The Ten Rarest Ten Libs

This article is about the ten rarest Liberty Head eagles. Notice that I didn’t say “the ten most popular” or “the ten most expensive.” Readers may be surprised that this top ten list does not include any Carson City issues (although I was tempted to include the 1870-CC) and just one from New Orleans. In looking over the list you will note that six of the ten coins are from Philadelphia and at least one or two are probably not all that familiar to even the most advanced collector of Liberty Head gold. Most of these dates have very low original mintage figures (one, the 1875, has a mintage of just 100 business strikes!) and nearly all have remarkably low survival rates. To qualify for this list, an issue requires a total population of under 50-60 coins.

In order of their rarity, here is my list of the ten rarest Liberty Head eagles. After this list, I am going to devote a paragraph or two to each issue, covering topics such as the total number known, rarity in high grades, the finest known, Condition Census information, etc.

1. 1875

2. 1864-S

3. 1873 Closed 3

4. 1863

5. 1865-S Normal Date

6. 1860-S

7. 1883-O

8. 1844

9. 1839 Head of 1840

10. The Coveted Last Spot on the List

1. 1875: The Philadelphia gold coinage of 1875 includes a number of issues with exceedingly low mintages. Only 400 examples of both the gold dollar and quarter eagle were produced but the survival rate is higher than expected. The three dollar is a Proof-only issue that has sold for over $100,000 since the 1970’s while the half eagle is a major rarity with probably no more than 10-12 known from the original mintage of 200. I believe that the 1875 eagle, however, is the rarest of all these impressive Philadelphia issues. I have seen it stated that as many as 12-15 are known but I believe that this figure is on the high side and that the actual number is more likely seven to nine. I have personally seen two or three that I would grade AU including Superior 6/97: 1541 and B&M 3/98: 2207 that were graded AU53 and AU50, respectively, by PCGS. The all-time auction record is $74,750 for an NGC AU55 sold as Lot 2102 in DLRC’s Richmond I auction in 2004.

Every business strike 1875 eagle (and I haven’t seen once since Heritage offered a PCGS VF35 in January 2006) is characterized by excessively abraded surfaces and inferior eye appeal. Some of the coins that have been certified as business strikes by both services are actually Impaired Proofs. Proof 1875 eagles have a different date position than business strikes and use a different reverse with the top of the second vertical stripe in the shield incomplete.

I believe that this is an extremely undervalued issue and if it were part of a more popular series it would be a $100,000++ coin.

2. 1864-S: The 1864-S is the rarest eagle from the San Francisco mint. Only 2,500 were produced and my best estimate is that around 25-30 are known. Unlike its cousin, the very rare 1864-S half eagle, the 1864-S eagle is unknown in Uncirculated and I have personally seen only two that I regard as AU - The Bass III: 658 (graded AU55 by PCGS; it sold for a remarkably cheap $36,800 back in May 2000) and a coin owned by a West Coast specialist. The all-time auction record is $50,600 set in the July 2006 B&M sale by a PCGS EF45.

This is a generally well-produced issue although most have weakness on the radial lines in the stars. I have only viewed a small handful of 1864-S eagles that had any mint luster and most are heavily bagmarked. This was an issue that saw considerable circulation and the majority of survivors are very well worn.

It is my suspicion that someone is hoarding lower grade 1864-S eagles. There has only been one example sold at auction in the last five years or so, despite a combined population of twenty-three coins at PCGS/NGC. Even assuming that this number is inflated by resubmissions, my instinct tells me that some savvy collector is sitting on a group of five to ten 1864-S eagles and torturing those of us who would love to buy an example.

3. 1873 Closed 3: All 1873 eagles (business strikes and Proofs) are found with a Closed 3 in the date. All other Philadelphia gold coins from this year are found with both an Open 3 and a Closed 3 variety. A total of 800 business strikes were produced along with 25 Proofs. There are an estimated 25-35 examples known. Unlike the 1875 and the 1864-S, most of the surviving 1873 eagles are not extremely well worn. In fact, the majority of the survivors grade in the AU range, suggesting that this issue saw little actual circulation. Most of the pieces I have seen are well struck and display satiny, slightly reflective luster. I have never viewed one that didn’t have heavy to very heavy abrasions and my guess is that most 1873 eagles were thrown into a bag and transported somewhere before being released into their brief period(s) of circulation.

The finest known is the ex: Warren Miller coin, graded MS60 by PCGS, which sold for $34,100 all the way back in October 1995. Prior to this, the coin had been sold as Stack’s 3/90: 1222. Bass III: 705 ($21,850; as PCGS AU58) is probably the second best. In all, I would estimate that there around a dozen or so in AU with most in tightly-held collections.

I recently sold a nice PCGS AU50 example to a prominent collector and this was the first 1873 eagle that I had owned in close to a decade.

4. 1863: All of the Civil War era Liberty Head eagles are scarce (with the exception of the 1861) but the 1863 is the key rarity in this subset. In fact, I regard it as among the very rarest 19th century Philadelphia gold coins. Only 1,248 business strikes were issued of which an estimated 30-40 are known. The finest is the superb Bass IV: 683 ex: MARCA 8/91: 755 that brought $52,900 in its last appearance (an amazing bargain) after Harry Bass had paid $104,500 for it back in 1991. The second finest known is an NGC MS62 from the S.S. Republic that is owned by a prominent Western collector. NGC has also graded an example in MS60.

