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.

The "Warehouse" Theory of Coin Investment

As anyone who knows me will be quick to point out, I do not generally sell rare coins as an investment. Stocks and bonds are an investment; rare coins, in my opinion, are a collectible that have the potential to appreciate in price if a purchase is approached with the mindset of an intelligent collector. But lately, I have come to realize that there probably is a good way to make money buying coins with a short-term focus. This approach is what I call the "warehouse" theory.

The gist of this theory is simple. There are certain coins that are always in demand. For example, whether the coin market is good or bad, everyone wants a Stella or a Chain Cent. What if you owned a few nice examples of these ultra-popular coins and the market had to come to you instead of the usual you-go-to-the market scenario?

Here's a classic example of the warehouse theory in action. One of the most popular branch mint gold coins is the 1854-D Three Dollar gold piece. In the higher About Uncirculated grades this is an expensive but continually in-demand issue.

For a variety of reasons, an uncommonly high number of AU-55 and AU-58 1854-D Three Dollar gold pieces were available in late 1999 and early 2000. In fact, enough were available (in this case approximately six or seven pieces), that prices "overcorrected" for this issue and fell 20%. An NGC AU-58 1854-D Three Dollar gold piece, which had once been worth $35,000-$40,000 wholesale, was now only worth $28,500-$31,500 in the wholesale market.

It was my opinion that at the new price levels these 1854-D Three Dollar gold pieces were great values. The ideal strategy was to buy every piece that was available at the cheapest price, hold them and wait for their level of demand to return. And when it did return, there would be no coins available--with the exception of the pieces I had put away.

My solution was to call a client of mine and explain the situation. While he is primarily a long-term collector, he saw the interesting situation that these coins presented. So he gave me the go ahead to purchase all the coins I could find. Within thirty days I had bought four 1854-D Three Dollar gold pieces in AU-58 at an average cost of $29,000.

Four or five months later, I started getting phone calls from other dealers searching for high grade 1854-D Three Dollar gold pieces. Some were aware that I had bought a few; others called me due to my reputation as someone who either owns important Dahlonega coins or knows where they are at. I was able to sell all of the coins I had purchased in the $31,000-$33,000 range.

Here are some suggestions about how to approach this theory:

1. Select coins with a traditionally high level of demand

There are certain coins that have been popular for many decades and will continue to be popular. There are a number of reasons for the popularity of these coins: first-year-of-issue status, low mintage figure, historic significance or attractive design. Examples of gold coins that fit into this category include: 1855-C and 1855-D gold dollars, 1861-D gold dollars, 1796 No Stars quarter eagles, 1808 quarter eagles, 1854-D and 1854-O three dollar gold pieces, Stellas, 1795 half eagles, etc.

2. Avoid popular but overly available coins

A warehouser might consider "putting back" a few High Reliefs. While there is no denying the great popularity of this issue, they are too easy to locate. Since anyone who ever wants a High Relief can find one with no problems, having a stash of a half dozen pieces will not create a ripple of excitement in the market.

3. Work with a dealer who specializes in what you are warehousing

In order for a warehouse investment to work, it is important to choose a dealer who has good connections; both on the buying and selling end. Let's say that you have decided to warehouse 1893-S Morgan Dollars in Mint State-63. Unless your dealer is a specialist in this area and knows which collectors are looking for these coins, he serves no real purpose. On the other hand, if he has a strong collector base, the chances are excellent that he will receive regular phone calls from collectors and other dealers who are looking for nice 1893-S dollars.

4. Keep it quiet

With the exception of you and your dealer, you should refrain from telling anyone else about your plans.

5. Have a plan and stick to it

If you have decided to warehouse three examples of an expensive, rare coin, don't let your dealer talk you into more. And establish sell levels before you buy any coins. Let the dealer know that you want to make X% of money on each coin. But don't be greedy and miss out on a potential sale of an expensive coin because you want to make an extra $500.

My 12 Favorite United States Gold Coins

About a year ago, I chanced upon a few coin dealers sitting in a hotel lobby bar after a long day at a convention. When coin dealers gather in small groups, their conversation often turns to--surprise, surprise--coins. The conversation this evening was an interesting one: what were their very favorite United States coins. I recently remembered this late night conversation and thought it would be an interesting topic for an article. What I've decided to do is list my personal twelve favorite United States gold coins. These are not necessarily coins that I've owned or sold. The one major parameter here was that I had to have seen them in person. (And they had to be coins that I "fell in love with" and found them very interesting; as well as very rare). While none of these are currently for sale, these are the sort of coins I would love to have in my own coin collection--that is, if I had a personal coin collection and if I had very deep pockets.

Please note that because of my orientation towards mid-to-late 19th century issues, this list does not include any early gold or 20th century pieces. I could easily have constructed a list of twelve issues from each of these areas; and I may do so in a future article.

So here it is--my "Dream Team" of United States gold coins (listed in denomination and date order):

1. The North Georgia Collection 1849-C Open Wreath Gold Dollar, PCGS Graded About Uncirculated-58

The first coin is a little bit self-serving as it represents the single most expensive coin that I have ever owned and sold. The 1849-C Open Wreath gold dollar is one of the great rarities in all of United States numismatics. There are only four known and this particular piece is the finest of these. It is also the discovery coin and it has a very interesting pedigree dating back to the 1920's. It is an extremely attractive, totally original coin with lovely deep green-gold coloration and choice surfaces. It was sold to a private collector by Blanchard & Co. in 1999 and this lucky individual now owns what I regard as the single most important United States gold dollar in existence as well as the single valuable Charlotte gold coin. (By the way, the listing of a second AU-58 1849-C Open Wreath Gold Dollar in the PCGS Population Report is a clerical error. There is only one known in this grade.)

2. The Miles-Ullmer Collection 1861-D Gold Dollar, PCGS MS-64

I have always been totally enamored with this issue. It is the only coin that can unequivocally be attributed to the Confederate States of America. In April 1861, the branch mint at Dahlonega was seized by the Confederacy and approximately 1500-2500 gold dollars were produced. The 1861-D is a very scarce coin although it is slightly more available in high grades than is sometimes acknowledged. The finest known 1861-D gold dollar is the present example. It is currently owned by an Alabama collector and it has also been in such famous collections as George Elliott, Arthur Montgomery, Theodore Ullmer, R.L. Miles and Grant Pierce. It is a superb, well struck piece with great color and surfaces.It was recently graded Mint State-64 by PCGS and it is the highest graded 1861-D from any service. It is clearly the finest known example of this rare, popular and historic Dahlonega issue.

3. The Elrod Collection 1842-C Quarter Eagle, PCGS Mint State-65

I can remember the first time I saw this coin in the early 1980's. I had never seen an 1842-C quarter eagle that graded higher than About Uncirculated-50 (by that era's standards). And here, looking like it had been preserved in a vacuum chamber for 140 years, was a superb gem piece. This coin has a dual significance, in my opinion. Not only is it the finest known 1842-C quarter eagle, it is the finest known Charlotte quarter eagle of any date that I have seen or heard of. The fact that this is a very rare issue as well as the finest known for the type makes it an extremely special coin. After being owned by Stanley Elrod, the noted Charlotte specialist, it bounced around in a few collections until 1999, when it was purchased by a Georgia collector who specializes in truly great coins.

4. The Brand Collection 1845-O $2.50, PCGS Mint State-63

The 1845-O quarter eagle is one of the great unsung rarities among the 19th century U.S. gold issues. Only 4,000 were struck and high grade survivors are extremely hard to locate. There are around a dozen known in About Uncirculated, including a small number of reasonably choice pieces. But there is one 1845-O quarter eagle that really stands out: the Virgil Brand collection that was last offered for sale as part of the Ronald Brown collection of New Orleans coinage which was featured in the Heritage 1999 ANA sale. This coin was purchased by Brown in the 1987 ANA sale and it first surfaced in the Bowers and Merena October 1983 Brand I auction. Today, the coin is in a PCGS Mint State-63 holder and it is characterized by exceptional color and luster. This is probably the least valuable coin on this list but it is one of my favorites due to its undisputed status as the finest known example of the rarest New Orleans quarter eagle.

