The San Francisco Surprise

Around four or five months ago, I got wind of a soon-to-be-conducted rare gold coin auction in San Francisco that sounded interesting, to say the least. I heard that it contained long date runs of Liberty Head gold and it featured such rarities as an 1854-S quarter eagle and an 1856-O double eagle. I live for "secret deals" like this. I'd fly to Fog City, spend in the high six figures, make a ton of money on my new purchases and have fun in the process. It was going to be SO easy... Except for one big thing. There are no "secret auction deals" anymore. The internet has made all information so accessible that deals like this tend to attract just enough of the big players in a specialized field like rare gold that they are extremely competitive. No, the San Francisco Surprise was going to be a bloodbath.

There were a number of factors that made this auction unusual. For one, it was being conducted by a stamp company (Schuyler Rumsey) and it would be interesting to see how they handled their foray into a new field.

So how did the sale do? And what does this sale tell me about the market and the rare coin auction market? The answers are interesting; far more so, in my opinion, than merely going over some auction highlights.

I thought prices for the sale ranged from sort of weak (for the very common pieces and the generics which probably would have been better sold outside of the auction venue) to exceptionally strong (for the very rare date $10 Libs). The few six figure coins in the sale were a touch on the weak side (they probably would have brought 10% more in a Heritage auction) while coins that appeared to have potential for upgrading or "improving" were strong to exceptional.

Did the heirs to this collection make a mistake choosing a stamp company and not going with an experienced coin firm like Heritage or Stacks Bowers? Typically I would have said a resounding "yes" but I thought Schuyler Rumsey did an outstanding job in nearly all respects. Their catalog was a bit amateurish but in the end this made no difference. Its hard to say for certain but I think many of the coins in this sale actually did better in this little, obscure auction than they would have at a major auction. Heritage may have 400,000+ registered members in their community and unparalleled technology but Rumsey reminded me of a few important facts about the auction business in general.

First, as I said above, if you get the right five to ten dealers in the room (or on the phone), the number of registered bidders or the number of hits on your website mean nothing. At least 50% of the value of the sale went to these five or ten dealers. The best way to make money in this sale would have been to lock these guys in their hotel rooms.

Secondly, Rumsey's technology was far, far better than I would have expected. It was easy to bid on their website and, to be honest, it seemed to be faster and every bit as efficient as Heritage's. It might not have had all the bells and whistles that Heritage's system has but let's not forget that Rumsey is located in San Francisco and with Silicon Valley technology available to the firm they clearly have figured out how to effectively run an IT system.

Thirdly, in the words of Mr. Costner, if you build it, they will come. The sale contained some really rare coins (issues like 1863-1865 half eagles, 1861-D gold dollars and half eagles, Civil War date eagles plus an 1873 and 1876 eagle). Avid collectors know how rare these coins are and either they or their advisers found them. Many of these rarities sold to phone bidders and, in the case of at least a few bidders, they were sold sight unseen.

Which leads me to the next point. Rumsey was smart enough to know that they weren't coin experts. So they got some good advice. Smart move: they sent most of the coins to PCGS so this gave bidders confidence. Smarter move: they advertised the sale in Coin World and gave out catalogs at the Long Beach show. Smartest move: they got at least one bidder to look at all the coins before the sale and give them bids on nearly all the lots. I feared that $10,000 coins would open at $2,000 and we'd sit through interminable slogs waiting for them to hit their true value. This didn't happen. Three weeks ago I attended a coin auction put on by a firm that has 30+ years of experience and it was so maddeningly slow that I left early in fear that I was going to have an anxiety attack. The Rumsey sale was smoothly run and almost hitch-free.

Another point: the fight against coin doctoring must not be going all that well because I saw people paying pretty confident prices for coins that needed "help." As an example, there was a cleaned 1861-D half eagle (Lot 661) that seemed to me to not only be a "no grade" but to be one that would have to be extensively resurfaced to ever get in a holder. It had the detail of an AU55 but I thought it was a risky purchase at much more than $20,000. It sold for $40,250. The person who bought this coin--and he is a smart, veteran dealer--obviously thinks this coin can be fixed, it can wind up in an AU55 or AU58 holder and it can be sold for more than $50,000. Caveat emptor....

Yet another point: this was a fresh deal and the market is STARVED for fresh coins. Note that I didn't say it was a nice fresh deal. I thought around 10% of the coins were really nice and another 20-30% were kind of nice. But many of the coins were downright ratty. These didn't seem to matter to buyers. Nor did the fact that many of the not-very-nice coins were hard to sell as is and would become even harder to sell when they were scrubbed (or re-scrubbed) and upgraded.

A few highlights and my comments:

Gold Dollars: The 1855-D in PCGS VF35 sold for $12,650. It was a decent coin but nothing great. I guess this means that "basal value" for any example of this date in a holder is now in the low five figures. The nice AU53 1861-D gold dollar sold for $51,750 to a phone bidder who, I'm told, never even saw the coin. It's an AU55 and you paid an awful lot for it...

Quarter Eagles: The 1842 in PCGS 45 was estimated at $750-1000. It sold for $5,175. If only it was even remotely attractive. The very nice 1848 CAL in PCGS 55 sold for $63,250. I liked the 1849-C in PCGS 55 (I graded it a solid 58) but someone liked it better and it brought a solid $12,650.

Half Eagles: The only early half eagle I liked was the 1814/3 in AU58 but I was not willing to grade it MS62 like the successful bidder did at $25,300. The C+D half eagles were decent and I bought the coins I liked the best; sometimes at considerably less than my maximum bid. The Civil War coins were pretty schlocky but they brought strong prices anyway; the 1862 in AU55 was bid up to $12,650.

Eagles: Uggghhh...did I get blown away. I thought there were some pretty nice coins in this part of the sale. So did everyone else. The great AU55 1852-O? It sold for $18,400 (!) The undergraded 1865-S Normal Date in EF45? (I thought it was an AU53). It brought $24,150. The lovely EF45 1870-CC that I graded AU53? How about $97,750? Many, many price records were set.

Double Eagles: It was back to reality as prices for this denomination were strong but not insane like the Eagles. The nice 1856-O in EF45 sold for $276,000 which seemed like the "right" number. The 1861-S Paquet in VF35 sold for $51,750 while the 1866-S No Motto in AU55 went very strong at $83,275. There were some very pleasing CC double eagles in the sale and they all brought strong prices.

