Douglas Winter Numismatics To Sell the Tri-Star Collection of Proof Gold Dollars

Douglas Winter Numismatics has been chosen to sell the Tri-Star Collection of Proof gold dollars. This collection, which was formed by one of the savviest collectors of gold coins in today’s numismatic market, includes a dozen very rare Type Three Proof gold dollars dated between 1856 and 1878. In a conversation with the former owner of the coins, he stated the following: “My original goal was to assemble a complete set of Proof gold dollars in high grades. Instead of focusing on the dates from the 1880’s which I thought would be easy to acquire, I was more focused on the very rare Type Three coins struck from 1856 to 1879. These dates typically had mintage figures of fifty coins or fewer and many have as few as ten to fifteen survivors.”

This collector added another couple of interesting comments about his collection. ”I tried whenever possible to buy coins that were original and which had not been recently conserved. I also tried to add a few coins that had particularly good pedigrees. The reason that I gave up on the set was that I found it too frustrating to find the dates I needed with the eye appeal that I wanted.”

What this collector did accomplish is still nothing short of amazing. The undisputed highlight of the coins being offered for sale by DWN is an 1856 gold dollar graded PR67 Ultra Cameo by NGC. It is the earliest dated gold dollar graded this high by NGC and it is the finest known of an estimated six or seven that exist.

Remarkably, the collection continues with a nice date run of Proofs dated 1857-1863. The 1857 is an NGC PR65 Cameo, while the 1858 is a stunning NGC PR66 Cameo that is tied with one other coin as the finest known. The 1859, graded PR66 Deep Cameo by PCGS, has amazing eye appeal and is a coin that is notable for its rich original coloration. The 1860 is graded PR65 Cameo and has a pedigree from the famous Harry Bass collection while the popular 1861 is a very high end PR65 that has also been graded by PCGS. The 1862 is an NGC PR66 Ultra Cameo which is among the finest known while the 1863, while “only” graded PR64 Deep Cameo by PCGS, has the eye appeal and appearance of a Gem.

The collector who assembled this set of gold dollars was very interested in coinage from the Civil War and the only issue from this era that was missing was the 1864. His 1865 is a Gem NGC PR65 that has a Cameo designation.

There are just three coins from the 1870’s present in the Tri-Star collection but they are all remarkable and desirable pieces. The extremely rare and much underrated 1874, with an original mintage of just 20 pieces, is represented by a lovely PCGS PR64 Cameo. The extremely rare 1875 is a PR66 Cameo with an incredible pedigree. The coin was last sold as part of the Bass collection and it had been obtained from the Stack’s 1976 Garrett sale where it was part of an original 1875 gold proof set that had been obtained by the Garrett family back in 1883. The other issue from this decade is a PCGS PR65 Cameo 1878. This is another date with an original mintage of only 20 pieces and the present example is clearly among the finest known.

A number of the coins in the collection have been sent to CAC and have received a “green sticker” that indicates that they are acceptable quality for the grade.

It is my feeling that these low mintage Type Three gold dollars represent the best value in the Proof gold market. To wit, there are a host of coins in the collection that are extremely rare as based on their original mintage figure and survival rate but which are priced at a fraction of the amount of less rare large denomination Proofs from the 1880’s and 1890’s in the same grade. Clearly, size does matter when it comes to Proof gold but the dollar denomination has traditionally been popular among collectors and, unlike the larger coins, this set could be completed with patience and a deep pocketbook. If a collector wants to buy a single extremely rare Proof gold coin but he doesn’t have unlimited funds, the gold dollar denomination will prove fruitful.

It is anticipated that the Tri-Star collection will be posted on the DWN website (www.raregoldcoins.com) within the next week. Subscribers to Winter’s newsletter will be given early notification of the exact date that the coins will go “live.” Each coin will be accurately described and superbly imaged with large views of the obverse and the reverse. For more information about the Tri-Star Collection of Proof Gold Dollars, please contact Doug Winter via email at dwn@ont.com.

A User's Guide to the Inventory Pages on my Website

If you are new to coin collecting or you haven’t spent much time on my website (www.raregoldcoins.com) you might not understand some of the nomenclature that appears on the inventory pages. Let’s take a look at a typical listing and let me guide you through the information and the symbols that appear with each coin. I’m going to choose a coin that is currently for sale in my inventory, an 1844-O eagle graded AU55 by NGC. The listing for this coin appears as follows:

1844-O $10.00 NGC AU55CAC 10/9 91/62 5000 $3,500

This seemingly innocuous line actually contains quite a bit of information and if you are not familiar with the terminology I use, it is going to seem like so much numerical babble.

The first and most obvious fact is that the coin is an 1844-O eagle. All of the coins on my website are listed chronologically and they are listed in denomination order from lowest to highest. Mintmarks are listed in alphabetical order.

The next piece of information is that the coin is graded AU55 by NGC. I only sell coins graded by PCGS or NGC on my website. There are no exceptions to this rule. Ever.

