Which Gold Coins Are Popular and Why: Part One

A question that I am often asked by new collectors is "which gold coins are popular?" I think this is a great question and one certainly deserving of a blog. I'm going to not only answer this question for each denomination, I'm going to give a few reasons why I think certain coins/types are or are not popular. I. Gold Dollars

People tend to be in one of two camps when it comes to gold dollars: they either love them or they hate them. This is mainly due to these coins small size. I am clearly in the "love 'em" camp and have, over the years, handled many finest known and Condition Census pieces.

In my experience, the most popular gold dollars are the Dahlonega issues. Produced from 1849 through 1861, they are very collectible and a number of the issues are quite affordable. The most popular is the 1861-D which, at this point in time, is the single most popular gold dollar of any date. This is clearly due to this coins historic significance.

At one time, the Type Two issues were extremely popular with date collectors. But the values of the 1854 and 1855 Philadelphia issues have dropped considerably in recent years. At the same time, the branch mint issues of this design (1855-O, 1855-C, 1855-D and 1856-S) have become exceedingly popular.

Type Three gold dollars tend to be overlooked but offer the collector a number of very good values. The best known--and most popular--issue is the ultra-low mintage 1875.

II. Quarter Eagles

As a denomination, quarter eagles are fairly popular and they are clearly increasing in popularity each year.

The pre-1834 issues are all rare. They are not as popular as the half eagles and eagles of this era but there are a number of people who specialize in them and they are seldom overlooked when offered for sale. The most popular early dates are the 1796 No Stars and the 1808. Both are one-year types that have low original mintage figures.

The dates in the 1790's are always popular due to their historic significance and their overall rarity. I am personally a big fan of the Capped Head Left type produced from 1821 to 1827. There are only five dates, and these are hard to locate in all grades.

The Classic Head quarter eagles have become quite popular in the last few years and I expect that they will continue to grow in stature as more becomes known about them. The branch mint issues are the most popular. None of these is really rare (except in the upper Mint State grades) and collectors appreciate the unique positioning of the mintmark on the obverse. There are a total of ten Classic Head issues.

The Liberty Head quarter eagle series is popular as it is one of the few 19th century gold series that can actually be completed. There are a few rarities: the 1841, 1854-S and 1863 are all six-figure coins and many of the branch mint issues are very rare in Uncirculated.

In my experience, the most popular Liberty Head quarter eagles are the Dahlonega issues. The rarest is the 1856-D. None are common in higher grades but this series can be completed with time and patience and this makes it popular with specialists.

The San Francisco quarter eagles seem to be the least popular issues of this type; discounting, of course, the very rare 1854-S. I attribute this lack of popularity to the fact that there is no published reference work on San Francisco gold. These coins tend to be relatively available in lower grades but nearly all of the issues from the 1850's, 1860's and the early 1870's are very rare in Uncirculated.

The Indian Head quarter eagle series is probably the most familiar type of quarter eagle due to the availability of these coins. Unlike the 18th century issues, the Indian Head coins are readily available in higher grades.

For a number of years, this series was extremely popular due to an excellent promotional effort by one firm. This firm is no longer focusing as much attention on these coins and prices have dropped.

I personally like the design of the Indian Head quarter eagle and I find fresh, high grade examples to be very cosmetically appealing. But, to be honest, the availability of these coins make them a bit boring to me and I have never really found locating any of the dates to be enough of a challenge to get me interested.

III. Three Dollar Gold

The popularity of this odd denomination tends to ebb and flow. A few years, Threes were very popular with collectors. Today, they are not as popular and appear to be an excellent area for the contrarian.

My guess is that most people would agree with me that the 1854-D is, hands-down, the most popular issue in this series. It is the only Three from this mint and it has a small original mintage of 1,120. It is certainly the only date of this type that seems to have broad appeal outside of the realm of specialists.

The 1875 and 1876 are Proof-only issues that are rare and popular. But many three dollar collectors feel it is OK to exclude these from their set and focus exclusively on circulation strikes.

