America's Forgotten Rarities: The 1863 Eagle

Beginning with this article, I'm going to focus, from time to time, on issues that I regard as "forgotten rarities." These are coins that are truly rare but which, for a variety of reasons, do not get the fanfare that they deserve. I plan on featuring a selected gold rarity once every month or so. The first issue that I want to discuss is the 1863 eagle. I'm going to try to avoid "condition rarity" issues in this series. In other words, I'm featuring coins that are rare in the most absolute sense of the word. And I think the 1863 eagle has this concept of rarity absolutely nailed.

There were only 1,218 eagles produced at the Philadelphia mint in 1863. For all denominations other than the double eagle, mintages were extremely low this year, which makes sense given the economic conditions of the Civil War (at the beginning of the year it was still not readily known if the Union forces would prevail). The low mintage of this issue, combined with a generally low survival rate for gold coins of this era, meant that the 1863 eagle was a rarity from the time it was struck.

I regard the 1863 as the third rarest business strike issue in this entire series, trailing only the 1875 and the 1864-S. I believe that there are around 30-35 known in all grades. As of March 2010, the combined total of coins graded at PCGS and NGC was 37 but this figure is clearly inflated by resubmissions; NGC, as an example, shows eight coins alone in AU58.

The surviving examples tend to be in the VF-EF grade range. Eagles of this era were clearly used in commerce and those that were not later melted tend to show numerous abrasions and signs of rough handling. I can't recall having seen more than three to five 1863 eagles that had original color and reasonably clean surfaces. Many have been cleaned or processed and properly graded AU examples are very rare.

Since 2000, there have been only six auction records for 1863 eagles that have not been damaged, harshly cleaned or ungradable by PCGS and NGC. The most recent record of note was Heritage 1/05: 30496, graded AU58 by NGC, that realized $28,750. This coin was not choice for the grade, in my opinion, yet it was still a bargain given its rarity and comparatively high degree of preservation.

The finest known 1863 eagle is a coin that has been graded MS63 by both PCGS and NGC and it appears in both firms population reports as such. The coin was last sold as Bass IV: 683 for $52,900 in 2000. Harry Bass purchased it out of the 8/91 Mid American sale where he paid a then-strong $104,500. It is one of the very few coins in the Bass collection that was sold at a significant loss and, in retrospect, it was one of the single best values in any of the four Bass sales conducted between 1999 and 2000.

There is a second Uncirculated 1863 eagle. It has been graded MS62 by NGC and it was uncovered in the treasure of the S.S Republic.

The valuation of the 1863 eagle is way off the mark, in my opinion. The most recent Trends shows values of $9,000 in EF40, $12,000 in EF45, $17,500 in AU50, $25,000 in AU55 and $32,500 in AU58. Given the paucity of recent trades, it is hard to state with certainty exactly what this issue is worth. But it seems to me that $12,000 for an EF45 example of a coin as rare as this is very good value, especially when compared to other less rare eagles of this era.

One of the ways that I can determine the true rarity of a coin is by how many that I have handled in the last few years. After checking my records, I see that I have not handled an 1863 eagle since 2005 and I've only had a total of two in the last dozen years. Considering the fact that I've handled probably a dozen 1870-CC eagles in the last decade (if not more), this shows me that the 1863 eagle is an incredible rarity.

I'd love your suggestions about which gold coins are "forgotten rarities." If you have any suggestions for future pieces in this series please email them to me at dwn@ont.com.

The 1883-O Eagle Becomes Trendy (and Spendy...)

With little fanfare, the 1883-O eagle has become the coin du jour in the rare date gold market. This rare date, which for years was a cult item that was seemingly overlooked by all except for a small cadre of specialists, is suddenly a coin that is bringing big bucks. What’s behind the 83-O buzz? Let’s back up a bit and discuss some background about this issue. The 1883-O is the rarest New Orleans eagle with an original mintage of a ridiculously low 800. In my recent book on New Orleans gold, I estimate that there are three to four dozen known. This includes a single coin in Uncirculated (an NGC MS61 that I sold a few years ago) and perhaps a dozen that grade About Uncirculated.

For many years, the 1883-O eagle had sold for $10,000 to $15,000 in Extremely Fine grades when it was available. I do remember the Eliasberg coin (graded EF45 by PCGS) selling via private treaty around four years ago for $20,000 and saying at the time: “Man, that’s a lot of money for that coin!”

Things started to change for this date in the early part of 2009. The Heritage 2/09 coin, graded EF45 by PCGS, sold for an exceptional $29,388. I can remember right after the sale, a client of mine, who I had sold a lovely NGC AU58 example to a few years earlier for not much more money, said “Guess I got a good deal, no?”

