State of the Market Report: New Orleans Gold

On Monday January 22nd, I posted the Pinnacle Collection of New Orleans gold coinage for sale. This superb collection contained seventy-one choice, high grade examples of New Orleans gold coinage. By Tuesday evening, nearly three-quarters of the coins were sold and as I write this, a mere four days after the initial posting of the collection, all but four coins have been sold. From the conversations I had with the over thirty collectors who bought (or attempted to buy) coins from this collection, I think I learned quite a bit about the State of the Market regarding New Orleans gold—and rare date gold coins in general.

My first observation is that the market is always hungry for attractive, fresh deals of coins. It didn’t take an expert to realize that these coins were exceptional for the grade and date. People liked the fact that they were all in PCGS holders and they really liked the fact that virtually every piece in the collection had dark, crusty surfaces; unlike the dipped-n-stripped material that is usually seen in auctions and other dealers’ inventories.

My second observation is that the publication of my book on New Orleans gold coinage a few months go has definitely spurred interest in these issues. One sophisticated collector who called me commented that New Orleans gold seemed really undervalued in relation to gold coins from other mints, especially given the very low population of high grade pieces from this mint. As a basis of comparison, he noted that $10,000 would go a long way towards buying a Condition Census piece in the New Orleans market while the same amount of money in the Carson City gold market would buy you a coin that was not close to Condition Census level. This is a good point.

Another observation is that people always want key date coins, no matter what series you are discussing. As an example, I had numerous people ask me about the 1841-O, 1859-O, 1879-O and 1883-O eagles and I probably could have sold multiple examples of these dates. The same holds true with the 1845-O quarter eagle and the 1842-O and 1847-O half eagles. My gut feeling is that if New Orleans gold continues to become more popular, these key issues are going to be the coins that show the greatest amount of price appreciation. The same holds true with the popular one-year type issues such as the 1855-O gold dollar, 1839-O quarter eagle and 1854-O three dollar, although these have already seen a good amount of price increase in the past three years.

A number of people complimented me on the presentation of the Pinnacle Collection and I believe that the in-depth descriptions, excellent images (and here I must give a shout out to my photographer Mary Winter who I think outdid herself with this project…) and an attractive overall “look” made shopping at the Pinnacle Collection Store a fun proposition.

I also think people liked being able to purchase fresh, interesting coins in a non-auction environment. A number of people told me that they are beginning to tire of the endless cycle of auctions and having to pick through hundreds and hundreds of lots of junk in order to find the occasional kernel.

So, what’s next for the New Orleans gold market? Clearly there are a number of avid collectors, both new and old, who are in this market. The interesting question is will there be enough coins to go around to satisfy them? Yes, I can sell five 1883-O eagles in the next month but am I going to be able to find even one of them? And what about prices—will Trends and Coin Dealer Newsletter show enough in the way of price increases to fuel a possible New Orleans gold fire?

The Pinnacle Collection of New Orleans Gold Coinage: An Overview

There haven’t been many truly great collections of New Orleans gold coins formed over the years. This is due to two reasons: a lack of popularity until recent times and the rarity of many of these issues in higher grades. One of the finest collections of New Orleans gold coinage of which I am aware is the Pinnacle Collection which is currently owned by a collector who lives on the West Coast. I have been the primary supplier of coins in this collection and, if you don’t mind a little plug for Douglas Winter Numismatics, I don’t think it would be possible to form a much nicer set than this. Nearly every coin is very high end for the grade and most were selected with the following criteria in mind: originality, excellent overall eye appeal and sharp strikes.

The owner of this collection began assembling it in 2002 and bought the majority of the coins in 2003 and 2004. I was lucky to have been able to purchase a superb collection of New Orleans gold coinage in 2003 of which many pieces went into the Pinnacle Collection. It was clearly a situation that this collector was in the right place at the right time.

The Pinnacle Collection is very nearly complete with the exception of the Liberty Head double eagles. The owner of this collection decided not to focus on this denomination due to the extremely high cost of choice pieces and because he felt that the smaller denomination coins represented better value for the money. His gold dollars, quarter eagles, three dollar gold pieces and half eagle sets are complete while the eagle set lacks just four coins (none of which are especially rare) to be complete.

NOTE: You can view this set on on-line on the PCGS website (www.pcgs.com). Simply go the Set Registry area, search for gold sets and then for New Orleans sets. The collection is listed as the “Crescent City” collection but it is better known to collectors as The Pinnacle Collection. In my new book “Gold Coins of the New Orleans Mint, 1839-1906”, many of these coins are described and photographed as well.

I. GOLD DOLLARS

The six coins in this set have an average grade of 63.66 and are very evenly matched and original. They range in grade from MS62 (the 1855-0) to MS65 (the 1849-O).

One coin in this group that really stands out is the 1850-O. It is graded MS63 by PCGS and is one of just five recorded by PCGS in this grade with two better (both MS64). The 1850-O is the rarest gold dollar from this mint yet it remains an issue which is overlooked by many collectors. This is a coin that would be priced at $15,000-20,000+ if it had a C or a D mintmark but it is still valued at well under $10,000 in this grade.

I also really like the 1849-O gold dollar in this set. It has been graded MS65 by PCGS and is one of just four graded as such by PCGS with none finer. It is historically significant as a first-year-of-issue date and it is, obviously, very rare in Gem. The Pinnacle Collection example is unusually well struck and it exhibits lovely natural rose and orange-gold color.

II. QUARTER EAGLES

The quarter eagle set contains fourteen coins and every piece except one (the 1845-O) grades MS62 or better. The average grade of these coins is a healthy 61.9 and I would have to think it is one of the two or three best sets ever assembled.

My choice for the highlight of this set is probably not a coin that others might take note of: the 1856-O in MS62. Even though this issue is slightly available in lower grades, it is a major rarity in Uncirculated and the Pinnacle Collection’s example is the best piece ever graded by PCGS. It is really a stunning example for the date and grade with great luster, rich orange-gold color and outstanding surfaces. It traces its origin to the Bowers and Merena 6/01 sale where it brought $19,550 in a much slower market than today.

Two other coins in the quarter eagle set that I think are notable are the 1840-O and the 1842-O, both of which have been graded MS62 by PCGS. The former is pedigreed to the David Lawrence Richmond collection sale while the latter was obtained from my firm via private treaty in January, 2005. Both coins are notable for outstanding strikes and are very original with great green-gold color and thick, undisturbed luster.

