 1849 through 1889.  There were a total of three types and there are a few interesting possibilities for the transitional collector.

In 1854, the Philadelphia, Dahlonega and San Francisco mint produced gold dollars with the Type One design. During the same year, a Type Two gold dollar was made at the Philadelphia mint as well. Both the 1854 Type One and Type Two gold dollars are common, although the latter becomes scarce and expensive in the higher Uncirculated grades. A transitional pairing of the 1854-P Type One and Type Two dollars could easily be assembled in MS63 to MS64 grades.

In 1856, there was a Type Two gold dollar made at the San Francisco mint and well as Type Three issue at Philadelphia and Dahlonega. These are not transitional issues, in the strictest sense of the word, as they were made during the same year but at different mints.

2.  QUARTER EAGLES

Production of this denomination began in 1796 and continued all the way until 1929. During this period, there were a number of transitional issues.

The first transitional pair of quarter eagles occurs in 1796 when both the No Stars and the With Stars issues were made. A total of 963 examples of the No Stars were struck and just 432 of the With Stars. While the more common of the two, the No Stars is better known and considered more desirable by many collectors. The 1796 With Stars is a very rare coin in all grades and is generally seen in lower grades than its No Stars counterpart. This transitional pair will be the most expensive part of such a set with nice AU-Uncirculated examples costing at least $250,000-300,000 and possibly more.

While the 1796 transitional set will be the most expensive quarter eagles in this set, the rarest coin will be the 1834 With Motto, which is the final year of issue for the Capped Head Left (reduced size) type struck from 1829 to 1834. There were 4,000 of these struck but nearly all were melted and today an estimated 20 or so exist. Later in the year, the better-known Classic Head design was introduced and the first-year-of-issue 1834 is common in grades up to MS63 and sometimes obtainable in MS64.  A transitional pair of 1834 quarter eagles could, in theory, be obtained for less than $100,000 but the earlier issue from this year might take years of waiting to locate.

No other transitional pairs exist for the quarter eagle denomination.

No transitional pairs exist for the three dollar gold piece.

3.  HALF EAGLES

The half eagle denomination began in 1795 and ended in 1929. It is fertile ground for the transitional collector with a number of interesting pairs extent, especially during the first few years of production.

The 1795 half eagle exists with both the Small Eagle reverse (employed on this denomination from 1795 through 1798) and the Heraldic Eagle reverse (used from 1795 until 1807). The 1795 Small Eagle is a reasonably common coin by the standards of early half eagles and it is, as one might expect, extremely popular. The 1795 Heraldic Eagle is considerably scarcer, especially in higher grades, although it is more obtainable. A nice transitional pair of 1795 half eagles will run  $100,000 or so but, in my opinion, it is one of the most visually arresting contrasts in all of American coinage.

Another transitional pair exists in 1797. Two different 1797 Small Eagle half eagles are known; the 15 star obverse and the 16 star obverse. Both are very rare although the former is more difficult to find and is not often offered for sale. There is a 1797/5 Heraldic Eagle known which is also very rare although it is at least obtainable; two other 1797 Heraldic eagle varieties (the 15 star and the 16 star non-overdate) which are unique and located in the Smithsonian. A transitional set of 1797 half eagles would be expensive ($200,000+) and hard to assemble but it would make an exceptional item and would be a highlight of this set.

In theory, a 1798 transitional set could be assembled as well but the Small Eagle is exceedingly rare with just eight known; the last example to sell at auction (a PCGS EF40) brought $264,500 back in 2000. The Heraldic Eagle variety from this year is reasonably common. It is possible that this set could be assembled but it would take deep pockets and considerable good fortune to even have a shot as obtaining a 1798 Small Eagle in today's rarity-conscious market.

The next transitional set in the half eagle denomination is the 1807 Bust Right and 1807 Bust Left. Both issues are reasonably common and a set could be put together, if so desired, in grades as high as MS64 to MS65. For $20,000-30,000, a more reasonably price alternative would include two nice AU coins.

A very interesting and very rare transitional pair occurs in 1829 with the Large Date (Large Diameter) and Small Date (Small Diameter). Both of these issues are very rare and generally trade once every few years. We're talking in excess of $1 million dollars for this pair and even having the money is no assurance that a set could be assembled.