The “CAC” designation means the coin has been sent to CAC and it has been given a green sticker that designates it as being acceptable for the grade by CAC’s standards. If a coin does not have a CAC sticker there are a few possible explanations. It may be right after a coin show and I have not yet sent it to CAC. Or, it may be a coin that I do not feel is necessary to send to CAC. Or, it might be a very expensive coin that I do not feel comfortable mailing to CAC. I like CAC and agree with its standards and objectives but I am not “locked into” selling only CAC coins. I would suggest that if you have a question about why one of my coins isn’t CAC-stickered, ask me. I’m happy to give you an honest answer.

The next two pieces of information have to do with certified populations. In this case, “10/9” means that the population at PCGS for the 1844-O eagle is ten in AU55 and nine in higher grades while NGC has graded ninety-one in this grade and sixty better.

Certified populations are something that I think are important but there is a downside to this level of transparency. For the most part, these numbers are inflated by resubmissions and, in the case of the 1844-O in NGC AU55, they are inflated to the point of irrelevancy.

In many instances, when I disagree with a certified population I will note this in the description of the coin. And whenever possible I will state what I believe to be a more accurate population.

The next number, in this case “5,000” is the price given in the most recent copy of Coin World’s “Coin Values.” This figure is better known to collector as “Trends” and it represents a suggested retail price for a coin. In most cases, I sell coins in the 60-80% range of Trends. There are clear exceptions to this rule and if I think that Trends is too low for a certain issue (a perfect example would be an 1883-O eagle in any grade) I will note this in the description and explain why my price is greater than the Trends valuation.

There are times when I use the designation “Q” for pricing and this refers to the Quarterly Bid listed in the current Coin Dealer Newsletter or Greysheet. This tends to be for coins such as Proof gold where Trends is not used or for higher grade listings (MS64 and up) that are not addressed by Trends.

After this comes my price; in this case $3,500. I try and price coins fairly and I try to price them at levels that discourage excessive negotiation. I never list coins as “POR” (Price On Request). If I have a new coin priced at $3,500 the chances are very good that I will not sell it for $3,000 but I might sell it for a small discount. As with most businesses, I tend to price coins most favorably to repeat clients or to those collectors that I have established a good rapport.

After the price is listed, I have a modifier that explains the status of a coin. If a coin has been in my inventory for two weeks or less it is designated as “new.” If I have had the coin for more than 30 days and I realize the original price might have been too high, I will mark the coin as being “reduced.” If someone has ordered the coin but I have not yet received payment for it, it is designated as being “on hold.” If you see a coin that interests you but it is marked as being on hold, I would suggest you still contact me. From time to time, deals fall through or people who order a coin return it and if you are next in line you might still have a chance to buy it. A coin that has been paid for is marked “sold.” I might leave it out on the website for a few more days to brag or just because it was a cool coin and I think visitors to my website would like to see the photo.

Last but not least is an icon that shows if a coin has an image or not. Generally it takes a day or two for images to get done and they are all shot in house by my talented wife Mary Winter. None of the images are “juiced” or manipulated in Photoshop and I think they give an extremely good representation of what the coin will look like in hand. I will say this: most of my clients tell me that Mary’s images are among the best on the web and that if the coin looks good on the computer screen, it almost always looks even better in person.

I try to be as candid and transparent as possible with my descriptions. If a coin has a noticeable mark on the obverse near star three, I will mention this because I think it is important. My descriptions tend to focus on the appearance of a coin and since originality and color are so important to me, these tend to be described in greater detail than luster or strike.

The bottom line is that I think I’ve created a website that is easy to use and that operates in the fashion that I would like the “ideal site” to if I were a collector. I am always looking to fine tune or improve my site and would welcome your creative input.

How Does DWN Prices Rare Coins?

I’ve been asked a few times recently how I price the coins that appear for sale on my website. No, the answer does not involve dart boards, a small man behind a curtain or invoking the spirits of coin dealers past. I have a system that is partially observational/deductive and partially intuitive that allows me, I think, to price coins in a consistent, coherent fashion. Obviously, my cost basis is a factor in pricing. But I don’t just apply a standardized mark-up to every coin I purchase. And don’t giggle when you read that last remark because I know a number of dealers who simply apply a 15%, 20% or 25% mark-up (or more) to virtually any coin they purchase, whether it’s a 1911 quarter eagle in MS62 or a 1911 quarter eagle in PR68.

When I am pricing my new purchases from a coin show, I generally take a few factors into consideration. The first is current auction prices realized. In some cases, auction prices are really helpful. Let’s say I have a certain Charlotte half eagle in AU58. There have been four separate auction transactions this year and they have ranged in price from $4,250 to $4,750. If my coin is average quality for the grade, I’m probably going to price it at the lower part of this range. If it’s what I regard as a high end coin for the grade, I’m going to price it at the high end of the price range.