Almost every example that I have seen grades EF45 or below and is characterized by excessively abraded surfaces. The luster is either soft and frosty or, less often, semi-prooflike and the strike tends to be bold with the exception of the curl directly above Liberty’s ear.

It has been a number of years since I have handled an 1863 eagle and the last example that I can recall having seen was an NGC AU58 that was sold at auction by Heritage back in 2005.

5. 1865-S Normal Date: Two varieties are known for this year. The better known is the spectacular 1865-S Over Inverted 186. The less visually impressive Normal Date is, ironically, the rarer of the two. I regard this as the second rarest eagle from San Francisco. I estimate that around 30-40 are known and nearly all grade EF40 or below. In fact, this is one of the rarest Liberty Head eagles from the standpoint of condition. I have never seen or heard of an Uncirculated example (although NGC has graded a coin in MS60) and I know of just three that I would call real AU’s (none better than AU50 to AU53).

The quality of strike is very distinctive with soft radial lines in the stars and a slightly concave appearance on the obverse. The reverse is better struck although many examples show weakness on the neck feathers. I have never seen an 1865-S Normal Date eagle that did not have heavily abraded surfaces and most have enough wear to lack any significant luster.

The record price at auction for this issue is $21,850 set by Heritage in January 2007 for a coin graded AU58 by NGC. I believe that a nice, original AU55 to AU58 could sell for considerably more in today’s market if it became available (or even exists).

6. 1860-S: Unless you know this series, you are probably not aware of the true rarity of the 1860-S. This is a very rare coin in all grades and one that is even harder to locate than its small original mintage of 5,000 would suggest. I believe that 35-45 are known including five or six properly graded AU’s and two in Mint State. This date was unknown in Uncirculated until two were found in the S.S. Republic treasure. The finer of the two, graded MS62 by NGC, is owned by a West Coast collector. The other, graded MS61 by NGC, sold for $37,375 in the Superior May 2008; an all-time auction record for this date.

The typical 1860-S is very well worn with VF to EF detail and shows signs of having been mishandled. The strike is typically soft with weakness on the stars and incomplete definition in the centers.

7. 1883-O: The 1883-O is the rarest eagle produced at the New Orleans mint. In my book “Gold Coins of the New Orleans Mint 1839-1909” I suggested that 35-45 examples are known from the original mintage of just 800 coins. I still agree with this estimate. Since my book was published in 2006, very few 1883-O eagles have become available and the demand for this issue seems to have greatly increased.

Virtually every example that I have seen grades in the EF40 to AU50 range and is characterized by heavily abraded surfaces. Most are Prooflike and have had their luster disturbed by rough handling and/or numismatic abuse.

The finest known example, an NGC MS61PL (earlier graded MS60 by NGC), surfaced in a bid sale conducted by a dealer at the 2008 FUN show. It was purchased by a consortium of dealers and then sold to a private collector for a record price. With the exception of this coin, very few 1883-O eagles have been seen by me in the last three or so years.

8. 1844: I mentioned in the beginning of this article that there were a few coins on this list that were not well-known outside of the core collecting community of Liberty Head eagles. I would have to rank the 1844 as the number one sleeper in this group and it is a coin whose true rarity even surprised me as I was researching this group.

There were only 6,361 eagles struck in 1844 and my estimate is that 40-50+ are known. When you do find an 1844 eagle, it tends to be very well worn with VF and EF examples most often seen. I believe that there are fewer than ten properly graded AU examples known with most in the AU50-53 range. NGC has graded one in MS63 (I have not seen it) which may possibly be the Bell coin from 1944; they have also graded an MS61 example that Heritage sold in their January 2002 auction for a reasonable $10,063. The best example I have personally seen is an AU55 and I cannot recall having seen a nice 1844 eagle in over five years.

Every 1844 has two prominent die characteristics on the obverse. There is a horizontal die line below the first star and a series of vertical die scratches from the denticles out into the field near star three.

9. 1839 Type of 1840: I’m not totally certain that this variety belongs at the #9 spot on the list but I have always loved the 1839 Type of 1840 and it’s my list, so I’m going to put it into this slot, deserving or not.

This issue was created after the Eagle design was remodeled in 1839 and it is appreciably different from the Type of 1838 that was produced earlier in the year. It is rare in all grades with an estimated 50-60 known from the original mintage of 12,447. This issue is usually seen in very low grades with VF20 to EF40 examples being typical. It becomes rare in AU with around ten or so properly graded pieces known. In Uncirculated it is slightly more available than some of the other issues on this list. I would estimate that there are three or four known. The finest (and one of my single favorite American coins) is Pittman: 1912, ex: Farouk, Woodin. This coin sold for $143,000 back in May 1998 and it is now graded MS64 by NGC.

10. The Coveted Last Spot on the List: There were a number of other dates that offered strong claims for the #10 spot but there was so little separation between them in terms of overall rarity that I did not think it was fair to include one and exclude the others. These dates include the 1858, 1859-S, 1864, 1866-S With Motto, 1876 and 1877. If I had to choose one that was most deserving, I would probably pick the 1859-S, based on the fact that I have handled fewer examples of this than of the others in the last few years. But I could easily see collectors coming to the support of the 1876 or 1877 and the 1858 is certainly the best known date in this small group.

I personally find the Liberty Head eagle series to be among the most interesting in all of American numismatics. It is extremely challenging but, unlike many other hard series, it is not impossible to complete.