The three highest graded quarter eagles in the collection are the 1839-O, 1846-O and 1857-O, all of which have been graded MS63 by PCGS. The 1839-O has a population of seven in this grade with five finer (all MS64), the 1846-O has a population of just one in this grade with one better (an MS64) and the 1857-O is one of four in this grade with a single example better (an MS64). Obviously, all New Orleans quarter eagles are rare in MS63 or higher grades and the fact that the Pinnacle Collection contains three different pieces is, in my opinion, quite impressive.

III. THREE DOLLAR GOLD

The Pinnacle Collection contains a PCGS AU55 example of this popular one-year type. It is notable for its excellent strike and originality and it is a much nicer coin than many I have seen graded AU58 by NGC.

IV. HALF EAGLES

Although the average grade per coin of the half eagles in the Pinnacle Collection is not as high as the quarter eagles, I would have to say this is my favorite set. There are a total of sixteen coins which range in grade from a low of AU55 (the 1843-O Small Letters and the rare 1847-O) to a high of MS63 (the 1840-O Narrow Mill, 1844-O, 1845-O, 1854-O the 1894-O). Of the 16 coins in the set, eleven are Uncirculated and the average grade per coin is 60.68.

It’s really hard for me to pick just one highlight of the half eagles, so I’ll focus on two coins. The first is the incredible PCGS MS63 1840-O Narrow Mill that is pedigreed to the famous Pittman collection. It is an amazing coin that I rank as the finest known for the date. Another highlight coin is the MS63 1845-O that is pedigreed to the Bass collection. It is one of just two known examples of this date in this grade (there are none finer) and it is the epitome of a choice, original coin with superb luster and dramatic rich green-gold coloration.

The PCGS MS61 1842-O half eagle in the Pinnacle Collection is one of just three known examples of this date in Uncirculated while the PCGS MS62 1846-O is regarded as the third finest known example of this date. An 1851-O in PCGS MS61 is another extremely rare coin in this grade with just four or five total pieces believed to exist in Uncirculated.

Two final coins are worthy of a quick mention. The 1854-O, graded MS63, is tied with another example as the finest known and it is pedigreed to the Bass collection. The 1894-O in PCGS MS63 is the sole example of this date graded this high by PCGS and it is likely the finest known.

To the best of my knowledge, the only sets of New Orleans half eagles ever assembled that were comparable to the Pinnacle Collection were Ed Milas’ (sold by Stack’s back in 1995) and Charley Tuppen’s (which, as far as I know, is still intact).

V. EAGLES, NO MOTTO

Of the various gold denominations produced at the New Orleans mint, the No Motto eagles, struck from 1841 through 1860, is certainly one of the most difficult to collect. Many of these dates are exceedingly rare in higher grades and a number are essentially unavailable in grades higher than AU55 to AU58. There are a total of 21 issues in this set. This includes two varieties of 1846-O (the Normal date and the so-called “Overdate”) and two 1854-O (the Small Date and the Large Date).

The Pinnacle Collection contains 17 of these 21 No Motto eagles. It is missing the 1842-O, 1844-O, 1847-O and 1855-O. Ironically, with the exception of the 1855-O, these dates are not especially scarce from the standpoint of overall rarity.

The No Motto eagles in this collection range in grade from a low of AU53 to a high of MS61. There are three coins in Uncirculated and the majority grade AU55 and AU58.

The two key issues in the No Motto eagle set are the 1841-O and the 1859-O. These are nicely represented by examples that grade AU55. The former has a PCGS population of just five with none better and the latter shows three in this grade and none higher.

There are number of coins in this set that might be readily overlooked by the non-specialist but which are quite scarce and have very low population figures. As an example, the 1849-O in PCGS AU58 has a population of three in this grade and just two better. The 1850-O in PCGS AU58 is even rarer in this grade with just three recorded in AU58 and a single coin graded higher.

The Pinnacle Collection contains 18 No Motto New Orleans eagles with an average grade of 57.05.

VI. EAGLES, WITH MOTTO

After the New Orleans mint was closed in 1861, it reopened in 1879. With Motto eagles were produced, with interruptions, at this mint until 1906. There are a total of 16 issues in this set. Unlike its No Motto counterpart, this set can be assembled in (mostly) higher grades.

The Pinnacle Collection contains fifteen of the sixteen issues. It is missing the 1880-O but it contains PCGS AU58 examples of the very rare 1879-O and 1883-O. Twelve of the sixteen coins in this set are Uncirculated and these range from a low of MS61 to a high of MS65.

From the standpoint of rarity, the unquestioned highlight of this set is the 1883-O of which just 800 pieces were produced. This collection has a lovely orange-gold AU58 which is one of just three graded by PCGS with none better.

The sleeper coin in this group is the 1881-O in MS61. This date has a PCGS population of just one in MS61 and none finer and it is a rare, underrated issue in Uncirculated.

The highest graded coin in this set (and in the entire Pinnacle Collection) is a 1904-O in PCGS MS65. As one might expect, Gem New Orleans eagles of any date are extremely scarce and this coin has a PCGS population of four in this grade and only one better.

The With Motto eagles in the Pinnacle Collection have an average grade of MS62. Many of the late date pieces (i.e. those struck in 1897 and later) are notable for their beautiful, original color and most are quite high end for the grade.

The Pinnacle Collection is truly one of the finest sets of New Orleans gold coins that has ever been assembled. It contains examples from other great collections such as Norweb, Bass, Pittman and Farouk. The collector who assembled this collection can certainly be proud of his accomplishment, especially given the fact that the bulk of the collection was assembled in just three years.

My Ten Favorite New Orleans Gold Coins

If I had an unlimited budget and access to every surviving New Orleans gold coin, could I choose just ten that would be the core coins in my collection? I think this would be possible but it certainly wouldn’t be an easy choice. In fact, just to cover my bases, I’m not only going to list my Top Ten but have a second group of ten runners-up that I reserve the right to slide into the Top Ten at any point. Hey—it’s my article and I can make the rules. 1. The Brand 1845-O Quarter Eagle

The 1845-O quarter eagle is the rarest New Orleans issue of this denomination. Only 4,000 pieces were produced and most entered circulation and acquired a significant amount of wear. In Uncirculated, there are just three pieces known of which the finest is the Virgil Brand coin.

