Starting a Charlotte Half Eagle Collection

For a collector who is new to branch mint gold coins, assembling a set of Charlotte half eagles is an excellent place to begin. New collectors tend to like half eagles more than the other denominations produced at this mint. These coins are larger in size than their gold dollar and quarter eagle counterparts and they tend to be more available in higher grades. Due to the fact that Charlotte half eagles are currently somewhat out of favor with collectors, many nice half eagles from this mint are currently available. In other words, this is a good time to start a Charlotte half eagle collection due to the fact that a new collector will have less competition than usual and will find a greater assortment of desirable pieces available.

In my opinion, there are basically three tiers of collections that the Charlotte half eagle collector can tackle. For the sake of classification, we can identify these as follows: beginner level, intermediate and advanced.

A beginner level set consists of 24 coins, generally in the EF40 to AU50 grade range. (NOTE: On all three of these sets, if the collector chooses not to include the 1842-C Small Date, the number of pieces he needs to purchase decreases by one). The five key issues in the beginner set are the 1842-C Small Date, 1840-C, 1844-C, 1846-C and 1838-C. With the exception of the 1842-C Small Date, all of the other key issues can be found in nice Extremely Fine for under $5,000.

A few pieces of advice for the collector who decides to work on a beginner level set of Charlotte half eagles:

Take your time. This set can be completed in a few months but a rushed set will include many low end coins. A set that is assembled over the course of a few years will be more fun and it will include nicer coins.

Whenever possible, throw in a few higher grade coins. Right now it is possible to buy nice AU53 to AU55 examples of common dates for just $1,000 or so more than an EF40. While this might slow up completion of your set, in the long run a collection with some higher grade coins will be a better investment than one with just EF40’s.

Try and learn what choice, original coins look like and then become fixated on buying only coins with the “right” look. Whenever possible, avoid bright-n-shiny, processed pieces.

An intermediate level set consists of all AU coins. Most collectors will probably look for the key issues in the AU50 to AU53 range and the more common dates in AU55 to AU58. This is clearly more difficult to assemble than a beginner set, not to mention (obviously) a more expensive one. The dates that will prove to be the most difficult to locate in this grade range include the 1838-C, 1842-C Small Date, 1840-C, 1844-C and 1846-C.

A few pieces of advice for the collector who decides to work on an intermediate set of Charlotte half eagles:

You are going to be confronted with a seemingly endless array of AU Charlotte half eagles in auctions and dealer’s inventories. Try to make your first decision the right one and don’t buy a coin that you will regret purchasing a few years later.

Many dates that have seemingly high population figures in the PCGS and NGC population reports are actually quite scarce with original color and surfaces. If you see a nice, original example of a date like an 1838-C or an 1861-C, do whatever it takes to buy it, even if this means your budget is decimated for six months or more.

In my opinion, it makes more sense to stretch and splurge on the rarer dates in the series than it does on the common ones. While the Charlotte market is in its current slump, this is a great time to be looking for the scarce issues and not worrying about common dates.

An advanced set of Charlotte half eagles consists of coins that grade MS60 and above. If the 1842-C Small Date is not included in this set, every issue is obtainable in Uncirculated; some in grades as high as MS63 to MS64. This is a set that requires a formidable amount of patience and deep pockets to complete. It would take at least $500,000 to form a set of Uncirculated Charlotte half eagles and a truly world-class set could run closer to $1 million.

A few pieces of advice for the collector who decides to work on an advanced set of Charlotte half eagles:

Whenever possible, buy coins with good pedigrees. High quality Charlotte half eagles from collections formed by such men as Harry Bass, Stanley Elrod, Paul Dingler, Louis Eliasberg, Ed Milas and others are generally characterized by choice, original surfaces and are regarded with high esteem by knowledgeable collectors and dealers.

Buy the right coin the first time. If you already own a very nice MS63 1852-C half eagle, it usually does not make sense to upgrade this to an MS64. The only time such an upgrade would make sense is if you can sell your existing coin for a good price and the new coin is considerable nicer in appearance when you put the two coins side-by-side.

Carefully research the price history of expensive Charlotte half eagles. If you are going to spend $20,000++ on a coin, make certain you have a good idea how much other comparable coins have sold for at auction and via private treaty. Avoid dealers who do not help you readily access such information.

As I mentioned above, this is a great time to start a collection of Charlotte half eagles. After the new third edition of my book on Charlotte coinage is released (hopefully by the end of 2007 or early in 2008) I would expect to see renewed interest in this area of the market. This will make it harder to buy nice coins, especially at the currently favorable market levels.

State of the Market Report: San Francisco Gold

In the third part of my State of the Market, I kick it West Coast style and take a look at what’s happening with the gold coins from the San Francisco mint. Are these coins still as dead as the proverbial doorknob or has some breath been jumpstarted into this long-overlooked part of the market? Looking at the market for San Francisco gold coins from a macro perspective, I’d have to say that the overall health of these coins is pretty weak. However, this blanket statement most certainly can not be applied across the board. There are segments of this market that are unquestionably strong and that will, I feel, continue to show strong growth in popularity.

The strongest area in the San Francisco market is rarities and essential one-year type coins. As an example, price levels on 1854-S quarter eagles have increased dramatically over the past few years. In 1999, the finest known example from the Bass Collection sold for just a shade over $135,000. In an auction earlier this year, Heritage sold an example that was clearly not as nice as the Bass coin to a knowledgeable dealer for $345,000. Two other key dates that have seen strong price appreciation in the past few years are the 1864-S half eagles and eagles.

One San Francisco coin that, were it to become available, would almost certainly become one of the most expensive coins ever sold would be the 1854-S half eagle. Only two or three examples are known and just a single piece is in private hands. If this coin were to come up for sale while the market for ultra-rarities remains strong, it could bring as much as $4-6 million.

There are a few other segments in the San Francisco gold coin market that I see strength in. One of these is gold dollars. In the past few years, every time I’ve owned an affordable, nice quality example of a date like the 1857-S or 1858-S, it has sold very quickly. Collectors looking for San Francisco gold dollars tend to be interested in coins in the AU50 to MS61 grades and priced in the $1,750-5,000 range. In my experience, higher grade San Francisco gold dollars are not as easy to sell.

Another group of coins from San Francisco that maintain an active level of collector interest are Three Dollar gold pieces. This is interesting because of the fact that, viewed as a whole, this series is currently not in favor. Pleasing Extremely Fine and About Uncirculated examples of the 1855-S, 1857-S and 1860-S have remained very desirable and have not declined in price like the majority of the Philadelphia Three Dollar gold pieces from this era. The one San Francisco Three Dollar gold piece that has declined in popularity is the 1856-S. This is the result of a very large number being available for sale in the last year or two.