The Five Year Hold

Back in the Old Days of coin collecting (say 1998...) we dealers continually preached the mantra of the Five Year Hold. What the Five Year Hold said was that in order for your coin purchases to have a chance to mature financially (a euphemism, of course, for making a little dough...) you needed to hold your coins at least five years. But in the Age of the Internet, this maxim seems to have gone the way of the numismatic fixed price list.Revisiting this maxim in 2008, perhaps our sage advice wasn’t so anachronistic after all. I personally believe that many collectors have been fed unrealistic expectations by auction companies and large retailers and that they honestly believe that a coin they purchase in 2008 can—and should—be flipped in 2009 for a profit.

It’s hard to argue with the auction companies when they show you results like the 1805 quarter dollar selling for $402,500 in 2008 after bringing $74,750 exactly a year earlier. I mean every coin in this market is going to show a 5 ½ fold increase in a year, right?

I would contend that for every one of the incredible grand slams like the aforementioned 1805 quarter, there are other coins that show minimal appreciation after a short holding period. In fact, it is more likely that the typical coin is actually worth less after a year than its purchase price. Which is why the Five Year Hold might not be such a bad strategy to (re)consider after all.

Let’s say that you decide to put together a set of Type One Liberty Head double eagles. If you came to a specialized dealer and said that you wanted to complete your set in a year my guess is that the answer you’d get would be somewhere along the line of “well, it could be done but you’d have to cut some corners.” But I’m willing to bet that there a number of less ethical dealers who figure “hey, the guy is going to spend his money with someone so it might as well be me.” And our new collector would probably then be off to the races.

A year later Mr. Double Eagle is done and, if form holds, he’s already bored and looking for something else to do. So he’s ready to sell. Overlooking the fact that he’s probably bought more than his share of dud coins because he was in such a rush, he’s likely to learn the hard way that his collection, while no doubt very valuable, might not bring him the insta-profit that he was promised.

When you hold coins for a very short period of time, you run into at least three problems:

1. Your collection isn’t fresh. The chances are good that at least some of your coins have come directly (or indirectly) from auctions and can easily be pedigreed from these sales. Other coins may have bounced around from dealer to dealer and have a “staleness factor” that only insiders in a specialized market area are aware of. By holding your coins for at least five years, suddenly they appear a lot fresher. Most coin collectors and dealers have relatively short memories and 2009’s stale set of , say, Indian Head half eagles could well be fresh and interesting in 2014.

2. You are paying fees coming and going as a collector that you have to recapture before you can make a profit. Let’s say you are a newbie and you are exceptionally lucky to have hooked up with an honest, knowledgeable dealer who sells you very nice coins at competitive prices. You are still likely to be buying coins at 10-20% above this dealers cost. And when you go to sell your coins, you are going to be paying anywhere from 5% (unlikely) to 20%. So even in a situation where the collector is dealing with someone very fair his in/out fees are at least 15-40%. That’s a big hit to make up in a year and this is another reason why longer terms holds make sense. And that’s not even taking into consideration the fact that most collectors never find these trustworthy, honest dealers and wind-up dealing with the big budget, big mark-up guys.

3. By going in and out of an area quickly you are not allowing a full market cycle to occur. Chances are, collectors who rush into a series are doing so because of a promotion and the series in question has already begun an upward climb. Unless this is a series with a strong collector base that can maintain an upward climb without external stimuli it is likely that by the time the collector is ready to sell, the train has already left the proverbial station.

The reason that #3 has not always held true to form in recent years has been the phenomenon of the Set Registry. I can think of a number of sets that have been assembled quickly and then sold for a good profit to Registry Set collectors. But what if your set was the dumping ground for other quickly-assembled sets and there is no one else waiting in the wings to clean up after your mess?

The bottom line is that serious, high level coin collecting is more complicated than most new collectors and investors think and it is extremely important to find a trusted professional to work with you when assembling a set.

Key Date Price Performance

At the end of my last blog, I mentioned that the price gains in the coin market that many collectors and investors have been seeing are somewhat misleading. My guess is that if you took a random sample of 100 miscellaneous coins and calculated their price appreciation since 2003, fewer than 20% would show plusses. Some would even show minuses. If you had asked me in 2003 which coins would have shown the greatest gains, I would have split my answer(s) in two: traditional “trophy” coins and popular key dates in the most avidly collected series. My answers have turned out to be partially right as key dates have performed exceptionally well. What has really surprised me, though, is that the traditional trophy coins that have inevitably led the way in past bull markets have not necessarily been the best performers this time around.

I consider traditional trophy coins to be things like Stellas, High Reliefs, Pan-Pac Round and Octagonal $50’s, Proof gold (especially high denominations), etc. In the past, rich guys who didn’t know much about coins tended to gravitate towards these categories because they were big and sexy.

But things have been different this time around and I attribute this mainly to a coin market that is far, far more information-driven than in the past. In 1998, the rich guy who wanted to buy a few neat coins for his portfolio had no easy way to figure out how rare something was. Additionally, he was likely to be dealing with a salesman (as opposed to a numismatist) at a large marketing-oriented firm who had little knowledge about coins. Since both parties tended to be dealing from ignorance, it made sense that the unsophisticated seller would focus on a big, shiny High Relief or a Stella as the unsophisticated buyer was most likely to relate to such a coin.