The Numismatic Versus: Comparing Coin Collecting Methods

Cats versus dogs. Coke versus Pepsi. Good versus evil. You get my point: two camps competing for your heart, your affection or your soul. Its not that far-fetched to stretch this analogy out to some of the basic issues in coin collecting. No, its not the Satanic Verses; its the Numismatic Versus. OK, to be a bit more serious: there are basic issues in numismatics that split collectors down the middle. There is no real right or wrong when it comes to collecting and I am a big advocate of doing what "feels right" for the collector. That said, I think my 30+ years of experience as a dealer qualify me to render an opinion on some of these issues and that's what I'd like to do here.

1. Specialist Collecting versus Type Collecting

I have many customers who are specialists and many who are focused more in a "generalist" fashion. I respect both camps.

A specialist picks a small area of collecting and focuses on this. Dahlonega quarter eagles. New Orleans half eagles. First year and last year of issue coins. All of these are great choices for the specialist.

What I like about specialist collecting is that by having a more narrow focus, the collector can become knowledgeable more easily. As I have written before, if your collecting focus revolves around 25 half eagles from one mint, you are far more likely to learn this series as well as the typical dealer than if you are trying to learn about all the half eagles produced during the 19th century.

But there is something to be said for a more general approach. I love the concept of collecting by type. I love the fact that a type collector buys something different every time he pulls the trigger.

2. Condition Rarity versus Absolute Rarity

A coin that is a "condition rarity" is one whose primary value is based around its grade. An example of this would be an 1887-S eagle in MS65. Such a coin is extremely rare and it would sell for five-figures if available. But the same date in MS60 is extremely common and it sells for essentially no date premium.

A coin that is an "absolute rarity" is one that is rare in all grades and is desirable whether it is quite worn or superb. An example of this would be an 1862-S eagle. This is a low mintage issue with a very low survival rate to its Civil War date of issuance. This coin is desirable if it grades Very Fine or if it grades Uncirculated.

What a collector should always ask himself is "would the coin that I am buying have value if third party grading were to suddenly end?" A coin like an 1887-S eagle in MS65 might not carry a great premium if third-party grading ceased to exist. A coin like an 1862-S eagle in EF45 would still be considered desirable no matter what dictates the future of grading.

The best coins are the ones that combine absolute and grade rarity. If a coin like an 1862-S eagle in Mint State were to be discovered in Europe (I have never seen one close to Uncirculated) it would be very desirable as it combined both types of rarity in one neat package.

3. Business Strikes versus Proofs

Business strikes are coins that were made for circulation. Proofs are coins that were specially made for collectors and VIP's. The coin weenie in me likes business strikes more than Proofs because of the fact that these were coins that were used as coins are supposed to be used.

But the coin snob in me likes Proofs as well. There is no getting around the fact that a Gem Proof Liberty Head double eagle is incredibly impressive. And you have to like the Proof issues that were struck in such tiny quantities during the 1860's, 1870's and 1880's.

I tend to be a more selective buyer when it comes to proofs than business strikes. I vastly favor very rare Proofs (example: an 1878 gold dollar) than a not-so-rare Proof in a mega-grade (example: a 1904 quarter eagle in PR67 Cameo).

Can a collector buy business strikes and Proofs simultaneously? I don't see why not. In certain series, like Type Three Liberty Head double eagles, there are Proof-only issues that are collected side-by-side with business strikes. Like owning a dog and a cat at the same time, I say "yes!" to the collector who buys interesting Proofs and business strikes together.

4. Gold versus Silver versus Copper

You are reading this article on a website whose URL is raregoldcoins.com so you don't have to be a rocket scientist to figure which of these three coinage metals I favor.

But let me at least explain why I do.

Gold is a precious metal with strong demand around the world. Egyptian Pharaohs were buried with spectacular gold ornaments. The last time I checked, there were no silver or copper trinkets in the pyramids.

Try to explain to a wealthy Chinese collector why he should spend $100,000 on an Indian Cent. Not easy, right? But don't you think this same individual would more likely "get" the concept of an Uncirculated 1871-CC double eagle at $75,000?

Copper coins are great and I personally collect Liberty Seated silver coins and love them. However, as far as being a dealer goes, I'm pro-gold and more so now than ever.

5. 19th Century versus 20th Century

When I began specializing in United States gold coinage back in the early 1980's, I decided to focus on 19th century coins because they were more affordable and because they seemed like better value. Three decades later I still believe this.

Now don't get me wrong. I think 20th century coins are great. I think St. Gaudens double eagles and Indian Head eagles are the most beautiful regular issue coins that the U.S. Mint ever produced. And the incuse designs of the Indian quarter eagle and half eagle series really appeal to me. But 20th century gold tends to be the ultimate in condition rarity and, as I discussed in #2 above, I have always been more of an absolute rarity kinda guy.

I look at 20th century gold as the Contemporary Art of the numismatic world. Its fairly regularly available, its pretty macho to collect, the market is fluid due to collectors coming and going rapidly and the value levels don't always make sense.

I personally like 19th century gold better as I view it as a more cerebral area to collect. It's clearly not as pretty (there is no doubt that Gobrecht and Longacre couldn't hold a candle to St. Gaudens as far as artistic talent is concerned) and it more monotonous as it goes on and on (and on). But if you have a budget of, say, $5,000 to $10,000 per coin, you can be a big player in 19th century gold while still being pretty much a nobody in the 20th century arena.

What are your takes on the Numismatic Versus that I compared and contrasted above? Email me at dwn@ont.com and let me know what you think.

Greatest. D Mint Quarter Eagle. Ever.

Unlike their gold dollar and half eagle counterparts, high grade Dahlonega quarter eagles are very rare. This denomination is extremely hard to find in Uncirculated grades and there are a number of dates, especially the rarities, that are virtually non-existent. That's why a recent purchase of mine so excites me. Here's some information about the coin and my take on why it lays claim as the single most significant quarter eagle of any date from this mint. (Please note that this coin is not currently for sale and that this isn't an ad masquerading as a blog in order for me to sell this piece)

There are essentially six rarities within the Dahlonega quarter eagle series: 1840-D, 1841-D, 1842-D, 1854-D, 1855-D and 1856-D. Each of these dates has fewer than 100 known in all grades and most of them are High R-7 to R-8 in Uncirculated (meaning that around one to three properly graded Mint State pieces are known).