A really interesting pair of transitional pairs exists for the 1834 half eagles. The Capped Head Left reduced diameter type began in 1829 and continued until 1834. During this year, both Plain 4 and Crosslet 4 varieties. Both are quite rare with the latter being harder to find. Later in the year, the new Classic Head variety was introduced and, again, both Plain 4 and Crosslet 4 coins are known with the latter being considerably rarer. It would be difficult but not impossible to put together this "pair of pairs" with the two Capped Head coins in AU-MS grades, the Plain 4 Classic Head in a grade as high as MS64 and the Crosslet 4 Classic Head in the lower MS grades.

The next group of transitional pair half eagles occur in 1842 and 1843. 1842 Philadelphia half eagles are known with Small Letters and Large Letters reverse varieties. The former is the type of 1839-1842 while the latter began in 1842 and continued all the way through 1866. Both are scarce and undervalued with the Large letters being the rarer of the two. A pair could be assembled in nice AU grades for $10,000-15,000.

The same transitional pair exists for 1842-C half eagles. The 1842-C Small Date is very rare in all grades while the Large Date is more available. An EF-AU pair would cost $20,000-25,000 to assemble.

With the 1842-D half eagles, the exact opposite rarity pattern is seen. The Small Date is the more obtainable (although it is very rare in Uncirculated) while the Large Date is rare and almost impossible to find above AU55. A nice AU pair could be assembled for $25,000-35,000.

This transition occurred for New Orleans half eagles in 1843-O. The Small Letters is slightly scarcer than the Large Letters but both are reasonably easy to find in EF and AU grades. A pair in AU could be purchased for less than $10,000.

The next transitional pair for half eagles occurs in 1866 when the San Francisco mint made 9,000 No Motto coins and34,920 With Motto coins. The former is extremely scarce while the latter is scarce but a bit more obtainable. The 1866-S No Motto is seldom found above AU50 while the With Motto is seldom found above AU53 to AU55. A pair of AU examples would cost around $20,000.

The final transitional pair for half eagles occurs in 1908 when both the Liberty Head and Indian Head types were struck. The 1908 Liberty Head was made only at the Philadelphia mint and it is common in grades up to MS64. The Indian Head type was made in 1908 at Philadelphia, Denver and San Francisco. It's possible to assemble a 1908-P half eagle set in MS65 for less than $20,000.

4.  EAGLES

The first transitional pair for the ten dollar eagle denomination occurs in 1797. The first coin struck this year was the Small eagle reverse of which only 3,615 were made. This is a rare coin in all grades and a very rare one in AU55 and above. Later this year, the large Eagle reverse was adapted and 10,940 were made. This issue is much easier to locate and it is sometimes seen in MS62 or even MS63 grades.  An AU set would cost at least 175,000-200,000 but it would be easier to assemble than the similarly dated half eagles (see above).

A less obvious but still important transitional pair occurs in 1839 with the Large Letters and Small Letters reverses. The former, which is the more common, employs the same size lettering as seen on the 1838. The latter, which is far rarer, uses the same size lettering as seen on the 1840 (and onwards). It is possible to assemble this set in AU for $25,000 or so but finding a nice 1839 Small Letters reverse will prove challenging.

In 1866, the San Francisco mint struck No Motto and With Motto eagles. The No Motto coins had a mintage of 8,500 and are very scarce in all grades. The With Motto coins are more available but only 11,500 were struck. Both issues are extremely hard to find above AU50. A nice EF-AU pair would cost $25,000-35,000.

A potential transitional gold coin collector will have much to keep him busy with 1907 and 1908 eagles. In 1907, three mints (Philadelphia, Denver and San Francisco) made Liberty Head eagles. Later that year, the new Indian Head design by Augustus St. Gaudens was introduced.

There are actually three distinct types of 1907 Indian Head eagle: the Wire Edge, the Rolled Edge and the No Motto. The latter is by far the most common although it is probably the least numismatically interesting. Most transitional collectors purchase a 1907-P Liberty Head in MS63 to MS65 grades and a 1907 No Motto in MS63 to MS64. Adding the Wire Edge is a nice touch but it should be noted that a nice Uncirculated example runs around $50,000. And, in the parameters we discussed earlier in this article, these are not a true transitional pair as the Wire Edge design was not fully adapted in 1908.

The final transitional pair for this denomination occurs, as a "pair of pairs", in 1908. Both the Philadelphia and Denver mints struck No Motto eagles followed by With Motto issues. None of these are rare in grades below MS65 and a nice MS64 set is an accomplishment which is readily attainable.