Fast forward to 2008 and the market has changed. Information about coins has spread virally on the Internet and now, with an investment of a few hours, people can read a lot of good information about a wide variety of topics. In addition, the person selling coins to the big money buyers is likely to be more sophisticated as well. He needs a more interesting product to set himself apart from his competitors and the Old School Trophy Coins of the 1990’s suddenly seem passé. Just as importantly, the new breed of buyers can go on-line and see the population figures for coins like Stellas and High Reliefs. Due to significant resubmissions, these former rarities now seem common. The new buyers want exceedingly rare coins that no one else can have.

And this is where the New Right Coins come into play. If you follow auctions, you’ll note that in the last year or so, the types of coins that have been bringing jaw-dropping money are things like 1804 Dimes in AU55 and 1850 Quarters in PR68 and 1920-S Eagles in MS67. All three of these are truly great coins but they are not coins that, five years ago, I would have expected collectors or investors to have paid record-shattering prices for. In the old coin market these coins were “really neat but really exotic.” Today, they are the Right Coins.

Not everyone, of course, can afford to spend $632,500 on an 1804 Dime or $480,000 on a Proof 1850 Quarter. And, interestingly enough, lower grade examples of these same issues are not necessarily going to drive big money new collectors into a feeding frenzy (my guess is that the collector who paid $480,000 for his PR68 1850 quarter would have been A LOT less interested in a PR64 example of this date).

So what are the right coins for those of us who don’t have an extra $480,000 lying around to buy a Proof 1850 quarter? (and, by the way, I don’t mean to “pick” on Mr. 1850 Quarter as I think this is a great coin...just not one I expected to see sell for nearly half a million bucks...)

In this market, I would look to be a value-oriented collector or investor and would stick with coins that are very scarce to very rare, “interesting” from the standpoint of history, aesthetically appealing and old.

In the realm of rare date gold, some of the coins that I think will continue to perform well in spite of the vicissitudes of the market include the following:

-Virtually any 18th century issue

-Virtually any Liberty Head coin that is either the finest known or solidly in the Condition Census

-Any very low mintage coin (for business strikes, this is generally 2,500 or lower; for Proofs this is generally 50 or lower)

-Any coin pedigreed to a great collection (Bass, Garrett, Norweb, Eliasberg and a few others are great collections. The Rainy Day collection of CC Double Eagles IS NOT a great collection...)

-Virtually any coin that is historically significant (1861-D gold dollar, 1838-C and 1838-D half eagles, 1854-D three dollar gold, 1879-O double eagle, etc.)

-Coins that have original skin and a great, original appearance

-Any coin in a popular series that is rare and in demand. This is a huge range; from Rarity-7 Bust Half Dollar die varieties to key date Morgans in perfect, original AU55 to important one-year type coins like the 1808 quarter eagle to rare date Saints in MS63 and better with CAC stickers.

Baltimore ANA Show Review

Being an eternal realist when it comes to the coin market, I wasn’t expecting this year’s ANA show to be a good one; let alone a great one. With the unrelentingly bad economic news in the United States (let alone the world) it seemed inevitable to me that most collectors would be slowing down. As usual, I was wrong. This year’s ANA was outstanding for me and many of the dealers that I spoke to (and who I trust) told me that it was a great show for them as well. The show began for me with the Stack’s sale of the S.S. New York shipwreck on Sunday. I had a feeling these coins would go strong, given the fact that the quality was far nicer than other shipwreck coins and the quantity was smaller. I expected that the typical “shipwreck premium” would be about 15-25%. In some cases this was true but in most, the premium was substantially higher; especially in the case of lower value coins that were being bought for their “knick-knack” appeal.

There were a few very important coins in the hoard and certainly among the best was the highest graded 1845-D quarter eagle, an NGC MS64. It sold to a very knowledgeable dealer for $63,250 which I thought was quite strong. Other Dahlonega coins in the sale went very strongly as well. Notable prices included $18,400 for an 1839-D half eagle in NGC AU58, $31,050 for an 1840-D half eagle in NGC MS62 and $51,750 for an 1842-D Large Date half eagle in NGC MS61.

Some outstanding New Orleans gold was featured and it brought remarkable prices. An NGC MS64 1844-O half eagle sold for $28,750, an NGC MS63* 1845-O half eagle brought $43,125, an impressive 1844-O eagle in NGC MS63 sold for a record $63,250 and an NGC MS62 1845-O eagle was bid to $54,625.

The show began in earnest on Tuesday with PNG day. I have never been a big fan of PNG day for one simple reason: because of the fact that only a limited number of dealers have tables, the cavernous bourse floor seems like a ghost town. I did some business but mainly concentrated on buying. As I expected, there was a shortage of interesting coins; a theme that you will no doubt read on other show reports from specialist dealers like myself.

The regular show started on Wednesday. With all of the dealers now set up, the huge hall felt more inviting. When the doors opened to the public, a stampede of collectors headed right towards my table. Could this possibly represent a tidal wave of Dahlonega collectors? A Tsunami of Charlotte aficionados? No such luck; all the collectors were headed for the Bust Half Dollar collection being sold by Sheridan Downey right in front of me.

I spent a good part of the show either at the table or out buying coins. My observations about the current rare gold coin market as are follows:

1. It is amazing how little nice material there is available. I would have been happy to have bought, say, ten interesting Dahlonega coins and a bunch of New Orleans eagles. I came home with very few of either.

2. CAC stickers are beginning to have a positive effect on liquidity, particularly in the high end of the market. As an example, I had three expensive pieces of early date gold with stickers on them and I wound up selling them to a collector who I have never done business with before. I fully believe that the stickers helped make the transaction happen.