This coin is credited as being the discovery example of the date. This may or may not be true (the source of the information is B. Max Mehl who sometimes was prone to self-serving exaggeration…) but it is known that Brand purchased this coin in 1909 from J.C. Mitchelson for the then-princely sum of $150. This coin remained off the market and forgotten until 1983 when it appeared as Lot 110 in Bowers and Merena’s Brand collection sale. It brought just $8,800 and was offered a few years later in the 1987 ANA sale where this time it sold for a still-reasonable $14,300. The coin was later owned by specialist Ron Brown who considered it to be the single most important piece in his collection.

In the 1999 sale of his collection, this coin did not meet its reserve and went unsold. After the auction ended, I sold it to a collector and it has remained off the market since then.

This coin is currently graded MS63 by PCGS and also appears in the NGC census as an MS63 and in the PCGS Population Report as an MS62. It is clearly the finest known example of the rarest New Orleans quarter eagle and it is certainly one of the more important quarter eagles of any date that I have handled in my career.

2. The Pittman 1846-O Quarter Eagle

There were a lot of great coins in the Pittman collection but one of my absolute favorites was the 1846-O quarter eagle. At the time, I was representing Ron Brown, who was a leading specialist in the area of New Orleans gold. I remember excitedly calling him after I had viewed this coin and telling him that it was the single most perfect New Orleans quarter eagle that I had ever seen and that it might bring as much as $50,000. Ron immediately told me that my estimate was way too low and that he’d be willing to pay $100,000. I remember arguing back and forth about the price with me thinking he was crazy and Ron thinking I was too conservative.

When the lot came up for sale I figured that I’d buy this coin at a number close to mine and I’d “show Ron” just how smart I was. The next few minutes were a blur, but the coin quickly broke the $100,000 mark and wound-up selling for $132,000 to a well-known specialist. This, of course, proved just how smart I was…

Today, the Pittman 1846-O quarter eagle is in an NGC MS66 holder and it resides in the Stellar collection. This coin remains the single finest known New Orleans quarter eagle known of any date and it is one of the two or three finest gold coins from this mint that I have ever had the pleasure of viewing in person.

3. The Bass 1854-O Three Dollar Gold Piece

As part of the core holdings of the Bass Collection, a magnificent set of Three Dollar gold pieces is on display at the ANA Museum in Colorado Springs. When most people look at this set, they immediately search for the unique 1870-S which is, of course, the highlight. But there are a number of other amazing coins included, one of which is a choice Uncirculated 1854-O Three Dollar gold piece which is without a doubt the best I have seen.

I have never had the chance to examine this coin in my hands, just through museum glass. My best guess is that it grades at least MS63 and could possibly be a point or two finer. It is clearly the finest known example of this popular one-year type and it would sell for an incredible sum if it ever became available.

4. The Eliasberg 1842-O Half Eagle

The 1842-O half eagle is not a date that is very well known outside of the community of New Orleans gold coin collectors. It is quite rare in all grades and it becomes extremely rare in any level approaching Uncirculated. By far the finest known is an NGC MS63 example that is in the collection of a specialist. It is a lovely coin and it has a pedigree to match it. It was first seen in the Earle Sale and was purchased by John Clapp Sr. It then went through his son to Louis Eliasberg and it was sold as Lot 424 in the 1982 auction of this collection where it brought just $3,850. It was later owned by dealer Ed Milas and it was last sold in the Stack’s May 1995 auction of his collection of No Motto half eagles where it brought $31,900.

There are a total of three Uncirculated 1842-O half eagles and I have had the pleasure of selling two. A PCGS MS61 is located in the Pinnacle Collection and this coin was formerly owned by Harry Bass and the final piece was recently sold by me to a New England collector. It was graded MS60 by NGC.

Admittedly, this coin probably is a lot less glamorous then many other of the pieces included in this group. But it is a coin that I have always admired for its rarity and I hope to have the chance to handle it again someday.

5. The Milas 1847-O Half Eagle

The 1847-O half eagle, like the 1842-O, is a date that, unless you are familiar with this series, you probably do not realize is rare. It is, in fact, the single rarest New Orleans half eagle and it is among the rarest gold coins ever produced at this facility. In grades above EF45 it is an almost-impossible issue to locate. The Milas coin is unique in Uncirculated (although another has been graded MS61 by NGC) and it has exceptional eye appeal, surfaces and luster for the issue.

I first saw this coin in the May 1992 Mid-American sale where it was part of the Heck Dodson collection. I badly wanted to buy it but was outbid by dealer Ed Milas who paid a then-strong $22,000. It showed up three years later at the Stack’s sale that featured his collection where it sold very cheaply (not to me, unfortunately) for $20,900. It was purchased by a collector and has been off the market since then.

This coin was last graded AU58 by NGC but by today’s standards I would have to guess it would be at least an MS61 if not even better. Whatever the exact grade, it is far and away the finest known example of the rarest half eagle from this mint and it is a coin I hold in the highest regard.

6. The Parmelee Proof 1844-O Eagle

In 1844, a presentation set including a half eagle and eagle was produced at the New Orleans mint. It is not exactly known why these coins were struck but they were made using a spectacular brilliant proof finish. These coins were known to be together in the Parmelee and Woodin collections but sometime in the 20th century they parted company. The half eagle is now in a little-known private collection and was plated on the cover of my first New Orleans gold book. The eagle was rediscovered a few years ago and was recently sold by a dealer in the New Orleans area to a Florida collector for a figure reportedly in excess of $1 million.

This coin is graded PR66 CAM by NGC. It is a coin that really has to be seen in person to be fully appreciated. It is superb with remarkable overall eye appeal and the quality of manufacture that most people (myself included) would not associate with the New Orleans mint in the early years of its operations.

It is hard to understate the significance of this piece. It is the earliest known branch mint proof gold coin and the only verifiable proof issue from this mint. Its recent sale represents the highest price ever paid for a New Orleans coin of any date or denomination.