The market for San Francisco double eagles has shown some ups and downs in the past year. High grade examples of the scarcer Type One issues remain in demand and the 1861-S Paquet and 1866-S No Motto have experienced greater price increases in the past two or three years than nearly any Liberty Head gold coins. I have noticed some price resistance on average quality Type Two double eagles from San Francisco and the market for most Type Threes from this mint is down significantly from the high levels of a year or two ago.

There are at least two areas of the San Francisco gold coin market that remain very weak: the rare date half eagles and eagles from the 1850’s through the mid-1870’s and the semi-scarce issues from the 1880’s through the early 1900’s. The reason for the weakness in these two areas is the same: lack of collector interest.

The half eagles and eagles struck in San Francisco between 1854 and 1877 are, for the most part, very rare. But they have never had the collector support that characterizes the southern branch mints or Carson City. As I’ve mentioned before, the lack of a standard reference work on these coins has certainly not helped. But I think there is another factor that keeps collector level down.

A coin like an 1861-S half eagle in AU55 or an 1860-S eagle in AU53 is unquestionably rare. But both of these are already quite expensive; $10,000 or so in the case of the half eagle and $20,000 or so in the case of the eagle. This is a lot of money for a series with virtually no collector interest. If prices were adjusted downwards to reflect these coins as sleepers or potential rarities and not established rarities, perhaps more pioneers would enter the market.

Another factor that hurts these coins is that most are very ugly. There is a huge price spread between grades for coins like an 1860-S eagle. Because of this price spread, there is considerable temptation to take a nice original EF45, scrub it to death and get it upgraded to AU53. In theory, lots of value has been added but now you’ve got an already unpopular coin like this 1860-S eagle that is now bright-n-shiny and that has a very high Trends valuation to boot.

I’ve weighed in on semi-scarce San Francisco gold coins before. I don’t like coins like this very much as, to me, they represent the unglamorous segment of an unpopular area in the market. That said, if you had bought coins like an 1882-S eagle in MS62 a few years ago, you did pretty well, if only because of the rise in bullion prices.

One area of San Francisco gold that continues to shine is high quality 20th century rarities. In the past year, we have seen record prices for a number of Indian Head eagles and St. Gaudens double eagles from San Francisco. The fabulous PCGS MS67 Duckor 1920-S Indian Head eagle at $1,725,000 was a remarkable price for this coin but what was even more incredible was the fact that at least three or four bidders were actively pursuing this coin at the $1million level.

San Francisco gold has underperformed other areas of the rare date gold market but it is not the hopeless laggard it was as recently as two or three years ago. I think we will continue to see small pockets of popularity. Some currently moribund areas that I would keep an eye on include Civil War issues from this mint and Condition Census or Finest Known gold dollars, quarter eagles, half eagles and eagles struck prior to 1878. In addition, I think better date Indian Head half eagles and eagles from San Francisco will be a very strong area in the market in the near future.

The Ten Coolest United States Coins Revisited

In June 2000, I wrote an article entitled “The Ten Coolest United States Coins.” Let’s say you were a true Douglas Winter Numismatics cultist and you had decided to follow my advice to the letter. How would your seven year investment have performed? Are there any coins I would have deleted from this list? Some analysis and random thoughts regarding these ten coins follows. In 2000, I suggested purchasing an example of this popular, historic issue in Choice About Uncirculated and stated that an example would cost around $10,000. I think this amount represented a typo as, even back then, a Continental Dollar in AU would have cost at least twice the amount I listed.

My decision to include this coin was prescient, to say the least. This has proven to be among the most popular and in-demand early American issues in the last seven years. And how can it not have been? This issue has everything going for it: size, interesting history, unique design and the magical 1776 date.

Today, a nice AU 1776 Continental Dollar will probably cost in the area of $60,000. And if you had bought a really nice AU55 to AU58 back in 2000, the chances are better than even that this coin would be regarded as an MS61 today with an estimated value closer to six figures. Clearly, this would have been a very good purchase.

I. 1776 Continental Dollar

This is not a regular issue coin but, rather, a proposed or speculative issue. Varieties are known in silver, pewter and brass and with different spellings of the word CURRENCY. For this set, I would suggest a pewter piece with the spelling "CURENCY" and the lack of the designers initials (represented on this coin as "EG FECIT," which is believed to signify that the design was by Elisha Gallaudet).

It is probable that these coins did circulate in colonial America and that they did have a recognized value. This fact makes them a legitimate candidate for the first "dollar" struck in this country as well as the largest coin, in terms of size, issued prior to the establishment of the United States. The magical date 1776 makes them even more desirable, in my opinion. And, finally, the charming design on the reverse (featuring thirteen interlinked rings with the name of each colony and symbolizing unity) is believed to have been suggested by Benjamin Franklin.

For this set, I would opt for a very slightly worn piece; perhaps in the About Uncirculated-55 to 58 range. I like the idea that the coin saw some light circulation during the colonial era but would want it to be lustrous and well struck. Such a coin would cost $7,500-$10,000; making it an exceptional value for such an incredibly historic issue.

II. 1792 Half Disme

This is another coin that seemed much undervalued to me back in 2000. I like this issue for many of the same reasons I mentioned above for the Continental Dollar: great story, interesting design and fascinating history. In 2000 I suggested purchasing a nice AU example and felt it would cost around $10,000-15,000. If you had been able to find a nice half disme back then, you probably would have been able to buy it at the high end of my suggested range.

As with most early coins, this is an issue that has performed fantastically since 2000.

If you can find a good looking AU55 to AU58 half disme (and this will be hard as most real AU coins are now in MS61 and MS62 holders) you are probably going to have to pay around $100,000 for this coin. Even an example which looks like its been run over by a train is going to cost in the mid-five figures.

Without patting myself on the back too much, I’d have to say that this choice was a home run. Of course, I wasn’t smart enough to listen to myself and actually put away any nice half dismes...

III. 1793 Chain Cent

There aren’t all that many coins left that still give me a tingle in the spine when I buy one, but Chain Cents qualify. I love the design and history of these coins and admire the fact that they have been coveted by collectors since the late 1850’s.

In 2000 I recommended buying an EF or an AU Chain Cent and felt that it would have cost in the area of $20,000 to $45,000. It wouldn’t have been easy to find a decent looking example but with some searching you might have been able to buy one with good detail and reasonably choice surfaces.

Today, Chain Cents are not only nearly impossible to find in grades above VF20, they are just about the most overgraded type I have seen in third-party holders. Coins that I personally grade Fine-12 are housed in EF-40 holders and both services seem to conveniently overlook the fact that coins in EF holders are riddled with problems.