3. Collector demand for interesting gold coins remains very strong. It seemed like every hour or so, another dealer would come up to my table and tell me that he had someone interested in some sort of gold issue. I sold a number of coins to dealers that I don’t do much—if any—business with at a typical coin show.

4. Without sounding completely self-serving, it continues to amaze me what so-so quality coins bring at auction. I expect great quality, one-of-a-kind coins and major rarities to do well at auction but I wonder why collectors are content to pay 10-20% more for average to above-average coins. Maybe said collectors should give more serious consideration to looking through dealer’s inventories.

One of my favorite things to do at an ANA show is to look at the exhibits. This year the Smithsonian had a small but awesome group of coins from the National Numismatic collection including an 1821 Proof set (the half eagle had to be seen to be believed), an 1843 Proof set (including all three denominations in gold) and an 1860 Paquet Double Eagle pattern in gold that, when viewed from the reverse appeared to grade at least Proof-68. There was also a group of Massachusetts colonial silver belonging to a well-known collector that was stunning.

Where does the market go from here? I think the next month or so will be interesting. There are no coin shows of note until Long Beach in September and my guess is that most dealers left ANA with money to spend. My guess is that there will be strong demand for good coins between now and then. Some of the money that is circling the market will get absorbed by the strong pre-Long Beach and Long Beach auctions that loom on the horizon but there will still be an excellent opportunity for collectors who have had coins for longer than five years to sell into the market.

In closing, I’d like to point out that this generally upbeat show report does not take into account one simple fact: to take advantage of this still-strong market, you have to have the right coins. At this point, you are probably sick of my saying this over and over and are wondering “what exactly ARE the right coins?” Check back later this week and I will be writing a blog that discusses what I think the right coins are. (A cliffhanger...I love it!!)

2008 Baltimore ANA Show Preview

Am I the only person who finds it astonishing that another ANA is upon us? Jeez, it seems like I just got back from last year’s Marathon in Milwaukee. But here we are already in late July and it’s time for the Battle in Baltimore. What can we expect from this bellwether show? If you are of a certain age, you remember when ANA was THE coin show of the year. It still is a critical event on the coin circuit despite being somewhat watered down; with pre-shows and a zillion auctions held before, during and after. This is my 26th consecutive ANA (I have attended every one since the 1982 Boston show) and I still feel a tinge of excitement as the days countdown.

My gut feeling is that this year’s ANA is going to be very strong from a wholesale standpoint and decent but not great from a collector standpoint.

With the uncertainty in the economy (and that’s putting it a bit mildly with today’s headlines...) I have the feeling that some would-be buyers are either going to avoid the temptation of the ANA or, if they do attend, it will be more for social and educational purposes than for buying.

Does that mean that there won’t be any action on the bourse floor? Hardly. Really good coins sell very well if the economy is soaring or circling the drain. The pool of potential buyers may not be as great in a bad economy but the number of great coins is much smaller now than in the past. Any dealer who has a case full of interesting coins at the ANA will certainly do retail business. Just not as much, I think, as two or three years ago.

Remember when I mentioned above that I think the show will be good from a wholesale perspective? Coin dealers making a living dealing coins and, at this point in time, nearly all dealers are short of useful inventory. Whether they can pay for these coins is an entirely different kettle o’ fish but I think the wholesale demand for coins right now remains strong.

What will sell at ANA? The Usual Suspects. Very high quality, choice original coins in nearly all categories will be easy sellers, as will key dates and rarities. Early gold and Proof gold continue to be in demand and examples for sale on the bourse should be very actively sought since the auctions do not contain as much of this material as usual. CAC certified coins appear to be readily gaining in acceptance and popularity and many dealers will have long want lists for CAC’d material.

What will sell at ANA? The Usual Suspects. Very high quality, choice original coins in nearly all categories will be easy sellers, as will key dates and rarities. Early gold and Proof gold continue to be in demand and examples for sale on the bourse should be very actively sought since the auctions do not contain as much of this material as usual. CAC certified coins appear to be readily gaining in acceptance and popularity and many dealers will have long want lists for CAC’d material.

For a number of reasons, I am not nearly as focused on the various pre-show and during-show auctions this year. The sales are not without interesting material. Stack’s is selling the S.S. New York shipwreck gold coins which include some great branch mint pieces and they have a Hard Times Token collection that—if I collected this series—would excite me greatly.

Heritage has their usual high value sale with a seemingly unlimited number of rarities. I found a few things of interest among the pages and pages of lots. Someone has been hoarding 1834 Crosslet Half Eagles and 1863 Double Eagles over the years and they have decided to sell their holdings. There are five 1834 Crosslet 4 Half Eagles ranging from VF30 to AU55 and I personally can’t recall having ever seen more than two examples in any one auction. Even more remarkable is the hoard of thirteen 1863 double eagles ranging from EF45 to AU58. I’m not sure if these all belong to one collector but even if they don’t, this is a remarkable aggregation.

If you are coming to the coin show, one thing I would urge you to do is look at this year’s Smithsonian exhibit on Proof coinage. Having just read about the coins in this exhibit even I am excited and look forward to seeing some of these priceless Gems.

