The Ten Rarest Dahlonega Gold Coins Revisted

In the five years since I wrote the second edition of my book on Dahlonega gold coinage, a number of important coins have been sold and some significant changes are going to be have to be made when I release my third edition (which, if I had to guess, will be out in another year or so). I think it would be interesting to look at the ten rarest Dahlonega gold coins and see what important things have changed about them since 2003. For each of these issues, I am going to focus on the following aspects:

-Changes (if any) in high grade rarity

-Changes (if any) in Condition Census

-New Finest Known coins or important new discoveries

-New price records at auction or via private treaty

Before we begin, I think a quick overview of the Dahlonega market is in order. If I had to summarize it in a paragraph I would say that the market is currently strong. The supply of Dahlonega coins—even schlocky ones—really seems to have dried up in the last two or three years. It was always hard to find choice, original Dahlonega coins; even in low grades. Now it seems hard to find even mediocre quality pieces. And the very rare Dahlonega issues—the coins which we will focus on in this article—have become exceptionally hard to locate. The last really important specialized collection to come on the market was the Duke’s Creek gold dollars and quarter eagles that Heritage auctioned in April 2006.

1855-D Gold Dollar: This remains the rarest Dahlonega gold dollar in high grades and it is the second rarest overall with fewer than 100 known. The rarity of this issue with a full date seems to have been exaggerated by me in the first two editions of my book. I would revise the number of 1855-D gold dollars with a full date upwards from “less than a dozen” to around double this amount.

While no new discoveries of note have been recorded, no less than three record prices were recorded between 2006 and 2007. In February 2007, the Goldberg: 2097 example, graded MS64 by NGC, sold for an incredible $149,500; it had sold earlier as Heritage 1/06: 3396 where it brought $109,250. The finest known 1855-D was purchased by a prominent Alabama collector in the Heritage April 2006 sale where it realized $132,250. This coin had previously been graded MS64 by NGC; now it is in a PCGS 64 holder. The only other Uncirculated 1855-D gold dollars, graded MS62 and MS61 by PCGS, sold for $56,350 and $46,000 respectively in the Heritage 2/04 auction. Remarkably, the four finest 1855-D gold dollars all sold at auction between 2004 and 2007(!)

1856-D Gold Dollar: In the second edition of my Dahlonega book, I estimated that 80-90 examples of the 1856-D gold dollar exist. I still believe that this is accurate. I also estimated that only four to five Uncirculated examples are known. By the magic of gradeflation, I think this number has climbed to around half dozen.

A world record price was set by the Heritage 1/04: 1009 coin (ex: Green Pond) that sold for $47,150 and another impressive price realized was the Heritage 4/06: 1488 coin (ex: Duke’s Creek) that brought $40,250. One of these two coins was upgraded to MS63 by NGC and it now is the highest graded 1856-D gold dollar. Two other high grade 1856-D gold dollars that have traded since the second edition of my book was published are a new PCGS MS62 that I sold via private treaty in 2007 to the Wexford Collection and the ANR 9/03: 425 coin that sold for $41,400, the second highest price ever realized by this date.

1861-D Gold Dollar: The 1861-D gold dollar has, arguably, become the most popular coin of any denomination produced at the Dahlonega mint. I can’t attribute this soaring degree of popularity to anything other than a high “coolness” factor and a multi-tiered level of demand that is not seen by other Dahlonega issues.

My estimate of 55-65 known may be a bit on the low side and I would probably raise this to 65-75 including a dozen or so in Uncirculated. A record price was set in January 2008 when the Heritage 1/08: 3050 example brought $149,500 (this is an exact tie with an MS64 1855-D for the highest price ever realized by any gold dollar from Dahlonega). This same coin had brought $138,000 in April 2006. The finest known 1861-D remains the Pierce/Ullmer coin, graded MS64 by PCGS, in a prominent Alabama collection. In my opinion, the second finest is the Green Pond coin, graded MS63 by PCGS, which sold for $86,250 in January 2004.

1840-D Quarter Eagle: Of the ten coins discussed in this article, I think the 1840-D is the least well-known. It is the third rarest Dahlonega quarter eagle and I now regard it as the second rarest in high grades after the 1856-D. I believe this date is unique in properly graded Uncirculated and the finest known example, known to collectors as the Bareford/Duke’s Creek coin, sold for a record $74,750 when it was auctioned by Heritage in April 2006. (This coin, by the way, still appears in the PCGS population figures as an MS61. The only Uncirculated 1840-D quarter graded Uncirculated by NGC (an MS61) is owned by a Kansas collector and it is ex: Superior 8/07: 659 ($31,050), Heritage 1/04: 1016 ($27,600). I still think that even in properly graded AU50, the 1840-D is genuinely rare and there are fewer than a dozen true AU’s known.

1855-D Quarter Eagle: The true rarity of the 1855-D quarter eagle has been distorted by the fact that virtually all of the higher grade examples that have appeared for sale are overgraded. This includes at least two coins in MS60 holders that have been recolored and another with damage on the surfaces. The all-time price record for the 1855-D was set in April 2006 when Heritage sold an NGC MS61 for $54,625.

I have previously stated that the 1855-D is the rarest Dahlonega quarter eagle in high grades and overall. I now believe it to be the second rarest, after the 1856-D. I still have never seen an encapsulated 1855-D quarter eagle that I believed to fully Uncirculated. There is an example in the Smithsonian’s collection that noted expert Jeff Garrett grades MS62.

1856-D Quarter Eagle: My respect for this issue has increased over time and I now regard it as not only the rarest Dahlonega quarter eagle but the rarest single issue of any denomination from this mint. Only 874 were struck and there are probably no more than 45-55 known.