5. The Byron Reed Collection 1864 Quarter Eagle, NGC Mint State-67

Philadelphia quarter eagles include some of the great 19th century American gold rarities. Issues such as the 1841 and 1863 are famous and highly priced. But the 1864 is a rarity that gets almost no publicity. Only 2,824 circulation strikes were produced and around 25 to 35 of these exist today. I had only seen one or two 1864 quarter eagles that could be called About Uncirculated before this incredible coin appeared for sale in the October 1996 auction that contained holdings from the Byron Reed collection. This coin had been off the market for over a century and it was literally perfect. It was probably the best pre-1880 quarter eagle I had ever seen and the fact that it was such a rare issue made it especially noteworthy to me. It is now owned by a Western collector who buys extremely high grade examples of very rare dates.

6. The Unique Mint State 1854-D Three Dollar Gold Piece, PCGS Mint State-62

The 1854-D Three Dollar Gold Piece is one of those issues that has strong demand from a number of sources. Three Dollar gold specialists like it as it is one of the true rarities of this denomination. Dahlonega collectors prize the 1854-D as the only date of this denomination produced at the Georgia branch mint while Three Dollar gold piece specialists have long viewed it as a key date within their series of choice. This particular coin was originally in the personal collection of Wayte Raymond and it was in the superb set of Three Dollar gold piece offered in RARCOA's session of Auction 81. This coin was later owned by George Elliott and it was eventually graded Mint State-61 by PCGS, sold by Superior (for a very reasonable $72,600) in their January 1996 auction and finally brokered by Texas dealer Larry Hanks to a collector. It is now in a PCGS Mint State-62 holder and it remains the only unquestionably Mint State 1854-D three dollar gold piece that I have ever seen.

7. The Norweb/Bass Collection 1864-S Half Eagle, PCGS Mint State-65

Even if you don't care about San Francisco gold coinage or Liberty Head half eagles, you have to love the concept of this coin: a superb gem example of a date that is very rare in all grades. There are approximately 25-35 1864-S half eagles known. These mostly include coins grading Very Fine to Extremely Fine. This incredible coin first surfaced in the Melish sale held by Abe Kosoff in 1956. It was purchased by the Norweb family at that sale for less than $100 and was later purchased by Harry Bass in the 1987 Norweb I sale for $110,000. In October 1999, a Georgia collector bought it for $184,000. With the exception of some weakness of strike, this coin is nearly perfect and its combination of rarity and appearance makes it a no-brainer to qualify for this list.

8. The Nevada Collection 1870-CC Half Eagle, PCGS Mint State-61

All three gold issues that were produced at the Carson City mint in 1870 ($5.00, $10.00 and $20.00) are regarded as major rarities. The 1870-CC half eagle is the only one of these three that is sometimes available in higher grades and there are actually three that have been graded Uncirculated by the two major services. The finest of these is a PCGS Mint State-61 that is owned by a prominent Nevada collector. It has an interesting history. It was supposedly discovered in the Carson City area in the mid-1990's when an old office was being cleaned out and this coin was found hiding behind the shelves of a safe or a cabinet. Evidently, it had fallen some 120+ years ago and remained there, untouched, until its rediscovery. This coin's untouched, "dirty" surfaces make its story appear true. It is one of the few Carson City half eagles from the 1870's known in Mint State and its fresh appearance (plus its significance as a rare issue in all grades) make it one of my very favorite U.S. Gold coins.

9. The Pittman Collection 1839 Head of 1840 Eagle, NGC Mint State-64

Two distinct design types exist for 1839 eagles. Of these, the 1839 Head of 1840 is the rarer. In fact, this issue is nearly as rare as the celebrated 1838 eagle; especially in higher grades. There were a number of truly fabulous coins in the Pittman sales and one of my favorites was Lot 1912 in the May 1998 session: a superb, original 1839 Head of 1840 that was later graded Mint State-64 by PCGS. This coin had sensational color and remarkably thick, undisturbed mint luster. I liked this coin so much that I bid over $100,000 to buy it for my inventory (without having a client in mind for it) and it eventually brought $143,000. It is in a private West Coast collection where it is valued both as a rare date and as a significant type coin. It is probably the one coin that would cause most debate among gold specialists when analyzing my picks for this list but I steadfastly believe it is one of the premier United States gold coins.

10. 1874-CC Eagle, NGC Mint State-64

This remarkable coin was supposedly bought over the counter by a small Pennsylvania dealer in the mid-1990's and it eventually was purchased by a New York dealer. It was included in the Heritage Warren Miller sale of Liberty Head eagles, conducted by Heritage Numismatic Auctions in October 1995 (but was not part of the Miller collection). It did not sell at this auction but was later purchased privately by a Carson City specialist. This coin is the finest single Carson City eagle of any date that I have seen. Interestingly, there is one other very nice 1874-CC eagle known: the Bass-Eliasberg coin which is slated to be sold at auction by Bowers and Merena in November 2001. It is my belief that these two coins were probably obtained by members of the Assay Commission in Philadelphia as souvenirs.

11. The Eagle Collection 1856-O Double Eagle, NGC Mint State-63

In a series replete with great rarities, the 1856-O double eagle stands close to--if not at the--pinnacle. It is a very rare coin in all grades with approximately twenty to twenty five known. Most of these are very well worn and until the appearance of this remarkable coin, in the late 1970's, the finest 1856-O had been in the mid-range of About Uncirculated. This coin is not only the finest known example of this rare date, it is, in the opinion of many experts (myself included) some sort of specimen issue or presentation piece. It first sold in the early 1980's for a reported $300,000+ and reappeared in the January 1995 Superior sale where it sold to a dealer for $203,500. It is now the undisputed highlight of the Eagle Collection, a complete set of Liberty Head double eagles.

12. The Ed "The Hawk" Shapiro 1871-CC Double Eagle, NGC Mint State-63

The late Ed Shapiro was a New York dealer who quietly brought a number of high quality rare United States gold coins onto the market. One of his greatest finds was a superb 1871-CC that is not only the finest known example but one of the best Carson City double eagles of any date. This coin was last sold at public auction as Lot 977 in David Akers' session of Auction 88, where it brought $46,200. It is worth considerably more than this today. It is so different in appearance from the typical beat-up, dull 1871-CC that one can only assume that it was either an Assay piece that was saved or it somehow got "lost" in Carson City in 1871 and was somehow rediscovered. This wonderful Double Eagle was graded Mint State-63 by NGC in 1999 and it resides in a private collection.

Selecting The Right Coin Dealer

A successful relationship with the right coin dealer is an essential component in the enjoyment of coin collecting. The collector who chooses to "go it alone" may be setting himself up for some serious problems, even if he is well-connected and knowledgeable. A client (and friend) of mine recently coined a phrase that I feel succinctly describes the ideal relationship between the collector and dealer: the "dealer-partner." The relationship between a dealer such as myself and my clients is mutually enhancing. I sell my nicest coins to my best customers and, in turn, will hopefully be able to reacquire these coins in the future. My clients buy nice coins at fair prices, acquire important insider information and market insights and, literally, put bread on my table.

When deciding on the "right" dealer, I would suggest that you think carefully about the following:

1. How much does the dealer know about the area that you wish to specialize in?

If a collector called and told me he wished to put together a set of Lincoln Cents, I'd probably recommend that he choose someone else. I think I have a great eye and I probably know more about Lincoln Cents than most collectors. But I'm not what I'd call an expert in this area. On the other hand, if a collector called me and said he wanted to put together a set of Charlotte gold coins, I could state with honesty that there is probably no better dealer to work with than me. The collector needs to choose a dealer who really knows an area. That's one reason why I have always respected specialized dealers and it's why, some twenty years ago, I made the decision to be one.