Then came the Heritage 9/09: 1667 coin. It was graded NGC AU50 by NGC and, in my opinion, it wasn’t an especially nice piece for the grade. It sold for $43,125. After this lot hammered, I was really intrigued by the new levels and anxiously awaited the next auction appearance for the 1883-O eagle.

I didn’t have to wait long. The recently concluded 2010 FUN sale contained an example graded EF45 by PCGS. This coin was nice and original but (and this is a large but...) the obverse was covered with discoloration from impurities in the planchet. This was a coin that not everyone was going to like and I wondered if we’d see prices revert back to their pre-2009 level.

It sold for $25,875. Trends remains stuck at $15,000. So what gives?

I attribute the rise in prices to a few things.

1) When my book on New Orleans gold came out a few years ago, more people learned about this date’s rarity. The new information clearly drove up demand.

2) Liberty Head eagles have quietly become a popular area for collectors in the past few years. Many non-specialists are not aware of this but there are a number of new collectors building sets in this series.

3) It has become more market-acceptable to buy truly rare coins and you can’t argue with an issue that has an original mintage of fewer than 1,000.

4) Once the bar was raised in 2009 for this date, it became impossible to buy the 1883-O at old levels. In other words, the person who was brave enough to pay nearly thirty grand for an EF45 in the Heritage 2/09 sale made it numismatically acceptable for everyone else to pay close to this amount (or more in some cases) down the line. In a thinly-traded market, sometimes all it takes is one impressive auction result to make the market double or triple literally overnight.

The moral of the story? If you see other truly rare coins like the 1883-O eagle that are clearly undervalued but have compelling reasons to appreciate in value down the road, be a pathfinder/trailblazer and jump in before the masses follow.

Collecting $10 Liberty Head Gold Coins

If you have deep pockets and lots of patience, assembling a set of $10 Liberty Head gold is one of the greatest challenges in all of U.S. numismatics. Even if you are lucky as far as locating the rarities in this series, you are looking at a $1-3 million commitment of funds and a time frame that should last at least three to six years; if not more. I once asked a $10 Lib specialist how he came to choose his set. To paraphrase his answer, he replied something along these lines: “gold dollars were too small, quarter eagles were too monotonous, three dollars and five dollars were incompletable (due to the 1870-S three and the 1854-S five) and double eagles were overpriced. That left the ten lib series...”

It’s hard to argue with brilliant logic like that. And there are a few more points to add. First, the coins are underpriced. As an example, there are a slew of issues that are really cheap (right now) when compared to coins like $10 Indians or Saints or even Liberty Head double eagles. The second is that these coins are big and contain nearly half an ounce of gold. So every time you buy a “boring” common later date issue you are still accumulating a nice chunk of this precious metal. Thirdly, you don’t (currently) have a huge number of collectors competing against you which means that if a rare undervalued coin comes up for sale, you just might be able to buy it very reasonably.

If I were a collector just beginning this series there are a few things that I would do right away.

The first is choosing a great dealer to work with you. Yes, this is a self-serving comment and yes I think I’m the right man for the job. That said, this is a long, complicated series that involves a lot of coin knowledge and good decision making. You can’t assemble a good set of $10 Libs with a mediocre dealer guiding you and you surely can’t do it on your own.

Secondly, I would set parameters for my set even before I began. I would draft a list that included every date in the series and make a decision what grade range I’d want for each date. The most common mistake that collectors make is that they overspend on the common issues and underspend on the keys. I would avoid paying big premiums for uninteresting dates in very high grades but I would make it a point to make the real rarities in the set as nice as possible.

As you can probably guess, I’d also stress learning what a choice, original $10 Lib looks like and sticking with that “look” throughout your set. It’s amazing how rare many of these coins are with choice, original surfaces. Let me give you an example. Take a seemingly uninteresting date like the 1868. PCGS has graded 116 as of September 2009 but only forty-one are in AU50 or better. Let assume that out of these forty-one there are a bunch of resubmissions and the actual number is around 25-30 distinct coins. Most are going to be dipped, heavily abraded unnatural examples that barely make the grade. I’m guessing that there are fewer than ten 1868 eagles known that would qualify as “choice and original” and which would be high enough grade-wise for an important set of $10 Libs. So, this seemingly mundane issue suddenly becomes a challenge to find. And this holds true for many dates throughout the series.

The complaint I hear from some collectors about the $10 Lib series is that it’s “too long.” Here’s a point to consider. It’s no more “long” than the Lincoln Cent series and I haven’t heard too many collectors complaining about Lincolns being uncollectable due to length. And this isn’t even beginning to consider all of the new die varieties that have crept into the Lincoln Cent set and are now “required” to make a set competitive in the Registry.