7. The James Stack 1848-O Eagle

The firm of Stack’s sold the gold coin collection formed by James Stack (no relation) in a series of sales in the mid-1990’s. These sales are not generally held with the same regard as the Norweb, Starr or Eliasberg auctions but they are of the same high caliber with magnificent runs of high quality, original early and Liberty head gold. One of the most memorable coins in the October 1994 auction was an 1848-O eagle that was one of the most perfect No Motto eagles of any date that I have ever seen.

The 1848-O eagle is a very rare coin in Uncirculated and most of the pieces that are known are in the MS60 to MS61 range. The Stack coin was nearly perfect with magnificent orange-gold color, thick, frosty luster and essentially perfect surfaces. All No Motto eagles are extremely rare in Gem Uncirculated but this 1848-O is one of probably no more than two or three New Orleans pieces that grade MS65 or better by today’s standards.

This coin sold for $154,000 in the James Stack auction and was off the market for nearly a decade until it was reoffered in the 2003 ANA sale. It was purchased by an investor and has appeared for sale in some odd places including on Ebay in 2005.

8. The Akers Auction ‘88 1904-O Eagle

Back in the late 1970’s and early 1980’s, it was not uncommon for amazing previously unheard-of coins to appear for sale at the ANA summer convention. In 1979, one of the most remarkable New Orleans gold coins of all time was uncovered and sold to dealer Marty Haber: a virtually perfect 1904-O eagle that was possibly struck for presentation purposes.

This coin was subsequently sold as Lot 847 in David Akers session of Auction ’88 where it realized $82,500 and a year later as Lot 1422 in his session of Auction ’89 where it brought $104,500. This remains a record price for any With Motto eagle from the New Orleans mint.

Accompanying this coin is an enigmatic piece of documentation that states it is the first gold coin struck at New Orleans in 1904. What makes this documentation especially intriguing is that it mention a 1904-O half eagle as well—an issue that does not exist (!). This coin is currently untraced and it has been graded MS68 by NGC and MS67 by PCGS.

9. The Specimen 1856-O Double Eagle

Another truly remarkable New Orleans gold coin that was uncovered in the late 1970’s/early 1980’s was a Choice Uncirculated 1856-O double eagle. This date is one of the two towering rarities in the New Orleans gold double eagle series along with the 1854-O. Until this coin was discovered, there were none known in Uncirculated and, to this day, this coin remains unique in Mint State.

This coin first traded privately in excess of a quarter of a million dollars in 1979/80 and came back on the market in January 2002 when it brought $310,500 in a Heritage sale. I purchased it for a client who held it a bit over two years and then sold it in the Heritage June 2004 sale where it realized $542,800. There’s a funny story that goes with this last sale. I knew I wasn’t going to purchase it in the June 2004 auction but wanted to see who would buy it. A few lots before the coin went off, a youngish, casually dressed man came into the auction room, took a seat at the front and waited. He then proceeded to purchase the coin and left immediately afterwards. I later learned that this was the very first coin this gentleman had ever purchased and he hadn’t even had his credit pre-approved by Heritage. It turned-out that he was a very successful businessman who had seen the coin on-line, thought it looked interesting and decided to begin his collection with it.

I am certain this coin would bring well over $1 million if offered today and it is certainly the most desirable New Orleans double eagle in existence.

10. The Dallas Bank Collection 1879-O Double Eagle

When it was announced in the summer of 2001 that the legendary Dallas Bank collection was going to be sold, one of the coins that excited me the most was the 1879-O double eagle. This coin had been plated in David Akers’ book on double eagles and, from the picture, it looked like a fabulous coin. When I finally got to see it in person, I was not disappointed. It had magnificent surfaces and color and was by far the finest of the three or four Uncirculated examples of this date that I was aware of.

I knew there would be a lot of interest in this coin when it was going to be sold and I had a pretty good idea of who my competition was going to be. I don’t remember the exact amount it opened at, but I do remember that bidding jumped quickly and I found myself in a long, drawn-out battle with a prominent Midwestern specialist who, as I had predicted, was going to try and buy this amazing coin no matter what. I finally dropped out as the coin hit the $100,000 mark and he wound-up buying it for $115,000 including the buyer’s charge. At the time, it seemed like a ton of money for this coin but, in retrospect, it was a superb purchase and a price that actually seems very cheap today.

This coin was later graded MS63 by NGC. It is easily the finest known example of the only Type Three double eagle struck at the New Orleans mint and it certainly ranks as one of my all-time favorite double eagles of any date.

And Ten Runners Up…

The Bass 1840-O Quarter Eagle, Graded MS65 by NGC

The Pittman/Pinnacle 1840-0 Half Eagle, Graded MS63 by PCGS

The Bass/Gilhousen 1845-O Half Eagle, Graded MS63 by PCGS

The Eliasberg 1909-O Half Eagle, Graded MS65 by PCGS

The Bass 1846-O Eagle, Graded MS64 by PCGS

The Eliasberg 1850-O Eagle, Graded MS65 by PCGS

The S.S. Republic 1859-O Eagle, Graded MS63 by NGC

The Eliasberg 1899-O Eagle, Graded MS68 by PCGS

The Bass 1858-O Double Eagle, Graded MS63 by PCGS

The Akers Plate 1859-O Double Eagle, Graded MS61 by NGC

The Market for New Orleans Gold

How has the market for New Orleans gold changed in the decade and a half since the first edition of my book on the subject was written? I can think of a number of changes including the following six: 1. Very few No Motto half eagles and eagles have changed in terms of comparable rarity, especially in higher grades. The one exception is the eagles and, to a lesser degree the double eagles, that were found in the S.S. Republic treasure.

I would have expected a good number of half eagles and eagles from the 1840’s to have been graded MS60 to MS62 in the past few years. Even with the obvious Gradeflation that has occurred between the early 1990’s and the present, the certified populations of Mint State No Motto New Orleans half eagles and eagles is incredibly low. Clearly, these coins are genuinely rare.

2. All of the post-1883 New Orleans eagles are far less rare in Uncirculated than once believed. However, all of these dates remain very rare in MS64 and above and a number are still unknown in this grade.

Hundreds and hundreds of baggy Uncirculated New Orleans eagles from the 1890’s and early 1900’s have turned up in Europe in the past decade. But because they were shipped overseas and roughly handled, very few of these are likely to grade higher than MS63. Virtually no previously unknown Gem New Orleans eagles from the 1888-1906 era have turned up in the past fifteen years. I find this a bit of surprise and would have expected at least a few to have been discovered.