2. What are the dealer's credentials within the numismatic community?

It can be hard to determine how well respected a dealer is within the numismatic community, given the fact that many dealers are not quick to compliment their competition. If I were a collector, I'd want my dealer to have the following qualifications.

First and foremost, I'd want him to be a member of the Professional Numismatist Guild (PNG). There are fewer than 500 dealers worldwide in the PNG and it is the only significant numismatic organization that doesn't admit everyone who applies.

Secondly, I'd look for a dealer who is stable. If he has worked for three firms in five years, that's a red flag.

Thirdly, I'd want to deal with an individual who was a proven expert. Has he written books or articles? Is he a contributor to the Redbook or other pricing guides? Do experts respect his opinions? A dealer who is universally respected and who has the credentials to back up this respect is a good person to do business with.

3. Does the dealer go to coin shows and auctions?

Unless a dealer attends shows and auctions, he will be "behind the curve" when it comes to knowing current market conditions. Dealers who get second hand information and pass it onto to their clients are not nearly as helpful as dealers who are out doing battle on the frontlines of coin shows and auctions.

4. Does the dealer actually enjoy working with collectors?

Some of the most knowledgeable dealers are primarily wholesalers who do not have the personality or available time to work with collectors. These are not going to be good people to work with due to their inaccessibility and lack of enthusiasm. But don't totally rule out one of these wholesale specialists as their knowledge tends to be far greater than the "typical" retailer.

5. Does the dealer own his inventory or broker it?

I have nothing against the concept of brokering coins. In fact, there are times when I wish I could take the considerable amount of money I have tied up in my inventory, place it in a money market account, collect interest and sell other people's coins. But I am a firm believer in putting my money where my mouth is. Every coin that is in my inventory has first been sold to a very strict set of eyes: mine. People who are coin brokers have often never seen the coins that they are selling. In addition, since they do not have their own money and/or time invested in the coins, they tend to be less concerned with their appearance.

6. Will you have too much competition for the coins the dealer buys?

Let's say that you are a Charlotte quarter eagle collector who wants to put together a world-class set. You should ask a potential dealer if there are other existing collectors in this dealer's base who collect the same coins. Will there be situations when the dealer will have to make hard decisions about which collector gets which coin? If so, how will the dealer make these decision? As a rule, truly choice and/or rare coins are scarcer than the collectors who want them. Will you be able to get first shot at the coins that mean the most to you?

7. Does the dealer make a two way market?

The best coin dealers are those who make strong two way markets in the areas they specialize in. They will be anxious to repurchase the coins they have sold you and will tend to be stronger buyers than non-specialists. It's easy to find dealers who only want to sell you coins. It's much harder to find dealers who want to buy them from you.

8. Does the dealer offer "post-sale service?"

Good coin dealers don't disassociate themselves from a collector after they've made a sale. Services that many dealers offer include giving advice on when to buy, sell or hold, upgrading coins or crossing them from one service's holder to another, letting you know if someone else is interested in a coin you own and getting you a discounted seller's commission should you decide to place your coins in an auction.

9. Is the dealer someone you like and trust?

This is an especially important question, in my opinion. If you are going to spend a lot of money with someone, you had better trust them. And if you are going to have a mutually beneficial long-term relationship, you'd better like them. If a certain dealer "gives you the willies" every time you speak to him, then you probably shouldn't consider giving him your business; no knowledgeable or well-connected he is. Conversely, if you really like someone and they give you a warm, fuzzy glow when you speak with them, they might be a better dealer for you than someone who is more knowledgeable and better connected.

In summary, you should ask the following questions to any dealer that you are thinking of doing a significant amount of business with:

Do you really know the series that I collect? How long have you been in business? How many years have you been at your current address? Do you attend shows and auctions? Have you written articles or books about coins? Do you belong to the PNG? Are you a retail or wholesale dealer? Do you own your inventory or broker other peoples coins? How many other important collections have you built? Will you be as anxious to buy my coins as you are to sell them to me? What will you do for me after you've sold me coins? What can you do to earn my trust?

The following are red flags that might make you think twice about doing business with a dealer:

He has worked for numerous companies in a short period of time He has been in the coin business for a shorter period of time than you've been a collector (nearly all of the really great coin dealers have been in the coin business since they were teenagers) He goes to fewer than three to five coins shows per year He has never bought and sold coins in the series that you collect He has no inventory of his own His level of knowledge does not seem much greater than your own

Ten Ways To Improve Your Coin Collection

No one intentionally sets out to create a mediocre coin collection. But many collectors--new and old--make a number of basic mistakes that trap them into a cycle of mediocrity. Here are some suggestions that will make your collection better--and make you a better collector in the process.

Have Your Collection Assessed by an Impartial Expert Upgrade Your Key Coins Take Advantage of Down Markets When Buying Do Whatever it Takes to Become an Expert Have Your Coins Regraded Learn to be Patient Develop a "Hook" for Your Collection Form a "Fun" Collection Share Your Collection With Others Improve Your Numismatic Library

1. Have Your Collection Assessed by an Impartial Expert

Although the dealer you buy coins from may be an expert, he is not impartial. I strongly suggest that after you've begun a set, find a knowledgeable, legitimate expert who can look at your coins and give you an objective second opinion. When he views your coins, don't tell him who you bought them from. Instead, get an opinion as to the coin's quality, fair market value, eye appeal and its suitability in your set.

2. Upgrade Your Key Coins

In any set, the rarest coins should be the highest quality ones. For example, the rarest Dahlonega half eagles are the 1842-D Large Date and the 1861-D while the most common are the 1853-D and the 1854-D. An intelligent collection of Dahlonega half eagles would have very high quality examples of the two rarest issues and decent but unspectacular examples of the two most common ones. Rare coins are always better price performers than common ones and your big dollar purchases should always be choice examples of truly rare coins; not common coins in high grade.

3. Take Advantage of Down Markets When Buying

When the market is soft, you should buy coins; not when prices are increasing sharply. The old cliche "buy low, sell high" is particularly applicable to the rare coin market. There is a proven history of coin price cycles and if you learn how to time your purchases properly, you can buy nice coins at 20-50% discounts off of past market highs. Surprisingly, this generally applies to truly rare coins as well as common issues.

4. Do Whatever It Takes To Become An Expert

The more you learn about the coins you collect, the better your collection will be. Attend coin shows and significant auctions. Read as much as you can. Go to a class at the American Numismatic Association's Summer Conference. There are many experts in the coin business who would be happy to share information with you. It is up to the collector to find these people and take advantage of their generosity.

5. Have Your Coins Regraded

Grading is subjective and standards change. If you purchased nice quality coins in the early to mid-1990's, there is an excellent chance that they will upgrade. Have a dealer you trust examine your coins and give you a second opinion as to their current grade. You might have a considerable amount of added value sitting in your safety deposit box.

As an example, in the past year, I have worked with three different collectors who I sold a number of very high quality coins to between 1992 and 1996. I had close to a 50% success rate in upgrading their coins and added at least $100,000 in value to each set through a few thousand dollars worth of resubmissions to PCGS and NGC.

6. Learn To Be Patient

Truly great collections, like those formed by Louis Eliasberg, Sr. or John J. Pittman were formed over the course of fifty years. When you rush to assemble a collection, the chances are great that you will make mistakes. If you are putting together a date set or a type set, buy the right coin the first time so you don't have to continually upgrade. If you like coins with a certain "look," wait for the right coin to come along. With very few exceptions, the right coin will become available sooner or later. But when that truly special piece does become available, don't be bashful. Collectors like Eliasberg and Pittman paid what were then considered to be "insane" prices for extraordinary coins. When these coins were sold many years later, they once again brought crazy prices--but this time in modern dollars.

