Why I Recommend Numismatic Specialization

When I first started out in the coin business, I assumed I was going to sell everything; Morgan Dollars, Barber Dimes, St. Gaudens double eagles and Charlotte gold, I'd handle it all. But I quickly learned that it would be difficult--and costly--to be an expert in so many areas of the market. I then decided that I'd become really good at just a few things and leave the rest to other people. Nearly three decades later, that's exactly what I've done: I've become a world-class expert in 18th and 19th century U.S. gold. I think my decision to become highly specialized was one of the best things that I've ever done from a career standpoint. And I believe that what I did has practical applications to new and advanced collectors alike.

Becoming a savvy numismatist isn't necessarily a difficult process. But it is an involved one and one that takes a lot of time. If you are like most people, time is one commodity that you do not have an excess of. Given the high value of time in this day and age, I'd suggest that you use the time you spend on numismatics wisely. This is where specialization makes a lot of sense.

I became a specialist in the area of U.S. gold coinage because, as I mentioned above, I realized that the most economically viable approach to numismatics as a career for me was going to be as a specialist. I'd like to share a few thoughts of mine regarding specialization. Its a lot easier to become a competent numismatist who makes good decisions if you are focusing on a narrow range as opposed to a broad range. But I think the concept of specialization is not totally understood. You can be a "broad specialist," a "narrow specialist" or an ultra specialist."

Which one you choose depends on a number of factors including--but not limited to--your budget, your range of interest, availability of coins and opportunity factors. A "broad specialist" is a collector who has a pre-determined focus but not necessarily a constrained one. Let's say, as an example, that you really like crusty original gold coins made prior to the Civil War and have a budget of up to $5,000 per coin. This means that you might purchase coins as diverse as an 1858-S gold dollar in AU58 or an 1846-D half eagle in VF35. Your focus isn't so much a specific series or type as it is a "look." In other words, your collection is focused on attractive, dirty coins. You might not know the relative rarity of an 1858-S gold dollar in AU58 but you know the "look."

A "narrow specialist" is more focused on coins from a specific mint or of a specific denomination. He might buy an 1858-S gold dollar because he is putting together a set of gold dollars or, even more specifically, a subset of San Francisco gold dollars.

I like this sort of specialization because it gives a collector a much more narrow focus or what I would call a "micro focus" as opposed to a "macro focus." If you are assembling a gold dollar set you have around 80 to 90 coins that you ultimately need to purchase and learn about. This is a lot easier than being an indiscriminate buyer of U.S. gold coins with a pool of hundreds--or even thousands--of issues to become familiar with.

A more narrow focus involving gold dollars would be the San Francisco set I mentioned above. There are only six coins to learn about and it wouldn't take much to be accomplished in this area. But I think most collectors aspire to more than being "Mr. San Francisco gold dollar."

Another way to specialize is to collect by die variety. This is a great collecting strategy for certain coins like bust half dollars or large cents but it doesn't apply all that well to U.S. gold.

In my opinion, the ideal way to collect is to have a #1 set and then a secondary set to keep you busy when you can't find coins for set #1. As an example, you could specialize in collecting early half eagles by date and have a secondary collection that is focused on Dahlonega half eagles in perfect, original EF grades.

Becoming a good numismatist is all about knowledge and by not biting off more than you can realistically chew. you stand a chance to be on equal footing with other collectors in your area of specialization. You might not aspire to write the standard reference book on San Francisco gold dollars but wouldn't it be nice to be able to make purchases in this area of the market knowing that you were clued-in about the rarity, price history, appearance and minting history of each issue?

A Quick 2011 FUN Sale Analysis

The 2011 Heritage FUN Sale contained some of the most interesting and freshest coins that have appeared at auction in the last few years. Yes, there were some retreads, some low-end "stuff" and some run-of-the-mill lots, but there were also some really exceptional coins; most of which could be found in Thursday night's Platinum Night session. I'd like to focus on a group of coins from this session that I found exceptional. 1. 1864 Quarter Eagle, NGC PR65 Cameo, CAC Gold Label. Lot 5033. I have seen some pretty incredible Proof quarter eagles over the years but the truly amazing ones, at least from the standpoint of grade, tend to be date 1890 and later. Pre-1880 Proof gold coinage tends to be far, far rarer and really superb pieces, regardless of denomination, are almost never seen.

This 1864 Proof quarter eagle was from the Henry Miller collection and it was easily the best Proof quarter eagle in the sale. I'd even go out on a limb here and say that it was one of the best--if not THE best--early date Proof of this denomination that I've seen. It was in an old PR65 holder but I graded it PR67 DCAM. The coin sold for $80,500 which is a record price for a Proof of this year.

Only 50 Proofs of this year were made and I doubt if more than fifteen or so exist. The best that I had ever seen before the Miller coin was Bass III: 210, graded PR66 by PCGS, that sold for a very reasonable $27,600 back in 2000.