I’ve also heard collectors state that this series is “too hard” to collect. I actually don’t think this is true at all. If you want to assemble a complete set in Uncirculated, yes it is too hard (in fact, it’s impossible...). But if you want to do a set in VF-EF grades or even in AU and Mint State grades it is completable.

What are the stoppers to this set? The rarest $10 Lib is the 1875 which has as few as 6-8 business strikes known. In the last two decades I’ve only handled a single example and I am aware of a whopping three pieces having traded since the late 1980’s. The 1864-S is another very rare coin but it does come around a bit more frequently than the 1875. After this, there are dates like the 1844, 1863, 1873, 1876 and 1877 that are really rare but which are certainly attainable.

I was discussing the $10 Lib series with another dealer the other day and we came up with an interesting conclusion. If one serious collector started a set each year for the next five year, the entire supply/demand demand ratio of this series would be dramatically changed. And if a good book about the series were to be published in the next few years...well, all bets could be off.

The New Orleans With Motto Eagle "Short Set"

One of the most interesting and completable sets for the beginning branch mint gold collector is the short set of With Motto New Orleans eagles. This set features the New Orleans eagles produced from 1888 through 1906. In all, there eleven issues in this set. A set in the lower Uncirculated grades could be assembled for less than $10,000. Unlike the No Motto eagles produced at the New Orleans mint from 1841 through 1860, the With Motto issues tended not to readily circulate. This is especially true with the issues from 1888 onwards. Many dates are virtually unknown in grades below AU55 and significant numbers have been located in Europe where they were sent a century ago to pay down foreign trade debts. These “Euro” coins have a distinctive dirty-gold appearance (if they haven’t been dipped) and are typically in the MS60 to MS62 range as a result of rough handling and subsequent abrasions on the surfaces.

In the AU55 to MS60 range, many issues sell for just a very small premium over generic With Motto eagles from this era. This makes these dates very good value, in my opinion, as they are many, many times scarcer than generics and have the added advantage of coming from the highly collectible and historically significant New Orleans mint.

What appeals to many collectors is the fact that the Short Set With Motto New Orleans eagles are legitimately scarce but they are not “too rare” like their No Motto counterparts. The No Motto eagles from New Orleans include a number of rare and expensive issues and even the most common dates are quite rare (and highly priced) in any Uncirculated grade. Even the two hardest Short Set dates (the 1897-O and the 1899-O) can be found in the lowest Uncirculated grades for less than $1,000-1,500.

A few of the Short Set dates can be found in grades up to and including MS63 and these dates (namely the 1901-O, 1903-O and 1904-O) are reasonably affordable even in this comparatively high grade. All eagles from New Orleans become rare in MS64 and Gems (MS65 and above) are very rare. Some of the dates in this series are virtually unknown above MS63; see the date-by-date listings below for more information.

Let’s take a brief look at each of the eleven dates in the Short Set:

1888-O: Until a few decades ago the 1888-O was quite rare in Uncirculated but today it is easily located in grades up to and including MS62. Properly graded MS63’s are scarce and I am not aware of an example finer than this.

1892-O: This is one of the more available New Orleans eagles from the 1890’s. It is usually seen in AU55 to MS61 and it is somewhat scarce in MS62. Properly graded MS63 examples are extremely rare and I only know of one or two.

1893-O: A formerly scarce date that has become the most available New Orleans eagle from the 19th century due to overseas hoards. It is common in grades up to and including MS62 but properly graded MS63’s are quite scarce. I have never seen or heard of one above MS63.

1894-O: Despite a mintage that is greater than the previous three issues combined, the 1894-O is much scarcer. It is a reasonably scarce coin in properly graded MS62 and it is rare in MS63. There are a few very choice pieces known including at least one Gem (ex ANR 9/05: 1319 @ $21,850).

1895-O: The 1895-O is similar to the 1892-O in terms of rarity and availability. It is sometimes available in MS62 but it is very scarce in MS63. I only know of one with claims to a higher grade (ex Heritage 8/06: 2038 @ $18,400).

1897-O: This is the second scarcest date in the set although it is far more available in very high grades (MS64 and above) than the 1888-O, 1892-O, 1893-O and 1895-O. The “look” of the 1897-O tends to be different from the early dates as well and examples can be found without abundant marks. I know of at least three Gems including the Eliasberg coin which is graded MS67 by PCGS.

1899-O: The 1899-O has proven to be the scarcest date in the Short Set and after years of neglect, prices have risen accordingly. It is scarce in properly graded MS62, rare in MS63 and very rare above this. There is an amazing PCGS MS68 that is ex Eliasberg and it is the single finest New Orleans gold coin of any date or denomination.