I also check to see what I’ve sold the last example(s) of a certain coin for. If it’s something like an 1855-O gold dollar in AU58 (a coin that I handle on regular basis) I’m going to use my last sale(s) as a guidepost. If it’s a really rare coin like an 1855-O half eagle in MS61 (a coin that I have handled only twice in the last decade) than I will have to take other considerations into account: have other 1855-O half eagles in MS61 been graded since I sold my last coin? How is the overall strength of the New Orleans half eagle market? How many collectors are actively looking for this coin at this point in time?

What about a coin that is rare enough that none have appeared at auction since, say 2005? Or a coin that only one or two auction appearances have occurred but at least one of them is considerably higher than the other? This is where my knowledge of the coin market and coin pricing comes into play.

Let’s say the coin in question is a PR65 gold dollar with an extremely low mintage. The coin is attractive for the grade and truly rare. I would use a few criteria in this instance. First, I’d look to see if there were auction records for other Proof gold dollars with comparable mintages and comparable survivors. Second, I’d try to figure what percentage over “basal value” this coin was worth (in this case, “basal value” means what is the most common date of the type worth in this grade). Thirdly, I use the “gut check” theory of pricing. I’d ask myself, “if this coin walked-up to my table at a major coin show and I was thinking of buying it purely ‘on spec’ what would I pay?”

The two published guides for coin prices that I use most often for pricing remain Coin World’s Trends and the CDN or “Greysheet.” However, due to the fact that they are not updated as much as they should be, these two guides are beginning to become less relevant to me and the PCGS on-line guide, which is updated on a much more regular basis (and by a pretty knowledgeable dealer named David Hall) is now more of a factor in influencing my pricing of certain coins.

The knowledge part of pricing comes into play as far as coins that are undervalued by published price guides. Let me give an example. If I were to price an 1838 eagle in EF45 at 75% of Trends (which is a pretty standard pricing percentage of this series by DWN) I would be offering it around $3,100. I’m guessing if I did this, I’d have twenty orders for the coin in a day. Why? Because the coin is worth over $10,000 and all the published pricing guides (except for PCGS’, I should note) fail to reflect an accurate value. As someone who knows the Liberty Head eagle series very well, I know that the 1838 is worth far in excess of published values and will price it accordingly.

There are a few other pricing questions that I get asked frequently. Here are a few of them:

1. How do I price PCGS coins vs. NGC coins? I am a pretty strong believer in the old “look at the coin and not the holder” argument. If an NGC EF45 Dahlonega half eagle is very choice and original and I agree with the grade, I’m going to price it at the same level as a nice, original PCGS example. If an NGC AU55 Dahlonega half eagle seems overgraded to me and I think it’s really an AU53, I am going to price it at a lower percentage relative to Trends than a coin that I think is solid for the grade. But the exact same statement is true with a PCGS coin. One instance where a so-so PCGS coin might get an unfair price advantage versus a nicer NGC coin is where the PCGS population for the coin is decidedly lower. As an example, let’s look at an 1844-O eagle in AU58. The PCGS population is six in this grade with three better while the NGC population is forty-nine with thirteen better. By virtue of its much lower population, I’d price a PCGS coin at a 10-20% premium by virtue of its significantly lower population.

2. How much of a premium do CAC coins get? In the generic market(s), this is a pretty easy question to answer. John Albanese typically posts his bids for CAC-stickered Morgans, Walkers, higher grade 20th century gold, etc. and they are at premium prices over non-stickered coins. In the rare date gold arena this is a harder question to answer. When I offer a Dahlonega quarter eagle in AU55 with a CAC sticker I don’t (yet) ask any premium for it. But if I have an early half eagle in MS63 or a Proof quarter eagle in 66CAM, I charge at least a 10% premium for a CAC coin. This is due to the fact that John himself is willing to pay premiums in these markets for coins that meet his standards.

3. How do I price OOG coins? I define an OOG coin as “original but overgraded.” An example would be a nice, dirty 1838-C half eagle in an EF45 holder that faces-up well but, in my opinion, is really just a nice VF coin. My typical solution to this problem is to offer a coin like this wholesale at fair market value and to offer the coins that I have that I agree with the grades to my retail clients.

Coin pricing remains difficult, especially in a market such as this but I believe that well-informed coin dealers (and collectors) can apply published information and their personal knowledge to establish reasonably accurate levels.

The Availability of Rare Coins

One thing that I’ve always found interesting about the coin market is the ebb and flow of coins that are (or aren’t) available. If you actively buy and sell coins for any period of time, you learn that certain “rare” issues or series always seem available. Other supposedly available coins can, with no good reason, go through fallow periods where they become very hard to find. I was having a conversation with a client yesterday and he raised a good point: in the last year or so, it seems that interesting New Orleans half eagles have not been offered for sale with much frequency. As we began discussing this statement, my mind raced back through the last year and I asked myself what were some of the interesting New Orleans half eagles that I have recently handled. The answer was pretty illuminating...

Over the years, I think I’ve owned more interesting New Orleans half eagles than just about anyone. I was one of the first dealers to recognize how rare these coins are and I’ve tried to make a market in high quality New Orleans half eagles for close to two decades.