This coin was purchased by an extremely savvy dealer and it will be interesting to see what grade it will be after it is resubmitted for grading. I'd love to think that PCGS or NGC would call it a PR67 DCAM without it having to be conserved.

2. 1823 Half Eagle, NGC MS65 CAC. Lot 5096.. This was a coin that you had to see in person to really appreciate. When I pulled it out of the box during lot showing at Heritage's office in Beverly Hills my reaction was pretty to the point and it rhymed with "moley bit." In a nutshell, this was among the prettiest early gold coins that I've ever seen.

I knew this coin would be one of the most actively bid on lots in the Heritage sale and my guess was that it would wind-up in the collection of a prominent father and son in Dallas who have the best set of early gold assembled in modern times. It was purchased by a Chicago-area dealer for $299,000 bidding as an agent for a collector.

The 1823 is a scarce date in all grades with an estimated 100 or so known. It is typically seen in AU50 to MS61 grades and it is rare in MS62 to MS63. There are a few nice MS64's (there were actually two PCGS examples available at the FUN show) but this is the only Gem. It is from the Bareford collection and it had the sort of unmessed-with appearance that you almost never see anymore on early gold coins.

My opinion is that this coin sold for a ton of money but it was a ton of coin. I'd have to assume it was bought as a type coin and if this is the case, the new owner is getting a Fat Head half eagle that he or she will never have to worry about upgrading.

3. 1838-D Half Eagle PCGS MS63. Lot 5105. This was another fresh coin but, unlike the Miller pieces listed above, it had never been on the market until the 2011 FUN auction. I spoke with the dealer who consigned this coin and he told me that it was part of a small group of coins that had been in a New Hampshire family for many generations and was recently "rediscovered" by the family.

I am a big fan of this issue. It is the first half eagle made at the Dahlonega mint and a popular one-year type that is in demand in all grades. It is scarce in Uncirculated with fewer than a dozen known but most of these grade MS60 to MS61 and are characterized by processed surfaces. The 1838-D in the FUN Sale was only the second coin ever graded MS63 by PCGS and it was one of the two best I'd ever seen. It had lovely natural coloration, choice surfaces and a wonderful overall look that just shouted "originality."

This coin sold to a collector bidding on the floor for $57,500. It broke the previous auction record for the date which was set by a PCGS MS62 that brought $40,250 in the 1999 FUN sale.

4. 1857-O Double Eagle NGC MS62 CAC. Lot 5251 This was my favorite lot in the sale. I knew it was going to be a hard coin to buy but, more than any other coin in the sale, it was a coin that I wanted to own. I spoke with a client of mine who is a seriously collector of New Orleans gold (and Type One double eagles) and he agreed to let my represent him. We decided to bid $125,000.

The coin opened at $100,000 and I found myself bidding against two other dealers. I was able to raise my hand at the $130,000 mark but was outbid by another dealer at $140,000 and then watched another dealer successfully buy it at $150,000. With the buyer's premium the coin brought $172,500.

I can't imagine a New Orleans double eagle with much more eye appeal than this 1857-O (I liked it more than the 1852-O graded MS65 in the sale!). It had superb color, great luster and a really wonderful look that you really had to see in person to appreciate. I graded it MS63+ and am really interested to see what it winds-up grading. I wouldn't be shocked if it was graded MS64.

There are just two choice examples of this date known. The first is a PCGS MS63 that brought $97,750 back in the Bass III sale (May 2000). That was a huge price for an 1857-O double eagle back then but the market has really soared for great Type One double eagle in the ensuing decade and the more I think about it, the more I wished I had bought this coin; even at a level above what it sold for in the FUN Sale.

It was hard to limit myself to just four coins in this auction as there were dozens of really great pieces with great stories to tell. Prices were exceptional for the coins that merited them and this sale offers pretty convincing evidence to me that great coins are back in demand. (But did they ever really ever fall out of favor?)

The Three Kings: The Proof-Only Double Eagles Dated 1883, 1884 and 1887

Continuing my fascination with Proof-only issues, I'd like to discuss the rare Proof-only double eagles dated 1883, 1884 and 1887. These issues are not all that well-known outside of Type Three Liberty Head collectors and I think they merit more than a passing mention. Beginning in 1881, production of double eagles at the Philadelphia mint became little more than an afterthought. And it would remain as such until 1888. In 1883, there were no business strikes produced. The Mint did strike 92 Proofs; ostensibly for the limited numbers of collectors who were interested in Proof double eagles at this point in time.

The Mint struck considerably more Proof 1883 double eagles than they were able to sell and it is believed that as many as half of the original mintage was melted later in the year. Of the four dozen or so that were distributed to collectors and dealers, around twenty at most are known today. This figure includes at least three that are impounded in museums and another two or three that are impaired.