1901-O: Beginning with this issue, the next few New Orleans eagles are comparatively common. The 1901-O can be found in grades up to and including MS63. It is very scarce in MS64 and extremely rare in Gem. In my experience, nice examples of the 1901-O are much harder to locate than the 1903-O and the 1904-O.

1903-O: This is the most common New Orleans and it has the highest mintage figure (112,771) of any With Motto eagle from this mint. It can be found in grades up to and including MS63 without much difficulty and MS64’s are sometimes available. In MS 65 and above it is very rare.

1904-O: The 1904-O is the second most available date in this set. Like the 1903-O, it is reasonably available in grades as high as MS63. In MS64 it is very scarce and Gems are very rare with around six to eight accounted for. This includes one graded MS68 by NGC (ex Eliasberg and later sold in Auction ’89 where it brought $104,500) and another graded MS67 by PCGS (last sold as Heritage 1/05: 30059 @ $63,250).

1906-O: This last year of issue has proven to be a real “sleeper” in the Short Set. It has often been lumped with the other 20th century issues but it is quite a bit scarcer, especially in MS63 and above. I know of six or seven Gems including at least two graded MS66 by PCGS.

As I mentioned above, I think this set is perfect for beginning collectors. It is challenging without being overwhelming and it allows collectors on a somewhat limited budget to buy relatively high grade, interesting large-sized U.S. gold coins at reasonable levels.

No Motto Philadelphia Half Eagles and Eagles: A New-Found Appreciation

A few months ago, I decided to start focusing more on No Motto half eagles and eagles from the Philadelphia mint than I had in the past. Formerly, I had sort of pooh-poohed these coins as being “boring” but the more I’ve studied these series, the more I think they may be one of the true Final Frontiers of the rare date gold market. As a buyer, one of my major criteria for making a purchase is the fundamental rarity of a coin. By this, I am referring to the availability of a coin in all grades. Virtually all Charlotte and Dahlonega gold has a good degree of fundamental rarity, meaning that a specific issue is hard to locate in any grade, not just in Gem. This isn’t the case with No Motto Philadelphia half eagles and eagles. Or is it?

The more I began to study these two series, the more I realized that many of the issues that I formerly thought were common in circulated grades were just not as available as I presumed. Let’s say that I decided that I was going to promote Philadelphia eagles from the 1840’s in AU grades. If these coins were as available as I had felt, I probably would be able to accumulate fifty or even a hundred coins over the course of a six month period; certainly enough to make the promotion worthwhile.

You can probably guess where this is going. I did make a decision to do this very promotion and after searching for nice, crusty coins in the AU55 to AU58 range I was able to come up with exactly eight pieces. And this is after five months of pretty intensive searching. Given the fact that my per-coin cost basis was in the $1,000 range, I became more and more intrigued. Clearly, my epic promotion wasn’t going to happen. But in the course of planning it, I became smitten by No Motto half eagles and eagles from the Philadelphia mint.

Let me give you a couple of reasons why I think these coins are interesting:

1. There are no true “stoppers.” Virtually every branch mint series has a few issues that are extremely rare and expensive. In the Philadelphia No Motto half eagles from the 1840’s and the 1850’s, there are no impossible coins. In fact, with the exception of a small number of coins (1842 Small Letters half eagle, 1858 eagle) nearly all of the issues can be found in either the very high circulated grades or even in Uncirculated.

2. The per-coin cost basis in these series is far lower than for branch mint issues. If you want to collect Dahlonega half eagles in AU grades, every coin you buy is going to cost at least $3,000-4,000. You can purchase many of the more available Philadelphia half eagles for around $1,000 per coin and many of the eagles are $1,250-1,500 each in very presentable condition.

3. For someone like myself who loves choice, original coins there are a lot more nice Philadelphia half eagles and eagles available than branch mint pieces. Because of the fact that there is a big value spread for the branch mint issues between EF45 and AU55 (or even AU55 and MS61) there is tremendous financial motivation to scrub original coins. Many dealers have made a career out of taking an AU50 Charlotte quarter eagle that they bought for $3,000, processing it, getting the coin into an AU55 or AU58 holder and selling it for $5,000, $6,000 or even more. The financial motivation to destroy a nice, original AU55 Philadelphia half eagle is currently not that great and, ironically, a greater percentage of the coins remain intact.

4. Since very few people currently collect these coins, you have less competition and an easier shot to buy the nice pieces without having to pay nutty money.