As recently as a few years ago, I was handling ultra-cool New Orleans half eagles on a regular basis. Coins like the Pittman MS63 1840-O, two of the three known Uncirculated 1842-O, two extremely high grade 1843-O Small Letters, the MS63 Bass 1845-O, two nice Uncirculated 1851-O, the two finest known 1854-O, etc. Often, I had two or three Finest Known or Condition Census coins at one time.

But since last summer I’ve noted a major slow down in the New Orleans half eagles I’ve handled. I don’t think I’ve owned a single 1842-O or 1847-O this year and the only Uncirculated pieces of note that I’ve handled have been the more available dates like the 1840-O, 1844-O, 1845-O, 1846-O and 1854-O. So where are the coins?

My guess is that what we are seeing here a classic case of a Real Collector’s Market. Let me explain. My enthusiasm for New Orleans half eagles has probably rubbed-off on a few people and my guess is, at this point in time, there are at least six to ten serious collectors of New Orleans half eagles. Assuming this is the case, this has removed most of the nicer New Orleans half eagles from the market. Let’s quickly do the math.

Say we’re looking at a coin like the 1851-O half eagle in Uncirculated. My best estimate is that a half dozen or so are known in Uncirculated. With at least six to nine collectors out there for this series in high grades, that means that the demand clearly exceeds the supply. Given the fact that most of the serious collectors for this series seem to be in buy mode right now as opposed to sell mode, this means that the supply has dried-up for a coin like an Uncirculated 1851-O half eagle. A high grade example won’t come on the market unless a current owner is forced to sell, a new coin is discovered or prices rise to the point that current owners are motivated to sell.

But the ebb and flow of coin supply isn’t always so cut and dry. Look at something like Large Cents. Years went by with no major collections selling and now, within the last two years, you have the Husak, Naftzger and Holmes collections becoming available. I don’t think any serious Cent collectors expected so many great coins to come on the market in such a short time. It was, instead, a series of circumstances that occurred in an almost random fashion.

Back to New Orleans half eagles. When will the dearth of choice, interesting coins end? It’s hard to say. This article could spur a few coins coming onto the market (and if you are planning to sell any, please call me first!). Or, we could go another year or two before any interesting coins come on the market. It’s hard to say and I think this degree of uncertainty is one of the things that make a truly rare segment of the market like this much more interesting than Morgan Dollars or Buffalo Nickels.

Collecting U.S. Gold Coins On A Limited Budget

Of course everyone would like to not think twice about buying all sorts of cool, expensive gold coins. But most of us have a coin collecting budget that we have to hold to. Is it possible for the collector of average means to seriously collect US gold? I would contend that even with a reasonably small budget, a collector can have lots of fun in this area of the market and over the course of time put together a pretty neat collection. I’d say that you really need a minimum budget of $1,000-2,000 to buy reasonably interesting pre-1933 gold coins. You can buy coins in the $250-500 range but you are going to have to make compromises in quality or collect very esoteric areas like Period Two California Fractional gold. If you can live with the idea of quality over quantity and buy a bit less frequently, you’ll be pleasantly surprised how much damage a thousand-dollar bill can do in the US gold coin market.

So, what can you do with a budget of $1,000-2,000 per coin?

Let’s say you a relative newbie to the coin market and you don’t have a high degree of comfort regarding your knowledge. An area like St. Gaudens double eagles might be a good place to start. You get the comfort of buying an ounce of gold with every purchase and you will own a coin that is incredibly liquid. A quick perusal of the most recent CDN Monthly Summary shows no less than twenty-five Saints that have a current wholesale bid of less than $2,000 per coin. Assuming that prices for these issues stay in this range (and my gut feeling tells me that MS63 Saints will be dropping in price in the near future) this means that a pretty significant collection could be built on a reasonable budget.

Another series that a collector without a huge budget can have a lot of fun with is Type Three gold dollars. I’ve recently sold coins like 1857 and 1858 gold dollars in PCGS MS64 (with CAC stickers!) for not much more than $1,000 and for just a bit less, you can buy many of the popular low-mintage dates from the 1880’s in the same grade. If you purchase coins graded MS63, many are $750 per coin or in some cases less. Yes, gold dollars are small. But you have to like the value of a 125-150 year old American gold coin in Choice Uncirculated (or better) for $750-1,250.

For overall value, it is hard to beat the Liberty Head quarter eagle series. Even though many of the branch mint issues from the 1840’s, 1850’s and 1860’s are rare and fairly expensive, the Philadelphia coins from all decades are mostly affordable. The post-1875 issues are especially reasonable from a price standpoint and it is possible to purchase some legitimately scarce coins for $1,000 or less. I am a very big fan of the 1840’s dates from Philadelphia and many can be bought in AU50 for less than $1,000; despite their obvious scarcity.