Due to its crude strike, this is an extremely hard issue to grade and I’m not really sure exactly how many Uncirculated pieces exist. PCGS has only graded a single example in Uncirculated (Heritage 1/04: 1034, ex: Green Pond that sold for $69,000) while NGC shows one in MS60 and four in MS61 with none better. The only Uncirculated NGC coin that I have personally handled is Heritage 4/06: 1513 (MS61) that I paid a record price of $71,875. There is a PCGS AU58 that is owned by a prominent Alabama collector that I think is outstanding for the issue and I have handled two other PCGS AU58’s that I feel are accurately graded.

1854-D Three Dollar: This is the only one of the ten issues in this article that I believe is overrated by most non-specialists. However, as I have mentioned innumerable times, its status as a one-year issue make it exceedingly popular with a wide range of collectors. A nice 1854-D Three Dollar has become the “High Relief of Branch Mint Gold” (i.e., an expensive but extremely popular issue with exceptional liquidity).

An all-time record for this date was set in April 2006 when I purchased an NGC MS62 from the Duke’s Creek collection sale. This easily eclipsed the previous auction high of $92,000 that was set by the Green Pond: 1037 coin back in January 2004. The two finest 1854-D Threes remain the fantastic Bass coin (see www.hbrf.org to view an image of this special piece) and the PCGS MS62 in the Great Lakes collection.

As of July 2008, PCGS had graded four examples in Uncirculated: MS62-(2) MS61 and MS60 while NGC had graded nine: MS62-(5) MS61 and (3) MS60. I believe the actual number of Uncirculated 1854-D Threes is around four or five.

1838-D Half Eagle: The 1838-D is by far the most available issue in this group of ten coins and the major reason I decided to include it (and exclude much rarer coins such as the 1860-D gold dollar and 1841-D, 1842-D and 1854-D quarter eagles) is that it is extremely popular. I would have to rank it as one of the three or four most popular issues from this mint.

As I mentioned before, the 1838-D half eagle is a relatively common issue and I believe that there are somewhere north of 300 known including as many as eight to ten in Uncirculated. But what I find interesting about this issue is that the supply has really shriveled in the last few years, particularly in higher grades. The only really nice Uncirculated 1838-D that I have seen in the last few years is Heritage 2007 ANA: 1919 (PCGS MS62 @$37,375). An NGC MS63 (ex: Ashland City collection) bounced around from sale to sale in 2003-2006 and I have never particularly cared for it. I believe that if a really choice, fresh PCGS MS62 or better 1838-D half eagle were to appear on the market, it would command a record price as there seem to be many collectors waiting around for such a coin.

1842-D Large Date Half Eagle: Despite its status as the rarest Dahlonega half eagle in higher grades, this is another issue that is somewhat off the radar to nearly everyone except specialists. In terms of its overall rarity, I believe this variety is a bit more available than I claimed in the second edition of my book. In high grades, it remains a major rarity with just a single Uncirculated graded by PCGS (the Green Pond coin which is in an MS61 holder) and two in MS61 at NGC.

The all-time auction record for the 1842-D half eagle was set in January 2004 by Green Pond: 1043 which realized $41,400. The Duke’s Creek/Eliasberg coin, which was formerly in a PCGS AU58 holder, is now (deservedly) in an NGC MS61 holder. An exceptional new PCGS AU58 was sold by me around a year ago to the Wexford Collection. I am especially interested to see the newly discovered NGC MS61 that was found as part of the S.S. New York treasure in Louisiana. This coin will be sold at auction by Stack’s just prior to the 2008 ANA.

1861-D Half Eagle: Like its gold dollar counterpart, the 1861-D half eagle has become an issue whose demand transcends specialists. As a result, prices for both 1861-D issues have soared in recent years. Despite the fact that even low grade 1861-D half eagles are now commanding prices upwards of $10,000, few have come to market since the second edition of my book was released.

However, there has been quite a bit of activity in the upper end of the 1861-D half eagle market. The finest known example, graded MS63 by PCGS, sold for a record $207,000 in Heritage’s 2008 FUN auction. This was, as far as I know, the most money that any single Dahlonega coin has ever brought. The second finest known example, pedigreed to the Duke’s Creek and Eliasberg collection, was upgraded from MS63 at PCGS to MS64 at NGC. And another MS63 was “made” at PCGS when the Duke’s Creek coin (ex: Heritage 1/04: 1065 @ $74,750 as PCGS MS62) upgraded a point.

The current certified population figures for this date are clearly inflated. PCGS shows three coins in MS63 but there are only two. They also show four in MS62 but I believe that the correct number is also two. The NGC population figure of three in MS62 seems inflated as well.

As I mentioned at the beginning of this article, I plan to begin work soon on the revised third edition of my Dahlonega book and will incorporate all of the changes mentioned in this article. If you have pertinent new information about Dahlonega coins that you feel should be in the book, please email me at dwn@ont.com and I will make certain it is included.

Stack's Husky Sale

I never give these blogs titles but if I were going to, I’d call this one “it’s my blog and I’ll brag if I want to.” The brag topic? Early quarter eagle values and how this area of numismatics, which I’ve been literally begging people to buy for years, seems to suddenly have caught fire. In the recent Stack’s Husky Collection auction, there was a date run of early quarter eagles. In fact, with the exception of the ultra-rare 1804 13 Stars and the 1834, I believe that every major variety of quarter eagle produced between 1796 and 1834 was present. The prices realized for these coins was impressive and they represent further validation of my beseeching collectors of early gold to give this series the same attention that has been lavished on the half eagles and eagles of this era. Apparently, at least a few people listened.