Assuming you could find a decent coin in 2007, you’d be looking at spending $60,000-80,000 plus for an EF and at least $100,000 for an AU.

This was a good choice but in retrospect I think I might have selected a 1793 Liberty Cap instead. But, as I recall, I didn’t choose this type in 2000 because I thought it would be impossible to find one that I liked even back then.

IV. 1794 Silver Dollar

This is the first and largest United States silver coin. Any well-heeled collector who couldn’t be sold on the desirability of this coin back in 2000 had to truly have his head in the sand.

In my 2000 article I suggested a nice EF example of this coin and that such a piece might be available in the $75,000-90,000 range. This value range might have been just a touch low and I’m guessing that if anyone did take my advice, they probably had to pay closer to $100,000.

Regardless of what this theoretical collector paid, if he did buy a 1794 dollar, he did very, very well. Early dollars caught fire a few years ago and the 1794 proved to be the ultimate trophy coin in the early dollar series.

A nice EF 1794 dollar today is worth $250,000 to $300,000. Any significant investment made in early dollars around 2000 would have done fantastically well seven years later but the 1794 is the one issue which I believe will continue to show the greatest strength in the future.

V. 1795 Eagle

I selected this coin for my group of 10 because it is the first United States gold coin and it is the sort of big, neat, old gold coin that new and old collectors alike seem to love. Looking back at this choice, I might have changed it to a 1796 quarter eagle or another 18th century issue.

In 2000, a nice About Uncirculated 1795 eagle was available for around $30,000-35,000. Such a coin would have graded AU53 to AU55 (and would grade AU55 to AU58 in today’s looser environment). Today, the same sort of coin would be priced at around $80,000-90,000; possibly a bit more if the coin was original and had nice eye appeal.

I am not as enthusiastic about this issue today as I was seven years ago. I think at close to $100,000 the 1795 eagle in AU is pretty pricey, given the fact that it still somewhat available. More importantly, most pieces in AU holders are really low end for the grade.

Still, a rise in value from $35,000 or so to around $90,000 isn’t too shabby for a seven year hold. This is typical of most early gold during the past seven years.

VI. 1836 Gobrecht Dollar

I didn’t choose a Proof 1836 Gobrecht Dollar as one of my Ten Most Cool Coins because of its history or numismatic significance. I chose this issue because I love the design. There’s just something about the stark cameo-like appearance of the obverse and the eagle flying in the field of stars on the reverse that I’ve always found very appealing. Apparently, I’m not the only one who thinks this way.

Back in 2000, nice PR63 Gobrecht Dollars seemed pretty cheap. They could be bought for around $20,000. Today, the same coin is more likely to cost in the area of $30,000-35,000. So the gain that this coin has shown has been pretty impressive although it pales in comparison to some of the early issues listed above.

Personally, I think PR63 and PR64 1836 Gobrecht Dollars are still a good value and even though the market for these pieces is a bit soft right now, they are a good long-term purchase at current levels. Examples which are too dark should be avoided as should pieces which have been overdipped and which are now bright white.

VII. 1850 Double Eagle

What could I possibly have been thinking when I put this issue on my list of Ten Cool Coins? Sure it’s interesting and it has status as a first-year-of-issue but I’d hardly put it in the same ballpark as the other nine coins on this list.

That said, this issue has performed very nicely since 2000, especially in high grades. In my first article, I suggested purchasing an MS61 and figured that such a piece would be obtainable in the $6,000-9,000 range. Today, a nice MS61 sells for $12,000 or so.

In retrospect, a Liberty Head double eagle collector could have done a lot better from an investment standpoint if he had purchased a few nice New Orleans pieces. As an example, the 1854-O and 1856-O issues have shown spectacular price gains in the past seven years and even the secondary rarities such as the 1855-O, 1859-O, 1860-O, 1861-O and 1879-O have performed exceptionally well.

I’m not going to totally disown this choice but I’m pretty embarrassed to see it alongside such issues as a 1794 Dollar or a Chain Cent.

VIII. 1861-D Gold Dollar

The 1861-D gold dollar remains my favorite Dahlonega coin of any denomination. It’s the most historic southern issue, I love the crudeness of its manufacture and it is, of course, genuinely rare.

Back in 2000, the 1861-D gold dollar seemed to be available on a somewhat regular basis. With a little luck and patience you could find one at auction or in a specialist’s inventory. Today, these coins seem to have disappeared and I have not personally handled an 1861-D in close to a year.

I recommended purchasing a nice AU58 example and suggested that it would cost $17,500-20,000. If you heeded my advice, you did very well as a similar example would probably fetch double that amount today. What makes this all the more remarkable is the fact that the high end of the Dahlonega market has been fairly flat in the past seven years with certain coins actually dropping in value despite what is arguably the most sustained bull market in modern numismatic history.

This is another coin which I would hang on to for the long term if I had one put away right now. Despite its rise in price, it is a coin which is in great demand and which has such a wonderful story that it can’t help but appreciate in value in the coming years.

IX. 1879 Flowing Hair Stella

Unlike the 1861-D dollar, the 1879 Flowing Hair Stella is a truly rare coin. If you check auction records over the past few years, you’ll note that a lot of pieces have sold. But I still think the Stella is a coin that is genuinely cool. It is interesting, has a unique design and history and it really is a perfect “trophy coin” for a well-heeled investor.

In 2000 I suggested purchasing an example that graded PR63 (back then, Stellas existed in this grade. The PR63 of 2000 is now a PR64). A nice example would have been available back then for around $50,000-55,000. Today, the same coin would probably be worth around $150,000.

When nice Stellas were worth $50,000 or so they were a great value. At today’s price level, I don’t really like the value that they represent. But, I can certainly see how coins like this trade for $150,000 given their great story and always high level of demand.

Time to pat myself on the back one final time. This was a great recommendation and if you listed to me you made a ton of money!

X. 1907 High Relief Double Eagle

I can remember struggling with the decision to make this the tenth and final coin on my list. High Reliefs are big, beautiful and “cool” but they are just so...common. I hated to put a coin on this list that I knew could be obtained by the truckful at major auctions and conventions. But this was a list built around cool coins and if a High Relief isn’t a cool coin than what was?

My recommendation was to purchase a nice MS64 and back in 2000 this coin was obtainable in the $14,000 to $17,000 range. For a number of years, the market for High Reliefs stayed pretty flat but this coin was extensively promoted in 2005 and 2006 and it rose in value to a high of around $35,000-40,000. Today, the market for these has softened and a nice MS64 High Relief is more likely to sell in the $26,000-28,000 range.