The two rarest Dahlonega quarter eagles from the standpoint of high grade rarity are the 1855-D and the 1856-D. These have the two lowest mintage figures for any quarter eagle from this mint. The total numbers struck are 1,123 for the 1855-D and 874 for the 1856-D, respectively.

Both of these dates are major rarities in Uncirculated. Before the recent discovery of the 1855-D in PCGS MS63 (more on this in a second), the 1855-D was more or less unknown in Uncirculated. I say "more or less" because while a few examples had been graded in the MS60 to MS61 at PCGS and NGC, none of these were coins that I think had unanimous approval as being truly Uncirculated. The same holds true for the 1856-D.

The story behind this newly discovered 1855-D is interesting. It was part of a collection of coins, with an emphasis on Charlotte and Dahlonega gold, put together by William and Beuelaress ("No, I can't pronounce this either...") Hemel from Orlando, Florida.

I know nothing about the Hemels from the standpoint of collecting. They flew well under the radar and from the look of their recently-sold collection, they appeared to be hole-fillers who primarily bought cheaper, more affordable C+D coins including many cleaned or damaged pieces. But they had a few great coins in their collection and the 1855-D quarter eagle was clearly the best piece that they owned.

From the scant pedigree information that the Goldberg sale contained, it seemed that the Hemels were most active with their coin buying in the 1970's. They bought a few coins out of auction but a quick perusal of Stack's and Paramount sales from this era shows no 1855-D quarter eagles that fit the description of the coin in the Hemel sale. We'll probably never know where this coin came from but perhaps it was from a local dealer that the Hemels had contact with or maybe even an accumulation of coins from a Southern family that had put the 1855-D away a century before.

I have handled virtually every higher grade 1855-D quarter eagle that is known and I have never seen a truly nice one. The strike of this issue is irregular, to say the least, and a significant number of the coins that I have seen in higher grades have planchet irregularities and/or have been processed in an attempt to hide these surface problems.

The coin in the Goldberg sale was truly special. It was extremely well made with a great quality planchet and it had, by far, the best luster that I have ever seen on this date. In fact, now that I think of it, I'm not sure that I've ever seen an 1855-D with enough luster remaining to really know for certain what the "right" texture for this issue actually is. The look of the coin was really exceptional as well with lovely natural yellow-gold color. It was clearly an original piece and, as I said above, this is unusual for a date that is nearly always found with "improved" surfaces.

When I was figuring what to pay for this coin, I thought that the best comparable was the 1854-D quarter eagle graded MS63 by PCGS that Heritage sold as Lot 4690 in their October 2011 sale. That coin brought $86,250. But, and this is a huge but, that coin had something "interesting" lurking in its past. The very same piece, as recently as 2004, had been graded MS62 by PCGS and had brought just $34,500 in the Heritage June Long Beach sale of that year. So, in my opinion, the 1855-D in the Goldberg sale was clearly a "better" coin.

I wound up purchasing the 1855-D for $86,250; a record price for the date but, I think, a very good value.

After the sale, I starting thinking: what are the greatest single Dahlonega quarter eagles? If I made a Top Ten list, which coins which I include on it? And after I made this list, where would the 1855-D place?

In chronological order, here is my Top Ten list of D Mint quarter eagles along with some comments:

1. 1839-D PCGS MS64, ex James Stack. Finest Known Classic Head D Mint.

2. 1840-D NGC MS62, ex Duke's Creek/Bareford. Unique in Mint State.

3. 1841-D PCGS MS63, ex Green Pond. Finest known of four in Mint State.

4. 1842-D NGC MS62, ex Duke's Creek/Norweb. Finest known of 2 or 3 in Uncirculated.

5. 1847-D NGC MS65, ex Duke's Creek. One of two known D Mint quarter eagles in Gem.

6. 1850-D NGC MS65, ex Duke's Creek/Eliasberg. The other Gem D mint quarter eagle.

7. 1854-D NGC MS64, ex Duke's Creek. Finest known.

8. 1854-D PCGS MS63, ex Heritage 10/11: 4690. Record price at auction for any D mint quarter eagle.

9. 1855-D PCGS MS63, ex Goldberg 1/12: 1209. Tied for record price and finest known of the date.

10. 1856-D NGC MS61, ex Duke's Creek. Finest known of the rarest D mint quarter eagle.

After thinking about the coins on this list, I think a few can be eliminated for being "common coins in uncommon grades" while others can be knocked off for "only" grading MS61 or MS62. I think the best candidates for the Best D Mint Quarter Eagle of All Time are the 1839-D in MS64 and the 1855-D in MS63. The 1855-D wins my vote for the better of the two given the relative availability of the 1839-D in MS60 to MS62 grades.

For more information on this 1855-D quarter eagle or on any other Dahlonega gold coinage, please feel free to contact me at dwn@ont.com.

Coins That I Never See With Good Eye Appeal Part Two: Quarter Eagles

In the first installment of this multi-part feature, I discussed some of the gold dollar issues that are rarely seen with good overall eye appeal. In this, the second part, I am going to look at quarter eagles that do not generally come with good eye appeal. Note that I said "good eye appeal." This doesn't mean that I'm focusing on the rarest dates in the series. Obviously, issues like the 1841 and the 1854-S are very rare in all grades and rarer still with good eye appeal. But that's not my emphasis here. Rather, I am interested in coins that while scarce or even rare based on their overall availability, are especially rare with choice, original surfaces.

As a rule, most pre-Classic Head quarter eagles are scarce to rare in all grades and harder still to find with good eye appeal. One issue that comes to mind as a coin that is just about never seen with good eye appeal is the 1796 With Stars. As you would suppose from a coin with just 432 struck, it is a rarity in all grades. But what most people do not realize is that nearly all survivors are either unoriginal and unappealing or they show multiple planchet imperfections as on many other of the gold issues produced during this year.