Instead of boring you with a coin-by-coin dissertation, I thought it would be interesting to focus on four coins in the sale: an example of the Draped Bust Right type of 1796-1807, an example of the one-year type of 1808, and one example each of the 1821-1827 and 1829-1834 Capped Bust types.

My favorite Draped Bust Right quarter eagle in the Husky Sale was Lot 2036, a nice NGC AU58 1806/4 with pleasing original color and choice surfaces. This was the sort of coin that probably would have graded AU55 a few years ago but, even so, I liked it a lot and was willing to pay around $25,000 for it. Back around 2000, before early gold was on most collectors’ radar, a coin of this quality was worth around $13,000-15,000. Five years later, when early gold was starting its inexorable climb upwards, this same coin was worth around $17,500-20,000. In the Husky Sale it sold for $32,200; a level that exceeds the current Trends value of $30,000 or the CDN Bid of $23,000.

I’ve never been quite as enamored with the 1808 as other dealers but the fact that it is a one-year type coin (and a scarce issue in higher grades) has always made it extremely popular. Back around 2000, you could still buy a “slider” example for around $50,000 and even as recently as a few years ago, a nice Uncirculated piece could be obtained for $75,000 or so. The Husky: 2039 coin was graded MS60 by NGC and I liked the coin a lot for the grade; in fact, I thought it might upgrade to MS61 if resubmitted. It sold for $155,250 which seems to be the going rate these days for an MS61.

The 1821 quarter eagle in the Husky Sale was graded MS61 by NGC. I had mixed feelings about the coin. It was well struck and flashy but a bit on the bright side for my taste. Nonetheless, it is a highly important issue as the first quarter eagle of this type. Back in the late 1990’s, an MS61 example would have brought around $15,000-17,500 at auction. In 2005, an NGC MS61 was sold for $27,600 by Superior. The Husky: 2040 example brought $48,875 which I believe is a record for an 1821 quarter eagle in MS61.

The quality of the Fat Head quarter eagles (i.e., those produced from 1829 to 1834) in the Husky Sale varied greatly. There were two graded AU53 and two in MS64. I was interested in the 1833 which was graded MS64 by NGC and assumed it would bring around $42,500. It is interesting to look at auction records of this date. All the way back in 1998 the Heritage 1/98: 7517 coin graded MS64 by NGC brought $32,200 and in January 2007 a similarly graded piece (Heritage 1/07: 3400) realized $40,250. The coin in the Husky sale sold for $48,875.

So what do the results from the Husky Sale prove? What I learned is that, for the most part, early quarter eagles have probably doubled in value since 2005 and tripled since 2000. This is impressive but, more than any other type of early U.S. gold, I feel that early quarter eagles are still a good value - even at the new 2008 levels. I certainly don’t expect prices to double again in the next three years (although it isn’t totally out of whack to think that an 1833 in MS64 could be worth $95,000-100,000 in 2011 if the coin market doesn’t get whacked between now and then...) but I like the upside of these coins more than just about any other early gold denomination.

S.S. New York Coin Sale

S.S. New York Coin Auction - I recently learned that the coins from the shipwreck S.S. New York will be sold by Stack’s in July at this firm’s pre-ANA auction. Unlike some of the other shipwrecks that have been uncovered in recent years, the coins found on the S.S. New York will have an impact on the branch mint gold market. According to information gleaned from the NGC website, the S.S. New York was a light cargo and passenger ship vessel that operated between New Orleans and Galveston. It was destroyed during a hurricane on September 7, 1846. Seventeen crew members were killed and “thirty to forty thousand dollars in gold, silver and bank notes” were lost according to contemporary reports.

What is especially interesting about these coins is that they represent one of the most eclectic, diverse cross-sections of coins in circulation during the first part of the 19th century that has ever been found. Unlike the S.S. Republic and S.S. Central America, the coins in this group tend to be smaller denomination and much of the gold was produced in Dahlonega and the local New Orleans mint.(Even more interesting is the fact that only two Charlotte issues were included. This should tell us something about the geographic distribution of Charlotte coins).

The coins have been curated by NCS and, according to the reports that I’ve read, numismatists such as John Albanese, David Bowers and Mark Salzburg have commented on how exceptional they are from the standpoint of quality. In fact, Albanese was quoted as saying “...many of them look like they were just minted yesterday.”

NGC just published the first census of these S.S. New York coins and, from the look of it, there are some extremely interesting pieces that will be available. In my opinion, some of the gold coin highlights are as follows:

1845-D Quarter Eagle, NGC MS64

1840-D Half Eagle, NGC MS62

1842-D Large Date Half Eagle, NGC MS61

Two 1843-O Small Letters Half Eagles in NGC MS62

1844-D Half Eagle, NGC MS63*PL

Seventeen Uncirculated 1844-O Half Eagles including two in MS64

Six Uncirculated 1845-O Half Eagles including an MS63

Six Uncirculated 1844-O Eagles including two in MS63

Four Uncirculated 1845-O Eagles

How will the presence of these coins affect the market for branch mint gold? I believe that this group will be a real shot in the arm. First and foremost, it will focus positive attention on branch mint gold. Secondly, it is likely to attract new buyers who will be interested in the coins because of the shipwreck provenance. These buyers probably have never bought a branch mint gold coin (other than a San Francisco double eagle) before and their new purchase could possibly spur them on to collect other branch mint gold coins. Thirdly, it will add some much needed new product into the market. If you collect branch mint gold, you know how few really nice coins have been available in recent years and coins of this quality are sure to be readily appreciated by collectors, dealers and investors alike.