I’ve mentioned a number of times in the past year that I think No Motto half eagles and eagles from the Philadelphia mint are a very good value. To give you an idea, I sold a really choice NGC AU58 CAC approved 1852 half eagle this morning for $625. This is a 150+ year old gold coin with a basal value of $300. At $625, how can you go wrong? There are many other Philadelphia half eagles from the 1840’s and 1850’s that can be found in AU55 and AU58 grades for $1,000 and less. The eagles from this era are more expensive but choice, original AU55 coins are sometimes available for less than $1,000. A collector on a limited budget could put together a very nice date run of No Motto half eagles and eagles without breaking the bank.

Another area that still offers good value is the Liberty Head Type One series. There are, of course, many extremely expensive dates in this series and even the common issues tend to be expensive in higher grades. But nice EF45 to AU55 coins are available from time to time and many can be purchased for $1,500-2,000. As an example, I sold a pleasing 1855-S in PCGS AU50 the other day for $1,700. It’s not a really rare coin but it’s the second year of issue from this mint and it’s a date that jumps up in price appreciably once you hit the MS60 level.

If you don’t have a huge numismatic budget, don’t necessarily rule out pre-1933 gold coins. As I mentioned above, there are a lot of very interesting coins available for less than $1,000 and if you can get your budget up to $2,000 per coin, you have some seriously interesting options to choose from.

Assembling a Collection of Early U.S. Gold Coins

For many collectors, the decision to focus on early United States gold coins is an easy one. These are some of the rarest, most historic and aesthetically appealing pieces ever produced by the United States mint. Once the decision has been reached to begin a collection of these coins, how do you start? This article seeks to focus on the steps required to begin an early gold collection, offers some suggestions on how to collect these coins and charts a course to help new collectors avoid some of the common mistakes that are often made with early purchases. The term “early gold” refers to those issues struck between 1796 and 1834. There are three denominations: the quarter eagle, half eagle and eagle. Breaking these down further, the following types are known:

Quarter Eagles: Capped Bust Right (1796-1807), Capped Bust Left Large Size (1808), Capped Head Left Large Size (1821-1827), Capped Head Left Reduced Size (1829-1834). Total of four types.

Half Eagles: Capped Bust Right Small Eagle (1795-1798), Capped Bust Right Heraldic Eagle (1795-1807), Capped Bust Left (1807-1812), Capped Head Left Large Size (1813-1829), Capped Head Left Reduced Size (1829-1834). Total of five types.

Eagles: Capped Bust Right Small Eagle (1795-1797), Capped Bust Right Heraldic eagle (1797-1804). Total of two types.

In all, there are a total of eleven major types of early United States gold.

Before we discuss suggestions on ways to collect early gold, there are a few important points that I would like to address.

The first is, not surprisingly, budget. Collecting early gold is not for the collector on a shoestring numismatic budget. Just about any decent quality early gold coin is going to cost in the $7,500-12,500 range. Many of the types listed above start at around $25,000 and quickly shoot upwards. If you are not able (or comfortable) spending this sort of money, than early gold is probably not for you.

The second is quality. As someone who has looked at a lot of early gold, I can tell you that only a small percentage of surviving coins are choice and original. I think it is hugely important to assemble an early gold collection that is oriented towards coins with choice, original surfaces. This is not always going to be possible. There are certain individual rare dates that are virtually impossible to locate with original surfaces and other very expensive issues that the collector may have to compromise his standards. That said, it is my belief that an early gold collection with a small number of lovely original pieces is more inherently desirable than a large collection full of mediocrity. This is one area where CAC certification is important as CAC- approved early gold coins tend to be well above average for the grade and, in most cases, represent what I would consider to be collector quality.

One last thing to mention is the “reality factor” of your collection. As I mentioned above, collecting early gold is not for the faint of heart. These coins are expensive and if you are collecting by date or by series, once you buy the “easy” issues, you’ll have to step up to the plate for some serious wallet busters. If you are not a patient, meticulous collector you won’t have the right mindset for early gold. Even a collector with an unlimited budget is going to have to wait a few years to find a very rare issue like a 1797 Small Eagle half eagle and if the collector is picky, the wait could be three, four or even five years. Collecting early gold is not like Peace Dollars where you can race willy-nilly through a set in thirty days; even if you have an ultra-aggressive dealer helping you through the process. If the thought of working on a challenging set for ten+ years gives you the Numismatic Willies, then stop reading here!

Now that we’ve gotten the warnings out of the way, let’s look at some suggested ways to collect early gold. I’m going to make a few suggestions and list the pros and cons for each.

1. Collecting By Type: For many collectors, the best way to collect early gold is to acquire one nice example of each of the major eleven types. Clearly, the stoppers here are the 1808 Capped Bust Left quarter eagle and the 1829-1834 Capped Head Left half eagle. The former is a one-year type with an original mintage of just 2,710 and a surviving population that is estimated to be in the area of 125-150 coins. Compounding this situation is the fact that attractive comparatively “affordable” examples are very rare and the few that do exist do not trade frequently. The Capped Head half eagles struck from 1829 to 1834 are rare not because of low mintages but due to wholesale melting in 1834 after the weight of gold coins was reduced. All six of the half eagles that feature this design are rare and most of the coins that exist are in comparatively high grades.