The last nice 1796 With Stars to be offered for sale was Stack's-Bowers 2011 ANA: 7593, graded MS63* by NGC, that sold for $287,500. It was earlier sold as Lot 1791 in the Stack's 5/99 auction and was part of the fabulous specialized collection of 1796 coinage assembled by John Whitney Walter. But the best 1796 With Stars of them all is the incredible Gem (NGC MS65) from the Byron Reed collection that was later sold for $1,006,250 in the Heritage 1/08 auction.

Other early date quarter eagles that I believe are very hard to find with good eye appeal include the 1797 and both varieties of 1806 (1806/4 and 1806/5).

The Classic Head quarter eagle that is hardest to find with good eye appeal is a date that will surprise you: the 1839. While not a really rare coin in terms of its overall number known, this issue is rare in properly graded About Uncirculated and very rare in Uncirculated. I have only seen three or four that I would call Uncirculated and none finer than MS62. The single best 1839 quarter eagle that I have seen was Bass II: 309, graded MS62 by PCGS, that sold for a reasonable $10,925.

In the long-lived Liberty Head quarter eagle series, there are numerous individual dates that are hard to find with good eye appeal. To make it a bit easier to analyze them, I'm going to break down the series into a mint-by-mint list.

There are many Philadelphia quarter eagles of this type that are hard to find with good eye appeal. The one that comes to mind as perhaps the most difficult is the 1842. With a mintage of just 2,823, you would expect this coin to have a strong degree of overall rarity. But it is far rarer in higher grades than most collectors realize. I can't recall having seen more than four or five in any grade that I thought were above-average quality and the finest of these, by a mile, is the Superior 9/99: 1863 coin, graded MS62 by PCGS, that I purchased out of this sale for $31,050. A few years later I handled this coin again and sold it to a Midwestern collector who still has it in his world-class set of quarter eagles.

Other dates from this mint that are very hard to find with good eye appeal include the 1844, 1848, 1864, 1865, 1869 and 1870.

There are a few Charlotte quarter eagles that stand out as being especially hard to locate with good eye appeal. In my experience, the ones that are the hardest to locate are due to being poorly made. These include the 1842-C (a date that is actually not poorly made but is, rather, generally seen well worn), 1844-C, 1846-C, 1852-C and 1856-C.

The 1842-C is one of my favorite Charlotte quarter eagles. It is reasonably well made but its lack of eye appeal tends to be as a result of the fact that it was an issue that was used extensively and not saved. There are two or three known in Uncirculated (the finest is the amazing Elrod MS65 coin that was last sold by Heritage in the 2/99 sale) and a small number in properly graded AU55 to AU58.

The other dates on this list are rare with good eye appeal because they were not well made. As an example, the 1856-C is nearly always seen on poor quality planchets and with grainy, unappealing surfaces. The 1846-C is another date in which is invariably the case although there are a few more decent-looking examples around than for the 1856-C.

Eye appeal is not as much of a problem with the quarter eagles from New Orleans is it is with the other branch mints. That said, there are still a few issues that are hard to locate with good appeal. One that comes to mind is the 1856-O.

This is a peculiar date. It is not rare from an absolute standpoint as there are as many as 200-300 known. For some reason, this issue is extremely hard to find with original color and surfaces and even a nice AU55 to AU58 is very hard to find. In Uncirculated, this date is extremely rare. There are at most four to five known and none are better than MS62. It has been years since an Uncirculated example has been available.

Other New Orleans quarter eagles that are hard to find with good eye appeal include the 1842-O, 1845-O and 1846-O.

There are a number of Dahlonega quarter eagles that are hard to find with good eye appeal. I would have to say, though, that one date is notorious for lacking eye appeal. In fact, this date is so rare with "eye appeal" that I'm not certain that a good-looking example exists. This date is the infamous 1865-D.

Only 874 examples were produced, making the 1856-D the only issue of any denomination from this mint with a mintage lower than 1,000. Due to improper preparation of this dies (and possibly the planchets as well) every known example of this date has an appearance that could be called--charitably--"odd." The strike is weak and blurry and the surfaces are often rough and full of raised defects. This makes the 1856-D an extremely hard issue to grade and a hard one for the non-specialist to appreciate.

Other Dahlonega quarter eagles that are very hard to locate with good eye appeal include the 1840-D, 1842-D, 1854-D, 1855-D and 1859-D.

The final mint that produced quarter eagles was San Francisco. The issues from this facility tend to be well made but there are a few that, for various reasons, are hard to locate with good eye appeal.

In my experience, the San Francisco quarter eagles that are hardest to locate with good eye appeal are the Civil War issues, especially the 1862-S and the 1863-S. There are a few plausible reasons for this. To begin with, they are low mintage coins. As with all gold coins of this era, they were melted in large quantities. And because of the fact that no quarter eagles were struck in San Francisco during 1864, the 1862-S and 1863-S seem to have circulated a little harder and a little longer than other dates of this era. Both of these dates are seldom found above AU55 and even when seen in comparatively high grades, the tend to exhibit bright, abraded surfaces. Choice, original pieces are rare.

Some of the other San Francisco quarter eagles that are not often seen with good eye appeal include the 1859-S, 1860-S and 1866-S.

There are dozens of date in the quarter eagle denomination that are hard to locate with good eye appeal. Not all of these are expensive and a few, the 1839 as an example, can be found in presentable grades for around $1,500.

For more information on quarter eagles with or without good eye appeal, please feel free to contact Doug Winter via email at dwn@ont.com.

When Is Deep Cameo/Ultra Cameo Proof Gold Worth a Premium?

Having recently handled a considerable number of impressive Proof gold coins, I've been thinking about when a specific coin is worth a premium because of is status as a Deep Cameo (PCGS' modifier) or Ultra Cameo (NGC's modifier). After a brief explanation of these terms, I'd like to use a few examples of the coins I've sold to illustrate scenarios in which I feel a premium is merited. Proof gold coins are struck specially for collectors in very limited numbers. They are made with care using specially prepared planchets and typically struck with multiple blows of the dies. One of the features of most pre-1900 American gold coins in Proof is that they show cameo-like contrast between the devices (which are frosted) and the fields (which are watery and reflective). Collectors appreciate this appearance; as well they should, as a gold coin with deep, strong cameo contrast can have wonderful eye appeal.

The question most collectors ask about cameo proof gold coins is when are such pieces worth a price premium.