7. Develop a "Hook" For Your Collection

A popular song becomes a hit because it has a "hook." A hook is an especially catchy melody that literally "hooks" the listener and makes him remember the song. Great coin collections have hooks as well. A numismatic hook might be coins with great color or a detailed, specialized assemblage or coins from a certain era. When you go to sell your collection, a random group of average quality coins will create no interest. A collection that has a great hook will create much more interest and sell for a hefty premium over a mundane assemblage.

8. Form a "Fun" Collection

If you are buying expensive, high end coins, you have to make some stressful decisions. One way to reduce this stress level is to put together a cheap, "fun" set. As an example, one of my biggest clients (who regularly purchases $25,000+ coins) has a secondary collection of Civil War tokens. He's never spent more than $500 on a token but has put together a really great and interesting set. I take the edge off buying and selling expensive U.S. gold coins by purchasing superbly toned high grade Washington Quarters. A fun collection is especially useful when your primary collection is nearly complete and many months--if not years--may go by between opportunities to fill those last few holes.

9. Share Your Collection With Others

A good friend of mine, who has a superb collection of Minnesota national bank notes, recently exhibited his collection at a major coin convention. It was the first time I'd ever seen him really have fun with his notes and I think it was a wonderful ego boost for him to bask in the glow his collection received. Another friend of mine, who specializes in Proof bust coinage, is busy compiling interesting information about these under-researched pieces and hopes to write the ultimate guide to them. The Scrooge McDucks of the coin collecting world have no fun and they are missing out on the best aspect of collecting: the fraternization.

10. Improve Your Numismatic Library

There is no substitute for knowledge in numismatics. You should make a goal to add at least one book or catalog to your coin library every month. Become a regular customer of numismatic literature dealers and ask them which books and catalogs are essential to your library. After you've purchased the essentials, buy the slightly less important books. Later, buy the esoteric books. Read as many of them as you can. I regard myself as a pretty knowledgeable numismatist but I am continually learning new information from old auction catalogs or obscure reference books.

What To Collect: Suggestions For The New Collector

For the new collector, one of the most difficult--and important--decisions he faces is what to collect. There are a number of factors that shape any eventual decision. These include price, practicality, availability of coins and aesthetics or personal taste. Nearly every collector, whether he is a seasoned veteran or brand new, has budget considerations. A collector's budget will quickly help shape the focus of his eventual collection. If you have a budget of approximately $10,000 per year to spend on coins, I would suggest dividing this amount into five or six purchases; or one every other month. This means that you can purchase interesting coins in the $1,500-$2,000 range and buy them often enough to maintain a high level of interest.

If your collecting budget is relatively small, you should establish your collecting goals accordingly. A budget of $500-$1,000 per coin is too low to collect early gold (i.e., issues struck prior to 1834) or Proof gold. But, as we will see below, there are other areas that $500-$1,000 will go quite far and this is where a collector with this budget should be focused.

Even if you have an unlimited budget, your collecting goals must be realistic. Let's say you have decided to put together a set of Liberty Head double eagles but only wish to purchase gem quality coins. This is not a realistic set, based on the fact that many pre-1880 issues do not exist in these grades and some don't even exist in the lower Mint State range. Being inflexible towards this goal would mean that this collector would soon hit a roadblock and he would be unable to add to his set.

Coin collecting budgets can basically be divided into three sizes: modest, average and above-average. For the sake of convenience, let's say that a modest budget is $500-$1,000 per coin, an average budget is $1,500-$3,000 per coin and an above-average budget is $5000-$10,000+ per coin. What are some of the best choices for interesting sets within these budgets?

I. $500-$1,000 per coin. Best Choice: A Set of Type Three San Francisco Double Eagles

The San Francisco mint struck double eagles from 1877 to 1885 and from 1887 through 1907. In all, there are thirty issues in this set.

The beauty of the San Francisco Type Three double eagle set is that nearly every coin can be obtained in Mint State-62 and Mint State-63 grades for under $1,000. The key issues of the set are the 1878-S, 1879-S, 1880-S and 1881-S and they can be obtained in MS-60 to MS-61 for below $1,000.

If the collector budgets an average of $750 per coin (figuring that he will spend $500-$600 on the common coins and $800-$900 on the scarcer pieces), he can count on spending approximately $22,500. With an approximately yearly budget of $7,500-$10,000, this set can be completed in two to three years.

I like this set for a number of reasons. The coins all have very limited downside risk as they have an intrinsic value of close to $250. San Francisco double eagles from this era tend to have very nice color and show good detail. And, at current price levels, many of these coins seem to be very good value.

OTHER CHOICES: Philadelphia gold dollars, 1849-1889, in Mint State-60 to Mint State-63. Philadelphia quarter eagles, 1880-1907, in Mint State-60 to Mint State-63. Classic Head quarter eagles and half eagles, 1834-1838, in Extremely Fine-45 to About Uncirculated-55.

II. $1,500-$3,000 per coin. Best Choice: A Set of New Orleans Quarter Eagles

The New Orleans mint struck quarter eagles from 1840 to 1843, 1845 to 1847, 1850 to 1852, 1854 and again in 1856-57. There are a total of thirteen issues, including the Large Date and Small Date 1843-O.

This is a set that I have liked for years and have recommended it to many new collectors. The coins are, for the most part, very undervalued in comparison to Charlotte and Dahlonega quarter eagles of this era. Unlike the other branch mint quarter eagles, the New Orleans set is short and completable.

The most expensive coin in this set is the 1845-O. This is a rare and very undervalued issue with an original mintage figure of only 4,000. Despite this coin's obvious rarity, a nice Extremely Fine-45 coin can be purchased in the $2,000-$3,000 range; still within the financial parameters of this set.

Using a $1,500-$3,000 budget per coin for this set, the most practical grade for each of the thirteen issues is still surprisingly high. This means that, when complete, this will be a good looking group with most of the coins in a grade range that is far above average for the date.

I would recommend building this set using the following grades. Along with these grades are approximate price range for nice quality pieces in PCGS or NGC holders.

1840-O: AU-55, $2000-$2500 1850-O: AU-55, $1750-$2000 1842-O: AU-53, $2000-$2250 1851-O: AU-55, $1900-$2250 1843-O Sm. Date: MS-61, $1750-$2000 1852-O: AU-58, $2100-$2400 1843-O Lg. Date: AU-53, $1750-$2250 1854-O: MS-61, $1500-$1750 1845-O: EF-45, $2000-$3000 1856-O: AU-55, $2400-$2700 1846-O: AU-55, $1250-$1500 1857-O: AU-58, $2000-$2250

To upgrade the 1845-O quarter eagle to AU-50 (which I think is a good idea, as it is the rarest coin in the set), the collector would be looking at spending $4,000-$4,500.

The price range for a complete set of New Orleans quarter eagles, as described above, is $22,500-$27,500. Assuming that a collector with a budget of $1,500-$3,000 per coin had an annual budget in the $15,000-$25,000 range, it would take between one and two years to complete the set.

OTHER CHOICES: New Orleans gold dollars, in About Uncirculated-58 to Mint State-63. Three dollar gold piece date set, in About Uncirculated-55 to Mint State-62. Philadelphia no motto eagles, 1840-1860 (no 1858), in About Uncirculated-50 to About Uncirculated-58.

III. $5,000-$10,000 per coin. Best Choice: A Set of Dahlonega Half Eagles

For this last category, I wavered between a set of Charlotte or Dahlonega half eagles. I decided to select the latter since there are no overly expensive or "impossible" coins.

Dahlonega Half eagles are a challenging set but they have some major advantages over their gold dollar and quarter eagles series. The gold dollars, while relatively short-lived, contain at least two dates that are too expensive for this price range (1855-D and 1861-D). The quarter eagle set not only has a number of rare and expensive dates but it has others that, in our required $5,000-$10,000 price range will have to be compromised in terms of quality. The half eagle set makes the most sense. The coins are large and attractive, scarce but available and well within the proper price parameter.

I would recommend building this set using the following grades. Along with these grades are approximate price range for nice quality pieces in PCGS or NGC holders.