The other types in this set are fairly easy to acquire. The set can, of course, be made considerably more difficult to complete if the collector is seeking very high grade coins. But most of these types are comparatively affordable in the lower Uncirculated grades and most are within the reach of collectors of average means in circulated grades.

PROS: It is exciting to think that every coin in this set is different in design. There are only eleven coins and this makes it a realistic project for many collectors. Most of the types are available in higher grades.

CONS: Type collectors may not study early gold in enough depth to become experts. Collectors will have to purchase an 1808 quarter eagle which is an issue that some experts feel is overvalued.

2. Collecting By Denomination: As mentioned above, there are just three denominations of early gold: quarter eagles, half eagles and eagle. Many collectors decide to collect a specific denomination. There are pros and cons for each. For some collectors, the quarter eagles are too small and they prefer a larger, heftier coin. For nearly all collectors, the half eagles are extremely challenging as there are a number of extremely rare and expensive coins and at least one issue (the 1822) is unlikely to become available in our lifetime. The eagle denomination is short-lived but it contains a total of fourteen distinct issues produced from 1795 to 1804.

An early gold set that specializes in a specific denomination is generally focused on quality. It can prove difficult to be consistent with grades in such a set due to the rarity of many individual coins. As an example, in an eagle set most collectors will be able to purchase a 1799 in Uncirculated. But the rare 1798/7 issues are not only very expensive in Uncirculated, they are exceedingly rare. My advice when specializing in a specific denomination is to stretch on the key issues and not to overdo it on the more common dates. In other words, buy the nicest possible 1798/7 but don’t go crazy when it comes to the 1799 or 1801.

PROS: Focusing on a specific denomination allows a collector to become very well-acquainted with an area of the market and this will allow him to become a more informed buyer of coins. Most of the early gold denominations include a number of different types so this collection will have a good deal of variety over the course of time.

CONS: Collecting by denomination can prove to be very costly due to the extreme rarity of many early gold coins.

3. Collecting by Date: Perhaps the most ambitious way to collect early gold is to choose a denomination (or denominations) and to assemble a set that includes one example of each date that was produced. Depending on the resources and ambitions of the collector, this can include prominent varieties for each year as well (such as a Pointed 6 and Knobbed 6 half eagle from 1806).

I just mentioned that resources are a key when it comes to a date collection of early gold. This is especially true for the half eagle; a denomination that includes a host of coins that will run in the six figure range. However, what is interesting about this denomination is that if the collector pretends that the impossibly rare 1822 “doesn’t exist,” this set is actually completable. It isn’t easily completable, mind you, but it can be completed by the collector with lots of money and lots of patience. The other two denominations are easier to finish. The quarter eagle denomination has some rare individual issues but nothing that is impossible. The eagle denomination could even be completed in a reasonably short period (less than a year) if the collector gets lucky and finds the two rare 1798/7 issues.

PROS: A date set is a great way to carefully assemble a well-matched set. I believe that a complete or virtually complete date collection would gain value as a set and it could be well-marketed by a dealer or an auction house.

CONS: There really aren’t any cons except if the collector gives himself an incompletable project. If you are set on completing a date run of half eagles from the 1820’s and 1830’s you need to be wealthy and patient.

4. Exotic Collecting: There are some other ways to collect early gold that are a bit more on the “exotic” side. Some suggestions include a first/year last year set, an 18th century set, a pedigree set and a best-available-coin set. Here are brief descriptions of each.

A first year/last year set has coins made in the first and last years of each denomination and/or type. As an example, a first year/last year date set for quarter eagles would have a 1796 No Stars and an 1834. This could be expanded and it could include a 1796 With Stars and an 1807 to represent the first and last issues of the Stars Obverse type of 1796-1807.

An 18th century set would, obviously, focus on those issues produced prior to 1800. It might include a number of denominations and not be limited to just quarter eagles or half eagles.

A pedigree set would focus on early gold coins with important pedigrees. It might include coins from famous early gold collections sold within the last few decades (Eliasberg, Bass, Norweb, Ed Price, etc) or it might have coins that, through plate matching, can be shown to be from famous older collections from the 1950’s and earlier.

A best-available-coin-set is a group of coins that the collector buys just because he likes them. It might feature an assortment of early gold chosen for their originality or for their outstanding coloration.

PROS: These exotic sets are fun because they are unique to a specific collector. The parameters behind assembling them are not as rigorous as for some of the more clearly defined sets described above.

CONS: Don’t make a set so exotic that you are the only person that “gets” it. Run your idea(s) by your dealer and see what they think.

Collecting early gold is one of the really great areas in American numismatics. I would love to help you assemble a great set of early gold and have lots of experience in this area. For more information please contact me via email at dwn@ont.com.

If I Collected Coins What Would I Collect?