3. I greatly underestimated the overall rarity of certain very popular issues like the 1839-O quarter eagle, 1854-O Three Dollar and 1909-O half eagle, especially in lower grades.

Man, are these dates common in lower grades. When estimating populations, it is easy to predict rarity in high grade but lower grade pieces are hard to account for. In virtually every major auction there are multiple examples of these dates in the VF-EF range. Clearly, they are much more common then I originally estimated.

4. New Orleans gold from the 1840’s and 1850’s is generally rarer than comparable Charlotte and Dahlonega in terms of high grade rarity and is far rarer in terms of the total number known.

The typical New Orleans half eagle from the 1840’s has around 100-125 pieces known while the typical Charlotte and Dahlonega half eagle from this era has around 175-225 known. The real difference in rarity is in the Uncirculated category. Many New Orleans issues of this era (both quarter eagles and half eagles) have fewer than a dozen known in MS60 and better grades while the numbers for Charlotte and Dahlonega issues tend to be considerably higher.

5. Surprisingly few great collections of New Orleans gold have been assembled and even fewer have been sold in the last fifteen years. Clearly, the Bass, Pittman and Milas collections were superb and contained a number of great coins. But during the past decade and a half there have been at least eight to ten major collection of Charlotte and Dahlonega sold and at least that many (if not more) that focused on early gold. Does this mean that relatively few people have assembled O mint gold sets or do the people assembling them have greater staying power than those people doing C&D mint sets?

6. Who would have ever thought that 1854-O and 1856-O double eagles would have been selling in excess of $250,000 for average quality examples? Fifteen years ago, you could buy these dates for $20,000-30,000 a piece. Today they are ten times as much and, interestingly, almost none have come up for sale in the past two years.

A Guide To Collecting New Orleans Double Eagles: Part Two

The first part of this article looked at New Orleans double eagles struck from 1850 through 1856. Part Two includes the remaining Type One issues from 1857 to 1861 and the sole Type Three issue from 1879. 1857-O: It's easy to overlook this issue as it comes directly on the heels of the ultra-rare 1856-O. This is a scarce coin in its own right, although it is far more available than its predecessor. There were 30,000 struck of which an estimated 200 exist today. Most 1857-O double eagles are in the Very Fine to Extremely Fine range and show heavily abraded surfaces with a cleaned, unappealing look. There are around four or five dozen About Uncirculated coins known with most in the lower part of this grade range. The 1857-O is very rare in the higher AU grades and it is exceedingly rare in Uncirculated with just two or three known. The finest I am aware of is the Bass/Kaufman coin, graded Mint State-63 by PCGS, that sold for $97,750 in May 2000. While prices have risen considerably for higher grade 1857-O double eagles in the past few years, this date still represents excellent value for the collector.

The beginning collector should look for an 1857-O that grades Extremely Fine-45 and expect to pay $2,000-3,000. A more advanced collector should look for an About Uncirculated-55 and expect to spend around $7,000-8,000. If available, an Uncirculated piece will sell for $25,000+.

1858-O: The 1858-O double eagle closely compares in overall rarity to the 1857-O. In my opinion it is slightly scarcer, especially in the middle to higher range of About Uncirculated. Both are exceedingly rare in Uncirculated. There are around 150 to 175 examples known of the 1858-O and well over half are in the Very Fine to Extremely Fine range. As with the 1857-O, the typical example shows very heavily abraded surfaces and has been cleaned. Any 1858-O with original coloration and reasonably clean surfaces should sell for a significant premium over a typical example. I am aware of just two Uncirculated 1858-O double eagles: an NGC MS-60 in a Midwestern collection and a PCGS MS-62 that sold for $50,600 in the May 2000 Bass III sale. This is another date that has appreciated quite a bit in price over the last few years but which is still very fairly valued in Extremely Fine and About Uncirculated.

The beginning collector should look for an 1858-O that grades Extremely Fine-45 and expect to pay $2,000-3,000. A more advanced collector should look for an About Uncirculated-55 and expect to spend around $7,500-8,500. If available, an Uncirculated piece will sell for $25,000+.

1859-O: This is the fourth rarest New Orleans double eagle, narrowly trailing the 1855-O. Only 9,100 were struck and 75-85 are known today. When available, the typical 1859-O grades Very Fine to Extremely Fine. There are fewer than twenty properly graded About Uncirculated specimens known and currently only one Uncirculated, a PCGS MS-60, has been certified by either of the major services. This issue was not as well made as some of the earlier New Orleans double eagles. It is generally flatly struck with weak stars and hair on the obverse. Almost every known 1859-O double eagle is covered with deep, detracting abrasions and most have been cleaned at one time. On the few higher grade pieces that are known, the luster is prooflike and is actually better than one might expect. This is a coin that is currently in extremely high demand as many advanced collectors lack an 1859-O. When a nice specimen does become available, it is advisable to take a deep breath and "go for it" as it is likely that if you pass on such a coin, the next one that comes around will be even more expensive.

The beginning collector should look for an 1859-O that grades Extremely Fine-45 and expect to pay $6,000-7,000+. A more advanced collector should look for an About Uncirculated-55 and expect to spend around $20,000-30,000+. If available, an Uncirculated piece will sell for $70,000+.

1860-O: Even though fewer 1860-O double eagles (just 6,600) were produced than in 1859-O, the 1860-O is actually a slightly more available coin. It is likely that just 85-95 1860-O double eagles are known with fewer than twenty in About Uncirculated and none in any Mint State grade. When available, the typical piece is likely to grade Very Fine to Extremely Fine. As with the 1859-O, this is an issue that is exceptionally hard to locate with good eye appeal. Most 1860-O double eagles show extensive detracting abrasions and have been repeatedly cleaned or dipped. I have not seen more than a small number of choice, original coins and these have typically sold for strong premiums to very knowledgeable specialists. Here is another issue that appears on a great number of want lists and nice ones tend to get quickly snapped-up and go off the market for many years.

The beginning collector should look for an 1860-O that grades Extremely Fine-40 and expect to pay $6,500-7,500+. A more advanced collector should look for an About Uncirculated-55 and expect to spend around $22,500-32,500+. If available, an Uncirculated piece will sell for $60,000+.