5.  DOUBLE EAGLES

The best known transitional Liberty Head double eagle pair is the 1866-S No Motto and With Motto issues. Only 12,000 or so of the former were produced and it is a rare issue whose price has soared in the last decade. The 1866-S With Motto is much more available although it can be challenging to locate in any Uncirculated grade. An About Uncirculated pair will run at least $50,000 and possibly more if the collector is fussy about quality for the No Motto.

In 1907, there was a radical change in the design of the double eagle and, as with the eagle from this year, there are pieces which use the old Liberty Head design (from Philadelphia, Denver and San Francisco) and the new St. Gaudens design. There are two important varieties of St. Gaudens double eagle from 1907: the High Relief which uses Roman numerals for the date and the Arabic numerals. These were all struck at the Philadelphia. An ideal transitional set, in my opinion, would include a 1907-P Liberty Head double eagle and a 1907 Arabic numerals. A slightly more advanced set could include a High Relief as well. The two coin set is easy to assemble in MS64 for around $5,000.

A second transitional set occurs in 1908 when the motto IN GOD WE TRUST was added to the reverse of the double eagle. The 1908-P and 1908-D issues exist with a No Motto reverse; the same two dates were made with the With Motto reverse, as well as a 1908-S.

Transitional collecting is not for everyone and, as you can see from reading this article, a complete set is extremely expensive due to the rarity of certain 18th century transitional issues. I really like the idea of assembling a mostly-complete transitional set and would be happy to discuss such a set in detail if you'd like to email me at dwn@ont.com.

United States Gold Coins with Multiple Levels of Demand

A trend that I have noted in recent years is that a subset of gold issues which have what I refer to as Multiple Levels of Demand (MLD). These are coins with more than one potential set of buyers competing for them. As an example, a coin such as an 1838-D half eagle is sought not only by Dahlonega specialists but by Classic Head half eagle collectors, first-year-of-issue collectors, one-year type collectors and collectors who just appreciate cool coins.

An 1844-D half eagle, in contrast, has a smaller pool of potential buyers which includes Dahlonega specialists and type collectors looking for a single nice half eagle for their set. MLD coins have increased significantly in value in the last five to ten years and this makes sense. Coin values are largely the result of a basic supply and demand relationship: the greater the demand, the more prices increase.

In this blog, let’s take a look at coins which are already stellar MLD’s and also at issues which might be the next wave of multiple level of demand coins.

GOLD DOLLARS:

If I had to choose the one single issue in this denomination which had the highest overall level of demand among collectors it would be hands-down the 1861-D. This scarce, low mintage issue is popular for a host of reasons: it is a coin with verifiable provenance from the Confederacy, it is the final issue from this mint (along with the similarly-dated half eagle) and the rarest gold dollar from any source. These facts (and others) have made it extremely popular and prices have soared as a result.

Other gold dollars which have a high degree of MLD include the Type Two issues: 1855-C, 1855-O, 1855-D and 1856-S. These four coins range from rare (1855-D) to relatively common (1855-O and 1856-S) but they have interesting stories attached to them and, in most cases, they are relatively affordable in circulated grades.

What are the gold dollars which are most likely to become MLD issues in the future? I would suggest that the 1849-C, 1849-D and 1849-O will due to their status as first-year-of-issue from their respective branch mints (side thought: this would make a great three coin set in AU for the collector of average means). I could see the 1870-S becoming an MLD due to it being the final year of issue from the SF mint for gold dollars, its low mintage and the sexiness of this date in general. The 1875, due to its mintage figure of just 400 business strikes, is another possibility as well.

QUARTER EAGLES:

As with many of the multiple level of demand coins, the list is dominated by Classic Head issues. The 1838-C and 1839-C have proven popular with collectors in the last decade as has the 1839-D. Of the three, the 1839-C tends to have the least MLD but this is partly due to the fact that many of the EF and AU examples which appear for sale are grossly overgraded and have problems. The 1838-C and 1839-D are both first year of issue with comparably low mintages and the latter is a one-year type.

A coin which is probably better classified as a Classic Rarity but which is also an MLD issue is the 1854-S. It has a tiny original mintage (246 pieces), very low survival rate and it is the first quarter eagle produced at the San Francisco mint. But this is already a solid six-figure coin and, thus, is not a realistic purchase for most collectors.