I often (OK, not “often” but at least “occasionally...”) get asked the question “what kind of coins do you collect?” I don’t currently collect coins because I think that, as a dealer, being a collector is an inherent conflict; I don’t ever want to have an internal debate with myself about whether or not I should sell a coin that I buy. But I do have a pretty good idea about what I would collect if I were actually collecting. When I was younger and not yet a full-time dealer, my first love was Colonial coinage. I specialized in Connecticut coinage and specifically collected 1787 Draped Bust Left coppers. In retrospect, this was pretty ambitious for a ten year old kid. There are something like 350 varieties of 1787 DBL coppers and not only was I collecting them by variety, I was typically doing it without a reference guide as I had memorized many of the important varieties.

Connecticut coppers appealed to me for a number of reasons. First off, they were cheap. My budget was pretty small back in the day and for $25 to $75 per coin, I could buy very presentable examples (the kind of coins that are worth $500 or so each today). Secondly, the age and history of these coins appealed to me. I was always a history buff and the Colonial era was of particular interest to me. Thirdly, I grew up in New York City and there were some friendly, knowledgeable dealers in the area such as Richard Picker, David Sonderman, Bob Vlack and Jim King. The fact that the coins were readily available for trustworthy local sources appealed to me. Finally, I liked the crudeness of the designs and the complexity of the series.

After my Connecticut obsession, I moved onto Liberty Seated quarters. I chose this series for one really glaring reason: the coins seemed hugely undervalued to me. Obviously, I couldn’t afford Gem coins, so I tended to focus on choice, original pieces in the Fine to Extremely Fine range. I never did finish the set (I could never afford the rare Carson City issues from 1870 to 1873) but I was able to buy some pretty awesome coins at what seemed like pretty reasonable prices.

So, using my experiences from the collecting days of yore, how would they apply to the market of today? To answer the “what would I collect” question let me start by deducing what I wouldn’t collect. I know that I would avoid coins made during the 20th century. For whatever reason, 20th century coins have just never really appealed to me (with the exception of Saints but that is a set that I could never afford to collect in the way that I want to). I am pretty sure that I would also avoid collecting Proof coins. I like very low mintage Proofs struck prior to 1880 but, for the most part, I like coins that were made to circulate. In the same vein, I think I would focus on coins that were in lightly circulated grades as opposed to high end Uncirculated coins. I like a Gem coin as much as the next guy but there is something about an evenly worn, dirty EF45 to AU55 coin that really appeals to me. I know I would also focus on an era of history that was appealing to me. I also know that after all these years of focusing on gold coins, I’m going to have a pretty hard time not specializing in some sort of gold coinage.

So, at this point we are looking at business strike gold coins from the 19th century in circulated grades as the parameter of WWDC (What Would Doug Collect). For a variety of reasons, I have always been partial to coins struck prior to the Civil War, especially those produced from 1834 through the mid-to-late 1840’s. I don’t really have any preferences as to coin size, so I wouldn’t naturally be attracted to quarter eagles as opposed to half eagles or eagles. I know you are assuming that I’d select branch mint coins over Philadelphia and this is probably true although I do find the Philadelphia coins from this era to be very interesting and a really good value.

As someone who has long been an advocate of specializing and having a fairly narrow focus for a collection I’m going to actually listen to myself. I would also want to choose a series that doesn’t have any very expensive coins that I know I could never buy. I’d want coins that were scarce to rare but not impossible to find. And I’d want to be in a series where the coins were actually decent looking.

Given all of these parameters, I think that I would be a collector of No Motto New Orleans half eagles and eagles. I would want to collect both denominations and I’d try to have choice, original EF and AU coins that were evenly matched.

But I think I would also have a secondary, “cheap coin” collection as well. There would be points in time when I might not have the money for a good New Orleans gold coin or couldn’t find anything but I still had an itchy trigger finger and wanted to buy something. During these times, I’d focus on Liberty Seated half dollars (both Philadelphia and New Orleans) from the 1839-1852 era in EF and AU grades (with the occasional MS62 or MS63 thrown in for good measure).

To those of you who actually do collect New Orleans half eagles and eagles: don’t worry, I’m not going to suddenly become your competitor. But if these are your series of choice, give yourself a pat on the back and smugly tell yourself that you’ve made a choice that meets with my total approval!

Why a Motley Coin Collection Just Might Make Sense...

Numismatics is, in many ways, the Land of the Anal Retentive and collectors (and dealers) sometimes make decisions that are based more on personal obsessiveness that on sound business principles. Let me illustrate what I mean. Yesterday, I was talking to a good client about a coin that I sent him on approval. He liked the coin very much but he was worried about the fact that since it was in one of the brand new “with prong” NGC holders that it would destroy the consistency of his collection.

Being a bit AR myself, I could understand where this gentleman was coming from. If I had a specialized collection of, say, New Orleans half eagles, I could see the point of having all the coins in the same service’s holder. I could also see the point of having the coins all pedigreed, of having them in consecutive serial numbered holders, in making certain all the holders were free of blemishes, etc.