The two things that interest me most about these coins is how nice are they and whether the NCS curation make them look more like modern mint products than 150+ year old southern gold coins. One of my major past complaints about shipwreck gold coins is that I just haven’t liked the unoriginal look they possess. For every lovely 1856-S or 1857-S S.S. Central America double eagle I’ve seen in MS64 or MS65, I’ve seen high grade double eagles (and eagles) from other shipwrecks that have been enthusiastically graded and just not appealing to my eyes. If the coins are as nice as John Albanese and other experts say they are, then the bidding for the coins will be an interesting head-to-head competition between purists like myself and shipwreck coin specialists.

A few collectors have asked me if the quantity of coins from this shipwreck worries me. The answer to this is most definitely “no.” If you look at a full census of the coins that NGC has graded (it can be read at www.ngccoin.com) you will note that very few coins have quantities of more than ten pieces. The most plentiful issues from the shipwreck tend to be those that are already common (like the 1843-O Small Date quarter eagle, the 1843 half eagle and the 1844-O half eagle) so another dozen or so coins will hardly affect the rarity of these issues.

I am curious to see what the impact of six Uncirculated 1845-O half eagles and six 1844-O eagles will have on the market. Given the fact that I think I could sell all twelve of these coins by myself, I’m willing to bet that they will be easily absorbed into the market and will actually serve to raise prices for these two issues rather than lower them.

I’ve mostly sat out the Shipwreck Coin Stampede that has had a major impact on the gold coin market in the last decade. I am excited to finally have a wreck o’ my own and I am really looking forward to viewing the coins in Baltimore next month.

Affect of Gas Prices on Coin Market

Energy Prices and the Coin Market - How are soaring energy prices going to affect the coin market? I got my first taste of the New Reality today when I decided not to attend a coin show because of what I thought was an exceptionally high price for an airline ticket. The other day I received an email from Whitman Expos regarding their August Atlanta show. I believe that this show is in its third year and I have attended the previous conventions. Even though it is a brutal flight for me to get to Atlanta from the Northwest, I’ve always looked forward to the show. I love Atlanta, I like the Whitman people and want to support their shows and I have some good clients in the Atlanta metropolitan area. So even though this had never been a “major” event on the coin circuit, I was still happy to attend it.

That is, until I went on my airlines’ website yesterday and looked up the price of a round trip ticket to Atlanta. Even booking the ticket more than two months in advance, the best fare I could find was close to $800—and that was with a lovely three hour layover on the way home in Dallas. To get a convenient round trip ticket was nearly $1,000.

Now I know that the airlines are hurting and that Americans have had the luxury of really cheap airfare for the past decade. But when I figure a $1,000 plane ticket on top of a $200 per night hotel (I don’t like to share rooms when I travel and I’d rather camp out under a bridge than stay at a cheap hotel), the price of a table at a show, meals, etc., a show like the Atlanta Expo suddenly gets expunged from my schedule.

I wonder how many other dealers are feeling the same way about non-essential shows. No matter how expensive airfare gets, I’m still going to attend the ANA and FUN shows and I will continue to attend West Coast shows because of the convenience factor. But instead of going to three Baltimore shows per year, I’ll probably cut back to two to reduce expenses.

I have a pretty fortunate set of circumstances when it comes to attending shows. I go by myself and generally split tables with other dealers so my basic expenses aren’t that high. I also have a small inventory so I do not have to check extra bags and get hit with all the new fees that make travel in 2008 so much fun. I wonder, however, about the dealers who bring two or three people to shows (or in the case of a firm like Heritage ten, twenty or even fifty) as well as supplies.

My guess is that you are going to see an immediate change at certain shows. Small, local shows that dealers can drive to probably won’t be affected and the large national shows should remain strong. But the medium size regional and national shows almost certainly will suffer. You might see a number of dealers from the West Coast at the aforementioned Atlanta show this year but next year I would think many of us who have a 4000+ mile round trip flight will punt.

I know there are other trips I’ll now think twice about. I often fly to Dallas to view Heritage auction lots a few weeks before a major show since I have trouble finding the time to look at these coins during a show. When airfare was $400 to get Dallas and I could book a ticket at this price at short notice, it was a no-brainer. When airfare is $800 and I have to book this trip a month in advance, I will think twice; especially if the sale isn’t of interest to me.

Yet I wonder if all of this isn’t somehow for the best. You can put me high on the list of dealers who have complained for the past few years about how grinding the coin show circuit can be. Trust me, five trips in five weeks isn’t anyone’s idea of fun, especially when the destinations include the various Numismatic Gardens of Eden that I find myself in on so many Wednesday and Thursday nights of my life. And, of course, I will be the first to admit that no one is holding a gun up to my head and forcing me to attend Long Beach or Baltimore (especially when they are held back-to-back). Maybe the typical coin dealer’s lifestyle will improve by not being on the road so often.

So here we go into another potential new cycle in the coin business. It will be interesting to see what changes the Era of the Expensive Airplane Ticket (not to mention the $4.50 gallon of gas) brings to the market. I expect they will be greater than we realize.

Proof U.S. Gold Coins

Proof Gold Coins - Mintage Figure Variance - While it is difficult to make sweeping generalizations about the survival rate of Proof United States gold coinage, some factors exist that help to determine the rarity of many issues. It is interesting to analyze these factors and apply them to the various denominations. For the most part, Proof gold coins have small mintage figures. With the exception of some of the later date Type Three gold dollars, most issues had fewer than 100 struck and nearly all of the pre-1880 issues have mintages of 50 or less.