The 1883 is the second rarest collectible Liberty Head double eagle, trailing only the 1884 (I consider the 1849 and the 1861 Paquet reverse non-obtainable and do not include them). Despite this coin's indisputable rarity, it is only fairly recently that the 1883 became known as a major rarity. Prices for this issue had remained fairly stagnant for many years, hovering in the $75,000-100,000 range. This only changed in 2004 when Heritage sold an example for $172,500. Today, a Gem is worth at least $200,000-225,000.

There are a small number of Gems that have been graded by the services and at least one has been slabbed as PR66 by NGC. I know of six or seven Gems and the two nicest that I have personally seen are Heritage 1/06: 3580 (graded PR65 Ultra Cameo by NGC) and Heritage 1/04: 3224 (graded PR65 Deep Cameo by PCGS and possibly also ex Dallas Bank collection).

There are a few diagnostic criteria that make this an easy issue to authenticate. All show roughness on the back of the eagle's neck and fragmentation of the fleur de lys beneath its beak. These die markers do not exist on any business strike reverses of this era.

The 1884 is the rarest of these three Proof-only issues. A total of 71 were struck and it is possible (although unconfirmed) that a few were melted as unsold, given the fact that so many Proofs dated 1883 suffered this fate. There are slightly fewer than twenty known. I wrote in 2000 that 15-17 exist and I think this number might be a tiny bit on the low side. A total of twelve have sold at auction since 2000 but this includes a number of coins that have sold more than once.

The current auction record is $264,500 which was set by ANR 8/06: 1644, a coin graded PR66 Cameo by NGC. It had sold two years earlier (as Heritage 1/04: 3225) for $149,500.

The 1884 is much rarer in Gem than the 1883. I do not believe that a full-blown Gem exists and most that I have seen are in the PR63 to PR64 range. For some reason, this date was not as well handled as the 1883 or 1887 and most show signs of having been cleaned.

There are some interesting die characteristics for this issue that make it very easy to identify. All known examples show an uneven pattern of frost on Liberty's face. It is thick on the right half of the neck and near the ear but it is quite light on the neck. This is why none have ever been designated as "deep cameo" or "ultra cameo" by PCGS or NGC. In addition, all 1884 double eagles have a noticeable diagonal die line just to the left of the Y in LIBERTY.

There is no question that, as a date, this is the rarest collectible Liberty Head double eagle. Given this fact, it seems fairly reasonably priced at current levels.

The last of the Three Kings is the 1887. This issue has a mintage of 121 struck. I believe that, as in 1883, a number went unsold and were later melted. My best guess is that around half were released to collectors and that there are 25-30 known today.

The 1887 tends to come better preserved than the 1883 and 1884 and it is more available in Gem than the other two Proof-only dates. There are around six to eight Gems known. The finest is an incredible NGC PR67+* Cameo that will be sold in the upcoming Heritage 2011 FUN auction. The current auction record for this issue is $161,000 that has been achieved twice (Goldberg 9/08: 1295 and Heritage 1/07: 3145) but this mark is certain to be broken by the aforementioned Heritage coin.

There are no major die characteristics seen on Proof 1887 double eagles. This tends to be a very well made issue and many of the examples that exist show excellent contrast between the frosted devices and the mirror fields.

The three Proof-only Liberty Head double eagles from the 1880's are among the more interesting and desirable United States issues from the 19th century. I believe that they are all highly undervalued, considering how few are known for each issue. As I have said in other recent blogs, if the Type Three series were to become more active among date collectors, these three issues would be considered true "stoppers" and would show dramatic increases in price.

Proof-Only Gold Coins

The presence of a number of important Type Three Proof Liberty Head double eagles in the upcoming 2011 FUN auction got me to thinking about Proof-only United States gold coins. What are these coins, why are they important and do they deserve the market premiums they enjoy? A Proof-only coin is an issue that exists only in a Proof-only format where business strikes could have been produced as well. These coins exist in a variety of denominations but for this blog, we'll focus on the ones in various United States gold series.

Some of the most famous Proof-only gold coins are the double eagles from 1883, 1884 and 1887. The mintage figures for these dates are 92, 71 and 121 respectively. I believe that there are around twenty 1883 double eagles known, maybe fifteen 1884's and as many as thirty to thirty five 1887's.

There are two ways to look at these coins. The commonly accepted way is to consider them solely as a date. In other words, even though there are many Proof double eagles that are rarer than these three, there are no other Type Threes that compare to the 1883 and 1884 in terms of the total number known. If a date collector wants to buy an 1883 for his set of Type Three double eagle he has to buy a Proof. This is different than a rare date like the 1881 or the 1882 that exists in dual formats; i.e., as business strikes and Proofs, and thus presents the collector with two options.