If I were in the market for a High Relief as an investment, I’d probably consider buying one now, while prices are somewhat depressed. I’m guessing that MS64’s could drop as low as around $22,500-25,000 but at that level there would be enough market support that people would jump in and start pushing up demand.

So there you have it. Ten Cool Coins revisited seven years later. Had you bought some or all of these coins you would have tripled your money and had a pretty neat little coin collection to boot. The best lesson to learn from this list is that cool coins are always what people will want to buy, regardless of what series or price range you are discussing.

State of the Market Report: Dahlonega Gold

In my second State of the Market report, I look at the always popular area of Dahlonega gold and see what’s up with these coins. Dahlonega gold coins clearly remain the most avidly collected of the three southern branch mints. But this market has become very two-tiered in the past few years. Because of this market bifurcation, prices have fluctuated recently and two coins of the same date in the same grade can have wildly divergent values.

1. GOLD DOLLARS

Dahlonega gold dollars are by far the most popular branch mint gold dollars. In fact, I have noticed a number of new collectors in this area of the market in the past two or three years including at least a few who are assembling high quality, complete sets of Dahlonega gold dollars.

The Type One issues have shown a considerable amount of strength in the past few years and I would suggest that these are probably the most popular gold dollars from this mint right now. I am always able to easily sell any Type One Dahlonega gold dollar I have which is priced in the $1,500-3,000 range. The more expensive coins are a bit harder to sell unless they are rarer issues (such as the 1850-D or the 1854-D) if they are choice for the grade with nice color and surfaces. Very high quality pieces are extremely elusive and the few Finest Known or Condition Census pieces which have come onto the market in the past few years have brought strong prices.

The one-year type 1855-D is still extremely popular. A few years ago, there were a decent number of these on the market. But in the last year or so, I don’t think I’ve seen more than three or four and most of these have been higher grade. I think I could sell a nice, relatively affordable EF 1855-D gold dollar multiple times but these appear to be put away in private collections and not currently available.

The market for Type Three Dahlonega gold dollars is a little bit harder to figure out. Clearly, the better dates in this series have been hurt by a number of vastly overgraded coins put into holders by the grading services. In addition, the population figures for dates like the 1858-D and 1859-D have been greatly inflated by multiple submissions. One date which has suddenly become impossible to find is the 1861-D. I don’t recall having seen a slabbed piece which did not have a problem in close to two years. I would have to think if a nice PCGS AU55 came on the market, it would bring well over Trends due to very strong current demand.

2. QUARTER EAGLES

If I were going to assemble a set of Dahlonega coins for my own collecting pleasure, I would probably choose this denomination. Quarter eagles are the hardest Dahlonega coins to consistently find with good eye appeal and there are a few specific dates which have almost disappeared from the market.

The 1839-D has gone from being moderately popular a few years ago to being very popular today. It has been quite a while since I’ve seen a nice Uncirculated piece or a nice, problem-free EF. Most of the pieces currently on the market are processed, overgraded AU’s.

In the Liberty Head series, most of the coins I see offered these days tend to be the more common issues such as the 1843-D, 1844-D, 1846-D, 1847-D and 1848-D. Nice EF examples of these dates have doubled in price in the last three or four years but I still think that a choice EF Dahlonega quarter eagle at $2,500 or so is pretty good value in the big picture. The rare dates from the 1840’s, such as the 1840-D, 1841-D and 1842-D, remain extremely hard to find in properly graded AU50 and better and most of the ones offered at auction these days are low end and unoriginal.

The scarce 1850’s Dahlonega quarter eagles are currently an enigmatic sub-series, in my opinion. I have seen a lot of low-end Uncirculated examples of dates such as the 1852-D, 1853-D, 1857-D and 1859-D in the last two or three years. These mostly tend to be the same group of overgraded coins which bounce from auction to auction and from dealer to dealer, seeming to never find a good home. Two dates that remain truly rare are the 1855-D and the 1856-D. It has been at least two years since I’ve seen a really nice 1856-D for sale and this date has proven to be the rarest Dahlonega quarter eagle, in my opinion, by a significant margin.

3. THREE DOLLAR GOLD

If any Dahlonega coin could be termed “volatile” it would be the popular 1854-D Three Dollar gold piece. This issue is always in demand due to its one year status. What many people have learned, though, is it is clearly not nearly as rare as its small mintage of 1,120 would suggest (a comment on this follows, see below).

A few years ago, the market seemed inundated with 1854-D Threes. I can remember owning no less than four AU58 examples at one time. Prices shot upwards but many collectors realized that $40,000+ for a decent quality example seemed like pretty marginal value when there were more interesting Dahlonega coins available at a fraction of the price. As with the market for Three Dollar gold pieces in general, values for the 1854-D declined in the past year or two. But they seemed to have firmed in the past six months and it appears clear to me that they aren’t going to get cheaper anytime soon.

A note on this issue’s rarity: clearly the 1854-D was saved at the time of issue and its survival rate is considerably greater than other Dahlonega coins of this era. But the number of pieces which appear for sale is misleading. I know of a few 1854-D Three Dollar gold pieces that have appeared in at least four or five consecutive auctions as well as on various dealers’ websites. Properly graded, original examples have never been easy to find and the ones that bounce around these days tend to be the ones which are, to put it nicely, not so “pretty.”

4. HALF EAGLES

For a number of years the half eagles have been the most popular denomination from this mint. Prices have risen for lower grade examples but I find the higher end of the half eagle market to be somewhat weak right now. The culprit for this, of course, is the abundance of overgraded coins. I know that the dealers who specialize in Dahlonega gold coins are happy to purchase all the high quality half eagles that they can find but their complaints are unanimous: the nice coins just aren’t readily available.

I would have to say that two of the most popular Dahlonega issues right now are the 1838-D and 1839-D half eagles. The former was once easy to find in nearly any circulated grade but it is now very hard to find an 1838-D even in EF grades. The 1839-D, after years of languishing in obscurity, has become the “coin du jour” in the half eagle series and auction prices for nice AU pieces have broken the $10,000 barrier in the past two years.

There are a few dates which I never seem to see in higher grades. These include the 1842-D Large Date, 1846-D Normal Mintmark, 1848-D, 1850-D and 1861-D. The other Dahlonega half eagles tend to be fairly readily available in most grades but, as I said above, finding attractive, original coins can be very challenging.

At some point in time, an enterprising dealer will publish a price guide for Dahlonega gold coins which has two sets of prices. The first will be for the run-of-the-mill pieces which are typically offered for sale. The second will be for the crusty, original pieces which are all but disappearing. The price differential right now is only 15% or so. I would not be surprised if in five years a crusty AU55 common date Dahlonega half eagle is worth 50-100% more than its processed counterpart.