1838-D, AU-53: $6000-$8000 1850-D, AU-55: $6000-$7000 1839-D, AU-55: $6000-$8000 1851-D, AU-55: $6000-$7000 1840-D, AU-55: $5500-$7500 1852-D, AU-55: $3500-$4500 1841-D, AU-58: $6500-$8500 1853-D, MS-61: $5000-$7000 1842-D Sm. Date, AU-58: $5500-$7500 1854-D, AU-55: $3000-$4000 1842-D Lg. Date, EF-45: $6000-$8000 1855-D, AU-55: $4000-$5000 1843-D, AU-58: $4000-$6000 1856-D, AU-55: $4000-$5000 1844-D, AU-58: $5500-$7500 1857-D, AU-55: $5500-$6500 1845-D, AU-58: $5000-$7000 1858-D, AU-58: $4500-$5500 1846-D, AU-58: $4500-$5500 1859-D, AU-55: $4000-$5000 1847-D, MS-61: $6500-$7500 1860-D, AU-55: $4000-$5000 1848-D, AU-55: $4000-$5000 1861-D, EF-45: $7000-$9000 1849-D, AU-55: $4250-$5250

To upgrade the key 1861-D to an AU-50, the collector would be looking at an additional $5,000 to $7,500. This would be a sensible outlay, given that this is the single most important coin in the set. The 1842-D Large Date could either be eliminated (using the assumption that the date 1842 is already represented by the more common Small Date variety) or it could be upgraded to an AU-50 for an additional $5,000 or so.

The total cost for the Dahlonega half eagle set in the grades listed above would be approximately $125,000-$165,000. Assuming that a collector with a budget of $5,000-$10,000 per coin had an annual budget of approximately $40,000-$50,000, this set could be assembled in two to three years.

OTHER CHOICES: Charlotte half eagles, in About Uncirculated-50 to About Uncirculated-58. New Orleans half eagles, in About Uncirculated-50 to Mint State-62. San Francisco Type One and Type Two double eagles, About Uncirculated-50 to Mint State-61.

With a bit of study and some realistic evaluation of financial considerations, there are numerous interesting gold coin sets that can be put together.

The Ten Coolest United States Coins

About five years ago, a dealer who specialized in ultra-expensive United States coins had an advertising campaign that said, basically, your entire coin collection should be able to fit into a single PCGS/NGC coin storage box. Such a box holds exactly twenty coins. This was obviously an elitist sentiment and it was generally derided as being pretentious. But I thought it had some merit. In numismatics, quality is always a surer bet than quantity (although a large quantity of great quality is best of all...)

I recently got a phone call from a wealthy new collector who asked me to draft a very interesting proposal for him. He was interested in collecting coins but he had very little spare time available to devote to learning about them. So he asked me to come up with a list of ten coins that, in my opinion, were the most significant United States issues.

As I got to thinking about this list of coins, I drew up the following parameters:

The coins had to be very historic. Their historic significance had to be easily understood, even by someone who didn't know much about U.S. History or coinage. They had to be coins that were always in demand, in good markets and bad. They had to have multiple levels of demand. In other words, they had to be considered desirable by a number of different groups of collectors. They had to be attractive in terms of their design. They had to be rare, but not so rare that they commanded an inordinate date premium.

This collector gave me some other parameters to consider as well. While wealthy, he did not have unlimited funds; nor did he like coins enough that he wanted to put an inordinate amount of his net worth into his collection. This collection would not consist of the "finest known" or the "best" of anything. Rather, it would consist of ten attractive, original, above-average quality examples of the ten most interesting and readily liquid United States coins. In essence, this collection would be themed as the "coolest coins ever struck in the United States," if you will.

Here is the list that I prepared for this collector, along with why I thought each coin should be in this small but special collection.

1. 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.

2. 1792 Half Disme

After obtaining its independence from Great Britain, one of the first legislative acts that the United States considered was the establishment of its own coinage. The first experiments were conducted in 1792. Most of the initial United States mint issues are extremely rare today. The most available is the 1792 Half Disme (the spelling of the word "Dime" was not changed until the beginning of the 19th century).

The story behind this coin is very interesting. George Washington was actively involved in its production and legend has it that he contributed his family's personal silverware for use in the striking of these coins.

Approximately 1,500 pieces were made and survivors are a bit more plentiful than generally realized. This is an extremely significant coin as it is the first United States issued struck by mint personnel in any quantity for use in circulation.

For this set, I would look for a nice About Uncirculated coin with original coloration and nice surfaces. The current value of such a coin is approximately $10,000-$15,000.

3. 1793 Chain Cent

The first two denominations to be struck by the United States mint were the half cent and the cent. Coinage for both began in 1793. Three designs are known for 1793 cents. The first, and most appealing in my opinion, is the Chain Cent.

A total of 36,103 1793 Chain cents were produced. The very first of these are easily identified by having the abbreviation AMERI. (for AMERICA) in the reverse legend. In my opinion, these are by far the most desirable of the major varieties and it is believed that around 7,000 were produced.

Chain Cents are often found very well worn and generally come with the obverse much weaker than the reverse. For this set, I would select a nice brown Extremely Fine to About Uncirculated piece. I would be very careful in making my selection and would look for a piece with good eye appeal, an above average strike and nice surfaces. Coins like this are rare and in great demand and I would expect to pay well in excess of current published values. An Extremely Fine coin is currently valued in the $20,000-$30,000 range while an About Uncirculated coin is worth $35,000-$45,000+.

4. 1794 Silver Dollar

The silver dollar was among the first coins authorized by the United States government. It is hard to think of a more significant coin for the fledgling United States than the dollar as it was the largest circulating coin at the time, both in terms of its size and its value.

This was a very difficult coin for the new mint to strike as they did not own equipment for coins larger than a half dollar. In addition, most 1794 dollars were struck from improperly aligned dies, making the date, the left stars, and the words UNITED STATES appear very weak.

Of the 1,758 pieces believed to have been struck, around 125 are known today. For this set, I would look for a nice, evenly worn Extremely Fine with as sharp a strike as possible. In particular, I would look for a coin with a well-defined date and reasonably sharp stars. This is another issue that is in great demand and nice coins always bring much more than published values. I would expect to pay between $75,000 and $90,000 for the right piece.

5. 1795 Eagle

The eagle, or ten dollar piece, was the highest denomination American coin until the twenty dollar gold piece was authorized in 1849. The essence of this coin is very easy to state in a few words: it is the first year of issue of the most important early gold type.

Only 5,583 1795 eagles were struck. There are a few hundred pieces known and this includes more high grade pieces than one might expect. The 1796 eagle is a much rarer coin and it is very undervalued in relation to the 1795. But I would much rather have the 1795 due to its significance.

For this set, I would choose a nice About Uncirculated example with clean surfaces, no significant adjustment marks, original color and a sharp strike. Such a coin, when available, would probably cost in the area of $30,000-$35,000.

6. 1836 Gobrecht Dollar

After a three decade hiatus, the silver dollar was resurrected in 1836. Its design was considered one of the most important projects undertaken by the new Mint Engraver Christian Gobrecht. From 1836 to 1839, he prepared a number of designs; which are among the most attractive coins ever struck in the United States in my opinion. My personal favorite is the so-called 1836 "original" with the engraver's name on the obverse and the reverse with stars above and below the eagle.

1,000 of these were struck as Proofs at the end of 1836. They were made for circulation and can be distinguished from those struck in 1837 (but dated 1836) by the orientation of the eagle on the reverse. They are generally found with some degree of wear and, for some reason, uncleaned pieces generally have extremely deep toning.

For this set, I would select a Proof-62 to Proof-63 example with attractive coloration, minimal detracting hairlines and good overall eye appeal. I would expect such a coin to cost in the area of $15,000-$20,000.