Collectors who are new to double eagles might balk at having to pay $150,000-200,000 for a nice 1883 double eagle when they can purchase a Proof of comparable rarity from this era for half as much--or less. Why, they wonder, does a Proof-only issue get such a high premium?

The mistake that they are making is to compare the 1883 to, say, an 1880. They need to look at the rarity of the 1883 on an absolute level. The 1883, from the standpoint of total number known, is even rarer than such celebrated issues as the 1854-O and the 1856-O; two issues that now sell for $300,000-500,000. If the Type Three series were to ever become as popular with date collectors as the Type One series currently is, the current prices for Proof-only issues such as the 1883, 1884 and 1887 could double or triple.

One Proof-only issue that I have always found interesting is the 1863 quarter eagle. Only 30 were made and this is one of the major rarities in the entire quarter eagle series. In the Liberty Head design it is the third rarest issue, trailing only the 1854-S and the 1841. The 1863 is an issue that has alot going for it; most notably its charismatic Civil War issuance. It has been a heralded rarity for well over a century. Values have steadily risen for the 1863 over the last decade and I expect this issue to become more and more sought-after in the future.

Another Proof-only issue is the 1887 half eagle. It has a mintage of 87 and an estimated thirty or so survive. Unlike the 1863 quarter eagle, this is a date that doesn't "feel" like it should be a Proof-only coin; especially given the fact that many of the other Philadelphia half eagles of this era are common in business strike format.

What I think hurts the 1887 most in terms of its appeal is that Liberty Head half eagles are not currently a series that are actively collected by date. The 1887 feels like an overvalued date to me, given that a Gem is worth over $100,000 as compared to less than half this amount for comparable Proofs of this era that aren't Proof-only.

Two of the most interesting Proof-only issues are the 1875 and 1876 three dollars. Both are less rare than their original mintage figures of 20 and 45 would suggest and this is due to the fact that restrikes exist for both issues. I find the 1875 to be a very intruiging issue because of the magic of the date 1875 as a Proof. Every Proof 1875 issue has an exceptionally low original mintage and at least two denominations (the half eagle and eagle) are virtually unobtainable as business strikes.

Back to the Proof-only Type Three issues. When I first became ingterested in US gold coins, these three issues were heralded rarities and they were bringing $25,000 and higher back when 25 grand could buy you some serious rare Liberty Head double eagles. The 1883, 1884 and 1887 have certainly increased in value over the years but not at the pace of the rare Type Ones or, ironically, even at the pace of the formally-overlooked business strike rarities of the Type Three series.

It will be interesting to see how the next appearances of the rare Proof-only gold issues that I've mentioned are met by an increasingly rarfity-driven coin buying audience. My hunch is that we will see very strong prices on most of these coins and that they represent good value for the collector or investor who fancies true blue-chip numismatic items.

How to Become a Good Coin Collector

One of the oldest jokes in the book goes, "How do I get to Carnegie Hall? Practice, practice, practice." Hoary? Yes. Old when your grandpa was a kid? Sure. But oh so true and applicable to the subject of this blog which is, as you no doubt already know, "how to become a good numismatist." Because to become a good collector, you do need to practice. But what exactly do you need to practice most? I think the most important piece of advice I could give a new collector is to look at as many coins as possible. There are self-proclaimed numismatic experts who gain their knowledge from research but the truly savvy collectors that I have met have acquired their knowledge the same way that I have: they've looked at countless coins.

How do you get to look at coins? There are really only two ways that the average collector is going to be able to view significant numbers of important coins: at shows and at auctions. If you specialize in a specific sort of coin, make certain that you spend the limited amount of time you have at shows or at auctions looking at the coins you really need to be viewing; save the numismatic tourism for later.

One trick I suggest that collectors try at auction viewing is to cover the grade of the coin that they are looking at and guess what the grade actually is. Or, establish grade parameters and write if you think the coin is an "A" "B" or "C" quality example. After the sale is over and you analyze prices realized, you can get an idea of how accurate your precision grading really is.

I can't think of a better way to become a good collector than to buy, sell and trade coins. I'm not saying that you have to become a fledgling numismatic empire. But I think one of the best ways to become comfortable with any hobby is to be an active participant in both the buying and selling side.

One of the things that you learn from being a buyer and a seller is how to calculate your "upside/downside rate" with each purchase. It might be easy to justify paying $3,500 for a certain Dahlonega half eagle for your collection but what would it sell for if you placed it in the open market? $2,750? $3,000? $3,500? As they say, you can't play if you don't pay...

You've probably read a hundred times how important it is for a collector to learn how to grade. I haven't met that many collectors who know how to grade; at least outside of their realm of expertise. But the most successful collectors I've met all share at least one trait: they understand the aesthetics of numismatics. In other words, they may not be able to tell the difference between an MS62 and MS63 Charlotte quarter eagle but they know the difference between a below-average coin, an average coin and a high end coin.