One final comment before I end this report. The 1861-D is one date in the half eagle series that is just about impossible to find these days. I used to handle a nice 1861-D every two or three months. Now, it’s more like once every year or two. I believe the reason for this is that the 1861-D is a classic collector favorite and all the nice, middle grade pieces are owned by people who have no real interest in selling them.

May 2007 Long Beach Show Review

With few exceptions, coin shows are, for me, places to buy. So I typically judge my success at a coin show on how much I am able to purchase and if my new coins are interesting. On both fronts, I would have to say that the recent Long Beach show was a strong success. The funny thing is, the show itself seemed pretty slow. Until a few years ago, Long Beach had a very strong collector following and I could always count on staying busy on Friday and Saturday selling coins to collectors. This has clearly changed and I’d have to say that Long Beach is pretty much over these days by Thursday afternoon; i.e., it is a primarily wholesale-oriented show.

I’ve been having trouble buying coins at the last few shows I attended so I decided that I’d make a Herculean effort to find some interesting pieces at Long Beach. And I worked liked a dog; running from table to table and looking through boxes of coins from my usual sources and some dealers who I typically do not patronize.

I didn’t realize how much I bought—or how much I liked what I bought—until I returned home and wrote up my new purchases. Some of the highlights include the following:

A nice group of choice New Orleans gold coins including a lovely PCGS MS62 1857-O quarter eagle and an 1850-O eagle in NGC AU55.

A very rare 1841-O eagle graded AU53 by NGC.

Some attractive Charlotte and Dahlonega half eagles ranging in price from $2,500 to over $10,000.

A dazzling Condition Census 1852-D half eagle graded MS62 by NGC.

An 1846 eagle graded MS61 by NGC which is tied for the finest graded by any service.

As for the show itself, I would have to say it was pretty marginal. There was a decent amount of wholesale business being done but there was very little fresh material available. If you were the kind of dealer who regally sits behind your table and waits for coins to come marching up, you had a terrible Long Beach. If, like me, you hustled and hustled, you may well have “bought your way out” of the overall malaise which now seems to hang over the show.

That said, a number of interesting trends became apparent at the show. The first thing I noted was that as soon as many dealers panicked and dumped large portions of their positions on generics, gold spiked upwards. The second thing is that Indian Head quarter eagles seem to be back in play after a year or so in the dumps. I sold a few better dates I had in stock (1912, 1914-D and 1915) for my full asking price to the first person I showed them to. The final thing I noted is that collector grade coins in all series remain very popular. If you had coins like scarce date Bust and Seated silver coins or better date Bust gold, you were going to sell them very easily.

I did not participate in the pre-show auctions due to lack of time and lack of interest. I spent very little time (or money, for that matter...) at the Heritage sale. I did sell a number of coins in the auction and was very pleasantly surprised at how well they did.

I am anticipating that the market will be relatively slow for the rest of the month although I do expect the Baltimore show at the end of June to be excellent. I am attending the summer version of this show for the first time ever (usually I go on vacation at the end of the June but now that I live in the Northwest I actually want to stay around!) and would urge you to do the same if you live anywhere near Baltimore.

Ten Great U.S. Coin Auctions and Some Reminiscences

I’ve now been attending coin auctions for the better part of thirty years. I’ve gone to major sales in New York and tiny little farm sales in New England. I’ve truly seen the good, the bad and the ugly in the hundreds of sales I’ve participated in. Here is a brief recap of ten which are especially memorable to me and some noteworthy incidents that I always associate with each of these sales. 1. 1975 EAC Sale, Pine Tree Auctions 1975

As a youngster, my first love was collecting Colonials. I specialized in Connecticut Cents and, at one time, was good enough with these coins that I could attribute many of the 350+ die varieties by sight without a reference book.

The 1975 EAC sale contained what still probably ranks as the finest collection of Connecticuts ever assembled. When I received the catalog I was obsessed and can remember spending days in my room analyzing it and making lists containing first, second and third choices.

I also remember grappling with the financial aspects of the sale. I was ready to spend my net worth at the time (which was probably around $1,500) as well as sell off all my non-essential coins. My mom tried not to be to concerned as she saw my attempts at raising a few thousand dollars to spend at the sale but you’ve got to wonder if my financials wheelings and dealings didn’t alarm her somehow.

There are two things I remember best about this sale. The first is that Richard Picker, a really kind old-time colonial specialist who lived out on Long Island, volunteered to help me bid in the sale and to steer me towards the coins which he thought were the most desirable. And, best of all, he did it for free, just to “help the kid out.” Secondly, I remember that there was a Led Zeppelin concert at Madison Square Garden the day after the EAC auction ended which I had been invited to go to with arguably the best looking girl in my class—and her parents had Garden connections which enabled her to sit in great seats. So within a 24 hour span I was going to participate in my first major auction and go to my first major concert. Life just didn’t get much better than that!

2. New York ANA Sale, Stack’s 1976

I was still in high school when I heard that the ANA convention was going to be held in my home town of New York. This was clearly going to be the highlight of my summer and, as far as I can remember, it was going to be the highlight of my numismatic career, such as it was at the time.

I had participated in Stack’s sales before this but I had always had to have my mother’s written permission for Stack’s to allow me to bid; understandable as how many 13 year kids were trustworthy enough to be spending a few thousand dollars in an auction back then? This time, Stack’s let me bid without my mother’s consent and I remember thinking, for the first time, that I must be movin’ on up in the world of coins.

The sale itself was huge. I don’t know how many of you have actually thumbed through the catalog but it contained seemingly a complete set of United States coins in a dazzling array of grades, dates and denominations. At the time I was mostly interested in Seated coins and decided to focus on the dimes, quarters and half dollars.

I don’t really remember what I bought in the sale but what I do remember is my excitement viewing the auction lots, attending the sale and running around the coin show. From that point on, I was hooked on coins and decided, pretty much then and there, to become a full-time coin dealer. 31 years later, the rest, as they say, is history.

3. R.T. Wilder, Stack’s 1994

This collection of Southern gold coinage is not well-remembered but it contained one of the nicest sets of Charlotte pieces ever assembled. The coins had been consigned to Stack’s in a custom-made plastic holder with a hand-engraved brass plaque which read “Coin of Charlotte N.C. Mint 1838-1861.” The set was complete (except for the 1849-C Open Wreath gold dollar) and it appeared to be very choice.

There was just one problem: the coins had been lacquered at one time and it was extremely hard to determine what their surfaces looked like under the lacquer. As an example, I remember that many of the quarter eagles seemed to be exceptional. But what would the surfaces look like below the lacquer? This was clearly going to be a sale for coin dealers who were very, very confident in their grading.