The ultimate three dollar is the 1870-S which is unique and housed in the ANA money museum in Colorado Springs. When and if this coin becomes available for sale, I would expect it to sell for a strong seven-figure price.

Some of the demand that was created for this denomination a few years ago was artificial as it was generated by telemarketers. I would expect that if a really nice specialized collection of three were to become available, new collectors would come back to this series and you'd see a more "pure" level of demand.

IV. Half Eagles

This denomination has incredible variety and breadth. Some collectors find it overwhelming while others appreciate the challenges afforded by the half eagle.

The early dates (pre-1834) are generally divided into two categories: the semi-affordable and the not-very-affordable. The Small Eagle coins from 1795 to 1798 include few of both. The most popular issue is the 1795 Small Eagle due to its status as the very first half eagle produced. It is can be found without a great effort.

The Heraldic Eagle type of 1795-1807 includes a number of great rarities but many of the issues (especially those struck after 1799) are available and surprisingly affordable. The Capped Bust Left type of 1807-1812 is very collectible and there are no "stopper" issues.

Almost nothing but "stoppers" can be found in the 1813-1829 Capped Head Left issues. The best known issue is the 1822 of which just three are known. Many of the other issues (like the 1815, 1819, 1821, 1825/4 and 1829 Large Date) are extremely rare and almost never offered for sale.

The reduced size Capped Head Left issues of 1829-1834 are also extremely rare, despite relatively high original mintage figures.

For many collectors, the earliest half eagles that they focus on are the Classic Heads of 1834-1838. I really like this series as it is short-lived, nicely designed and a nice bridge between the expensive "old gold" issues and the more ubiquitous Liberty Head coins. The two branch mint Classic Head half eagles (1838-C and 1838-D) are extremely popular but affordable and available in circulated grades.

Liberty Head half eagles are found with two types: the No Motto issues from 1839 through 1866 and the With Motto issues from 1866 to 1907.

No Motto half eagles range from not very popular to very popular. As one might expect, the most popular issues are those from the southern branch mints. The order of popularity seems to be Dahlonega solidly in the lead followed by New Orleans and lagged by Charlotte.

Branch mint No Motto half eagles tend to be seen usually in the Very Fine to Extremely Fine grades. Even the common dates tend to be hard to locate in properly graded About Uncirculated and all are scarce to rare in Uncirculated. I personally believe that there is some excellent value to be had with both the branch mint and Philadelphia No Motto issues, especially in higher grades.

The With Motto half eagles are less popular with collectors with one big exception: the Carson City issues that were produced from 1870 through 1893. The 1870-CC is far and away the most popular Carson City half eagle due to its status as the first year of issue from this mint.

There are a few very rare issues in the No Motto series including the 1875 and the 1887 but these tend to be somewhat overlooked due to the extreme availability of many of the post 1880 Philadelphia and San Francisco dates.

The final half eagle design is the attractive Indian Head made from 1908 to 1929. Despite this coin's beauty, it is probably the least popular of the four "modern" 20th century gold series. I'd say part of this lack of popularity has to do with the rarity of many Indian Head half eagles in high grades. Even the most common Philadelphia dates are scarce in MS64 and above and nearly all of the San Francisco issues are very rare to extremely rare in MS64 and above.

The most popular Indian Head half eagle is the 1909-O. It is well-regarded due to its status as the only Indian Head half eagle from New Orleans.

In part two of this article, we'll look at eagles and double eagles.

An Analysis of Values of Gem Three Dollar Gold Pieces: The Heritage 5/09 Sale of the American Princess Collection

In their recent May 2009 Central States auction, Heritage sold a number of very important high grade Three Dollar gold pieces. These were from the American Princess collection which, to the best of my knowledge, was one of the top collections of business strike Three Dollar gold pieces to ever be assembled. By looking at a few of these coins and analyzing the prices they sold for, we can get a better handle on the state-of-the market for very high grade Three Dollar gold.