So does this blog signal an end to my love affair with branch mint gold issues? Hardly. I still am a strong buyer of all nice Carson City, Charlotte, Dahlonega and New Orleans gold coins (from dollars through double eagles) and will continue to be so as long as I am a professional numismatist. But I’ve become much more appreciative of No Motto Philadelphia half eagles and eagles and you will see more of them appear for sale on my website in the future. Will I write a book on them? Probably not. I will, however, probably write in-depth features in my monthly web articles that discuss these coins on a date-by-date basis.

12 Great Values in the Rare Date Gold Market Priced Below $5,000 Part Two: Eagles and Double Eagles

In the first part of this article, I discussed gold dollars, quarter eagles, three dollar gold pieces and half eagles priced below $5,000 that I felt were good values. In the second part, I am going to continue the same format but focus on eagles and double eagles. Given the popularity and high bullion value of these two denominations, you’d think that eagles and double eagles didn’t offer collectors in the $5,000 and under range many good values. This is far from the case. The eagle denomination contains so many exceptional values that I easily could have chosen over a dozen from the Liberty Head type alone. And there are a number of double eagles that are great values as well.

1. 1838 Eagle in VF and EF Grades

If you have a $5,000 and under budget, you won’t have a lot of opportunities to purchase an 1838 eagle. But if you can stretch your budget a bit and you have a chance to acquire a decent-looking example in a third-party holder, I would strongly encourage you to go for it. I absolutely love this issue. It is the first Liberty Head eagle and it has a low mintage figure of just 7,200. I’ve mentioned before that Trends values for this issue are absurdly low. As an example, the current values for an EF40 and EF45 1838 eagle are $2,900 and $4,025, respectively. This date is worth at least double in these grades but I still think it is a good value, given its historic significance and strong collector demand.

2. 1844 Eagle in EF

Since Philadelphia eagles from this era are not avidly collected by date, the 1844 is an issue that does not get a lot of respect. It is actually among the scarcest No Motto eagles. As of December 2008, PCGS had only recorded twenty-seven examples in all grades (including fifteen in EF) while NGC had recorded thirty-eight in all grades (including fourteen in EF). Allowing for resubmissions, I would estimate that there are around a dozen distinct third-party graded EF examples of the 1844 eagle. Heritage shows just three EF’s in their archives sold since 2000 and I have only handled two EF examples in this last decade. This date is still within reach of most collectors, despite its unquestionable rarity. Trends for an EF40 is $3,000 while an EF45 has a suggested value of $4,000. Were this a more popular series, I could easily see an EF 1844 eagle being worth $6,000-8,000.

3. Common Date No Motto Eagles in AU58

Properly graded, cosmetically appealing common date No Motto eagles from the 1840’s and 1850’s are far less available than one might assume, given current population figures. Let’s look at a random date—the 1851—as an example. As of December 2008, PCGS had graded a whopping two (!) in AU58 while NGC had graded forty-nine (including fifteen from the S.S. Republic). Now let’s assume that the thirty-four non-shipwreck AU58’s from NGC include a number of resubmissions as well as some coins that are not nice for the grade. This may leave us with as few as ten or so properly graded AU58’s. Trends for an 1851 eagle in this grade is just $2,500. So, I would contend that an 1851 eagle in nice AU58 at anywhere close to $2,500 is a fantastic bargain. The same holds true with other supposedly common dates like the 1847, 1848, 1850 Large Date, 1854, 1855, 1859 and 1860.

4. 1852-O Eagle in EF

If you have a budget of $5,000 and less per coin, you can get a lot of bang for your buck(s) in the area of New Orleans eagles. Many of the scarcer dates from the 1840’s and 1850’s are pricey in About Uncirculated but are very affordable in Extremely Fine. One of my favorite issues is the 1852-O. I rank this as the fifth rarest No Motto eagle from this mint (it is tied with the 1855-O and 1856-O) and there are probably fewer than 100 known from the original mintage of 18,000. The current Trends values for the 1852-O in EF40 and EF45 are $1,100 and $2,500. I’m guessing that you’ll have to pay more than this for nice, properly graded pieces but the fact that you can buy a very presentable example of this legitimately rare date for less $2,000 makes it an exceptional value, in my opinion.

5. 1855-O Eagle in EF

Another No Motto New Orleans eagle that I think offers the collector a lot of value is the 1855-O. This date is similar in overall rarity to the 1852-O. In fact, the mintage is identical with just 18,000 produced. What I like about the 1855-O is that while it is genuinely scarce in EF grades, it is not impossible to find. Looking through my records over the last five years, I have bought and sold six of them in EF (two in EF40 and four in EF45) and I have never sold an EF for more than $3,250. If this is a coin that interests you, I’d suggest that you look for a piece that has nice original color and surfaces. Strike is not an important factor on this date but eye appeal is and I would always pay a premium for a good looking example.