The "aesthetics" of coins is probably the most important point I'm making in this blog. To be a good collector you really need to understand what constitutes a "good" coin in your series. If you collect St. Gaudens double eagles, the parameters will be much different than if you collect Type One double eagles.

And this is where having a good relationship with a dealer enters the picture. Behind every great collector there is a great dealer who acts as a conduit, providing information, guidance and coins. In this day of information overload it is tempting to think that the collector can go it alone and build a meaningful collection bidding in on-line auctions. If you are incredibly lucky, you'll only make an occasional mistake going the I-can-do-it-myself route. If you have average luck, you'll make a number of errors and some may prove costly.

One last thing: study and read all that you can about the coins that interest you and the market itself. It never ceases to amaze me when I hear stories about very successful businessmen who spend $1 million on generic gold and overpay by 40%. You would think they would spend thirty minutes on the web to compare prices and get a feel for the absolute basics of the market.

I've said this before and I'll say it again: the time that you put into numismatics will be doubly or triply rewarded as you wade further and further into the coin pool. This can be an infuriatingly complex hobby but there are ways to simplify it and this will only serve to give you more and more enjoyment.

Which Civil War Gold Coins Will Be Promoted in 2011?

I don't consider myself to be a real pro when it comes to rare coin promotion but even I know a no-brainer when I see it. 2011 marks the 150th anniversary of the beginning of the Civil War. As sure as the sun will rise tomorrow, you can bet that rare coin promotion gurus who are far more clever than I have been preparing for this event for some time. So if you are Joe Coin Promoter and you are gearing up for the Civil War Sesquicentennial in 2011, what kind of gold coins can you get enough of to do a promotion? Let's go denomination by denomination and figure this out.

I. Gold Dollars

Only two mints made gold dollars in 1861: Philadelphia and Dahlonega. The 1861-P is common and cheap; the 1861-D is rare and expensive. The 1861-D is unpromotable; it is too rare to accumulate in quantity and is already too expensive. A clever dealer could probably stealthily buy 40-50 1861-P gold dollars in lower Mint State grades over the course of a year and have enough coins to promote. He could probably find as many 1862-P gold dollars and maybe have as many as 100 coins in total. I would have to wonder, though, if the intended audience for this promotion would get excited about gold dollars as they are small, common and not really "sexy." As a collector I'd probably avoid stockpiling any Civil War gold dollars to ride the coattails of a promotion.

II. Quarter Eagles

Two mints made quarter eagles in 1861: Philadelphia and San Francisco. The 1861-S is unheralded but scarce and I doubt if you could put together a group of more than three or four over the course of a year. The 1861-P is common in grades up to MS63 and it might be possible to accumulate enough to promote. I like the promotional possibilities of this issue and it might not be a bad idea for a collector to buy a few MS62 to MS63 pieces and see if prices increase in the next few years. None of the other Civil War Philadelphia issues can be found in enough quanity to promote. The San Francisco issues are all rare but it might be possible to put together a rag-tag group of circulated examples.

III. Three Dollar Gold Pieces You couldn't promote threes in Uncircirculated as all of the Civil War issues are rare enough and expensive enough to preclude this. But you might actually be able to acculate a few dozen nice circulated pieces. This promotion actually makes sense to me as the three dollar denomination is odd and interesting and it would appeal to non-collectors. It is also out of favor right now so the possibility of buying a fair quantity exists. The 1861-64 dates are all moderately scarce but available in the EF-AU range for less than $4,000 per coin. As a promotion bandwagon jumper, these three dollar gold pieces kind of make sense to me.

IV. Half Eagles

The two southern branch mint half eagles (1861-C and 1861-D) would be fantastic issues to promote but they can not be found in quantity. The San Francisco half eagles of this era are also very rare and while not as glamorous as the 1861-C or 1861-D, issues like the 1862-S and 1864-S half eagle are highly unlikely to be used in a promotion. This leaves the Philadelphia coins. The 1861 is the only one that is common although I wonder if a promoter could find, say, fifty to one hundred examples. I imagine that if you were willing to sell cheap pieces, like in EF40 or EF45, it might just be possible. Not "easy," but maybe "possible."

V. Eagles

Civil War era ten dollar gold pieces were made only at the Philadelphia and San Francisco mints. All of the west coast issues are rare in any grade and the possibility of finding more than a few in any grade is unlikely. The Philadelphia issues are even rarer with the exception of the 1861 which can be found in some quantity in circulated grades. But I just don't think you could come up with enough coins to make for a good promotion. Which is actually kind of shame as a group of 1861 eagles in EF and AU grades would make a great Civil War-themed promotion.