Other quarter eagles I regard as having a high MLD include the 1796 No Stars and the 1808; both are popular one-year types. The 1848 CAL is another obvious choice due to its status as a Gold Rush issue and as the first American commemorative issue.

What are the quarter eagles most likely to become MLD issues in the future?  I’d look at the four 1840 issues (P, C, D and O) as they would make a fun set to assemble, the 1845-O due to its status as the rarest issue of this denomination from New Orleans, and the rare Civil War issues from 1864 and 1865.

THREE DOLLAR GOLD PIECES:

I think there are really only two dates in this series right now that have MLD status: the 1854-O and the 1854-D and one of these (the 1854-O) has had a lot of its appeal ruined by blatant overgrading by the services.

The 1854-D is the clear MLD favorite right now. It is scarce in all grades but available enough to be a target for Dahlonega specialists, Three Dollar collectors, low mintage fans, and people who just like great coins with a real story to tell.

If I had to choose the dates most likely to have MLD status in the future, they would be the 1855-S (due to its status as the first Three Dollar from the San Francisco mint), the Civil War issues from 1861-1865 (all are collectible and could be turned into interesting subsets) and maybe the 1873 Closed 3 (very low mintage).

HALF EAGLES:

There are more issues of this denomination with high multiple levels of demand than nearly any other and this includes coins from the 18th, 19th and 20th century.

The first issue I’d place in the MLD category would be the 1795 Small Eagle. It’s available enough to be realistically obtainable by advanced collectors and it has a high “cool factor” as a first-year-of-issue with a great design.

Nearly any sub-$10,000 early half eagle has a high MLD factor, especially if the coin is choice and original. The reasons are obvious: old, gold, semi-affordable and very appealing from an aesthetic standpoint.

The 1838-C and 1838-D have oodles of demand due to their first-year and one-year type status. The 1839-C and 1839-D do as well but to a slightly lesser extent; both have, however, shown nice price increases in collector grades over the last decade.

The 1861-D certainly receives consideration as an issue with lots and lots of MLD and its counterpart the 1861-C has suddenly become quite popular as well. Both of these issues have demand that far exceeds the Southern branch mint box which other C and D half eagles are trapped within.

The 1870-CC, desirable as the first half eagle from this mint, is a coin with a high MLD. The same is true for the 1909-O as it is the only half eagle from New Orleans with the Indian Head design and it is a final year of issue. The 1929 Indian Head half eagle has become very popular in recent years due to its being the very last half eagle made.

Which half eagles have a good shot as showing high MLD in the next few years?  A few of my choices might surprise you. Due to its status as the only semi-affordable date of its type, the 1813 could have MLD. The same goes with the 1834 Crosslet 4 which is the key issue in the Classic Head half eagles; a set which is beginning to see appreciation by date collectors. The 1839-P is a neat, affordable one-year type coin which has lagged the market as has the first-year-of-issue 1840-O. The rare to very rare Civil War era half eagles from Philadelphia and San Francisco have new-found, widespread appeal and increased price levels to match.

EAGLES:

The first-year-of-issue 1795 has to be considered one of the most desirable eagles of any date or design. As with the similarly dated half eagle, it isn’t a really rare coin but it is an issue which “checks the boxes” for a host of collectors and has strong MLD as such. To a lesser extent, this is true with the 1799 as it is an 18th century-dated “big coin” which is still within reach of many advanced collector’s budgets.

The 1838 eagle has become exceptionally popular in recent years and it has soared in price. It is a first-year-of-issue with a low mintage and a very cool design which appeals to many different collectors. To an extent, the 1839 Head of 1838 has a degree of MLD but not as much as its earlier counterpart.

Many of the rare Civil War Liberty Head eagles have a high degree of appeal might they are probably not quite yet what I would consider MLD coins. An issue that clearly does have multiple levels of demand, though, is the 1870-CC which is desirable for a number of reasons. There are a few Indian Head eagles which have a strong MLD profile. The first is the 1907 Wire Edge, a coin of unparalleled beauty which has a great back story and which is rare but not impossibly so. The second is the rare and high valued 1933 which is the only American gold coin of this date which is legal to own.

I can think of numerous eagles which could have expanded levels of demand in the coming years. The key New Orleans issues, 1841-O, 1859-O, 1879-O and 1883-O, are beginning to show demand which exceeds the specialist community. The ultra-low mintage Philadelphia issues from 1873, 1876 and 1877 are becoming very popular as is the 1879-CC which has the lowest mintage of any Carson City gold coin.