1861-O: After many years of being almost completely ignored, the 1861-O double eagle is currently experiencing near cult-like popularity. There are a number of reasons why this date has become so popular. First of all, it has been very undervalued. The current Trends valuation of $4,500 for an Extremely Fine-45 example strikes many collectors as being low, given this coin's true scarcity. Secondly, this coin is a very important issue from an historic viewpoint. 1861-O double eagles were struck by three authorities: the Federal government, the State of Louisiana and the Confederacy. The 1861-O is the most poorly produced New Orleans double eagle. It is often very weak on the date and shows little detail on the hair. The surfaces are almost always excessively abraded and most have been cleaned and/or dipped. Of the 135-165 pieces that survive, between two and three dozen grade About Uncirculated. One or two Uncirculated examples are known and these have been graded very recently (between August and September 2003).

The beginning collector should look for an 1861-O that grades Extremely Fine-40 and expect to pay $5,500-7,500+. A more advanced collector should look for an About Uncirculated-55 and expect to spend around $15,000-20,000+. If available, an Uncirculated piece will sell for $60,000+.

1879-O: After it was shut down in 1861, the New Orleans mint reopened in 1879. The first two gold issues produced were Eagles and Double Eagles. Only 2,325 of the latter were made. Somewhere in the area of 100-125 pieces are known. These tend to grade Extremely Fine-40 to Extremely Fine-45. There are possibly as many as 15-20 known in About Uncirculated as well as another three or four that grade Uncirculated. The finest 1879-O double eagle that I am aware of is the Dallas Bank Collection that sold at auction in October 2001 for $115,000. Most have prooflike surfaces that are riddled with severe marks. Many also adversely affected by heavy copper spotting. This is an issue that is very hard to find with good eye appeal and like most of the other rare New Orleans double eagles, really pretty examples sell for very strong premiums. Given the fact that this is a one-year "stand alone" type coin, it is likely that demand for the 1879-O double eagle will remain extremely high.

The beginning collector should look for an 1879-O that grades Extremely Fine-40 and expect to pay $6,000-8,000+. A more advanced collector should look for an About Uncirculated-55 and expect to spend around $15,000-20,000+. If available, an Uncirculated piece will sell for $40,000+.

A Guide To Collecting New Orleans Double Eagles: Part One

New Orleans double eagles are among the most popular series with gold coin collectors. They were produced from 1850 to 1861 and again in 1879. This series includes two reasonably common issues, two extreme rarities and a number of dates that are very interesting as a result of their historic background. Because of the great rarity and cost of the 1854-O and the 1856-O (the two extreme rarities mentioned above), it is exceptionally difficult to complete this series. There are some options that the collector might wish to consider if he can not consider acquiring these two significant rarities.

The first is to simply pretend they do not exist. Building a set of New Orleans double eagles that is complete except for the 1854-O and 1856-O is still a formidable accomplishment.

The second is to look at the New Orleans double eagles as type coin and to acquire two pieces: one example of the Type One and a Type Three. Because of the fact that the only Type Three from this mint is the 1879-O, this second task will be very specific.

A third option would be to assemble a three-decade set of New Orleans double eagles. This would include one coin from the 1850's, one from the 1860's and one from the 1870's.

Despite the high cost and great rarity of the 1854-O and 1856-O, there are still a number of collectors currently working on complete sets of New Orleans double eagles. Many of these individuals are focusing on very high grade pieces and prices for Condition Census quality examples have risen appreciably in recent years. But there are still some good values available to the informed collector as the date-by-date analysis below will show.

1850-O: This popular first-year issue is actually fairly common in lower grades and does not become scarce until the About Uncirculated-53 level. It is rare in About Uncirculated-55, very rare in About Uncirculated-58 and extremely rare in Uncirculated. I have only seen two that were fully Uncirculated and none were better, in my opinion, than Mint State-61. This issue is characterized by weak strikes, poor luster and excessively abraded surfaces. An example that is original, reasonably clean and sharply detailed is worth a strong premium above a typical example. Prices for About Uncirculated-55 and 58 coins have shot up in recent years but I think the 1850-O is still a good value as few people truly understand its rarity in this grade range.

The beginning collector should look for an 1850-O that grades Extremely Fine-45 and expect to pay $2,000-2,500. A more advanced collector should look for an About Uncirculated-55 and expect to spend around $9,000-10,000. If available, an Uncirculated piece will sell for $25,000+.

1851-O: The 1851-O is the most common New Orleans double eagle. As it is also among the best produced, it makes an ideal type coin. It is easy to locate in lower grades and this date can be found even in the middle to higher About Uncirculated range without a great effort. In Uncirculated, this is a rare coin with about a dozen fully Mint State pieces known. There are two or three Mint State-63 pieces plus another four to six Mint State-62's. A few years ago, high quality 1851-O double eagles were regularly seen at auctions or large coin shows but the supply has dried-up as type and date collectors purchased these. Today, a nice About Uncirculated-55 coin is about the nicest quality available. Most 1851-O double eagles are found with a good strike and good luster. It is preferable to search for one that is original and which lacks significant abrasions.

A beginning collector should look for an 1851-O that grades About Uncirculated-53 and expect to spend $2,000-3,000. A more advanced collector should look for an About Uncirculated-58 and expect to spend $7,000-8,000. If available, an Uncirculated piece will sell for $15,000-20,000+.

1852-O: The 1852-O is the second most common double eagle from this mint. It is similar in rarity to the 1851-O in circulated grades and is very slightly more available in Uncirculated. Around fifteen to twenty Mint State pieces are known including a single piece in Mint State-65 that is regarded as the finest known New Orleans double eagle of any date. As with the 1851-O, the supply of choice, higher grade 1852-O double eagles has been greatly reduced in recent years as type and date collectors have placed most of the really nice examples in their collections. It is possible to find an 1852-O with good color, luster and strike detail. The collector is strongly urged to wait for the right coin; especially if he is using an 1852-O as a type coin or as a representative example of a New Orleans double eagle produced in the 1850's.

A beginning collector should look for an 1852-O that grades About Uncirculated-53 and expect to spend $2,000-3,000. A more advanced collector should look for an About Uncirculated-58 and expect to spend $7,000-8,000. If available, an Uncirculated piece will sell for $15,000-20,000+.