Given the fact that most pre-1900 proof gold coins have very low mintage figures, we can assume that nearly every piece is going to show some degree of cameo. But there are a few coins for each year that have extreme cameo contrast. We can assume that these are either the very first pieces produced or they were coins that were made with extra care for their visual appeal.

Let's look at a proof gold coin with an original mintage figure of 30 coins as an example. The typical survival rate for a proof gold coin struck between 1860 and 1880 is around 50% (for large denominations such as eagles and double eagles this figure is probably more like 25-33%). Given this figure, let's say that fifteen or so are known.

Of these fifteen, there are probably at least a few that are either impaired or they have been cleaned and/or processed to the point that they do not have an original appearance. So let's say the number of pertinent coins is around ten. There might be seven or eight that have been graded by PCGS and/or NGC and given the designation "cameo." Then let's say that the other two or three coins have been designated as "ultra cameo" or "deep cameo." How much more are these coins worth?

In my opinion, if these coins have great eye appeal and are not overgraded, they are probably worth a 10-20% premium over a regular cameo example. This is making the assumption that they are significantly rarer than their regular cameo counterparts. In the case or large denominations, where eye appeal is so critical, this premium might even be a bit higher.

I'd like to use two specific coins to illustrate my theory about ultra cameo/deep cameo premiums. These are a pair of gold dollars that I recently sold.

The first coin is an 1862 gold dollar graded PR66 Deep Cameo by PCGS and awarded a sticker by CAC.

This Civil War issue has an original mintage figure of 35 coins of which slightly fewer than half survive. In my experience, the mint did an excellent job of producing proof gold coins in 1862 and the overall quality of most of the gold dollars I've seen has been above average. In other words, Proofs of this year are supposed to come with good contrast and there should be no premium whatsoever for a coin that is a regular cameo.

But if you take even a casual look at this specific coin, you'll see that it has incredible eye appeal. The appearance is "black and white" with the type of contrast that can literally be seen across the room. I felt that this was one of the best looking Proof gold dollars that I had ever viewed and this was a reason that I purchased the coin at the 2012 FUN show.

As I was figuring a value for this coin, I had to decide on what sort of a premium its beauty would compel me to pay. I certainly wouldn't have paid a 50% premium (although in certain silver series, a premium of this sort isn't uncommon) but I felt a 10-20% premium was certainly in keeping with its stunning appearance.

This was an instance where I wasn't so much paying a premium for an ultra cameo coin's rarity (there are a few other 1862 gold dollars known with a deep cameo/ultra cameo appearance) as I was for its beauty. What was even more appealing to me was the fact that this coin has a "natural" deep cameo appearance.

You almost never seen proof gold coins anymore with the old-time, deep, hazy look that you used to see when collections like Norweb, Pittman, Eliasberg or Childs were sold. In fact, I would venture to say that most collectors and dealers who have entered the hobby after 1990 have seen virtually no truly original Proof gold coins (a welcome exception to this was the amazing Henry Miller collection of Proof gold that Heritage sold at their FUN auction in January 2011. While not every coin in this group was original, some were just amazing and it was refreshing to see Proof gold coins that looked like this after so many years of character-free pieces being offered...).

What's even harder to find these days are "old time gem" proof gold coins that aren't so hazy or richly colored that they don't show deep cameo contrast. That's why a coin like this 1862 dollar is special, in my opinion, and it merits a strong premium. It was original yet it was commercially viable for those collectors who don't "get" originality.

The next coin I'd like to discuss is a PCGS PR65 Deep Cameo 1871 gold dollar also awarded approval by CAC. While this coin has a mintage which is close to the 1862 (a total of 30 versus 35 for the 1862) it is rarer due to the fact that it appears that a portion were melted after they went unsold in 1871. It is possible that as few as eight to ten are known and this is actually one of the single rarest Type Three dollars in proof.

One interesting fact about this date is that it is not a year that tends to come as well made as the 1862. In 1871, the amount of contrast wasn't as great and many survivors in all gold denominations show lintmarks or slight planchet irregularities. It is also a date that, as a Proof, tends to be a little rarer than the 1862 in higher grades. I believe that this 1871 is the second finest known, trailing just a single PR68 at NGC.

This coin has nice cameo contrast although not as much so as on the 1862. In the case of this coin, I think its premium is predicated more on rarity than on extreme eye appeal. It is the only PCGS example in PR65 or better to have been designated as a Deep Cameo and this fact, I believe, gives it at least a 10-15% premium over a regular cameo example in the same grade.

In summary, I feel that the two reasons to ascribe a strong premium to any proof gold coin due to its status as a deep cameo/ultra cameo are either extreme eye appeal (or beauty) and extreme rarity (status as the only example of an issue with this designation or else the single highest graded with this designation). Obviously, the best scenario is a proof gold coin that is both extremely rare and extremely beautiful. In this case, the premium could be very high; maybe as much as 25-50%.

The 2012 FUN Show: Some Observations

I can count on one hand the number of coin shows that, after close to three decades in the business, I still enjoy. The FUN show is one of them. It is well run, well-attended, and even when the market is just so-so, it tends to be an excellent show for me. I'd like to share a few observations about the recently-concluded 2012 FUN show. Unlike the ANA show(s), what I like best about FUN is that it is concise and to the point. No pre-shows, no PNG day...the doors open on Wednesday and I stay crazy busy until I close up on Friday night. For someone like myself, who views coin shows as a work environment and not a place to schmooze, this makes me happy. I start working and then, typically, I say to myself: "I'm hungry." I look at the clock and its already 2:15; I've worked six+ hours straight without a break. I like that.

I found it hard to buy nice coins at the show but not more so than at other recent conventions I've attended. I look back at a show like FUN ten years ago and marvel at the great coins I would be offered for sale or stumble upon as I combed the bourse. As a dealer, I have to rely on good connections and lots of hard work to find one nice coin here and another there. I talked to a few dealers who told me it was one of the driest shows they have ever attended. I didn't find this to be the case. There were coins to buy, but they were hidden and you had to work like a numismatic banshee to find them.

I met a number of serious new or relatively new collectors at the show. Combined with the high number of new collectors that are contacting me through my website, I have the feeling that numismatics is gaining a lot of new advocates. After the economy went bad in 2008, the number of new collectors seemed to drop appreciably. Even though I don't think the economy is robust, I do see a lot of new interest in coins. That seems like a good thing to me...