DOUBLE EAGLES:

You can make a case that many Type One Liberty Head double eagles have some degree of MLD as they are pursued by general collectors, specialists and “double play” investors. If I had to select one specific Type One issue as having the most widespread appeal, my experience would suggest the 1861-S Paquet Reverse. The Philadelphia issues from the Civil War years (1861-1865) are quite popular as well.

The rarest Type Two double eagle is the 1870-CC but this doesn’t have the widespread appeal that the similarly dated half eagle and eagle do because it is very expensive and tends to be found with poor eye appeal.

You can also make a good case that virtually all Carson City doubles eagles, from both the Type Two and Type Three series, have multiple levels of demand. This is especially true with the more common dates in collector grades.

An obvious MLD issue is the 1907 High Relief. Yes, it’s probably overvalued but there are few American gold coins which have a higher level of demand from a more varied group of potential buyers.

Which double eagles have the potential to be added to this list in the coming years? Two which come to mind (and some observers might state that they already have MLD) are the 1861-O and 1879-O. The same probably holds true for the low mintage Philadelphia issues from 1881-1887 and 1891.

As coins become more expensive and harder to locate, buyers want an item which is special and which justifies what they are spending money on. Coins which have a nice design, a fascinating back-story, a very low mintage figure or some association with an historic event are the exact sort of piece(s) which people are now seeking and this is likely to continue in the coming years.

Do you want to purchase coins with multiple levels of demand? I specialize in such coins. Please contact me via email at dwn@ont.com and we can discuss how you can become a collector of these coins.

Advice to a Young Coin Dealer

The Professional Numismatist Guild (PNG) recently announced the establishment of the Edward Milas Memorial Fund which creates internships at established firms for as many as four qualified dealers/aspiring dealers aged 21-32. These internships are scheduled to be available by next summer.

I applaud the PNG for the creation of this program. I have written before that perhaps the biggest problem facing the professional side of the coin business is the aging of its dealers. Formerly young dealers like myself are now middle-aged, and when I go to shows, I can't help but notice the small number of dealers who will be factors in the market come 2023 or 2033.

The pool of dealers now basically consists of three groups: the guys in their 60's (and older) who became interested in coins during the roll craze of the 1960's, the guys in their 50's who became interested because of the gold and silver booms in the late 1970's, and the guys in their 40's who became interested after third-party grading became entrenched in the mid-1980's. There are not many dealers in their 30's, and even fewer in their 20's.

There are many reasons for this lack of young dealers. It is very expensive to run a business and this discourages young people. Interesting coins can't be found in circulation any more - and this means fewer people become collectors. The industry lacks the panache of wall Street or hedge funds and doesn't attract many of the best young financial minds; even though the chances to make an excellent income are probably better at an A-level rare coin company than at a B-level bank or hedge fund. And, for a long list of reasons, coins just aren't viewed as being "cool" like they might have been to my generation.

I love being a coin dealer and I am thankful for having the opportunity to do something I enjoy and get well paid for it. The Milas internships might add five or ten potentially good dealers to the bourse floor and I hope that I can mentor at least one or two of them once they get their foot in the door. I have a few pieces of advice for any of these potential interns (or any other young person reading this blog who is thinking of becoming or already is a coin a dealer) and I'd like to share them.

1.  Try Not to Ruin Original Coins Unless You Absolutely Have To.  

I'm not proud to admit this but my generation (and the Roll Craze dealers who came of age in the 1960's and early 1970's) has probably ruined more nice, original coins in the name of profit than all other generations combined. All I have to do to remind myself this is to go to a show and look at case after case of dipped, processed coins or attend an auction and reject a large percentage of the non-fresh coins for quality issues. I'm a purist but I'm not naive; I understand that there are circumstances where the temptation to dip a coin to make $5,000 is so strong that its foolish not to. But remember this: as a dealer you have an obligation not to ravage every coin which passes through your hands in attempt to maximize your profit. And this means, in particular, not to do anything much worse than dipping: no puttying, no carving full heads, no lasers, nothing which can be considered deception. The next time you, as a dealer, have a gorgeous MS64 No Motto half eagle with great color, think twice about dipping it and turning it into a bright and shiny MS65.

2.  Leave Some Money on the Table.  

There are essentially two types of dealers: those who let you make money when you buy from them and those who fight you for every penny.