1841-D Quarter Eagle Graded MS63 by PCGS

As a leader in the area of rare United States gold, I get to handle some pretty interesting coins on a regular basis. But every now and then there is a piece that comes into my inventory that is so truly exceptional that it gives me pause and makes consider keeping it instead of selling it. The most recent of these was an 1841-D quarter eagle graded MS63 by PCGS that is not only the finest known example of the date but one of the most aesthetically attractive Dahlonega gold coins of any date or denomination that I have seen. I rank the 1841-D as the fifth rarest of the twenty quarter eagles produced at this mint. There were a total of 4,164 struck of which an estimated 75-100 exist. When available, the typical 1841-D grades VF to EF and is characterized by poor eye appeal and extensively abraded surfaces. There are probably fewer than fifteen properly graded AU’s known as well as four in Uncirculated.

The four Uncirculated examples are as follows:

1. Kansas Collection, ex: Doug Winter, Wexford Collection, Doug Winter, Heritage 1/04: 1017 ($40,250), Green Pond Collection, Doug Winter, Bowers and Merena 11/98: 2076 ($46,000; as PCGS MS62), Heritage 2/90: 1264 ($15,000), Vintage Auctions 8/89: 286 (unsold), David Akers’ session of Auction ’89: 859 ($22,000). Graded MS63 by PCGS.

2. Private collection, ex: Heritage 4/06: 1496 ($46,000), Duke’s Creek Collection (as PCGS MS62), Hancock and Harwell, William Miller collection, Heritage 1993 ANA: 5508 ($25,300). Graded MS63 by NGC.

3. Georgia Collection, ex: Larry Jackson, David Akers 5/98: 1735 ($35,200), John Pittman collection, Stack’s 10/60: 3192 ($270), Milton Holmes collection. Graded MS61 by NGC.

4. Kansas Collection (duplicate), ex: Doug Winter 4/00, Mark Hurst collection, Heritage 1999 FUN: 7627 ($21,850; as PCGS AU58), North Georgia Collection, Stack’s 10/94: 867 ($22,000), James Stack Collection. Graded MS60 by NGC.

As you can tell from this list, I have had the good fortune to handle two of the four Uncirculated 1841-D quarter eagles and I have handled the finest known on three different occasions.

Let’s take a look at the coin itself. Here is a superb quality photo of the finest known 1841-D quarter eagle. Study the obverse and reverse for a few moments and then let me take you on a “tour” of it and explain why I think it is such a great piece.

What grabs me first about this coin is its coloration. You will note that the obverse and reverse both show deep brownish-gold coloration. If you ever wondered what exactly does a 160+ year old gold coin with completely original color look like, the answer is “like this.”

You will also note a bit of light haze on the surfaces. “Haze” often has the connotation of a coin having had a chemical applied to its surfaces in order to hide hairlines but on this coin, the haze comes from the way that it had been stored in the past; probably in an old coin cabinet or in a manila coin envelope. Before the era of extensive coin doctoring it was not uncommon to see choice, high quality gold coins with this sort of natural haze on the surfaces.

Next, look at the strike. The 1841-D quarter eagle is generally seen with a pretty good strike but this example was absolutely hammered with complete details on both the obverse and the reverse. If anyone doubts that the Dahlonega mint was capable of producing a product on the par with the Philadelphia mint from time to time, take a look at this coin and re-think your answer.

You will probably also note a thin, winding die crack on the obverse and a major bisecting crack on the reverse. This is the late die state of Winter Variety 2-C.

The depth of the coloration makes it hard to see the luster in its entirety but it is abundant. The texture is frosty and semi-prooflike, the blending of which creates a really unique look that I have not seen on more than a handful of Dahlonega gold coins.

The surfaces show a few light marks (mostly in the right obverse field) but they are very clean. When comparing this coin to the few MS63 and better Dahlonega quarter eagles that exist, I would certainly call this 1841-D a very high end example and I think it has claims to an MS64 grade.

In my experience, quarter eagles are among the hardest of the four denominations produced at this mint to find in high grade and it is exceptionally hard to find any coins that grade MS63 or better. I can only think of one true Gem Dahlonega quarter eagle (the Duke’s Creek 1847-D that was graded MS65 by NGC) and probably not more than three to five single coins that, by my standards, grade MS64.

If you are collecting Dahlonega quarter eagles by date or if you are a type collector looking for a single very high grade piece, my advice is to be aggressive on the very rare occasions that a coin like this 1841-D become available. Many years may pass before a comparable—or better—piece become available again.

Key Date Coins

I had an interesting conversation with another coin dealer the other day. We were discussing what we are buying (and not buying) right now and he mentioned to me that, for the last few years, he has been primarily focused on buying only the key date coins in all series, even in such esoteric areas as Charlotte and Dahlonega gold. Focusing on keys has been a great strategy in mainstream series such as Barber coins or Morgan dollars. Issues like the 1901-S quarter and the 1893-S dollar have clearly outperformed the rest of the market during the last six to nine years. This got me to thinking: is this performance also the same in the market areas in which I specialize? To determine this I decided to select a small group of key dates from each series and to then compare them with a “generic” date as a baseline. The results are interesting.

The first item I chose was the ever-popular 1861-D gold dollar. As a generic comparison, I selected an 1859-D gold dollar. The former is the key Type Three issue from this mint while the latter is one of the more common dates.

In June 2000 Heritage auctioned a PCGS AU55 example of the 1861-D gold dollar for $12,075. Today, a similarly graded 1861-D would probably fetch over $30,000. I think it’s a safe bet to say that this issue has at least doubled—if not tripled—in value since the beginning of the decade.