7. 1850 Double Eagle

The first regular issue double eagles are dated 1850; examples were struck at both the Philadelphia and New Orleans mints. Although the Philadelphia issue is much more available than its branch mint counterpart, I have long felt that the 1850 double eagle was one of the most important United States coins. In a nutshell, it is the first collectible Double Eagle and the twenty dollar gold piece is the largest and most popular United States gold coin.

1,117,261 1850 double eagles were struck and this is not an especially scarce issue in circulated grades. There are around 40-60 known in Uncirculated with most of these in the MS-60 to MS-61 range. This date is often found with an especially sharp strike, nice coloration and very good eye appeal.

For this set, I would select a Mint State-61 example that was original, lustrous and minimally abraded. The cost of this coin would be in the area of $6,000-$9,000; making it among the best values in this collection.

8. 1861-D Gold Dollar

The 1861-D gold dollar is the only coin that can be positively proven to having been struck by the Confederacy. After the branch mint at Dahlonega was seized in April 1861, a small number (1,000-2,000) were produced. Unlike such issues as the 1861-C half eagle and the 1861-O double eagle, which had mintage figures that include Federal and Confederate strikings, every single 1861-D gold dollar is a Confederate striking. This makes these coins, in my opinion, among the most historic issues available to collectors.

There are approximately 75-100 examples known with the typical specimen grading About Uncirculated. This issue is generally found with a poor strike and some planchet irregularities.

The 1861-D gold dollar I would choose for this set would be a very high end About Uncirculated-58 with as good a strike and as clean surfaces as possible. The cost for such a coin would be in the range of $17,500-$20,000.

9. 1879 Flowing Hair Stella

The four dollar "Stella" (so named because of the prominent star on the reverse) was a result of discussions regarding international trade coinage during the 1870's. A very limited number were made, with two different designs, during 1879 and 1880. The most available of these is the 1879 Flowing Hair.

The official mintage figure for the 1879 Flowing Hair Stella is 425 coins, although it is possible that a few more were produced. Approximately half of the original mintage survives today, in grades ranging from Very Good to Gem Proof.

My choice of Stella for this set would be a Proof-63. I would try to look for a coin with nice original surfaces, pleasing color and minimal hairlines or marks. A coin of this quality would cost in the area of $50,000-$55,000.

10. 1907 High Relief Double Eagle

Theodore Roosevelt believed that United States coinage designs had, by the early 1900's, become stale and out of touch. He was particularly eager to redesign the four United States gold denominations. For the eagle and double eagle he hired the prominent sculptor Augustus St. Gaudens.

St. Gaudens' battle with the entrenched Mint personnel is well known as is their subterfuge of his spectacular original design. The "High Relief" that most collectors are familiar with today is a severely watered-down version of his incredible "Ultra High Relief" design. Nevertheless, the 1907 High Relief is still widely regarded as the most beautiful American gold coin.

11,250 examples of this design were struck and the survival rate is uncommonly high. Despite this coin's relative availability, it is still a highly priced coin. But it is priced relative to its extreme popularity and, in my opinion, it is an essential member of this ten coin set.

The High Relief that I would include would be a high end MS-64. The cost of such a coin would range from $14,000 to $17,000.

Conclusion

The total cost for this set, with each of the coins in the grade ranges described above, would be approximately $250,000-$350,000. It would probably take a number of years to complete this set, especially if the collector is very particular in regard to the quality of each piece.

It is my opinion that this would be a great set of coins to assemble. There are certainly other American coins that can also be considered "cool," but these are the ones that I find most appealing.

How To Collect Type Three Double Eagles

Type Three double eagles have proven to be a very popular series with collectors. It is a long-lived and highly varied series with issues ranging from extremely common to extremely rare. Type Three double eagles are appealing for a number of reasons. They are big, beautiful coins which can be appreciated even by the non-collector. They are plentiful enough that many issues can be found in high grades. However, many are scarce enough that they also appeal to the rarity conscious collector.

There are a number of excellent ways to collect Type Three double eagles. Here are a number of suggestions.

Collecting Type Three Double Eagles As Type Coins Collecting Type Three Double Eagles By Mint Collecting Type Three Double Eagles By Year Assembling A Complete Set of Type Three Double Eagles Collecting By Die Variety Collecting Proof Type Three Double Eagles

I. Collecting Type Three Double Eagles As Type Coins

Type coin collectors seek to obtain one representative example of a specific type or design. For Type Three double eagles, they would focus on obtaining a common date in the highest grade which they can afford. There are a number of specific dates which they might purchase including the 1900, 1901, 1903, 1904 and 1904-S. Each of these is common enough in grades up to and including Mint State-64 that there is little--if any--date premium.

A type set could be made more interesting by including a common date from the 19th century in addition to one from the 20th century. The most common Liberty Head double eagles from the 19th century include the 1895, 1897 and 1899. These are easily obtainable in Mint State-63 but they are somewhat scarce in any grade higher than this.

If you are interested enough in Type Three double eagles to take the time to read a web article devoted to this series, the chances are good that you will become more involved with them than as mere type coins. If you decide to purchase a Type Three double eagle strictly as a type coin, it might make sense to pay a small premium and obtain a date which is a bit more rare in higher grades but which sells for a small premium.

II. Collecting Type Three Double Eagles By Mint

Type Three double eagles were produced at five mints: Philadelphia, San Francisco and Carson City, New Orleans and Denver. Some collectors are attracted to the issues from just one of these mints and they attempt to put together a complete set of dates and major varieties.

Assembling a complete thirty-one coin set of Philadelphia Type Three double eagles is very difficult and costly. The 1881, 1882, 1885 and 1886 each had extremely limited original mintage figures (between 571 and 2,199 coins) and are seldom available to collectors. The rarest of these are the 1882 and the 1886, both of which are represented by approximately 20-25 surviving examples. The 1883, 1884 and 1887 dates were struck only as Proofs. If a collector wishes to have a truly complete set, he will have to include this trio and can count on spending upwards of $50,000 per coin for examples in the Proof-63 to Proof-64 range and considerably more for Gems.

There are other Philadelphia issues which are far more elusive than generally known, especially in the higher Mint State grades. These include the 1877-1880, 1888, 1890, 1892, 1898 and 1905. The 1891 is an extremely rare and very overlooked coin, in spite of its tiny original mintage figure of 1,390 business strikes. It is actually comparable to some of the more-heralded dates from the 1881-1886 era and an acceptable specimen will cost the collector between $7,500 and $15,000.

A complete thirty coin set of San Francisco Type Three double eagles can be assembled with patience. There are no dates which stand out as being excessively rare and just a small number are very hard to locate above Mint State-62 to Mint State-63. The scarcest Type Three issues from this mint are the 1879-S through 1882-S date run and the 1887-S. After years of neglect, the San Francisco series is gaining in popularity. A very attractive set with all coins grading between Mint State-62 and Mint State-64 could be assembled for approximately $50,000-$60,000.

The Carson City Type Three double eagles are the most popular issues with collectors. A total of twelve different dates were produced between 1877 and 1893. Unlike the Type Two issues from this mint which have one issue (the 1870-CC) which makes a set nearly impossible to complete, the Type Three Carson City set is easily completable. The key issues are the 1878-CC, 1879-CC, 1885-CC and the 1891-CC. All four of these are very rare and costly in Mint State but choice About Uncirculated pieces can be obtained for under $10,000 per coin, depending on quality. An extremely nice set of Type Three Carson City double eagles can be assembled for under $75,000. This includes all of the more common dates in Mint State-60 to Mint State-62 grades and the "big four" mentioned above (plus the 1877-CC) in grades ranging from About Uncirculated-55 to About Uncirculated-58.

Production of Type Three double eagles at the New Orleans and Denver mints was very limited. The 1879-O is the only New Orleans issue of this type. Just 2,325 were struck and approximately 100 survive with most of these in Extremely Fine grades. The Denver mint opened in 1906 and produced relatively large numbers of Liberty Head double eagles in 1906 and 1907. The 1906-D is common in all grades up to Mint State-63 but it becomes scarce in Mint State-64 and very rare in Mint State-65. The 1907-D is the more common of these two issues as it is more often used as a type coin.