My favorite sources for coins are the dealers who leave a little on the table in every deal. As an example, one of my best sources for buying coins is very savvy about pricing, but he understands that I would like to make 10% on the coins I buy from him. He is smart enough to realize that if I spend $75,000 with him at a show and he makes a fair margin it will work out much better for him in the long run than if he makes it hard to buy from him.

There is a dealer who I used to do a ton of business with who has a reputation as someone who squeezes you for every last penny on every coin he sells. Let's say he's got a decent quality common date Dahlonega half eagle in stock and the last three APR's for this issue are $2,600, $2,800 and $3,000. This is a coin I'd like to be in at $2,750-2,800 and sell for $3,000. But this dealer is not content to sell it for $2,750; he has to charge $3,000 even if he's making a good deal of money on the coin or it's not special and doesn't deserve PQ money. After becoming frustrated with him for squeezing and squeezing, I gave up buying from him and don't even look at his coins anymore.

3.  Give Back to the Hobby.  

As the PNG Internship program shows, it is critical to give back to the hobby.  This means writing books, teaching classes at the ANA Summer Seminar, contributing money to the Smithsonian and the ANS pledge drives, helping out at a local coin club, or just being there for a young(er) dealer. Some of the most successful coin dealers do nothing but take from the hobby and I have little admiration for them. Others give purely out of selfish motivation (to get a better ANA table or to have access to wealthy, powerful collectors) but whatever their motive, at least they are making positive contributions to the hobby.

If you ask the typical coin dealer, what is his stance on education, he is going to answer "I am pro-education! Let's do this for the kids!" I don't totally agree with this. I'd personally rather help an aspiring 25 year old further his career in numismatics than a 15 year old because the latter is unlikely to become a professional. That's one reason I really like the PNG internship program: it targets younger people who are ready to enter the coin business today not those who might possibly enter it in five or ten years.

4.  Learn to Do At Least One Thing Really Well and Embrace That Skill.

When the market was less complex than it is today, it was possible to be really good at a number of things. There are some dealers whose knowledge runs the gamut of United States coinage and they are also competent when it comes to paper money and foreign coins. Today, it is harder and harder to be really good at a lot of things. This is not only true with numismatic knowledge, it is true with business skill sets as well.

In rare coin dealing, people often aspire to be something they are not. Someone might be a great salesperson but might have only mediocre skills when it comes to grading. Typically, this sort of person fails to embrace his very important skill set (selling) and, instead, tries to convince himself (and others) that he can grade as well as a dealer who makes a living cracking coins out. It's not easy to admit that you aren't a great grader or that you can't sell well. But the sooner you learn to play to your strengths and get help with your weaknesses, the better a coin dealer you will become.

5.  Your Reputation Precedes You. 

Nearly every coin dealer I know has some sort of reputation (good or bad) and they earned this when they were in their 20's: bad check writer, hard partier, untrustworthy, always in debt...not exactly what you want to have to live down in your 30's and 40's.

You can salvage a bad reputation but it's not easy. I can remember seeing a bounced check in the case of a once-powerful dealer about 15 years ago. It was displayed along with a handwritten sign that said something to the effect of "don't do business with Dealer X." Today, the dealer who displayed the sign is essentially out of the business and bankrupt while the dealer who wrote the bad check is highly regarded and does tens of millions in business each year.  Dealers have long memories but they become curiously short, in terms of common sense, when it comes to money. I've heard it said on more than one occasion that a known serial killer could come to a coin show and many dealers would be happy to take his check so long as they thought there was a decent chance it wouldn't bounce.

6.  Turnover Your Inventory

At nearly every show I go to, there are a few dealers who have reasonably nice coins but are impossible to buy from. I can think of three dealers, in particular, who have had literally the exact same inventory for five years. This includes coins priced at under $1,000 and it also includes generic gold coins whose value has dropped appreciably in the last six months. It also includes coins which these dealers disagree with the grade which PCGS or NGC has assigned and they'll price their MS64 Bust Half Dollar as an MS65 or MS66; never lowering the price even after crackout dealers have had their chance to buy the "misgraded" coins.

I try and turn my inventory over at least once every month to six weeks. As a dealer whose coins are  exposed on a well-browsed website, I know how important it is to have fresh coins. In the World of Internet Retail sales, anything which is more than a month or two old is considered stale and stale inventory is hard to sell, even if it is fairly priced. This isn't necessarily as true for dealers who sell primarily on a wholesale basis, but I can tell you that most sharp dealers remember the good coins in other dealers' inventories. Remember what I said above about earning a reputation? You don't want the reputation as someone whose inventory is as stale as year-old bread.