1853-O: The 1853-O is a reasonably common date but it is considerably harder to locate than the 1850-O, 1851-O and 1852-O. It is not as rare as the 1850-O in About Uncirculated-55 and higher but is still quite scarce in the upper About Uncirculated grades. In Uncirculated the 1853-O is very rare. There are an estimated six to eight known in Uncirculated with the finest of these being a single Mint State-63. Other than this coin, I have only seen one or two examples that I regarded as being fully Uncirculated. Most examples on the market have been cleaned and show heavily abraded surfaces as well as some weakness of strike. On occasion, there are nicely colored, sharply struck coins without serious marks and these are very desirable. The 1853-O is an interesting issue to select for type purposes instead of an 1851-O or an 1852-O as it is considerably scarcer but not all that more expensive.

A beginning collector should look for an 1853-O that grades About Uncirculated-50 and expect to spend $2,000-2,500. A more advanced collector should look for an About Uncirculated-58 and expect to spend $8,000-9,000. If available, an Uncirculated piece will sell for $20,000-30,000+.

1854-O: The 1854-O is one of the two great rarities among the double eagles struck at this mint. Approximately 25-35 survive from an original mintage figure of 3,250. The 1856-O is a bit rarer in terms of overall rarity but both are considered to be among the most desirable United States gold issues of the 19th century. When available, the 1854-O tends to grade Extremely Fine-40 to About Uncirculated-50. There are around a half dozen known in About Uncirculated and none are currently accounted for in Mint State. Most 1854-O double eagles have been cleaned (or at least dipped) and show a lack of detail at the centers. Unlike a more common issue such as the 1851-O, the collector cannot be very choosy when it comes to acquiring an 1854-O. Only one or two specimens are offered for sale each year and prices have risen dramatically in the past decade.

A beginning collector will most likely not include an 1854-O in his set. A more advanced collector should look for a coin in the About Uncirculated-53 to About Uncirculated-55 range and expect to spend $150,000-200,000+.

1855-O: The "second tier" dates in the New Orleans double eagle set are the 1855-O, 1859-O and 1860-O. All three are very scarce in all grades but are not so expensive that they are unrealistic options for most collectors. Fewer than one hundred examples are known from an original mintage of just 8,000. The average 1855-O grades in the Very Fine-35 to Extremely Fine-45 range. Around a dozen properly graded About Uncirculated pieces exist and there are one or two with claims to Mint State. The 1855-O is generally well worn and not especially well struck. Most have been cleaned or dipped and show heavy abrasions on the surfaces. Around two years ago there were three or four nice pieces on the market at one time but these all went into tightly-held collections and there have not been many nice 1855-O double eagles on the market since then. It seems likely that demand will remain high for this date and very few choice pieces will appear in the coming years.

A beginning collector should look for an 1855-O that grades Extremely Fine-40 and expect to spend $4,000-5,000. A more advanced collector should look for an About Uncirculated-55 and expect to spend $22,500-27,500. If available, an accurately graded Uncirculated piece will sell for $50,000+.

1856-O: A strong case could be made for calling the 1856-O the rarest gold coin ever struck at the New Orleans mint. Just 2,250 were produced and approximately twenty to thirty are known. Four to six are in the About Uncirculated range while a single Uncirculated coin (graded Mint State-63 by PCGS) is accounted for. The 1856-O is typically only available for sale when important collections are auctioned. In the past five years I can only account for four or five different pieces and it is not likely that this rate of availability will change in the future. The typical 1856-O is actually a bit nicer in appearance than the 1854-O. Some are seen with semi-prooflike surfaces and exhibit a decent overall strike. There are not many that have original color and nearly all have noticeable abrasions in the fields. As with the 1854-O, the collector must realize that he can not be overly fussy when given an opportunity to purchase this issue as the demand for both of these rarities far exceeds the supply.

A beginning collector will most likely not include an 1854-O in his set. A more advanced collector should look for a coin in the About Uncirculated-53 to About Uncirculated-55 range and expect to spend $150,000-200,000+.

Assembling a New Orleans Gold Coin Type Set

Due to the various denominations and designs struck at the New Orleans mint, assembling a type set of gold coins from this facility is extremely popular with collectors. This mode of collecting makes even more sense when realizes the difficulty and expense of acquiring New Orleans gold coins on a date-by-date basis. Gold coins were struck at the New Orleans mint from 1839 until 1909. Six different denominations were produced: gold dollar, quarter eagle, three dollar, half eagle, eagle and double eagle. There were a total of twelve major types produced, and these are as follows:

Type One gold dollar, 1849-1853

Type Two gold dollar, 1855 only

Classic Head quarter eagle, 1839 only

Liberty Head quarter eagle, 1840-1857

Three Dollar gold piece, 1854 only

Liberty Head half eagle, no motto reverse, 1840-1857

Liberty Head half eagle, with motto reverse, 1892-1894

Indian Head half eagle, 1909 only

Liberty Head eagle, no motto reverse, 1841-1860

Liberty Head eagle, with motto reverse, 1879-1906

Type One Liberty Head double eagle, 1850-1861

Type Three Liberty Head double eagle, 1879 only

There are a number of reasons why collecting New Orleans gold coins by type purposes is sensible for most collectors.

Affordability: High grade examples of these types can be obtained, in many cases, for $5,000-10,000. This means that a very nice twelve coin type set can be assembled for less than $100,000.

Variety: Since each major type of New Orleans gold coin has a significantly different appearance, the collector can assemble a set that is richly varied.

Distinctiveness: Five of the twelve New Orleans gold coins mentioned above are distinct one-year types, meaning that they were produced only in a single year. This adds quite a bit of historic interest to a New Orleans type set.

Completeability: None of these twelve types is so rare or expensive that the collector of average means cannot put a nice example into his or her set. With a date set, there are always issues that are so hard to obtain that they are "stoppers" for many collectors.

A brief discussion of each of the twelve major types of New Orleans gold coins should prove useful for new collectors.

1. Type One Gold Dollar: The gold dollar denomination was introduced in 1849. The first major type was produced from 1849 until 1854 and it has a small liberty head on the obverse. New Orleans produced Type One gold dollars for five years. The 1850-O is by far the scarcest of these issues but a very nice example can be purchased for under $5,000. Mint State-63 to Mint State-64 examples of the other dates (except the 1852-O) can be had for $3,000-7,000. I personally like the 1849-O as a type coin since it is a first-year-of-issue.