VI. Double Eagles

There isn't a better denomination to promote these days than the double eagle. The coin are big and with gold at $1,400 or so per ounce, they interest nearly every investor. Unfortunately, there is just a single Civil War double eagle that might be available in a quantity great enough to promote: the 1861 Philadelphia. This is probably the most common non-shipwreck Type One double eagle and it exists in significant quantity in circulated grades. But....there may be a fly in the proverbial ointment. Type One double eagles are currently as popular as any series of American coin and an issue like the 1861-P, which used to be fairly easy to buy in quantity, is now in demand by legitimate collectors. It still might be possible but its not going to be an easy task.

After thinking about Civil War era gold coins to promote for the Civil War Sesquicentennial in 2011, I've pretty much come to the conclusion that unless someone has been working on this project for at least a year already, it probably can't be done in time. Given the scarcity of these coins and the costs involved, maybe it would make more sense to work on buying 500 circulated 1861 Indian Cents or 750 circulated 1864 and 1865 Two Cent pieces.

The Record-Setting Sale of an 1875 Half Eagle: What Does it Portend?

In the Bowers and Merena November 2010 Baltimore auction, a business strike 1875 half eagle sold without a lot of fanfare for a lot of money. I think this was one of the most significant individual sales in the rare gold coin market in 2010 and I'd like to spend a bit of time analyzing both the coin that was sold and the significance it portends for both the Liberty Head half eagle series and the rare gold market as a whole. The 1875 is the rarest collectible Liberty Head half eagle. (The 1854-S is rarer but with no pieces likely available to collectors in the near future, I regard this issue as "non-collectible.") Only 200 business strikes were produced and the number of pieces known has generally been estimated to be in the area of ten. I think this estimate is reasonably accurate although I think the actual number known could be as low as seven or eight.

The 1875 is unknown in Uncirculated and most of the examples that exist are in the EF40 to AU50 range. PCGS has graded five coins including an EF40 and two each in AU50 and AU53 while NGC has graded four: one in EF45 and three in AU55. I believe that these figures are inflated by resubmissions and the total number of distinct 1875 half eagles in slabs is four or five. There have been 10 auction appearances since 1991. Six have occurred since 2000 but this includes a number of reappearances of the same coin(s).

The coin in the Bowers and Merena auction was graded AU55 by NGC and it appeared to have been the same coin that was offered as DLRC's Richmond I: 1444 back in July 2004 where it brought a record-setting $86,250. There had been no other 1875 business strikes that had been available since the Goldberg 2/07: 2335 coin that brought $74,750.

The Bowers coin was part of an interesting set of 1875 gold coinage called the "Kupersmith Once in a Lifetime" collection. Terrible name but an interesting and impressive set with examples of the rare Philadelphia gold dollar, quarter eagle and three dollar gold piece from this year but, curiously without the very rare 1875 business strike (or Proof) eagle.

The coin in the Bowers sale brought $149,500 which is far and away a record price for a business strike of this date. Considering that this is an esoteric coin and, to be honest, it wasn't a really nice-looking piece, I think this price is very significant.

In the same sale, the coin right before the business strike was an 1875 half eagle graded PR66 Cameo by NGC. With a mintage of just 20, this has long been recognized as a great rarity and it is an issue that has usually brought more than its under-appreciated (but rarer) business strike counterpart. The Proof in the Bowers sale, sold as Lot 5042, brought $143,750. I was really surprised but really pleased to see this happen.

I've been thinking for a year or two that Liberty Head half eagles have a chance to be the "next big thing" in the world of rare date gold. Here's why. The Liberty Head double eagle series is extremely popular right now and there are not many "ground floor" opportunities for the new collector. Same goes for the eagle series although I still think there are some very undervalued issues. But the Liberty Head half eagle series remains under-collected and there are dozens and dozens of individual issues that are extremely undervalued.

So why is a $149,500 Liberty Head half eagle so an important? Because its the rarest collectible issue in the series and you typically see high-end collector activity in a series start with coins like this. In other words, you can buy the C and D mint issues any day but how often can you buy the Big Gun like the 1875?

If the coin had sold for, say, $80,000 or $90,000 I don't think it would have been a big deal. But with a sale at nearly $150,000 the bar has been raised and I think we'll see higher prices for other very rare non-Southern Liberty Head half eagles like the 1863, 1864, 1864-S and 1865.

Of course there is the very real possibility that this coin was not bought by a collector who plans to do a date set of Liberty Head half eagles and this totally blows a hole into my theory. It could have just as easily of been bought by someone doing a set of 1875 business strike gold coinage or someone who likes really rare coins like the 1875 half eagle and thinks that 150k is a great value for an issue with just eight or nine business strikes known. All true but, as I said above, the bar has now been raised for the rarities in this series and the days of being able to buy an 1875 half eagle in AU for less than $100,000 are gone.