As an FYI, I would add the 1846-O, 1848-O, 1850-O, 1856-O and 1857-O as other No Motto New Orleans eagles in EF that are affordable but quite scarce.

6. Low Grade 1863 or 1864-S Eagles

These are two of the absolutely rarest dates in the entire Liberty Head eagle series. The 1863 has an original mintage of just 1,248 business strikes while the 1864-S has a mintage of 2,500. The 1863 has a Trends value of just $4,500 in VF while the 1864-S has a Trends value of $5,500 in VF. That’s the good news. The bad news is that you are going to have a pretty tough time finding an affordable example of either date. PCGS has graded just five 1863 eagles in VF and lower grades and just six of the 1864-S in this range. But if you are patient and keep the funds available, these coins do exist and they, in theory, should be available. I generally do not like gold coins in grades below EF but I would make an exception for either of these. In fact, I’d even buy an 1863 or an 1864-S that had been lightly cleaned.

7. 1872 Eagle

Here’s another really rare coin that won’t appeal to everyone who reads this article. Some collectors prefer higher grade coins and they are going to spend their $5,000 budget on a coin (or coins) that are Mint State or thereabouts. Others appreciate true rarity and will like coins like the 1872 eagle. This issue has a mintage of just 1,620 business strikes and a surviving population of three dozen or so. Unlike some of the other dates from this era, the 1872 is sometimes seen in higher grades and I know of two or three Uncirculated examples including a PCGS MS64. So what does five grand buy you in regards to this date? Heritage 6/08: 2150, a nice PCGS VF25 in an old green label holder, brought $4,313. If you are patient you should be able to buy a very presentable VF for around the same price.

8. 1915-S Eagle, MS62

A few years ago, there was a large spread in values between many of the rare date Indian Head eagles in MS62 and MS63. The reason for this was simple: there was a significant difference in visual quality between an MS62 and an MS63. Today, this is not really the case and many collectors have a hard time telling the difference between an MS62 and MS63. Because of this fact, the value spread between these two grades has shrunk. On a percentage basis, the greatest difference between these two grades is seen on the 1915-S. In MS62, a nice example is worth $7,000 or so. In MS63, the price jumps to $15,000+. In my opinion, a nice MS62 is a good value, especially if the coin has a CAC sticker.

9. 1854-S Double Eagle in EF

Unless you are a Type One double eagle specialist, you probably are not aware of the fact that the 1854-S is a scarce and much undervalued issue in all grades. What is confusing about this date is its relative availability in the lower Uncirculated grades as a result of a few small groups found in shipwrecks a few years ago. In circulated grades, however, the 1854-S is a really scarce issue, especially with original surfaces. Another important factor about this date is its strong historic significance. It is, of course, the very first double eagle produced at the San Francisco mint and it has strong Gold Rush association as a result. Trends for an EF40 is just $2,800 while an EF45 is $4,000. I believe that an attractive EF example at anything close to these levels is a great value.

10. 1855, 1856, 1857 and 1858 Double Eagles in AU

I have been a big fan of these four dates for many years. They are probably the most common coins that I have discussed so far in this article but “rarity” is a relative term and they are part of the very popular Type One double eagle series. If you look at a coin like an 1855 in AU58 and compare it to an 1851-O or an 1852-O in a similar grade, you’ll be impressed. As of December 2008, PCGS had graded twenty-one in AU58 as well as another fourteen higher. The figures for the 1852-O are thirty in AU58 with a dozen better. According to these numbers, the 1855 is certainly in the same league as the 1852-O. But look at the Trends values: the 1855 is $5,500 in AU58 while the 1852-O is $20,000. Now granted that the 1852-O is more popular and it is a branch mint coin. Is it worth nearly four times more, though? If I were a collector of double eagles, I’d want to put together a nice little date run of these four Philadelphia issues in AU58 while they were still affordable.

11. 1868 Double Eagle in AU

I first learned about the 1868 double eagle back in the 1980’s when you could buy a really nice example for less than $1,000. This is obviously not the case today but the 1868 remains the best value in the entire Type Two double eagle series. This date is reasonably available in EF grades but it becomes scarce in the medium AU range and it is quite rare in Uncirculated. Today, a nice AU55 can be bought for around $5,000. Given the fact that the Type Two double eagle series is currently out of favor, I think the opportunity factor for this date hasn’t been this good in a few years. When Type Two double eagles become popular again (and I can pretty much guarantee you they will...) I can see the price of the 1868 rising appreciably.