III. Collecting Type Three Double Eagles By Year

A popular and practical way to collect Type Three double eagles is by year. Such a collection would consist of a single example for each year in which the Type Three design was produced. In this case, such a set would have thirty-one coins.

In a year set, it is advisable to choose the most affordable issue produced in a specific year. For example, an 1879-S double eagle would be chosen over an 1879 Philadelphia, 1879-O or an 1879-CC since the San Francisco coin is the easiest to obtain in both circulated and Uncirculated grades. The 1879-O would be the least likely coin to include in this set due to its rarity and comparably high price.

There are a few years which are very difficult to find affordable double eagles from any mint. In 1885 only two mints struck double eagles. The Philadelphia issue is very rare while its Carson City counterpart is quite scarce but affordable, especially in lower grades. 1886 is perhaps the most difficult year in this entire set as only the Philadelphia mint produced double eagles and just 1,000 business strikes were made. Every other year contains at least one common issue which can be purchased by the collector of average means.

IV. Assembling A Complete Set of Type Three Double Eagles

Many collectors decide to assemble a complete set of Type Three double eagles. Such a set will include one example of each Type Two double eagle struck between 1877 and 1907. Including the Proof-only years of 1883, 1884 and 1887 a complete set consists of 76 coins. (Due to the price of these three coins, many collectors decide to not include them in their set. If this is done, the theme of the set can be changed from being a "complete set of Type Three Double Eagles" to a "complete set of business strike Type Three Double Eagles.") For the most part, the grades of this set will range from Extremely Fine to Mint State. The more common issues are generally represented by high grade coins while the rarer issues are represented by lower grade pieces. The rarities of this set are 1881, 1882, 1885, 1886 and 1891 which are seldom offered for sale and will cost at least $20,000 for above average examples. However, most of the other Type Three double eagles are well within the budget of the average collector.

There are some basic principles which the complete set collector should follow as he acquires coins. A complete set should be as well-matched as possible. The collector should try to purchase coins which have a similar appearance. As an example, a collector might try to acquire coins which are as original as possible and which show reasonably similar coloration.

A complete set should not be "all over the map" as far as grades are concerned. Instead of spending $10,000 on an unappealing, bagmarked 1879-O (as opposed to a choice example of this date in this price range) merely to fill a hole, buy two or three outstanding MS-62 semi-key dates from the 1870's. Do not assemble a complete set with unrealistic expectations. A collector who has previously worked on more common sets may approach Type Three double eagles with the idea that he will be able to complete this set in the higher Mint State grades. Since many issues in the Type Three double eagle series are essentially non-existent above Mint State-60 (and some like the rare Philadelphia dates from the 1880's are either unknown or excessively rare in Mint State), certain allowances will have to be made. Conversely, a collector does not have to settle for coins he does not like just because he thinks he will not be able to do any better.

Set building is the key to realizing additional value without spending extra money. This phenomenon is known to numismatists as a "set premium" and it definitely applies to Type Three double eagles. Carefully assembled sets of coins have proven over the years to bring substantial premiums over randomly assembled, meaningless accumulations of coins. A set that has been assembled with the assistance of a professional numismatist should prove emotionally and financially rewarding to the collector or investor.

An especially good idea for the new collector would be to discuss assembling a set of Type Three double eagles with a dealer who specializes in 19th century gold coins. Get his thoughts as to which grade each specific date should be purchased in. Reading this article should also give the collector a good idea about this as it attempts to give a breakdown of the total number known of each date in each grade range.

V. Collecting By Die Variety

For most Type Three double eagles, a number of different obverse and reverse dies were employed. As one die became worn and/or damaged, it was replaced by a new die. The different combinations of dies created a number of die varieties.

The field of gold coin die variety collecting is extremely fertile. Very little has been written about the varieties of U.S. gold coins and next to nothing has been written about the die varieties of Type Three double eagles. It is very probable that a number of interesting, potentially rare die varieties exist for this series.

A collector wishing to start a die variety collection needs to pay attention to such things as date placement, mintmark placement and diagnostic characteristics such as die scratches and/or die breaks. He should record this information and compare each example of a specific date which he has the chance to examine.

While it is possible that this sort of collecting may become popular in the future, for now it is the province of a tiny handful of specialists. Therefore, the die variety collector should not pay an extra premium for supposedly rare varieties (such as a mintmark position previously unseen on a specific issue).

VI. Collecting Proof Type Three Double Eagles

Proof Type Three double eagles were struck in exceedingly limited quantities at the Philadelphia Mint from 1877 through 1907. In fact, the mintage for Proofs for the entire thirty one year period was just 2,414 pieces.

The tremendous rarity of these coins is what makes them appealing to a small segment of wealthy collectors. It is possible to assemble a complete set of Proof Type Three double eagles. However, this set would require considerable patience and a very deep pocketbook.

Historically, during bull markets, proof gold coins have been favorites with rare coin funds or wealthy individual investors. In the 1989-1990 bull market, the rare coin funds managed by Merrill Lynch and Kidder Peabody were major buyers of coins such as proof Type Three Liberty Head double eagles.

Most of the Proof Type Three double eagles which appear on the market grade in the Proof-63 to Proof-64 range. The extreme rarity of Proof-65 and better examples makes this set all but impossible to complete in the highest Proof grades.

Conclusion: These are just some of the ways in which to collect Type Three double eagles. Part of the appeal of coin collecting is the myriad possibilities it offers the collector with imagination.

Type Three double eagles have proven to be a very popular series with collectors. It is a long-lived and highly varied series with issues ranging from extremely common to extremely rare.

Type Three double eagles are appealing for a number of reasons. They are big, beautiful coins which can be appreciated even by the non-collector. They are plentiful enough that many issues can be found in high grades. However, many are scarce enough that they also appeal to the rarity conscious collector.

There are a number of excellent ways to collect Type Three double eagles. Here are a number of suggestions.

Collecting Type Three Double Eagles As Type Coins Collecting Type Three Double Eagles By Mint Collecting Type Three Double Eagles By Year Assembling A Complete Set of Type Three Double Eagles Collecting By Die Variety Collecting Proof Type Three Double Eagles

strong>I. Collecting Type Three Double Eagles As Type Coins

Type coin collectors seek to obtain one representative example of a specific type or design. For Type Three double eagles, they would focus on obtaining a common date in the highest grade which they can afford. There are a number of specific dates which they might purchase including the 1900, 1901, 1903, 1904 and 1904-S. Each of these is common enough in grades up to and including Mint State-64 that there is little--if any--date premium.

A type set could be made more interesting by including a common date from the 19th century in addition to one from the 20th century. The most common Liberty Head double eagles from the 19th century include the 1895, 1897 and 1899. These are easily obtainable in Mint State-63 but they are somewhat scarce in any grade higher than this.

If you are interested enough in Type Three double eagles to take the time to read a web article devoted to this series, the chances are good that you will become more involved with them than as mere type coins. If you decide to purchase a Type Three double eagle strictly as a type coin, it might make sense to pay a small premium and obtain a date which is a bit more rare in higher grades but which sells for a small premium.

II. Collecting Type Three Double Eagles By Mint

Type Three double eagles were produced at five mints: Philadelphia, San Francisco and Carson City, New Orleans and Denver. Some collectors are attracted to the issues from just one of these mints and they attempt to put together a complete set of dates and major varieties.

Assembling a complete thirty-one coin set of Philadelphia Type Three double eagles is very difficult and costly. The 1881, 1882, 1885 and 1886 each had extremely limited original mintage figures (between 571 and 2,199 coins) and are seldom available to collectors. The rarest of these are the 1882 and the 1886, both of which are represented by approximately 20-25 surviving examples. The 1883, 1884 and 1887 dates were struck only as Proofs. If a collector wishes to have a truly complete set, he will have to include this trio and can count on spending upwards of $50,000 per coin for examples in the Proof-63 to Proof-64 range and considerably more for Gems.