2. Type Two Gold Dollar: This is a one-year type that was produced only in 1855. It is relatively common in circulated grades but it is rare in the lower Uncirculated grades and very rare in Mint State-63 or better. It is extremely hard to locate a nice piece that is well struck and has original color and surfaces. For most collectors, an example in the Mint State-60 to Mint State-62 range will suffice and such a coin is valued in the $5,000 to 10,000+ range.

3. Classic Head Quarter Eagle: The Classic Head New Orleans quarter eagle of 1839 is similar in rarity and historic profile to the 1855-O gold dollar. The 1839-O quarter eagle is a popular one-year design type that is not really rare in circulated grades and can sometimes be found in the lower range of Uncirculated. It becomes rare in Mint State-62 and is very rare in Mint State-63 or better. A nice Mint State-60 to Mint State-62 is valued in the $5,000-10,000 range.

4. Liberty Head Quarter Eagle: A total of fourteen different quarter eagle issues were struck at the New Orleans mint between 1840 and 1857. This includes a Small Date and Large Date variety in 1843. The most common issues in higher grades are the 1843-O Small Date, 1854-O and 1857-O while the rarest are the 1840-O, 1842-O and the 1845-O. I would suggest that the type collector seek a coin like an 1843-O Small Date or an 1854-O in Mint State-62 for his set. When available, such a piece sells for $2,500-3,500 and is very good value.

5. Three Dollar Gold Piece: This is the third one-year type in the New Orleans set. It was produced only in 1854. The 1854-O three dollar gold piece is common in Very Fine and Extremely Fine and only slightly scarce in the lower About Uncirculated grades. It becomes very scarce in About Uncirculated-55 to About Uncirculated-58 and it is extremely rare in Uncirculated. A Mint State-60 to Mint State-61 coin, if available, will cost in the area of $20,000 and will prove to be among the most difficult pieces for the type collector to acquire. Nice About Uncirculated-55 to About Uncirculated-58 pieces range from $5,000 to $10,000+.

6. No Motto Liberty Head Half Eagle: Thirteen No Motto half eagles were struck between 1840 and 1857. This includes Large Letters and Small Letters varieties from 1843. The two most common dates are the 1844-O and the 1854-O while the rarest are the 1842-O and the 1847-O. All No Motto half eagles from this mint are scarce in Mint State-60 to Mint State-62 and all are very rare in Mint State-63 or better. An 1844-O in Mint State-60 to Mint State-62 would be a perfect type coin and would cost between $4,000 and $7,500. The only other issue that is sometimes seen in Uncirculated is the 1854-O.

7. With Motto Liberty Head Half Eagle: This type was produced for just three years: 1892, 1893 and 1894. The rarest of these is the 1892-O while the most common is the 1893-O. For type purposes, most collectors look for either an 1893-O or an 1894-O. Both are common in all circulated grades and modestly scarce in Mint State-60 to Mint State-62. They are very rare in Mint State-63 and excessively rare above this. A nice Mint State-62 example of the 1893-O or 1894-O half eagle is currently very good value in the $2,000-2,500 range.

8. Indian Head Half Eagle: The 1909-O is the only one-year half eagle type from New Orleans. It is also regarded as one of the rarest Indian Head half eagles in high grades. Most 1909-O half eagles grade Extremely Fine-45 to About Uncirculated-55. This is a scarce coin in About Uncirculated-58, a rare one in the lower Uncirculated grades and a very rare issue in Mint State-63 or better. A nice Mint State-60 to Mint State-62 example should cost in the area of $5,500 to $10,000+.

9. No Motto Liberty Head Eagle: There were twenty-one different No Motto eagles struck at the New Orleans mint between 1841 and 1860. This includes a Large Date and Small Date variety in 1854. The rarest issues of this type are the 1841-O and the 1859-O while the most available dates are the 1847-O and the 1851-O. While a number of these issues have reasonably high mintage figures, Eagles were a workhorse denomination in local commerce. This resulted in most issues being well circulated. In addition, many coins were melted. As a result, any Uncirculated no motto New Orleans eagle is very scarce. A nice Mint State-60 to Mint State-62 piece should be available in the $5,000 to $10,000 range.

10. With Motto Liberty Head Eagle: After the end of the Civil War, the New Orleans mint was closed. It did not resume coinage until 1879. From this year until 1906, a total sixteen different With Motto Liberty Head eagles were produced. The major rarities of this type are the 1879-O and the 1883-O while a number of issues, such as the 1903-O, 1904-O and the 1906-O, can be located in grades up to and including Mint State-63 without much effort. Any date of this type in Mint State-64 is quite rare and gems, while more available than other large denomination New Orleans gold coins, are still very rare and desirable. A common date example in Mint State-63 is currently valued at $1,500 to $2,000 and in Mint State-64 at $4,500-6,000+.

11. Type One Liberty Head Double Eagles: This type was struck from 1850 to 1861. There were a total of twelve issues produced. This includes two legendary rarities: the 1854-O and the 1856-O. For type purposes, the two most practical dates are the 1851-O and the 1852-O. These are common in lower grades, scarce in the higher About Uncirculated grades and very rare in Mint State-60 or better. A Mint State-60 to Mint State-62 examples of one of these two issues is valued at $12,500-22,500. Most other Type One double eagles from this mint are extremely rare in Uncirculated and are not practical for a type set.

12. Type Two Liberty Head Double Eagles: Only 2,325 Type Three double eagles were struck at this mint and all were produced in 1879. The 1879-O is a rare and very popular coin whose status is enhanced as a one-year type. When available, this coin is typically seen in the Extremely Fine-40 to About Uncirculated-50 range. There are only four to six known in Uncirculated and the finest of these sold at auction for $115,000 in late 2001. In most type collection of New Orleans gold coins, this will be one of the few pieces that are not Uncirculated. A nice mid-range About Uncirculated example should cost $15,000 to $20,000.

In my opinion, the basic twelve coin New Orleans type set is a very interesting option for the collector. The price ranges listed above are for high end examples, and this set could be assembled for $30,000-40,000+ if Extremely Fine-45 to About Uncirculated-55 pieces are substituted for such expensive types as the three dollar gold pieces and the Type One and Type Three double eagles.