12. CAC Approved Slightly Better Date Double Eagles in MS64

The market for slightly better dates Saints is pretty interesting right now. Due to a number of factors, dates that formerly had a Market Premium Factor of 10-20% can be purchased for little or no premium over a common date. When the market for these coins becomes less out of whack, I would expect them to regain much of their old pricing premium. The key to buying these dates is holding out for solid coins for the grade and this is why I think paying a premium for CAC examples makes sense. The dates that I like most in MS64 are the 1907 No Motto, 1908-D, 1909-S, 1910, 1910-D, 1911-S, 1913-D, 1914-D and 1922. Not all of these can be bought for common date levels (and you are going to have to pay a premium for a nice CAC coin) but if you do some basic research you will note that a number of these can be bought at nice discounts relative to their highs in 2007/2008.

This was a hard article to write as I could have easily mentioned another dozen issues that I thought were good value at the sub-$5,000 level. Something that many new collectors do not realize is that interesting gold coins do not necessarily have to be “expensive” and that you do not have to be a rich person to put together a fine collection of U.S. gold.

A Secret Hoard of No Motto Liberty Head Eagles Revealed

With little fanfare, an important group of half eagles and eagles were sold at the recent Heritage Long Beach auction. I was intrigued by the source of this group of coins and since the Heritage catalog had nothing about their origin, I decided to do a little digging. What I found out is extremely interesting for any collector of No Motto Liberty Head gold. The coins that initially got me intrigued were a small group of eagles produced between 1844 and 1847. The two coins that I thought were especially interesting were an 1846 eagle graded MS62 by NGC (Lot 3852) and an 1846-O eagle graded MS62 by NGC (lot 3858). I am pretty aware of all the high grade examples of these two dates and the two coins in the Heritage sale were unknown to me.

But what really got my interest were some of the secondary coins surrounding these two eagles. Lot 3851 in the Heritage sale was another 1846 eagle. This would also have graded MS62 except for the fact that it had hairlines from a cleaning and also a slight “environmental damage” sort of appearance which, in my opinion, looked liked the result of having been buried at one time. Another odd coin appeared as Lot 3857. This was an 1846-O eagle that had the sharpness and details of an MS62 but which had a dull and very grainy reverse with a very “ED” appearance.

My first reaction was that these coins might have been from shipwreck; specifically from the S.S. New York which contained some high quality gold from this era. But why, I asked myself, would coins from this wreck not be packaged in the special NGC holder that designated these coins as being from the shipwreck? After all, the recent Stack’s 7/08 sale of these coins had conclusively proven that the S.S. New York pedigree added considerable value.

The answer to the mystery was solved when I looked at Lot 3851 in the Heritage sale. This was an 1846 eagle with Uncirculated details but which had reverse rim damage at 2:00. When I saw this damage I thought “backhoe.” And when I thought “backhoe damage” I thought “Jackson, Tennessee hoard.”

Let me explain. Back around 1984-85, while a parking lot was being excavated in the little town of Jackson, Tennessee, a sizable hoard of gold coins was uncovered by workers. Upon the discovery of these coins there was a literal feeding frenzy and dozens of workers ran off with “loot” in their pockets. Because of this fact, there has never been a full inventory of what was in this hoard but as far as I know, there were Philadelphia, Charlotte, Dahlonega and New Orleans coins ranging from around 1843 to as late as 1858.

I have personally owned dozens of coins from this hoard. And once you’ve seen a Jackson, Tennessee coin, it is fairly easy to identify. Most of the coins from this group show some signs of environmental damage; probably from iron oxides in the earth which have attacked the gold in the two centuries in which they were buried.

The quality of the coins in this group has also ranged from the spectacular (the two finest known Dahlonega gold dollars of any date) to the average (a group of 1853 Philadelphia quarter eagles in EF/AU grades that were attractive if not terribly impressive). The eagles (and half eagles) in the Heritage sale from the Jackson hoard seem to fall within the parameters of grade and appearance of coins from this group.

So what coins from Jackson were in the group? As far as I can tell, they included the following:

• Lot 3649, 1844-O Half Eagle, NGC MS62. NGC #3165682-005

• Lot 3651, 1845 Half Eagle, NGC MS62. NGC #3165682-007

• Lot 3653, 1846 Half Eagle (Large Date variety), NGC MS62. NGC #3165682-009

• Lot 3655, 1846 Half Eagle (Large Date variety), NGC MS63. NGC #3165682-010

• Lot 3656, 1846 Half Eagle (Small Date variety), NGC AU58. NGC #3165682-008

• Lot 3658, 1846-D/D Half Eagle, NGC MS62. NGC #3165682-011

• Lot 3850, 1844-O Eagle, NGC MS60. NGC #3165682-012

• Lot 3851, 1846 Eagle, NCS "Uncirculated details"

• Lot 3852, 1846 Eagle, NGC MS62. NGC 3165683-002

• Lot 3857, 1846/5-O (sic) Eagle, NCS "Uncirculated details"

• Lot 3858, 1846-O Eagle, NGC MS62. NGC #3165683-005

This list is interesting for a number of reasons. First of all, it is clear to note that the coins were submitted in consecutive order on at least two different invoices. And given the numbers of the invoices (the “316” series) I know that they were submitted by Heritage and not by the consignor(s).