But as we were talking, I had what I thought was a Lightbulb Atop Head realization. As someone who looks a lot of collections and buys a lot of coins, I realized that for better or worse the presentation of coins is important to me.

If I see a collection where every coin is in a consecutively numbered NGC or PCGS slab, my impression (right or wrong...) is that this is a deal where someone just sent all the pieces in for grading and there is no “juice” left. Fair or not, I suddenly might become a bit concerned about the freshness of the coins and might not figure them as aggressively as I should.

If the exactly same coins were in a more random array of slabs (some NGC, some PCGS, some old holders, some new holders, etc.) I would probably be more impressed with their “freshness” and figure them more aggressively.

If you are a sensible collector, you probably just read the last two paragraphs and thought “that’s totally insane. The coins are what they are and what the #@$%^ does it matter what holders they are in?”

Good question. But until you’ve been around the coin business a while, you don’t realize how odd this market is. When you come right down to it, think how strange the whole concept of the coin business/hobby actually is. Ponder this: you are paying thousands or even tens of thousands of dollars for a small disc of metal, often with minimal intrinsic worth. The market can be thin and quirky (to say the least) and it is to your advantage to know as many of the little tricks as possible to maintain the integrity of your collection.

So before you send your New Orleans half eagle in the old PCGS green label holder or your Dahlonega quarter eagle in the slightly scuffed-up NGC holder, think twice and ask yourself it just might impact the integrity of your collection when it is time to sell.

The May Long Beach Show: A Report

I have generally sworn off writing show reports as, to be honest, they are as boring for me to write as they are for you to read. At this point, I figured I’d do reports on the Big Two shows (FUN and ANA) and leave the other reports to my fellow Bloggin’ Numismatists. The recent Long Beach show, however, was interesting enough that I thought it required a little bit of ink.

As you may or may not know, Long Beach is a show that I’ve come to dislike in recent years. It’s become very slow from a business standpoint, I’m not crazy about the way its run and, quite frankly, if I hear them playing the Oldies soundtrack one more time I think I will rip out my inner ear canals.

But this Long Beach seemed a little bit different. Dare I say it actually had a bit of a buzz (?!?) and I think the crowd at the show, at least on Thursday when it opened to the public, was as large as any Long Beach that I can recall going back to the 1990’s.

Why was this Long Beach different from the last edition(s)? My guesses would be three fold. The first had to do with the fact that gold has risen around $50 in the past few weeks. There are a lot of bullion/generic buyers in Southern California and a strong gold market always seems to bring out these buyers. The second is better publicity. I don’t know this for a fact but I would assume that the show promoters tried something new to get buyers through the doors and it worked. Attendance was reported to be up by at least 30%. The third is renewed interest among collectors who have been on the sidelines for the last few years.

If you are a serious collector who has been in the market for at least a decade the last few years was the classic good news/bad news scenario. The good news was that the coins you bought in the early 1990’s probably increased in value. The bad news is that your market niche was probably flooded by deep-pocketed new collectors who trusted their advisors (be they auction firms, dealers or other collectors) but often got poor coins at inflated prices. Now that many of these new deep-pocketed collectors have fled the market, serious collectors can, once, again, buy coins without Nimrod Competition. This fact is, I believe, responsible in getting some of the collectors who had been on the sidelines for a while back in the coin game.

I’m not saying that the coin market has suddenly turned around and that the Good Ol’ Days are back. There is one major issue in the market that needs to be addressed before things become all warm and fuzzy again. There are a lot of truly awful coins overhanging the market. By this, I mean coins that are severely overgraded or coins that have really poor eye appeal or coins that have been laughably processed. Right now, it is hard to find anyone to buy these even at a major discount. This has created the sort of exaggerated two-tiered market that we haven’t seen in a while.

Let me give you an example. I saw Charlotte and Dahlonega gold coins at Long Beach in AU55 and AU58 holders that, in my opinion, are worth less than coins that are choice, original EF45 or AU50. This scenario is certainly not limited to the dated gold market. My point is, until some of the crappy low-end coins that seemed to be everywhere at Long Beach are taken off the market, they will act as artery cloggers that continue to make the coin market unhealthy.

That said, I thought it was a very pleasant surprise that the recent Long Beach show turned out to be as strong as it did. True, I came to the show with absolutely zero in the way of expectations, but it was nice to stay busy for a few days and sell a few coins.

It’s always been tough to buy at Long Beach and this show was no exception. After a few days of slogging and grinding, I was able to purchase a few neat items, including the following:

*One of the finest known 1854-O Quarter Eagles, graded MS63 by PCGS *A rare and choice 1798 half eagle in an NGC MS62 holder *A lovely, fresh 1840-D half eagle graded MS60 by NGC *The nicest 1884-CC double eagle I have owned in years, graded MS62 by PCGS *An interesting selection of affordable C+D mint coinage in EF and AU grades

All of these coins have been described and imaged and are on my website just waiting to go to nice new homes. Please visit me at www.raregoldcoins.com and look for the inventory that is marked “new.”