In comparison, an AU55 example of the 1859-D gold dollar in AU55 would bring around $3,750-4,000 at auction today. In looking back at auction records from the 2000-2002 era, I noted at least three AU55 coins selling for $3,000-3,300. The price growth of the 1859-D gold dollar has been marginal at best. This does not totally surprise me, given that the Dahlonega market is very collector-oriented and that this sort of market is generally skewed towards rare dates or “neat” specific coins.

(NOTE: An important factor that I am not going to delve deeply into here is gradeflation. Even though the 1859-D gold dollar in AU55 appears to have experienced little price growth in the last decade, it is likely that coins sold as AU55 in 2002 are, by today’s standards, at least AU58; if not better. Gradeflation is, for many more common coins, what has caused the greatest amount of price increases).

The second item I chose was the 1842-C Small Date half eagle. This is the rarest collectible gold coin from Charlotte. As a generic comparison I selected an 1849-C half eagle. It is one of the more common issues from this mint.

Heritage sold a pair of comparatively high grade 1842-C Small Date half eagles in their June 2008 auction. A PCGS AU58 brought $43,125 while an NGC AU55 realized $31,050. Looking back, I noted that Heritage sold a PCGS AU58 in April 2002 for $55,200 and a PCGS AU55 in January 2003 for $35,650. The price performance of this key issue has been poor in the last five years and the 1842-C Small Date in AU is clearly worth less today than it was in the past.

In AU55, an 1849-C half eagle is currently worth $3,500-4,000. Looking back at auction records from around 2002, the same coin was worth basically the same.

What I think this shows is that in an area like Charlotte gold that hasn’t been very popular during recent years, even though a coin is a key issue (like the 1842-C Small Date half eagle) this doesn’t mean it will rise in value. It seems obvious to say this but, no matter how rare a coin is, if it isn’t part of a popular series then it is unlikely to increase in price.

How about Carson City double eagles; an area of the market that was popular in 2002 and is even more popular today? I chose the 1871-CC as my key date and the 1892-CC as its generic counterpart.

Current values for About Uncirculated 1871-CC double eagles are as follows: AU50= $32,500-35,000; AU53= $40,000-45,000 and AU55= $50,000-55,000+. Looking back to early 2003, Heritage sold a PCGS AU50 example for $14,950 in their January 2003 auction and an NGC AU55 in the same auction for $17,250. Clearly, levels for this date in AU have almost tripled in the last five years.

How about the common 1892-CC in AU grades? Heritage recently sold an NGC AU55 in their June 2008 auction for $3,450. Going back to June 2004, they sold a PCGS AU55 in the same grade for $1,840. A more detailed examination of auction records from this era shows that the typical AU 1892-CC double eagle in AU has doubled in value in the last five years.

This is a fairly interesting case study. CC double eagles have performed really well in the last few years due to their popularity and just about every coin has doubled in value. But the key issues in the series (1870-CC, 1871-CC, 1873-CC, 1878-CC, 1879-CC, 1885-CC and 1891-CC) have outperformed their more common counterparts. The one exception to this rule tends to be in the area of high grade coins. Even the common CC double eagles in high grades (in this case MS62 and better) have performed exceptionally well in the last few years due to strong demand.

The one problem with the strategy of buying only key dates is that in most gold series, these issues are very expensive. With entry level undamaged 1861-D gold dollars now exceeding $20,000, only elite collectors can realistically look to purchase such coins. And maybe this amount would be more rewarding if spent on three or four nice common date Dahlonega coins in AU instead of one very-rare-but-not-so-aesthetically appealing 1861-D.

1854-D Three Dollar Gold Piece

I recently purchased a very unusual 1854-D Three Dollar gold piece. If you are even a casual aficionado of Southern gold coins, you are probably aware that a) the 1854-D is a rare and popular issue and b) it has a very established set of diagnostics. However, as this coin (and a few others) proves, not all 1854-D Three Dollar gold pieces are cut from the same cloth. If you look at page 145 of the second edition of my book “Gold Coins of the Dahlonega Mint” you will read the following diagnostic criteria about the 1854-D Three Dollar:

“(On the obverse) the denticles from 7:00 to 3:00 are so weak as to appear non-existent. The entire upper part of the rim has a very flat appearance. (On the reverse) the denticles are almost always very weak and they can usually be seen only from the 3:00 to 8:00 area with the rest of the border appearing very flat.”

Now take a look at the picture below and focus your attention on the obverse and reverse borders. You will note that there are complete and full denticles on both sides. I have personally seen or owned as many as 75 examples of this issue and the coin illustrated here is just the third 1854-D that I know of with full denticles. The other two are in the Bill House and Harry Bass Core/ANA Museum collections.

Before we go any further with this quick diagnostic study of the 1854-D Three Dollar gold piece, here is a picture of a “normal” example (courtesy of Heritage Numismatic Auctions). Note the weakness on the denticles and then also file the following diagnostics away in your memory for future reference:

1. Weakness on the U in UNITED 2. Large clashmark at the throat of Liberty and a smaller clashmark at the back of the neck (this may be hard to see in the photo) 3. Reverse clashmarks from the S in DOLLARS into the wreath above 4. Detached leaf to the left of the 1 in the date 5. Separation of the right bow knot (the one on the viewer’s left) from the wreath due to die polishing

What I find especially interesting about the 1854-D “full strike” is that it has essentially the same diagnostics as the “weak strike” coin. I had always assumed that the full strike coins represented an earlier die state; struck, perhaps, before the dies clashed and were lapped. But this is clearly not the case. We can see this because the full strike coin has virtually identical diagnostics to the weak strike coin. The only difference is that the clashmark in the right obverse field is not as pronounced on the coin with full denticles.