7.  Don't Be Afraid to Sell Coins For Losses. 

Which brings us to the next point. Young dealers are often afraid to sell coins for losses. When you are working with a small budget, you can't afford to make many really bad decisions but you have to understand the value of money. Tying up money on bad purchases and let them stack up is going to ultimately poison your inventory. After you sell off the good deals, you will be left with a growing pile of bad deals and sooner or later they will really add up.

Let's say you bought an MS64 $10 Liberty for $2,000 because you thought it was a "lock" to grade MS65 and you could then sell it for $3,500. You've tried it six times for grading at PCGS and its graded MS64 every time. Your actual cost in the coin is now close to $2,500 with the PCGS fees, shipping and the value of your money being tied up for months. At this point, the best thing to do might be to sell it for as close to your original cost as you can and move on. It's a poor use of your money at this point and you stand a better chance to make it back on the next deal you do with the original $2,000.

Some dealers refuse to sell coins for losses. Others will stick with a coin which makes sense. Let me give you two quick examples. I might have a nice Dahlonega quarter eagle in stock for a month. Its a fresh, pleasing coin which I feel is fairly priced but its not selling because it doesn't have a CAC sticker. Assuming it won't sticker even if resubmitted, I might still believe in this coin even though it hasn't yet sold. In this case I might hang on to it another month or two before I give up on it and sell it wholesale or consign it to a Heritage auction.

Or, I might have a $10 Lib in an AU55 holder which I paid $6,000 for and which I truly believe grades AU58. It's worth $12,000 in a 58 holder. The value spread is enough that I might try this coin ten times at PCGS and NGC (over the course of six months) if I really believe in it.

As you become more experienced, you'll learn when to hold 'em and when to fold 'em but just remember that sometimes its better business to sell your losses and just move on...

8.  Find Someone You Trust to Split Deals With. 

When you are just starting out as a dealer and your money is likely to be tight, it can make a big difference to find someone to split deals with you. By this, I mean finding a partner who will put up half the money and share in your profit or loss. I did this for many years, back when my budget was more limited than it is now, and had mostly positive experiences.

It is important to choose someone you trust to split a deal with and it is important that this person has something to offer that you don't. As an example, if you are a dealer who is knowledgeable about 20th century gold and you offered a nice deal of early gold, it makes sense to split this with someone who knows more about these coins than you do. If you are going to enter into a full 50/50 split with another dealer, try and choose someone whose skill set doesn't overlap yours. If you are primarily a wholesaler, it's great to choose a partner who can sell the coins to end-users; or vice-versa.

9.  You Can't Get Collector Privileges If You Are a Dealer. 

As a collector, you are entitled to certain privileges in transactions. You can, from time to time, put coins on hold for a few hours or even days to "think" about purchasing them, show them to a collector or dealer for another opinion, send them to PCGS for crossover or CAC for approval, and even, in certain circumstances, renege on a "done deal." You don't get to do this, with rare exceptions, as a dealer.

If you are a young(ish) numismatists making the transition from collector to dealer, you have to be ready to swim with the sharks; typically with no repellent at hand.  It also means that you have to be more decisive as a dealer than you were as a collector.

10. Embrace Your Inner Accountant. 

As much as I'd like to tell you that most of my time as a professional numismatist is spent buying and selling coins, quite a bit of it entails doing paperwork. I don't necessarily like this part of my job but its something I have become fairly good at and its something that I choose to do myself as opposed to turning it over to someone else.

Some of the best coin dealers I know are terrible businessmen. They are unorganized and too impatient to do their own grading submissions, accounting, correspondence and basic record-keeping. As a result, they work for larger firms where they often give away significant amount of their profits in order to stay organized.

I was an English major in college and never took a business class so I pretty much had to learn how to keep track of my inventory and my finances on the fly. But I'm glad I've learned to do a reasonably competent job of this and haven't had to give up my freedom as a dealer in order to be properly "managed."

I look forward to meeting and eventually doing business with the winners of the Milas/PNG Internships. And if you are a young person thinking of becoming a full-time coin dealer, I encourage you to find a mentor who can help you grow and prosper in what I think is a fantastic field. I would be happy to answer any questions you might have and encourage you to email me at dwn@ont.com.

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.

Type One Double Eagle Book Now Available - Free

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