If you’ve ever viewed coins at Stack’s you know that the lighting isn’t wonderful. I hadn’t brought any special lighting with me and, quite honestly, I couldn’t make good headway in grading the coins. I then had a brainstorm: go buy a halogen lamp.

New York may be The City That Never Sleeps but, on that day in 1994, it was The City That Didn’t Sell Halogen Lamps. I can remember running all over midtown Manhattan looking for a good quality lamp. Some stores were out of them, others had the wrong ones in stock. Finally; I located one and was able to view the coins with a little more confidence.

In the end it really didn’t matter. One dealer wound-up buying most of the coins for a customer who had informed him to purchase the majority of the sale. Ironically, the few coins that I did buy turned out to be really nice once I removed the lacquer and I made quite a bit of money on these.

4. Eliasberg Silver Part II, Bowers and Merena April 1997

This was one of those collections which I would have paid money to look at. It was like opening the door of a numismatic time capsule and viewing hundreds and hundreds of coins which had been put away (and well cared for) for a century.

It was hard to decide what the most exciting area of this sale was. I can remember gasping at the Carson City silver coinage and cooing with love at the page after page of Gem Bust halves. There were amazing Proof Bust coins and the finest run of Bust Dollars I have ever seen. And the thing about these coins that was the neatest was the fact that 80-90% of them had gorgeous original coloration.

I wound up spending more money at this sale than at any other non-gold auction I’ve ever attended. I bought some superb pieces for clients and some great coins for stock, including numerous Gem Seated half dollars from New Orleans. I’m not sure that there will ever be another deal like this.

My favorite memory of this sale involved a well-known and very naughty dealer. The lots were being shown in a tiny room and, as I recall, there were no more than around 20-25 seats available at any time to see the coins. This dealer hogged up a spot for three days and parked three or four of his employees in neighboring chairs. I can remember seeing the looks of disgust on the faces of collectors who waited two full days to view lots but who could never be accommodated. Ironically, this included at least two collectors whose combined numismatic holdings are, today, worth somewhere north of $100 million. At the end of the lot viewing these two collectors were allowed to request around a dozen coins each to view in an “express lane.” Many other collectors never got to view even a dozen lots(!)

5. John Whitney (“Mr. 1796”), Stack’s 1998

This was among the more unique specialized collections ever assembled. John Whitney Walter, a New York businessman, specialized in the coinage of 1796 and he assembled an amazing set of coins which featured high grade examples struck in copper, silver and gold. This was the sort of ultra-competitive “old school” auction which probably will never happen again. I think we can officially say good-bye to small, highly specialized collections featuring unslabbed coins sold in the Stack’s pre-21st century environment.

The sale was held in a fairly small ballroom in one of the mid-town Manhattan hotels; I can’t remember if it was the Park Lane, the Essex House or another location. By the time the sale began, the room was absolutely packed. What I remember most about the crowd was the fact that there were lots of middle-aged men in beautiful suits who looked very rich and very much fit the New York Investment Banker stereotype. None of these guys ever seemed to bid during the sale, but it made for a much more impressive room than your typical drooling pack o’ coin dealers.

But the thing I really remember about the night was that a few minutes into the sale, Donald Trump (and a small entourage) popped into the room. I later learned that that the consignor was some sort of security consultant who had installed a system either in Trump’s house or office (or both) and The Donald decided to grace the room with His Presence. FYI, he never raised his hand to bid and he left after a few minutes (now doubt to do another Epic Deal) but it was a pretty cool few minutes to have The Donald in a coin auction.

6. North Georgia Collection, Heritage 1999

With a value well north of $3 million, the North Georgia Collection of Charlotte, Dahlonega and Bechtler coinage is still the largest single deal I have ever been involved with. Along with my partners Hancock and Harwell of Atlanta, we had numerous difficult decisions to face in the marketing of this collection. Which coins should be sold privately and which should be sold at auction (in a deal which contained over a dozen 1838-D half eagles, this was no easy decision!). Which firm would auction the coins and when? Would the coins be regraded or kept in the original holders?

After a numbers of strategy sessions, we decided to put the coins in the Heritage 1999 FUN auction. This was not an easy decision to make as we were paying interest on a sizable amount of money and had to wait six months for the auction to take place. But in the long run we were happy with our decision.

Looking back at the prices realized in this sale, one can see that in many ways the 1999 FUN sale was the all-time height of the market for most Charlotte and Dahlonega issues, especially high grade pieces. Even factoring in the upgrades that many of the coins in this collection saw in later years, it is still pretty remarkable to look at the levels which they sold for.

When I look back at this sale my memories are bittersweet. The owner of the collection, a truly nice guy named Leon Farmer, passed away soon afterwards and my close friend and business associate Jack Hancock is dead as well. Every time I pull a Heritage North Georgia catalog down off the library shelf to research a coin, I think of these two wonderful men.

7. Bass II, Bowers and Merena 1999

Usually, when I attend a sale I am only interested in a small number of coins. I may have to sit around for hours waiting for the coins I want to bid on but, clearly, I’m interested in a few dozen lots at most. The Bass II sale was the first auction I’ve ever been where I was interested in almost every lot. And there were well over 2000 lots in the sale!

It took me two full days of viewing to see all the coins and another day to figure out my bids. Even three days really wasn’t enough.

This was a sale that should have been broken into at least three more parts. There were simply too many great gold coins in one sale. I can remember $5,000 and $10,000 coins stuck in large lots, multiple examples of very rare dates one after another and a true sense of overload that I can’t imagine will ever be repeated.

My strongest memory of this sale was that it was an endurance contest; a true Coin Marathon, if you will. If I’m not mistaken, the first session lasted between thirteen and fifteen hours and I can remember leaving, bleary-eyed, at 3:00 in the morning. The second session started around 9:00 and last the better part of the day. I remember leaving New York that day with a number of incredible coins and being as tired as I’ve ever felt after an auction.

8. Dallas Bank Collection, Stack’s/Sotheby’s 2001

This collection actually belonged to Jeff Browning, a collector who was active in the Dallas area in the 1960’s and early 1970’s. I had heard about these coins for years and despite the fact that I spent essentially my entire adult life in Dallas I had never had the chance to see the coins (as they were kept in a bank vault in Dallas).

The meat of this collection was a set of Double Eagles which was complete from 1850 through 1932. It included one of just two known examples of the rare 1861 Paquet Reverse as well as Condition Census examples of many of the New Orleans Type One issues. My personal favorite coin in the sale was a fantastic Uncirculated 1879-O (easily the finest known) on which I was outbid by a prominent Midwestern collector.