There are other Philadelphia issues which are far more elusive than generally known, especially in the higher Mint State grades. These include the 1877-1880, 1888, 1890, 1892, 1898 and 1905. The 1891 is an extremely rare and very overlooked coin, in spite of its tiny original mintage figure of 1,390 business strikes. It is actually comparable to some of the more-heralded dates from the 1881-1886 era and an acceptable specimen will cost the collector between $7,500 and $15,000.

A complete thirty coin set of San Francisco Type Three double eagles can be assembled with patience. There are no dates which stand out as being excessively rare and just a small number are very hard to locate above Mint State-62 to Mint State-63. The scarcest Type Three issues from this mint are the 1879-S through 1882-S date run and the 1887-S. After years of neglect, the San Francisco series is gaining in popularity. A very attractive set with all coins grading between Mint State-62 and Mint State-64 could be assembled for approximately $50,000-$60,000.

The Carson City Type Three double eagles are the most popular issues with collectors. A total of twelve different dates were produced between 1877 and 1893. Unlike the Type Two issues from this mint which have one issue (the 1870-CC) which makes a set nearly impossible to complete, the Type Three Carson City set is easily completable. The key issues are the 1878-CC, 1879-CC, 1885-CC and the 1891-CC. All four of these are very rare and costly in Mint State but choice About Uncirculated pieces can be obtained for under $10,000 per coin, depending on quality. An extremely nice set of Type Three Carson City double eagles can be assembled for under $75,000. This includes all of the more common dates in Mint State-60 to Mint State-62 grades and the "big four" mentioned above (plus the 1877-CC) in grades ranging from About Uncirculated-55 to About Uncirculated-58.

Production of Type Three double eagles at the New Orleans and Denver mints was very limited. The 1879-O is the only New Orleans issue of this type. Just 2,325 were struck and approximately 100 survive with most of these in Extremely Fine grades. The Denver mint opened in 1906 and produced relatively large numbers of Liberty Head double eagles in 1906 and 1907. The 1906-D is common in all grades up to Mint State-63 but it becomes scarce in Mint State-64 and very rare in Mint State-65. The 1907-D is the more common of these two issues as it is more often used as a type coin.

III. Collecting Type Three Double Eagles By Year

A popular and practical way to collect Type Three double eagles is by year. Such a collection would consist of a single example for each year in which the Type Three design was produced. In this case, such a set would have thirty-one coins.

In a year set, it is advisable to choose the most affordable issue produced in a specific year. For example, an 1879-S double eagle would be chosen over an 1879 Philadelphia, 1879-O or an 1879-CC since the San Francisco coin is the easiest to obtain in both circulated and Uncirculated grades. The 1879-O would be the least likely coin to include in this set due to its rarity and comparably high price.

There are a few years which are very difficult to find affordable double eagles from any mint. In 1885 only two mints struck double eagles. The Philadelphia issue is very rare while its Carson City counterpart is quite scarce but affordable, especially in lower grades. 1886 is perhaps the most difficult year in this entire set as only the Philadelphia mint produced double eagles and just 1,000 business strikes were made. Every other year contains at least one common issue which can be purchased by the collector of average means.

IV. Assembling A Complete Set of Type Three Double Eagles

Many collectors decide to assemble a complete set of Type Three double eagles. Such a set will include one example of each Type Two double eagle struck between 1877 and 1907. Including the Proof-only years of 1883, 1884 and 1887 a complete set consists of 76 coins. (Due to the price of these three coins, many collectors decide to not include them in their set. If this is done, the theme of the set can be changed from being a "complete set of Type Three Double Eagles" to a "complete set of business strike Type Three Double Eagles.") For the most part, the grades of this set will range from Extremely Fine to Mint State. The more common issues are generally represented by high grade coins while the rarer issues are represented by lower grade pieces. The rarities of this set are 1881, 1882, 1885, 1886 and 1891 which are seldom offered for sale and will cost at least $20,000 for above average examples. However, most of the other Type Three double eagles are well within the budget of the average collector.

There are some basic principles which the complete set collector should follow as he acquires coins. A complete set should be as well-matched as possible. The collector should try to purchase coins which have a similar appearance. As an example, a collector might try to acquire coins which are as original as possible and which show reasonably similar coloration.

A complete set should not be "all over the map" as far as grades are concerned. Instead of spending $10,000 on an unappealing, bagmarked 1879-O (as opposed to a choice example of this date in this price range) merely to fill a hole, buy two or three outstanding MS-62 semi-key dates from the 1870's. Do not assemble a complete set with unrealistic expectations. A collector who has previously worked on more common sets may approach Type Three double eagles with the idea that he will be able to complete this set in the higher Mint State grades. Since many issues in the Type Three double eagle series are essentially non-existent above Mint State-60 (and some like the rare Philadelphia dates from the 1880's are either unknown or excessively rare in Mint State), certain allowances will have to be made. Conversely, a collector does not have to settle for coins he does not like just because he thinks he will not be able to do any better.

Set building is the key to realizing additional value without spending extra money. This phenomenon is known to numismatists as a "set premium" and it definitely applies to Type Three double eagles. Carefully assembled sets of coins have proven over the years to bring substantial premiums over randomly assembled, meaningless accumulations of coins. A set that has been assembled with the assistance of a professional numismatist should prove emotionally and financially rewarding to the collector or investor.

An especially good idea for the new collector would be to discuss assembling a set of Type Three double eagles with a dealer who specializes in 19th century gold coins. Get his thoughts as to which grade each specific date should be purchased in. Reading this article should also give the collector a good idea about this as it attempts to give a breakdown of the total number known of each date in each grade range.

V. Collecting By Die Variety

For most Type Three double eagles, a number of different obverse and reverse dies were employed. As one die became worn and/or damaged, it was replaced by a new die. The different combinations of dies created a number of die varieties.

The field of gold coin die variety collecting is extremely fertile. Very little has been written about the varieties of U.S. gold coins and next to nothing has been written about the die varieties of Type Three double eagles. It is very probable that a number of interesting, potentially rare die varieties exist for this series.

A collector wishing to start a die variety collection needs to pay attention to such things as date placement, mintmark placement and diagnostic characteristics such as die scratches and/or die breaks. He should record this information and compare each example of a specific date which he has the chance to examine.

While it is possible that this sort of collecting may become popular in the future, for now it is the province of a tiny handful of specialists. Therefore, the die variety collector should not pay an extra premium for supposedly rare varieties (such as a mintmark position previously unseen on a specific issue).

VI. Collecting Proof Type Three Double Eagles

Proof Type Three double eagles were struck in exceedingly limited quantities at the Philadelphia Mint from 1877 through 1907. In fact, the mintage for Proofs for the entire thirty one year period was just 2,414 pieces.

The tremendous rarity of these coins is what makes them appealing to a small segment of wealthy collectors. It is possible to assemble a complete set of Proof Type Three double eagles. However, this set would require considerable patience and a very deep pocketbook.

Historically, during bull markets, proof gold coins have been favorites with rare coin funds or wealthy individual investors. In the 1989-1990 bull market, the rare coin funds managed by Merrill Lynch and Kidder Peabody were major buyers of coins such as proof Type Three Liberty Head double eagles.

Most of the Proof Type Three double eagles which appear on the market grade in the Proof-63 to Proof-64 range. The extreme rarity of Proof-65 and better examples makes this set all but impossible to complete in the highest Proof grades.

Conclusion:

These are just some of the ways in which to collect Type Three double eagles. Part of the appeal of coin collecting is the myriad possibilities it offers the collector with imagination.

For more information on Type 3 Double Eagles, I recommend purchasing Type Three Double Eagles, 1877-1907: A Numismatic History and Analysis by Douglas Winter.