As a good rule of thumb, it is a safe assumption that around half of the original mintage figure for a specific issue of Proof gold is known. In other words, if the original mintage of an 1876 gold dollar is 45 coins, it is likely that 20-25 are known today.

What are the factors that exist that make a Proof gold coin more or less common than its mintage figure would suggest? These include the following:

1. External Economic Factors: During hard economic times, Proof gold coins may have been melted or spent. As an example, in the Depression of the 1930’s, Proof eagles and double eagles were spent as they were not worth a significant amount above face value. Other periods of economic hardship that saw a reduction of Proof gold populations include the Civil War and the Reconstruction Era, the Depression of 1873-1878 and the Panic(s) of 1893 and 1907. I believe that this had a very large impact on Proof gold survival rates.

2. Coin Size: This actually works both ways. As mentioned above, during tough economic times, small coins are more apt to survive than large coins. But, a coin as small as a gold dollar is more likely to be “lost” than one as large as a double eagle. Both factors certainly contribute to survival rates of Proof gold.

3. Popularity of the Denomination: Although this is more speculation than fact, I would presume that denominations that have traditionally not been popular with collectors (gold dollars and three dollars) have been more susceptible to loss than more popular denominations such as eagles and double eagles.

4. Hoarding: Certain Proof gold issues were hoarded by contemporary dealers and collectors. This tends to inflate their survival rate. The Proof gold issues most affected by contemporary hoarding include gold dollars and three dollar gold pieces from the 1880’s. It is interesting to note that mintage figures for these two denominations reached record highs during this era; this was a direct result of contemporary speculator demand. 5. Restrikes: Not all Proof gold coins are as rare as their mintage figures would indicate. As an example, PCGS and NGC have combined to grade far more 1875 and 1876 Three Dollar gold pieces than the reported original mintage figures. While the slabbed population is clearly inflated by resubmissions, many collectors are not aware of the fact that the reported original mintage figures of 20 and 45, respectively, does not take into consideration a number of Restrikes that were produced by the U.S. Mint in order to placate collector demand for these two rare issues. Other years with potential Restrikes include 1865 and 1873.

6. Mint Melting/Mint Record Errors: Certain mintage figures for Proof gold coins just seem to make no sense. As an example, the reported mintage for Proof gold dollar and three dollar gold pieces in 1861 is reported to be 349 coins; the highest figure for these two denominations until the 1880’s. It has traditionally been assumed that the Mint was way too optimistic in producing Proofs this year and most were melted at the end of 1861 when they went unsold. I personally would not be surprised if these figures actually represented an error. Another year that has a skewed mintage figure is 1859, the first year of “modernity” for United States Proof gold. The Mint struck 80 examples of all gold denominations, in anticipation of strong demand in the booming new hobby of coin collecting. This proved to be way too optimistic and the vast majority was melted. Another “problem year” is 1910 which has much higher mintages than any other Indian Head design. I believe that the published figures are in error.

Given these six factors, how do they impact the specific denominations of Proof gold coins? My experience with each denomination is as follows:

Gold Dollars: The dates from the 1850’s and 1860’s tend to be very rare in all grades. However, the survival rate of these coins is much higher than expected with the exception of the 1859-1861 dates (whose inflated mintages figures were discussed above under Factor #6). The issues from the 1870’s typically have survival rates of around 50% of the original mintage. The 1880’s Proofs are a real anomaly. From 1884 to 1889, the mintages exceeded 1,000; a huge number of coins by Proof gold standards. But the survival rate is likely between 10 and 20% for each of these. I would ascribe this to numerous coins getting melted in the lean economic years of the early to mid-1890’s.

Quarter Eagles: With the exception of the famous 1841 and 1863 issues, virtually all pre-1870 Proof quarter eagles are extremely rare and most have fewer than ten survivors. The issues from the 1870’s tend to have survival rates of around 50% while the 1880’s and 1890’s seem to be a bit more available in terms of their original mintage. The 1900’s Liberty Head issues have survival rates as high as 75%. Indian Head quarter eagles have an average survival rate of 50% (+/- 10%).

Three Dollars: The issues from the 1850’s are extremely rare in Proof and all have low mintages. The 1860’s and 1870’s issues have average survival rates of around 50% (the exceptions to this are the 1860 and 1861 which had significant meltings) and the 1875 and 1876 (see Factor #5 above). The 1880’s dates mostly have survival rates in the 50-60% range.

Four Dollars: Stellas are really a separate story in and of themselves. Many of the 1879 Flowing Hairs were saved as souvenirs (see Factor #4) and Restrikes exist. The other three issues appear to have survival rates of around 50%.

Half Eagles: With the exception of the 1864 (which had a “whopping” mintage of 50), all No Motto half eagles in Proof are exceedingly rare. The With Motto issues from the 1860’s and 1870’s typically have survival rates of well under 50%; some issues (such as the 1870, 1871, 1874 and 1878) have survival rates that are probably less than 25%. With one or two exceptions, the dates from the 1880’s have also survived with less frequency than one might assume. Most of the 1890’s and 1900’s dates have survival rates of around 50% (+/- 10%). Indian Head half eagles are scarcer on a relative basis than their quarter eagle counterparts and I’d estimate that 30-40% of the original mintage exists.

Eagles: Virtually all No Motto eagles are exceedingly rare in Proof. The With Motto Proofs from the 1860’s and the 1870’s are all very rare and most have fewer than ten survivors. I have always found the Proofs from the 1880’s to be far rarer than most people realize and many of the specific issues (1881, 1883, 1885 and 1889 to name a few) have survival rates of fewer than 25% of the original mintage. The 1890’s are slightly more available (around a third have survived) while the 1900’s dates have survival rates of around 50%. Proof Indian Head eagles, with the exception of the 1908, range from very rare to extremely rare and have typical survival rates of around 25%.