So what makes this coin different from other 1854-D Three Dollar gold pieces? There are two interesting features that might hold a clue to its special status. The first is that it has a mint-made lamination on the obverse; something I cannot remember on many other examples of this date. The second is that the surfaces of the full struck coin are somewhat reflective (this is hard to see from the picture); again, an unusual circumstance for the issue. Could this coin have been specially struck as a presentation piece?

My best instinct tells me that the full struck coins represent the very first 1854-D Three Dollar gold pieces. After a small number were made with full denticles, something happened during the minting process that caused the rest of the coins to be improperly struck. Given the fact that all 1854-D Three Dollar gold pieces were struck in one day, it is hard to say exactly what caused this failure.

Heritage's Charleston Collection Sale

In my last blog I wrote about the Husky sale conducted by Stack’s and how a number of early quarter eagles gave a good representation as to the strength in that market. Another recent auction, this one conducted by Heritage, contained an impressive set of Classic Head quarter eagles. This grouping, I feel, serves as a good look at the current state of the high-end market for this short-lived but increasingly popular type. The collection that was sold by Heritage was called the Charleston Collection. It was not complete (it lacked an 1838-C) and it was a little inconsistent as to grade (the common 1836 was only an MS61 and the 1839-C was an AU58 that could have easily been improved while the collector was actively buying). Nevertheless, there were some impressive coins in this group.

In higher grades (i.e. MS63 and above) the 1835 is rare and very underrated. The Charleston coin was graded MS64 by PCGS. I wasn’t totally wild about the quality but it was in an old green label holder and it is one of just two graded MS64 by PCGS with none better. The last PCGS example to sell at public auction was Superior 5/06: 996 which brought $18,975. Given the fact that the Classic Head quarter eagle seems much stronger today than it was in 2006, I expected this coin to bring around $22,500. It sold for $19,550. Had it been a better quality for the grade, I think it would have brought more.

Perhaps the most interesting Classic Head quarter eagle in the sale was an 1837 in PCGS MS64. This was a very attractive coin for the grade and a condition rarity to boot with a PCGS population of three in this grade and only one better (NGC hasn’t graded a single example higher than MS63).

This exact coin had been sold twice by Heritage within the last few years. In the 2004 ANA auction it brought $18,975 and in the January 2007 sale it realized $26,450. Given these prior records and the interest that I felt certain this coin would generate, I was expecting a very strong price; perhaps as high as $35,000-40,000. The final price realized was an exceptional $48,875; a record price for a business strike of this date. Interestingly, the finest known 1837 (the amazing PCGS MS65 Bass II: 305 coin) had only brought $37,950 back in 1999.

Another interesting Classic Head quarter eagle in the sale was an 1839 graded MS61 by PCGS. This date is a major “sleeper” in high grades and it is actually rarer in Uncirculated than such heralded branch mint issues as the 1838-C and the 1839-D. The Charleston: 1806 coin was attractive for the grade with the eye appeal of an MS62/63 but with some old wipe lines on the surfaces. The last PCGS MS61 example to sell at auction had been the B&M 6/03: 1510 coin that went very cheaply at $6,038. Given the fact that the population of the 1839 in PCGS MS61 is just two (and only one coin, an MS62, is higher) I expected that this coin would bring at least $10,000 and probably a touch more.

The 1839 quarter eagle wound-up selling for $12,650 which is a record price for a business strike of this date but which, in the big picture, is pretty cheap for a Classic Head quarter eagle that is as rare as this. The finest known remains Bass II: 309 (graded MS62 by PCGS) that sold for a very reasonable $10,925 back in 1999.

Another Classic Head quarter eagle of interest in this sale was an 1839-D graded MS62 by PCGS. This is an exceptionally popular coin given its status as the first year of issue from the Dahlonega mint and the fact that it is a one-year type. I did not care for the Charleston: 1808 coin as I thought it had funky color and a dull, lackluster appearance. Nevertheless, I anticipated that this coin would see some strong bidding. The final price realized was $34,500.

In January 2008, Heritage had offered another 1839-D quarter in MS62; this one graded by NGC. I didn’t care much for this coin either but it brought $34,500. Clearly, this is now the standard for this coin in this grade as the Charleston coin brought the exact same amount.

Lot 1809 in the Heritage sale was an 1839-O graded MS64 by NGC. This coin is tied for the highest graded with four others at NGC and four at PCGS. This was an attractive coin with good luster and color and it had been sold by Heritage as Lot 406 in their April 2006 auction for $34,500.

Given the new strength in the market for high quality New Orleans gold (as well as the interest in choice Classic Head issues) I expected that this coin would sell for at least $35,000-40,000. It brought $40,250 which is a record auction price for this date.

So what did I learn from this sale in regards to the Classic Head quarter eagle market? As I expected, the high end of the market is very strong. I thought the price realized by the 1837 in PCGS MS64 was pretty remarkable and I thought the mintmarked coins described above were strong to very strong. My guess is that we will continue to see strong prices in this series for a while although I wouldn’t be surprised if we start to see some softening for the more common dates in higher grades as the levels for these have really shot up.