My strongest memory of this sale is not coin-related. It was held in New York just a few weeks after the 9/11 bombings and I can remember taking the subway downtown with a friend and visiting Ground Zero. It still smelled of smoke and chemicals and many of the shrines which had been erected to the dead were still intact. It was one of the most chilling and moving mornings of my life.

9. The 1933 Saint Sale, Stack’s/Sotheby’s 2002

You probably know all about the importance of this coin and this sale so I won’t rehash old news. But my impressions from the auction are incredibly vivid.

Most coin dealers are very jaded when it comes to auctions and it takes a lot to get us excited. Everyone I knew was excited about this coin. We knew it would bring a record price but no one had a clue who would buy it. The sale took place at Sotheby’s headquarters on E. 72nd St. in New York. It was during the ANA convention and, as I recall, it was in the early evening during a heat wave when getting from place A to place B in Manhattan was even more grueling than usual. I went with a friend of mine and I remember leaving the bourse floor early so that we could get to the sale in time. We took a cab but got caught in horrible rush hour traffic. We wound up leaving the cab and jogging the remaining ten or so blocks to Sotheby’s, arriving in a pool of sweat in our suits.

When we got to the sale it was packed. We stood in the aisle and waited for the proceedings to begin. Because of the fact that we were well-dressed, someone from Sotheby’s grabbed us and escorted us to the front row where we were told to sit. I remember being very excited to have front row seats at what felt like the Numismatic Sale of the Century.

The sale itself was a bit anticlimactic. It was hard to know who was particpating with the exception of some guy a few feet away (Barry Goldwater’s son) who apparently was bidding more as a public relations gesture than as a serious player. Once the bidding hit $5 million it was nearly impossible to figure out what was going on but I do remember it was suspenseful, drawn-out and the numbers being called out by the auctioneer seemed impossibly large for a coin.

When the sale was over, everyone got up, chatted for a few minutes and went their separate ways. It was fun to attend a coin auction which, for once, had all the high dollar drama of an Impressionist Art sale.

10. The Morse Sale, Heritage 2005

When my ex-partner Todd Imhof and I first heard that this collection was coming onto the market, I knew it represented a wonderful opportunity for our company. I thought that the combination of my savvy as an auction participant and Todd’s strong customer base for rare St. Gaudens double eagles meant that we could be THE major participants in this sale. I quickly identified our major competitors for the coins and knew what our strategy would be: we would work harder than anyone to prepare for this sale.

And prepare we did. I flew down to Dallas twice before the sale to carefully look at the coins; each time grading them and taking notes. Then, Todd and I prepared a detailed Morse Guide which we sent to selected customers. The guide gave an in-depth background of each date: its rarity levels, its price history and my comments regarding its grade and appearance and Todd’s estimate as to values.

The sale was originally supposed to occur in West Palm Beach but it was moved to Dallas due to hurricane damage. Psychologically, I thought this was a huge advantage for us as Dallas felt like my “home court.”

The sale itself was hugely exciting. The room was packed and a number of bidders were represented on the bank of phones. There was a vibe in the room not often felt in auctions. To make a long story short, our hard work paid off in spades as we spent over $5 million in the sale, including two coins (a Gem 1921 $20 and a superb 1927-D $20) for over $1 million. To the best of my knowledge this is the only time in numismatic history a single firm has purchased two coins for over $1 million in a single sale. It was definitely fun being able to make history that night at the Morse Sale.

Impaired Proof Gold

Impaired Proof gold. What is it and do collectors covet these coins? This article takes a quick look at an interesting, little-understood subject. Proof gold coins were struck in very small quantities for collectors. Mintages figures for most issues produced before 1900 are extremely low; in many cases less than 50 coins per year. The typical survival rate for a pre-1900 Proof gold coin is around 50% of the original mintage figure. Most of the coins that have survived were handled with care and grade PR64 to PR66 by today’s interpretations. But a small percentage of the surviving Proofs were mishandled and now grade lower than this.

There are essentially two ways in which a Proof gold coin can become Impaired. It can either have been spent (accidentally or on purpose) and received wear from circulation or it could have been mishandled through improper storage and/or harsh cleaning(s).

I have heard stories that during the Depression, a number of Proof gold coins were spent by collectors who could no longer afford to have high face value coins. As an example, it is not uncommon to see Proof Liberty Head double eagles from the 1890’s and the 1900’s which are lightly circulated. By the beginning of the Depression, these coins were not worth substantially more over face value and dozens (if not hundreds) of pieces were placed in circulation.

Proof gold coins which are circulated are very easy to spot. They typically show noticeable marks in the fields and signs of friction on the high spots. Because of the fact that proof gold coins have extremely reflective surfaces, these marks tend to be very heavily amplified and appear worse than they might actually be.

How these marks affect the grade of a Proof gold coin is fairly subjective. It is very unusual for a lightly circulated Proof gold coin to be graded less than PR55 or PR58 by PCGS or NGC. If a Proof gold coin saw a considerable amount of circulation, the surfaces may no longer show enough reflectiveness to convince the grading services that the coin was actually struck as a Proof. In the instances when Proof gold coins of a certain year were struck from the same dies as business strikes, identification may prove to be impossible.

Many business strike gold coins with light wear can be quite attractive; especially if they are original and uncleaned. Lightly circulated Proof gold coins tend to be generally unattractive and, as a result, they do not appeal to most collectors. There are certainly exceptions to this rule and I have seen gold coins which grade PR55 or PR58 which have fairly good overall eye appeal.

Proof gold coins with significant hairlines from prior cleanings are another story. These aren’t really “impaired” and the grading services will generally put them in holders as long as the hairlines present on the surfaces are not totally obtrusive. I have seen a decent number of gold coins graded PR60 or PR61 which have clearly been harshly cleaned with an abrasive. If these were common modern issues, they wouldn’t be encapsulated but the fact that they are rare dictates that they tend to be assigned a “net grade.”

I, for one, do not care for harshly cleaned Proof gold coins. Frankly, they are ugly. And if you are going to collect Proof gold coins, the chances are good that you care about the aesthetics of the coin.

But there are circumstances where I think that Impaired Proof gold coins are very interesting. As an example, I recently bought a PCGS PR 1870 quarter eagle. This is an issue with an original mintage of just 35 Proofs. After some research I discovered that this date was rarer than I thought as a Proof. In fact, there are as few as seven or eight Proofs known. I priced the coin at a touch under $5,000 and got a number of inquiries about it the first day it was listed on my website. Here was a coin that was pretty decent to look at, genuinely rare and reasonably priced, considering its rarity.

In conclusion, I don’t think that I would ever make Impaired Proofs a major part of my coin collection but there are clearly instances when selected examples could be pretty intriguing.