Two types of coins that I actively make a market in but which seem to have suddenly all but disappeared are Dahlonega gold (especially nice EF45 to AU58 collector-quality quarter eagles and half eagles) and better date Liberty Head eagles. This isn't exactly a new observation; both areas are popular and have been hard to locate at shows for at least a few years. But at the FUN show I think I bought a whopping four or five Dahlonega coins (all of which are already sold, by the way) and maybe three Liberty Head eagles.

The Heritage sale was a highlight of the FUN show and the second Platinum Night, featuring gold coinage, was of particular interest to me. The session began with the sale of Dr. Steve Duckor's St. Gaudens double eagles. Steve is a good friend of mine and I was rooting for him to hit a home run. The results of the sale were probably just a bit disappointing for him, mainly due to one or two of the expensive coins which didn't do as well as expected. This isn't a reflection on the coins, which I thought were magnificent. It's more a reflection on the fact that the Saint market isn't that strong right now and the Magic Billionaire that Heritage had hoped would develop a sudden need for rare Gem Saints didn't materialize.

For me, the highlight of the sale was a date run of fat Head half eagles including a few issues (1819, 1821, 1828, 1828/7 and both varieties of the 1829) that come up for sale on average of once or twice a decade. The quality of these coins ranged from so-so to superb but prices were very, very strong. To me, this is a validation of a point that I've been making for years: these coins are extremely rare and they have been overlooked and undervalued in the past. I expect price guides to reflect significant increases in this series and deservedly so.

I personally had an excellent show. I made it back to Portland late in the afternoon on Saturday and by Sunday I had posted close to forty new purchases. In the last few days more than half of them have sold and this includes a few of the "big" coins like a PR66 1862 gold dollar and a PR65 1871 gold dollar. The market seems healthy right now and there is no doubt in my mind that good coins, in a variety of price ranges, are selling.

2011 Heat Index: What's Hot and What's Not

A popular feature of the www.raregoldcoins.com blog is the "what's hot and what's not" article that I write at the end of every year. As its the very end of what's been an interesting and active year, let's take a look at what was in demand in 2011 and what you, literally, couldn't give away. We'll look at a number of areas in the market and determine a "heat index" based on my personal experience in the 2011 coin market. 1. Gold Dollars. This was a mixed market area but overall it was fairly strong and in some cases it was very strong. The segments of the gold dollar market that were strongest were superb, one-of-a-kind Type One and Type Three issues (especially "wonder coins" graded MS68 and MS69) and very high quality Dahlonega issues (especially better dates such as the 1855-D, 1856-D, 1860-D and 1861-D). Areas that remained flat or trended downwards in 2011 include mid-level Uncirculated New Orleans pieces and San Francisco issues. The weakest segments of the gold dollar market included Gem common date Type Two issues and MS65 through MS67 common dates from the 1880's.

2. Quarter Eagles. Early quarter eagles were a strong area in the market. This was especially true for attractive, original coins in the EF40 to MS63 range that were priced at $50,000 and below. A few nice 1796 No Stars quarter eagles sold in 2011 and these generally saw prices that were higher than in the previous couple of years. Early quarter eagles priced at $100,000 and up remained hard to sell, unless they were either very rare or very nice or, ideally, a combination of the two.

The Liberty Head series saw mixed results in 2011. Nice circulated Dahlonega pieces were good sellers and even Charlotte coins, at least those in the $2,000-5,000 range, sold well if they possessed good eye appeal. The very high end of the market was strong. Ultra rare issues such as the 1841, 1854-S and 1863 all saw strong price increases in 2011. The surprise "trendy date" of the year was the 1864 which, in a short period of time, saw explosive price growth as collectors realized how rare it was.

Most quarter eagles dated 1870 and later remained hard to sell, even those with low mintages. There were a few exceptions (the low mintage 1875 became popular in 2011) but this seems like an area in the market that offers good growth potential for collectors with a budget of $1,000-5,000 per coin.

3. Three Dollars. After a rough patch of five or so years, the Three Dollar market showed more strength than I can remember. Buyers were fussy and coins that were not high end were hard to sell. The most popular dates included the 1854-D, 1855-S, 1861-1864 and the low mintage issues from the 1880's. Dates that were hard to sell included the 1854-O, 1865 and 1877. The rare Proof-only 1875 was a good seller while the not-as-rare Proof 1876 was harder to sell.

Prices on better dates in MS63 to MS65 have dropped to levels that make them prime for a promotion in the coming years. There are enough nice to very nice coins available (not factoring in common issues such as the 1854, 1874, 1878 and 1889) that I would not be surprised to see prices for nice coins rise.

4. Half Eagles. The market for early half eagles was very quality conscious in 2011. As an example, a common date early five such as an 1803/2 in AU55 to AU58 was worth 5-10% more if it were CAC-quality as opposed to the typical washed-out, unappealing example. The grade range that really began to see price separation due to quality was MS63 to MS64. There are early half eagles in MS63 holders that are hard to sell at $25,000; the exact same issue in the same grade with a CAC sticker and real eye appeal can be an easy sale at $30,000+.

The market for very rare early half eagles was hard to gauge in 2011 due to so few pieces trading. But in the Heritage 2012 FUN sale there is a superb date run of rare half eagles including an 1819, 1821, 1825/1, 1826, 1828, 1828/7 and both varieties of 1829. I expect these coins to bring record prices and the "heat" that they generate is likely to spread to the rare but more more obtainable dates of this era.

The Liberty Head half eagle market was generally good in 2011. The areas that were strongest include collector quality Dahlonega pieces, rare Civil War dates and high quality New Orleans issues. Areas that began to show some tentative strength included No Motto Philadelphia issues in AU and Mint State grades and rare but formerly unpopular low-mintage dates from the 1860's and 1870's. The market for Carson City half eagles in 2011 was mixed. There were not many nice coins on the market and the better dates that did sell only brought solid prices if they were very choice.

5. Eagles. While not everyone realizes this, eagles were probably the strongest denomination in the gold coin market in 2011. Nearly all areas were as stronger or stronger than in 2010 with the exception of early eagles (1795-1804) which remained off their market highs of a few years ago. But this statement needs to be clarified. Most of the early eagles that are offered for sale are very low end for the grade. Nice early eagles sell for 10-20% premiums over their low-end counterparts.