Even more interesting is the fact that the next Heritage auction (October 2008 in Dallas) is going to have still more coins from this deal including another 1846 eagle in MS62 (NGC #3165683-001) and an 1846-O graded AU58 by NGC (#3165683-004). There are also high grade but damaged examples of the 1845-O eagle (with reverse rim damage) and the 1846-O eagle (reverse scratches).

It will be very interesting to monitor how many more of these half eagles and eagles appear at auction in the coming months. If I were a collector of Condition census quality No Motto gold, I would watch these offerings very carefully to make certain that the populations of many currently-rare issues such as the 1846 and 1846-O eagles do not take large upward jumps.

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 1838 Eagle

One of my absolute favorite United States gold coins is the 1838 eagle. Here are some impressions I’d like to share about this fascinating issue. The ten dollar gold denomination was abolished in 1805, along with the silver dollar denomination. I’ve read in various coin books that the reason for this was “extensive melting by bullion dealers.” I’m a bit skeptical about this as a reason and would personally think that for Eagles, the reason had to do more with a lack of demand and/or available gold bullion.

After a thirty-four year hiatus, the eagle denomination was resurrected in 1838 and the task of designing the new coin fell to Christian Gobrecht. The new design featured a bust of Liberty facing left on the obverse and an eagle on the reverse. Liberty’s neck on the 1838 eagles is distinctly curved and the back of the neck ends in a curious, abrupt triangle. Another identifying factor is strands of hair over the ear which are swept-back in appearance and which cover much of the ear. The portrait is positioned quite a bit differently than on other Liberty head eagles. On the 1838 (and some of the 1839), the tip of the coronet is placed below the outside of the sixth star while the back of the neck is below the outside of the thirteenth star. On the later issues, the tip of the coronet is placed between the fifth and sixth stars while the back of the neck is located past the inside of the thirteenth star.

In 1838, only 7,200 eagles were struck. I estimate that 50-75 are known today and break these down as follows:

Very Fine and below................15-25

Extremely Fine.....................23-31

About Uncirculated.................10-15

Uncirculated........................2-4

Most examples of this date grade VF30 to EF40 and show clear evidence of considerable circulation. The surfaces are generally very heavily abraded with clusters of marks seen most often in the left obverse field. This issue has better luster than one might expect and higher grade pieces are sometimes quite reflective. Most show enough wear, however, that the luster is considerably impaired. The natural coloration tends to be a medium to deep greenish-gold hue. I have not seen many examples that have original color as most have been dipped or cleaned at one time. The strike tends to be reasonably sharp with good overall detail at the centers; some examples have weakness on the radial lines of the stars.

The 1838 eagle is scarce in all grades and it becomes truly rare in properly graded AU50 or better. Most AU examples are in the low end of this range and a solid AU55 to AU58 is very rare and extremely desirable. I have personally seen only a handful of nice examples in the last few years, the best of which is a PCGS MS63 that sold for $63,250 in the April 2002 Heritage auction.

There are also three Proofs known. One is in the Smithsonian and it grades PR63, one is in a private collection (ex: Cardinal Spellman) and is graded PR65 by PCGS and the final example is also graded PR65 by PCGS and is ex: Pittman. This coin last sold for $550,000 in 1998 and it would sell for considerably more than this if made available.

Pricing for the 1838 eagle is currently very inaccurate. Coin World Trends shows values for this date at $2,900 in EF40, $4,025 in EF-45, $6,250 in AU50 and $11,000 in AU55. If you can purchase a problem-free 1838 eagle in these grades for prices anywhere near these levels, you’ve found yourself an incredible bargain. I’ve noticed that in the last few years, lower and medium grade examples that have been offered for sale at auction have brought levels far, far greater than Trends.

So what is it exactly about this issue that I found so intriguing? I can think of a number of reasons. It is a first-year-of-issue coin and the first Eagle to be struck after the denomination was resurrected after a three-and-a-half decade hiatus. It is a low mintage coin that is scarce in all grades and very rare in higher grades. It is a unique and very different design that was used on this denomination for just two years. And last but not least, it is exceptionally undervalued at current price levels.