The Finest Known 1858 Eagle

One of my all-time favorite United States gold coins is coming up for sale soon. The coin in question: the finest known 1858 Eagle, graded MS64 by PCGS. The venue of sale: the Heritage May 2007 Platinum Night auction at the Central States Convention. The 1858 is among the rarer and more noteworthy issues in the entire Liberty Head eagle series. There were only 2,521 examples produced of which an estimated three to four dozen exist. While both NGC and PCGS show other examples having been graded in Uncirculated, I believe that the 1858 is unique in strict Mint State. The present example has been graded MS64 by both PCGS and NGC and is very choice for the grade.

This coin has a very interesting history. In 1972, it walked into a coin shop in New York. According to the dealer who purchased it, the owner had acquired the coin from the legendary dealer Wayte Raymond sometime in the 1920’s or the 1930’s. It was placed into a specialist collection and was first sold at auction in 1980 where it realized an impressive $115,000.

After bouncing around between a number of dealers, the coin was sold to Warren Miller, a collector from New Jersey who was assembling what, at the time, was the finest collection of Liberty Head eagles ever attempted. It remained in the Miller collection until 1995 when this set was sold by Heritage. Amazingly, the coin did not meet its reserve and it was retained by Warren Miller. It took Miller quite a while to sell this coin, as the market in the 1990’s was not especially good for esoteric high five-figure/low six figure coins; no matter how rare or neat they were.

Eventually, it was purchased by a type collector who was putting together a set of high grade coins designed by Christian Gobrecht. (And hats off to a type/design collector who chooses one of the single greatest Liberty Head eagles in existence as his ten dollar gold representative...that’s my kind of type collector!). He kept it for a decade or so and then made the decision to sell the coin in the auction mentioned above.

So, what is it about this piece that makes it worthy of so much praise? After all, isn’t it “just” an expensive, esoteric coin? In a sense that is true but the market has become far more appreciative of coins like this since the Dog Days of the mid-to-late 1990’s. While few people “need” this coin to complete their date set of 1858 coinage or their Liberty Head eagle set (and don’t snicker at the last comment; more people collect $10 Libs. by date than you think...) lots of people now appreciate one-of-a-kind coins with a real mystique. Just like this 1858 eagle.

Looking at this piece from a more global perspective, here’s what you need to know. It’s the finest known example of a coin that is genuinely scarce in all grades. It’s a No Motto eagle in a very high grade and even the “common dates” of this design type are very rare in MS64. For many years it was the world-record holder for a Liberty Head eagle (business strike) sold at auction and it has a cult following among gold coin specialists. Most importantly, it’s a gorgeous coin for the grade with choice surfaces, lovely original color and luster and incredible eye appeal for the issue. In short, it’s a true trophy coin and a piece which could be a runaway if two or three savvy, big-budget collectors or investors decide they’ve got to have it.

So what’s the 1858 eagle going to sell for this time around? I’d give it a conservative estimate in the $100,000-125,000 range although I think it’s possible it could bring a lot more This is a coin which I will be excited to watch sell in a few weeks when I’m at the Heritage auction in St. Louis.

Are Coins of the Same Grade Held to the Same Standard?

N.M. from Texas recently asked an excellent question which I’d like to try my best and answer. His question, in part, is as follows: “It seems as though the grading services are holding coins like Indian $10 and Saints to a higher standard than say CC $20's or Territorials, etc. I see MS61 or MS62 CC $20 and Assay pieces with terrible surface preservation relative to what 20th Century coins show for the same grade. I don't believe this is just a case of a few over graded coins. We all know that Territiorials and CC's had a hard life but I always thought coins of the same grade were to be held to the same standard. Care to comment?”

This question is very astute and is unquestionably worthy of some analysis. My initial reaction is that N.M.’s observation is absolutely correct. Territorial gold coins and, to a lesser extent Carson City double eagles, are definitely accorded a different grading standard than 20th century issues such as Indian Head gold or Saint Gaudens double eagles. And I think they should be.

There are at least two legitimate reasons why Territorial gold is graded the way it is (which tends to be, for the most part, very loosely). The first is that these coins were typically created in difficult circumstances by amateur coiners using primitive equipment. We expect them to look bad and, usually, the coins do not let us down. The second reason why the grading services have trouble with these coins is that they are genuinely hard to grade. There are about five people in the world who really, truly know how to grade Territorials (I am not one of them...). And none of them work for the grading services.

There is another factor that comes into play here: what I call the “veneration effect.” The graders at PCGS and NGC are savvy numismatic professionals and they get a lot more excited when they see a Bechtler quarter eagle than when they see a 1926 Indian head quarter eagle. Cool, truly rare coins will always get more of a break from an experienced grader than common coins. The graders at PCGS and NGC can deny this until they turn blue in the face but this statement is absolutely, unequivocally true.

Ironically, this is true even within the same series. I contend that a well-known rarity like an 1854-S quarter eagle is graded on a different standard than a common issue from the same series, like an 1854 Philadelphia quarter eagle. Is this “fair?” Probably not. But human beings are subjective creatures and we are influenced by factors like rarity when we determine a coin’s grade; which, like it or not, is subjective in the first place.

When the grading services first began slabbing coins, they were brutal when it came to Carson City gold. I can remember sending them coins which, even back in the late 1980’s, I thought were nice AU’s but which would routinely be graded VF35 or EF40. This began to change a few years ago and now I think the services often overcompensate when it comes to these coins. I’d like to think it has to do with the fact that the graders read my CC book and became more in touch with strike patterns on early CC half eagles or surface characteristics on 1890’s era CC double eagles. But I’m enough of a pragmatist to know this isn’t true. The market demanded different standards and the services acted accordingly.

This blog isn’t meant to be a condemnation of how PCGS and NGC grade Territorials and Carson City gold. As I said before, I believe that virtually no one has a clue how to grade the former and the market standards for the latter have changed considerably. If the market eventually determines that CC gold is all way overgraded, then you’ll see the price spreads between grades become more compact. This has already happened in some 19th century gold series.

In considering the grading of Carson City gold versus 20th century issues, there are other factors to analyze. CC gold is, as rule, rarer and as I stated above, rarer coins are graded more liberally than common coins. In addition, CC coins saw intense circulation, unlike 20th century coins which seldom entered commercial channels. Furthermore, Mint technology in 1920’s San Francisco was a heck of a lot better than it was in 1870’s Carson City and we can (and should) expect a better looking product which should be held to a more rigorous standard.

The bottom line is, if you judge CC double eagles by the same standards as 1920’s Saints, you are going to hate the CC coins and not buy any. But if you learn what the standards are for CC double eagles and try to find coins that are aesthetically pleasing for the grade, you’ll be able to be a happy collector.