The Liberty Head eagle series came into its own in 2009 and since then, prices have been strong for choice examples of rare and low mintage dates. In my opinion, prices of rare, low mintages issues such as the 1863, 1864, 1865, 1872, 1873, 1876 and 1877 are still very low in comparison to less rare but more popular double eagles from this era.

The Carson City eagle market was similar to that described above for the half eagles. If a coin was choice and rare, it sold for a strong price. If it were just so-so, the price ranged from decent to slightly above average. But if a real "pig" was offered (and some of the CC eagles in holders are grossly overgraded) it might bring a distortingly low price. Collectors are urged to work closely with an informed specialist and to learn how to distinguish a choice, original piece from an overgraded low-end example.

6. Double Eagles. For the last five years, the Liberty Head double eagle market has seen an inexorable march upwards in price. In the second half of 2011, this area of the market seemed to weaken a bit, probably due as much to the steep rise in bullion prices as a natural correction.

The always-popular Type One market softened a bit but remained strong. CAC approved coins brought good premiums, especially for issues like the rarer New Orleans mint coins where eye appeal was a real concern. Premiums for rare shipwreck coins remained very strong in 2011. If an S.S. Central America, Brother Jonathan or S.S. Republic coin that had a population of just a few coins was available at auction it brought many multiples of a non-shipwreck coin's price.

The Type Two market was a bit stronger than in the last past few years. The market for common dates in MS62 through MS64 dropped rather significantly but scarcer dates (such as the 1868, 1869, 1870 and 1871) rose in AU and Uncirculated.

The bullion-related Type Three issues and the condition rarity market declined in 2011 but the market for truly rare issues (1881-1886 and 1891 Philadelphia) was strong.

7. Proof Gold. This was a strong area of the market in 2011 and part of the reason was a greater supply of choice coins than in recent memory. Strong prices were seen at the Heritage 2011 FUN sale where the Henry Miller collection, which contained dozens of superb rare date Proofs, brought very strong prices. Coins that were in demand include very low mintage issues and virtually all pre-1880 half eagles, eagles and, especially double eagles.

8. 20th Century Gold. The various 20th century series saw a mixed year in 2011. Common date generic issues saw significant shrinking in premiums over spot and in some series, coins were trading for tiny premiums.

A series that was stagnant in 2011 but which is primed for attention is the St. Gaudens double eagle. The upcoming sale of the Dr. Steve Duckor collection, to be sold by Heritage next week in their FUN auction, includes many very choice, very rare issues which are likely to bring record prices. This may not necessarily impact lower quality examples of these dates but it will clearly bring a lot of attention to a series that has been flat since the Morse Collection sale of 2005.

A series that seemed to be quietly attracting collector and investor attention in 2011 was the Indian Head eagle. I only handled a few interesting Indian Head eagles in 2011 but the coins I did own sold quickly and generally to smart dealers.

All in all, I look at 2011 as being a good year for the rare gold coin market. Not a great year but certainly a stronger one than 2009 or 2010. It was a year that rarity and originality became more in vogue. It was a year that soaring bullion prices were a big story during the first three-quarters. My firm DWN had an excellent year in 2011 and I am personally excited about the coming year and what it will bring.

Coins I Never See With Good Eye Appeal Part One: Gold Dollars

As I was viewing auctions lots for Heritage's 2012 FUN sale in Dallas the other day, I got to thinking about a topic that I think most gold coin collectors will find interesting: which issues are really hard to find with good eye appeal. I've decided to begin a multi-part study of this and the first featured series is gold dollars. Eye appeal is a combination of factors that makes a coin visually pleasing. These factors include strike, luster, color and surface preservation. For some collectors, original color is the key component; for others it is a sharp strike. But no matter which component is deemed most important, most sophisticated collectors will be able to agree if a coin has good overall eye appeal or not.

The concept of eye appeal doesn't necessarily go hand in hand with rarity. You can have a rare or very rare coin that, when available, tends to come with good overall eye appeal (an example of this would be an 1828 half eagle). Or, you can have a coin that is merely scarce but which, for a variety of factors, is seldom seen with good eye appeal (an example of this is a 1796 eagle).

Let's take a look at some of the gold dollars that, in my experience, are very difficult to find with good appeal.

In the Type One issues (produced from 1849 through 1854) there are a number of coins that are seldom seen with good eye appeal. The first that comes to mind is the 1852-D. Due to die clashing, this issue is frequently seen with multiple clashmarks that develop into a very "busy" area in the left obverse field. In addition to this phenomenon of strike, most 1852-D gold dollars have been cleaned or processed. I can't recall having owned more than a handful of 1852-D dollars that were cosmetically appealing.

Another Dahlonega issue that is very hard to locate with good eye appeal is the 1854-D. In the case of this issue it is not so much strike as it seems that nearly all known examples have been cleaned or dipped. I would be surprised if as many as ten nice examples were known and I have seen just a few in the last decade.

The Charlotte and New Orleans Type One gold dollars are easier to locate with good eye appeal than their counterparts from Dahlonega. The hardest Type One dollar to locate from Charlotte with good eye appeal is the 1850-C. While relatively well struck and well made, it seems that nearly every piece that I see offered either has inferior luster, "chewy" surfaces and poor color from having been recently cleaned or dipped.

The New Orleans Type One dollars tend to be well made and boldly detailed. Locating examples of virtually all the dates isn't a problem although finding a choice, orignal 1850-O with very good eye appeal can be somewhat of a challenge.

While issued only from 1854 to 1856, the Type Two issues tend to be hard to locate with good eye appeal. This is more true for the branch mint pieces than for the Philadelphia coins.

The 1855-D is the rarest Type Two gold dollar from a rarity standpoint but I have actually seen more nice 1855-D dollars in all grades than I have the 1855-C. The 1855-C is typically found with numerous planchet imperfections, poor strike and bright surfaces from dipping. In the Heritage sale, I saw a nice PCGS AU58 example (which was, in fact, sort of the impetus for the theme of this series of blogs...) and it got me to to thinking how long its been since I'd seen a nice, crisp, wholesome example. I'm not certain I have the exact answer but I do know that the 1855-C dollar in any grade with truly good eye appeal is a rare coin indeed.