Double Eagles: Only 265 Type One Liberty Head double eagles were made in the Proof format and I would be surprised if more than three to four dozen exist. The Type Two issues are also very rare with a total mintage of only 335 Proofs. They are more available on a relative basis than their Type One counterparts and I think somewhere between a quarter and a third of the original mintage has survived. The Type Three Proofs are the most available Liberty Head double eagles but this is misleading as only a small handful of dates (primarily those dated 1900 to 1907) have survival rates that exceed 30-40%. Proof St. Gaudens double eagles are extremely rare but they have a slightly higher survival rate that one might expect. My best guess is that around one-third of the original mintage exists.

Luster Pros and Cons

Luster - Pros and Cons - Gold coins basically come with three types of luster: satiny, frosty and prooflike. In this blog, I’m going to discuss these three “looks” and the pros/cons of each. I’ll also add an illustration of each look. And away we go... The most common luster seen on United States gold coins, especially those from the 19th century, is frosty in texture. Frosty luster can be extremely attractive. I would describe it to the new collector as having a “hard” look and it is most associated, in my experience, with coins produced at the Philadelphia and San Francisco mints.

Frosty luster is considered a “plus” by most collectors. Unfortunately, this sort of luster is becoming harder to find as more and more gold coins are chemically treated. Coins with original frosty luster have what I call a “wagon wheel” effect where the luster flows clockwise and appears to almost radiate out from the center of the coin.

Some of the series that are famous for having above-average frosty luster include the Fat Head quarter eagles and half eagles from the 1820’s and 1830’s, Classic Head gold, No Motto Philadelphia issues and Three Dollar gold pieces.

Another type of luster seen on United States gold coins is satiny in texture. Satiny luster tends to be less attractive than frosty luster but it can be very appealing. I would describe it to the new collector as having a “soft” look and it is often seen on branch mint coins from the 19th century and on San Francisco issues from the 20th century.

For the new collector, satiny luster is more difficult to understand and appreciate than frosty luster. This is due to the fact that it is more subtle in its appearance. As an example, the luster on the coin shown above is excellent in-hand and shows very few breaks in the fields. But most collectors would think this coin has a considerable amount of wear; due to its subtle luster and, obviously, the weakness of strike at the centers.

In my experience, satiny luster is more often seen on New Orleans issues, Civil War era gold and some of the Reconstruction era Philadelphia issues.

The third and final major type of luster is prooflike. When dies are readied for production they are polished and/or rubbed with a cloth in order to make them appear bright and “new.” This polish fades rather quickly and certain issues are almost never seen with mirror-like reflectiveness. As an example, I have seen very few Prooflike coins from Charlotte and Dahlonega and only a handful from New Orleans.

Generally speaking, 19th century gold coins with very low original mintage figures tend to have prooflike surfaces more often than not. As an example, the 1890 quarter eagle pictured above is an issue with a mintage of only 8,720 and it is often found with reflective surfaces. Some of the other types of coins that are sometimes seen with prooflike surfaces include Philadelphia Type Three gold dollars, Philadelphia quarter eagles from the 1870’s and 1880’s, Three Dollar gold pieces and Liberty Head double eagles from the 1890’s.

I personally have mixed emotions about prooflike gold coins. Due to the fact that gold is a soft metal, the surfaces tend to easily pick up marks, nicks and scratches and these tend to be strongly amplified by deep, reflective fields. Unless a Prooflike gold coin is a Gem, it tends to have a “scruffy” appearance and may have compromised eye appeal as a result.

There are two interesting subtypes of prooflike coins that the collector should be aware of. The first are coins that are Deep Mirror Prooflike. These are coins with especially reflective surfaces and a look that can be deceptively similar to that of a Proof. As an example, there are certain gold dollars from the 1880’s that are extremely hard to tell apart from Proofs. Generally speaking, many of the gold coins that are designated as Deep Mirror Prooflike by NGC command strong premiums, especially for issues that are generally seen with frosty or satiny surfaces.

The other subtype is semi-prooflike. A semi-prooflike coin, as one might guess, is a coin that has a blend of mirror-like reflectiveness along with either satiny or frosty luster.

As a gold coin collector becomes more sophisticated and sees more coins, he is likely to see pieces that have a wide variety of luster types. By becoming more familiar with these various types of luster, he will become a better coin buyer and better able to purchase coins that are choice and original.

Long Beach Report

The Long and Short of It - My short (but productive) stay at Long Beach means that my Long Beach report is going to be short (but productive). I didn’t arrive at Long Beach until Thursday afternoon and I was severely jet-lagged after having just returned from Japan. I had originally intended to totally skip Long Beach but a lack of coins meant that I had to try my best to quickly and efficiently restock.

After I landed and cabbed down to Long Beach, I called a few Trusted Suppliers and asked about the show. Their replies were nearly unanimous: it was a bear finding anything of interest and I was certain to be frustrated. My mood, as I headed down the freeway, was not good.

One thing that is good about being at a major show for just over a day is that you don’t have a lot of time to mess around. So as I hit the floor at Long Beach and began to scour I was very focused.

My day at Long Beach turned out to be amazingly productive. I was able to buy over thirty interesting coins; which is about triple the amount that I expected. I sold a few older, expensive coins that I was happy to move out and in the eight seconds that I was actually at my table, I had productive retail sales with new clients.