Why Don't More People Collect 20th Century U.S. Gold Coins by Date?

Why don't more people collect 20th century gold coins by date? The four major designs (Indian Head quarter eagles, half eagles and eagles and St. Gaudens double eagles) are clearly among the most beautiful United States issues ever released. They are relatively short-lived and none of them are impossible to complete due to fabulously expensive or incredibly rare individual dates. So why, then, do these series lag such non-gold 20th century designs as the Lincoln Cent, Buffalo Nickel, Mercury Dime and Walking Liberty Half Dollar when it comes to numbers of active set collectors? I can think of a number of reasons. Some are pretty obvious while some are pretty far-fetched and I'm throwing them out there only to encourage debate. Here are some of the reasons I came up with:

1. 20th century U.S. gold is typically marketed as type coins and not by date. Traditionally, people have viewed coins like Indian Head half eagles as something you just need one of, not dozens. Simultaneously, higher grade 20th century gold coins are frequently sold more as "investments" than collectible coins. Over the last two decades, I have seen many collectors burst on the scene in a specific 20th century series only to flame out and sell their coins back a year or two later. The Steve Duckors and Austin Fursts of the 20th century gold world are alot rarer than their quick-in quick-out counterparts.

2. "They all look the same." A new collector once told me this when he decided not to continue with the Indian Head eagle set that I was helping him build. Now, I don't agree with this. If you become a student of, say, the Indian Head half eagle series it becomes clear that a 1911-D looks a lot different than a 1916-S. Its struck differently, has a different texture and has different coloration as well. But these subtleties are often lost on novice collectors.

3. There's too much difference in value for barely distinguishable quality. For many key date 20th century U.S. gold coins, the difference in price between an MS64 and an MS65 can be huge. As an example, an MS64 1913 Saint Gaudens double eagle is worth $7,500 or so while a no-question asked MS65 is worth over $50,000. It takes a real leap of faith for a new collector to pay a 7x premium for a difference in quality that he not only doesn't see but probably doesn't understand. The creation of CAC has made it a little less scary for a new collector to pay huge premiums for MS65's but from personal experience I know that the value for Gem coins just isn't always there.

4. There is no up-to-date reference work. David Akers wrote a terrific book on 20th century United States gold but it was published in 1988 and the information is out-of-date (not to mention that the book is out-of-print and fairly scarce). If Akers or a new expert were to take this book and update it with information that was relevant to the current coin market, this would be a huge shot in the arm for 20th century gold.

5. There is no sense of nostalgia inherent with these coins. People buy coins like 1909-S VDB Cents or 1916-D Dimes because they couldn't afford one when they were ten years old and filling holes in their blue Whitman folders. No one is haunted by the 1927-D Saint that they couldn't save enough money from their paper route to afford when they were a kid.

6. High grade 20th century gold coins are very expensive. It is a pretty serious financial commitment to collect Saints in Gem or Indian half eagles in MS64 and up. This obviously limits the number of people who can collect these coins.

7. Affordable grade 20th century gold is ugly. OK, maybe not "ugly." But you'll have a hard time convincing me that an Indian Head gold coin in EF and AU grades is remotely attractive. This is not the case with Liberty Head gold coins which is really attractive with limited wear.

8. Pricing information for many 20th century gold coins is hard to come by. Yes, its easy to figure out what a common date Saint is worth in a PCGS MS64 holder. But its not so easy to determine what a 1913 is worth in an NGC MS65 holder versus a PCGS MS65 holder versus a PCGS MS65 holder with CAC approval. If someone published accurate pricing information on the 20th century series, I believe it would jump-start collector interest.

9. There are few "go to" retail dealers for better date 20th century gold. If you collect 19th century Liberty Head gold, there are some obvious candidates who to buy from (and I'd like to think that DWN is one of them). The person who, in my opinion, is the sharpest dealer for rare date 20th century gold is Kevin Lipton and Kevin is a wholesale dealer who probably is going to be hard for many collectors to deal with as he has no website.

As I mentioned in the beginning of this blog, 20th century gold coins deserve to have more date collectors than they currently do. These are attractive, interesting coins. They are within reasonably short-lived series and unless you attempt a Gem set, they are within the price range of many collectors. I'd be curious to know what your take is on why they are not as popular as Lincoln Cents or Mercury Dimes and invite you to send me an email at dwn@ont.com with your input.

What Gold Coins Do CAC Stickers Add the Most Value to?

After two+ years of being traded on the open market, I think few collectors and dealers would argue the statement that CAC stickering has added considerable value and liquidity to many types of United States gold coinage. But are we now able to determine with a decent degree of accuracy which coins are most affected by a CAC (or the absence of a sticker)? Let's take a look at some areas of the gold coin market and see how CAC is adding value. One of the areas that CAC has added the greatest amount of value is in the St. Gaudens double eagle market. The impact is seen two ways. The first is with common "generic" issues in MS65 and MS66. One of the main reasons why the premium for non-CAC certified MS65 Saints is so low when compared to MS64 coins is that most of the coins in MS65 holders are not significantly better than those graded MS64.