The Philadelphia coins of the final type of this denomination (known to collectors as the Type Three) are generally seen with good eye appeal. There are a few issues, though, that can prove to be tricky to find as such.

The 1863 is an issue that was melted extensively. When found in circulated grades, survivors almost always seem to have poor eye appeal. There are a small number of really superb pieces known (around a half dozen Gems that grade MS65 to MS67) but these are off the market in tightly held collections.

While not as well known or as highly valued as the 1863, the 1865 is another issue that is not readily encountered with good eye appeal. As with many of the smaller denomination gold issues of this era, the 1865 typically comes either really nice or really wretched and coins that fall into the latter category seem to be what's available to collectors these days.

The 1875 is a date that most collectors believe is very rare and, from the standpoint of availability (or lack of it) I couldn't argue. But this is an issue that tends to have good eye appeal when it is available. Due to its low mintage figure of just 400 business strikes, all 1875 dollars are seen with prooflike surfaces. If an 1875 dollar hasn't been harshly cleaned or mishandled, it will have great eye appeal due to the depth of its reflectiveness and bold details.

The hardest Type Three issues to find with good eye appeal are, as one would expect, the coins from Charlotte and Dahlonega.

Only two Charlotte gold dollars were struck during this era (the 1857-C and the 1859-C) but both are hard to find with good eye appeal. This is especially true for the former as this is an issue that is typically seen with planchet waviness, roughness as made and really bad overall eye appeal. I recently sold an NGC AU58 with CAC approval to a collector and, as I told him, it was just about the only really attractive example of this issue that I could recall having seen.

Nearly all of the Type Three gold dollars from Dahlonega are hard to find with good eye appeal but I think the two that are the hardest are the 1857-D and the 1860-D. The former is hard to find due to a combination of quirky strike and hard commercial use. The latter is a much scarcer coin but it is almost always found softly struck and with poor, unnatural coloration.

The San Francisco Type Three issues are short-lived but do not lack for difficultly to locate with good eye appeal. I personally find the 1857-S and 1858-S to be the two hardest dates to find with good eye appeal. Both are typically found with a fair amount of wear and seldom show good color. I haven't seen or handled a nice Uncirculated example of either date in years.

Unlike other series, there are no impossible coins to find in the gold dollar denomination (not counting, of course, the excessively rare 1849-C Open Wreath), there are a number of specific issues that are extremely hard to find with good eye appeal. I'd say that the five toughest to find, in chronological order, are as follows:

-1850-D -1852-D -1854-D -1857-C -1860-D

The next article in this series will focus on Liberty Head quarter eagles. Pre-1834 and Classic Head issues will be covered in another article that focuses on early gold in all denominations.

Any questions about eye appeal and gold dollars? I can be reached via email at dwn@ont.com

Blanchard Sells a Brasher Doubloon for $7.4 Million

While skimming Yahoo yesterday, an interesting coin story caught my eye. And, for once, it didn't involve a coin dealer being shut down by the Feds or a firm being blasted for overcharging its clients. The story involved the sale of a unique variant of the legendary Brasher Doubloon which was just sold by the New Orleans firm of Blanchard and Company for just a shade under $7.4 million dollars. As far as I know, this is the single highest price ever paid for a single United States coin via private treaty and it becomes the second most expensive coin ever sold after the 1933 double eagle that realized $7.59 million at auction in July 2002. The buyer of the coin is currently anonymous but I remember reading that it was a "Wall Street investment firm."

I think this is a very important transaction for a host of reasons, some of which I will discuss here. Before I forget, I'd like to congratulate Blanchard on a fantastic sale and John Albanese in particular for putting together this deal.

In no order of importance, here are some thoughts about the transaction.

1. This sale shows that there is really exceptional strength at the very top of the market. There are not many million dollar coins currently available but I'm willing to bet there are two, three or even four buyers for every seven figure coin that is either available now or potentially available soon. This appears to be the case is nearly all collectibles fields right now. The very best has never been more in demand than it is now and it never has been less available.

2. I find it interesting that the buyer appears to have bought the coin solely as an investment and not as a collector. We have read about Wall Street being interested again in rare coins for a few years now. While the sale was not mentioned as being part of a Wall Street rare coin fund, perhaps it is time to put some more credence in the rumor-driven world of impending (or existing) coin funds.

3. I'm sort of surprised that the final price wasn't set with the thought to eclipse the 1933 double eagle. If you pay $7.4 million for a coin, why not "stretch" a bit and go up to $7.6 million so that you can state that you just set a world record for any coin? Seems like a no-brainer for all sorts of publicity.

4. A Brasher Doubloon is a very esoteric coin despite its fame and I'm pretty surprised that this was the coin that set a record and not something like a 1913 Nickel or an 1804 Dollar. Perhaps the reason that the Brasher sold was that it was the only "big" coin available at a point in time that the client who bought it was looking for a mega-rarity.

5. If this Brasher Doubloon is worth $7.4 million dollars, imagine what some of the other mega-rarities are now, in theory, worth. I have always felt that the single most valuable United States coin was the unique J-1776 MCMVII Indian Head pattern double eagle. My gut feeling was that this coin was worth around $15 million. Now, I think it might be worth $20 million or even more. And the finest known 1804 Class I silver dollar that is owned by the Pogue family? This suddenly seems like a $15+ million dollar coin.

6. As a dealer, I'm now pretty convinced that the theory of "buy a few great coins, price them for moon money and wait until the ultimate client comes along" makes a lot of sense if you have very deep pockets. Its worked twice this year for the dealer who sold the Brasher Doubloon to John Albanese. This same dealer had another seven-figure payday when he sold his 1794 dollar earlier this year. (He and another dealer had bought the Brasher together out of a Heritage sale a few years ago for around $3 million).

7. It will be interesting to see what if any impact this sale will have on Wall Street awareness regarding coins. Will the buyer use it to promote coins as an investment or will it be quietly out away? Will it be shopped for a quick sale or held for years? Will it be motivation to put together a great portfolio (or collection) of coins or viewed as just another item in a pool of investments?

Again, my congratulations to all parties involved in this historic sale.