I spoke with a number of dealers about their Long Beach Experience and got fairly mixed reviews. One dealer told me he had an excellent show and the dealer that I share a table with had one of his more productive shows in some time. Other dealers I talked to told me that they had shows that ranged from fair to poor and most complained about a lack of interesting material (surprise, surprise). I’m not sure why I was lucky and found so many good coins other than the fact that I worked my little fanny off searching for them.

My take on the coin market is that it has clearly slowed down in the last month or so with the exception of very high end items. But there are some areas that remain strong across the board. Decent to nice early gold is in strong demand and choice, interesting Seated Liberty coinage (which I’ve been begging people to buy for about ten years...) is blazing hot.

In the realm of dated gold, I’ve noticed that nice quality Dahlonega gold is virtually impossible to find right now; my current inventory is virtually non-existent. Charlotte seems to be perking up a bit (in anticipation of my new book?) and I noticed a few mid-five figure Charlotte coins selling at Long Beach. Carson City half eagles and eagles are very strong, especially Registry Set quality issues. New Orleans gold continues to be hard to find and with the exception of the odd coin here or there, I have noticed a real shortage of high quality, interesting material since the beginning of the year.

What’s not selling right now? Anything that isn’t regarded as being, at the very least, medium to high quality for the grade. And generic gold....well let’s just say generic gold isn’t exactly a big seller right now.

My guess is that the Baltimore show will be decent but not great. This is the one Baltimore show that many West Coast dealers traditionally miss but the caliber of this show is now such that even the least interesting of the three Baltimore shows is still better than the most typical conventions.

How To Collect Charlotte Gold Coins

There are many ways to collect Charlotte gold. Some people have only a mild interest in these coins and may buy just one or two pieces. Other people are more serious and they have a large number of Charlotte issues in their collection. A small number of Charlotte collectors are obsessives who focus exclusively on these pieces and do not collect anything else. I would like to make some suggestions on how to collect Charlotte gold. In my experience, all of these ideas have merit and none is “better” than the other. It depends on the tastes and budget of an individual collector to determine which one(s) is right for him. I. THE INTRODUCTIORY THREE COIN SET

The most basic way to collect Charlotte gold is to purchase a single example of the gold dollar, quarter eagle and half eagle denominations. This is a very good way to collect for the individual who has a limited budget or who is not certain how deep his interest lies in Charlotte gold.

A basic three coin set of Charlotte gold should consist of nice, problem-free pieces. It would make sense to focus on the more common dates although some collectors might prefer to include some scarcer issues. The grade range for these coins is likely to fall in the Extremely Fine-40 to About Uncirculated-58 range.

The 1851-C is the most logical choice for the gold dollar in this set as it is the most common and affordable date. A pleasing Extremely Fine can be obtained for $1,500 or so. About Uncirculated pieces range from $1,750 to $3,500 depending on quality.

The optimum quarter eagle for this set is the 1847-C as it is the most common date of this denomination from Charlotte by a large margin. A nice Extremely Fine example costs around $2,000 while About Uncirculated coins range from $2,500 to $4,000. It is possible to upgrade to a much scarcer date without paying a substantial premium. As an example, the 1843-C Large Date sells for around the same price in Extremely Fine as does the 1847-C but it is much harder to locate.

In About Uncirculated, the 1847-C used to be much less expensive than all other Charlotte quarter eagles but the price spread has diminished in the last few years. This, in my opinion, makes dates such as the 1843-C Large Date, 1848-C and 1858-C very interesting alternatives, especially in the lower range of the About Uncirculated grades.

There are many dates in the half eagle series that would work well in this type set. These include the 1849-C, 1852-C, 1853-C and 1858-C. Any of these can be purchased in nice Extremely Fine for around $2,500 while About Uncirculated coins are priced in the $3,000-6,000 range.

An alternative to the standard three coin set would be to purchase the same date for all three denominations. This is feasible for issues dated 1849-C, 1850-C, 1851-C and 1852-C. A set from 1855 could also be assembled but the gold dollar and the quarter eagle from this year are quite expensive in higher grades.

II. THE BASIC AND EXPANDED TYPE SETS

A type set of Charlotte gold coins includes one example of each major type struck at this mint. Such a set includes the following:

• Type One gold dollar (1849-1853)
• Type Two gold dollar (1855 only)
• Type Three gold dollar (1857 and 1859)
• Classic Head quarter eagle (1838-39)
• Liberty Head quarter eagle (1840-1860)
• Classic Head half eagle (1838 only)
• Liberty Head, obverse mintmark half eagle (1839 only)
• Liberty Head, reverse mintmark half eagle (1840-1861)

A total of eight types were struck at the Charlotte mint. This includes three that were struck only in one year. A complete eight piece type set is an excellent display item. The various designs used in striking these coins provide a graphic illustration of the artistic and historic record of the Charlotte mint.

Most collectors who assemble an eight piece Charlotte type set do so in grades ranging from Extremely Fine-40 to About Uncirculated-58. This set could be completed in Uncirculated but it would be very difficult to do given the rarity of the 1838-C Classic Head half eagle in Mint State.

The coins that are included in a Charlotte type set are generally the more common dates. Some collectors use better dates in order to make their sets more interesting and potentially more valuable. I would strongly recommend that the collector include at least a few better dates.

A nicely matched Extremely Fine set should cost approximately $25,000-30,000. The most expensive coins in the set are the 1838-C half eagle, the 1839-C half eagle and the 1855-C gold dollar.