What CAC has done is to identify those coins graded MS65 that are nice quality and which are "real" 65's. Currently, non-CAC Saints in MS65 trade for around $2,300. Those with CAC stickers are worth at least 10-15% more. They are also quite liquid and can be sold even when dealers have extensive numbers of non-CAC coins in stock. Non-CAC MS66 Saints are currently worth around $2,750-2,850 per coin. The premium for MS66 Saints with CAC stickers is at least $750-1,000 per coin. Given the fact that the stickered MS66 coins I have seen are very nice (as compared with the non-stickered coins which range from inferior for the grade to decent) this premium makes sense.

Another area where CAC stickered coins are selling for a significant premium is in the better date Saint market. Let me pick a random issue: the 1927-S in MS64. This coin has a current bid of $70,000 in this grade and a bona-fide Gem is worth double this. The quality of 1927-S double eagles varies greatly and there are coins that are very low end and hard to sell for $55,000 and coins that are very high end and worth over bid. I can't recall having ever seen a 1927-S in MS64 with a CAC sticker but if I had a PCGS/CAC coin that I liked I'd quote $75,000+.

Early gold (i.e. gold coins struck from 1795 to 1834) is area that has shown itself to be influenced by CAC stickers. I don't like every single piece of CAC-stickered early gold that I see but I like at least 90% of the coins. Compare this to non-CAC early gold where probably 50-60% (or more) of the coins offered at auction or through dealer's websites are not, in my opinion, nice for the grade. I find this to be especially true with early gold in the MS63 and MS64 grades. As an example, an 1812 half eagle in MS64 with a CAC sticker is currently worth around $40,000. The same coin in the same grade that is not stickered and which is not a CAC-quality coin, in my opinion, might be hard to sell for $32,500. More and more collectors of coins like this are demanding that they be CAC stickered and the premium for the pieces that have the Green Bean is at least 10-15% and climbing.

Because so many Proof gold coins have been doctored over the years, CAC-stickered pieces are currently garnering high premiums. This is more so with Matte Proofs than Brilliant Proofs. I can't remember seeing more than a few Matte Proof gold coins in the last two years that weren't doctored to the point that they weren't even the right color. When the few remaining fresh pieces come onto the market, they realize strong prices. As an example, Stack's just sold at auction a lovely 1913 Matte Proof gold set. All four coins were CAC stickered and all four brought exceptional prices. I see similarly graded washed-out NGC Matte Proof gold from time to time and it brings Greysheet prices or lower; these superb, vibrant Gems brought numbers that were way over "sheet."

I've found CAC to be very particular when it comes to Brilliant Proof gold as well. Lower grade (PR63 and below) Proofs aren't really impacted by having or not having having CAC stickers unless they are a very rare early date issue. In this case, the premium seems to be around 10%. The real premium is for very high grade pieces. As an example, from time to time, a really remarkable PR68 or PR69 Liberty Head quarter eagle will become available. While these coins tend to be pretty amazing from a visual standpoint, very few are CAC approved. I believe that a PR68 or PR69 gold coin with a CAC would sell for a very significant premium; maybe 20-30%.

There is no doubt in my mind that CAC has greatly improved the value and liquidity of nice NGC coins. As someone who sells a good number of NGC coins, I've noticed that pieces that have CAC stickers are regarded as being just about as "good" to collectors as PCGS coins; unless the collector is working on a PCGS-only Registry Set and will not purchase any coins at all in NGC holders. In the collector marketplace, the current hierarchy for many series of US gold coins is as follows:

1. PCGS coins with CAC stickers 2. NGC coins with CAC stickers 3. PCGS coins without CAC stickers 4. NGC coins without CAC stickers

A major exception to this rule is rarity. If a coin is a very rare date (say an 1883-O eagle or an 1842-C Small Date half eagle), collectors are still concerned first and foremost with the coin itself and not the plastic.

Another exception is the popularity of the series and who the end users are. Certain series, like three dollar gold pieces, are just not popular enough right now that CAC stickers make all that much of a difference from a price standpoint. Other series, like Type Three Liberty Head double eagles and Indian Head quarter eagles, are sold mainly by marketers who do not "preach the gospel" of CAC and, therefore, the current market premium is not as great as in other series.

It has been interesting to view the market acceptance of CAC in the last two years. The market has gone from being initially cynical (and in some cases hostile) to being accepting to, in some cases, fully embracing CAC. This has been most clear in the premiums paid for CAC coins and I think we'll see these premiums continue and, in many cases, increase as demand grows in the coming years for the highest quality rare coins.