A set that consists of all eight coins in About Uncirculated-50 to About Uncirculated-58 can be assembled for approximately $50,000-100,000+. The cost could be significantly reduced if the Type Two gold dollar and the 1838-C and 1839-C half eagles were nice Extremely Fine coins as opposed to About Uncirculated-50 or better.

III. COLLECTING BY DENOMINATION

Each of the three denominations struck at the Charlotte mint are popular with collectors. For various reasons, some of which will be discussed below, some collectors feel an affinity towards a specific denomination.

Collectors generally love or hate the gold dollar. The small size of this coin (13 or 15mm. depending on the type) sharply divides the collecting community. Some collectors find it hard to fathom paying thousands or even tens of thousands of dollars to pay for a coin that is the size of an average adult’s thumbnail. Another negative factor about Charlotte gold dollars is the crudeness with which they were struck. If you are not a specialist it may be tough to “get” a coin that is this crude.

The reasons that cause some people to dislike gold dollars are the same reasons that other people like them. Their crudeness has an odd allure and their small size gives them a distinct charm.

Collectors also like gold dollars because of their low mintage figures. With the exception of the 1851-C, each issue from Charlotte has an original mintage figure of 14,000 or less. Four of the eight have mintages lower than 10,000.

On a coin by coin basis the Charlotte gold dollar series is relatively affordable. A set of eight coins in Extremely Fine should be completable for approximately $20,000. Every Charlotte gold dollar can be found in About Uncirculated grades without great difficulty. The only obstacles to completing a set in this range are available funds and the level of fussiness that a collector brings to the set. Figure on spending $35,000-40,000+ for a mid-range About Uncirculated set and double this amount for a very high end About Uncirculated set.

A complete set in Uncirculated could be assembled but it would be difficult due to the rarity of the 1855-C and 1857-C. Assuming that these two issues are available, a complete set in Mint State-60 to Mint State-63 could be assembled for $100,000-150,000+.

The Charlotte quarter eagles are the most challenging of the three denominations. Assembling a set of these requires patience and dedication. Many are very rare in higher grades. Others have peculiarities of strike that make it hard to find pieces with good eye appeal. The rarest Charlotte quarter eagles are the 1842-C, 1843-C Small Date, 1846-C and 1855-C. These are hard to find in all grades and rare in properly graded About Uncirculated.

There are a total of twenty issues in the Charlotte quarter eagle set. This includes two varieties from 1843: the Small Date and the Large Date. No quarter eagles were produced at this mint in 1845, 1853, 1857 and 1859.

It is a realistic goal to complete this set in Extremely Fine grades. The cost of such a set would be in the area of $55,000-65,000. In About Uncirculated this set is still realistically completable but assembling an attractive, well-matched set requires time and patience. It is not unrealistic to set aside a budget of as much as $250,000 for a world-class About Uncirculated set for choice, high end coins with original surfaces. Completing a set of Charlotte quarter eagles in Uncirculated is possible but exceptionally difficult. There are a number of issues such as the 1839-C, 1842-C, 1848-C, 1849-C and 1856-C that have extremely few truly Mint State pieces known to exist.

A complete set of Charlotte half eagles consists of twenty-four coins. This includes two varieties struck in 1842 (the Small Date and the Large Date) and none in 1845.

The half eagles are the most popular denomination from this mint. One of the reasons for this has to do with the relatively large size of these coins. Another has to do with the fact that every issue except for one (the rare 1842-C Small Date) is reasonably easy to obtain in the higher circulated grades.

A set of nice Extremely Fine Charlotte half eagles should cost in the neighborhood of $100,000-125,000 with a good chunk of this set aside for the 1842-C Small Date. A complete set in About Uncirculated is challenging but less difficult than for the quarter eagles. A set of well-matched, original Charlotte half eagles in About Uncirculated would require a budget of approximately $200,000-250,000+. Completing a set in Uncirculated is very difficult but not impossible. The stoppers in this set include the 1838-C, 1840-C, 1842-C Small Date, 1846-C and 1854-C.

IV. ASSEMBLING A COMPLETE SET OF CHARLOTTE GOLD

Some collectors get hooked on Charlotte gold and decide to assemble a complete set. A complete set of Charlotte gold is generally understood to contain the following:

• Gold Dollars: A total of nine issues struck between 1849 and 1859. One of these, the 1849-C Open Wreath, is excessively rare with just four or five known to exist. Because of its rarity, it is not included in most sets but it is still regarded as an important member of the Charlotte series.
• Quarter Eagles: A total of twenty issues produced between 1838 and 1860.
• Half Eagles: A total of twenty-four issues struck between 1838 and 1861.

The final cost of assembling a complete set of Charlotte coinage (minus the excessively rare 1849-C Open Wreath gold dollar) is within the reach of many collectors. A set that focuses on nice Extremely Fine coins would cost approximately $200,000. A set that consists of nice About Uncirculated coins would cost anywhere from $600,000 up to $800,000+.

Due to new discoveries and relaxed grading standards it is now possible for a collector to assemble a complete set of Charlotte coins in Uncirculated grades.

To the best of my knowledge, no collector has assembled a totally complete set of Charlotte gold in Uncirculated. I know of at least two or three collectors who have assembled the complete set (including the extremely rare 1849-C Open Wreath gold dollar) but none of these have contained Uncirculated examples of this variety.

The finest collections ever assembled of Charlotte coins include the Stanley Elrod collection (sold privately in 1994 and now, unfortunately, split into numerous parts), the Paul Dingler collection (which included the only known complete set of Mint State Charlotte quarter eagles and half eagles; it was purchased by Heritage Coin Galleries and myself a few years ago) and the William Miller collection (sold by Heritage at auction in 1999).