Full disclosure notice: I sold a number of these to the owner of this collection between 2003 and 2006. I am familiar with the quality of the coins, the prices that he paid for them and their background. In the interest of confidentiality, I won’t mention what the consignor paid but will, instead, focus on what the coins sold for and try to place this within the context of what I expected them to bring in auction and how this relates to the current market.

1855, Graded MS66 by NGC. Sold as Lot 2681 by Heritage, this coin brought $40,250. There are two Superb 1855 Threes known: a PCGS MS66 in the Great Lakes Collection and the coin in the American Princess collection. This is the best 1855 that I have personally seen and I thought it had a good shot to cross as it was very fresh and had great eye appeal. The last auction record for a comparable example was in the 2000 ANA sale where an NGC MS66 (which I don’t think was this piece but am not certain if it isn’t the Great Lakes coin prior to crossing) sold for $25,875. With common date NGC MS66 three dollar gold pieces currently selling in the area of $25,000 I think that the American Princess coin brought a pretty strong price, all things considered.

1861, Graded MS67 by NGC. Sold as Lot 2685 by Heritage, this coin brought $51,750. This is the single highest graded 1861 three dollar seen by either service. It is certainly one of the best two I have seen. I don’t think the coin would have crossed to MS67 at PCGS but not as much because of the quality as the fact that PCGS just doesn’t like to cross MS67 gold coins. The best comparable was the PCGS MS66 sold as Heritage 1/05: 30639 at $46,000. I felt at the time that this MS66 1861 sold cheaply and it was, as I recall, a coin that was sold without reserve at around 3:30 in the morning after a Platinum Night sale that dragged on and on for what seemed an eternity. I thought that the 1861 in the Central States sale would bring in the area of $55,000 so in my opinion the buyer got a pretty good deal. If the coin does wind-up in a PCGS MS67, he got a great deal, as a “population one, none better” example of this scarcer issue could be worth as much as $75,000 to the right buyer.

1871, Graded MS64 by PCGS. Sold as Lot 2687 by Heritage, this example sold for $13,800. I wasn’t wild about this coin from a quality standpoint but I thought it was acceptable for the grade. Trends for the 1871 in MS64 is a very high $30,000 so, from a value perspective, this coin sold very reasonably. As a comparable, Heritage sold a PCGS MS64 back in their June 2004 auction for $13,800. Given the fact that prices for this series appear to have drifted back to their 2004-2005 level, $13,800 is probably exactly the right amount of money for this coin. That said, the buyer (a very smart dealer from the West Coast) is likely to do very well on this piece given the Trends play.

1873 Closed 3, Graded MS63PL by NGC. This coin was offered as Lot 2689 by Heritage but it failed to meet its reserve and did not sell. Interestingly, the only two major pre-1880 Threes in the American Princess collection that didn’t sell were two examples of the rare 1873 Closed 3. I was personally surprised that the MS63PL example did not hit its reserve. This is the single highest graded 1873 with a PL designation at NGC (PCGS, of course, does not designate gold as PL) and it is among the highest graded. My guess as to why it did not sell is that all of the major collectors of this series have a nice example (the Great Lakes coin is a choice PCGS MS64). I also think that there is still a lot of confusion about the origin of the 1873 Closed 3 and Open 3 issues that needs to be clarified. As an aside, this coin is currently available in the Heritage after-sale for $40,250 which seems like a pretty fair deal to me considering that an NGC MS64 brought the same amount all the way back in January 1998 (Heritage 1/98: 7700).

1880 Graded MS65 by NGC, 1882 Graded MS65* by NGC and 1883 Graded MS65 by PCGS. None of these three coins sold, despite being offered with pretty realistic reserves. I wasn’t totally shocked by the 1880 not selling. It was a solid coin for the grade but it’s not all that rare in Gem and most of the buyers of high quality coins in this series are looking for coins in PCGS holders. The 1882 is a coin that’s a pretty hard sell right now. It’s expensive, it’s not that rare and the look of the coin suggested it has visited the NCS lab. The coin that surprised me, though, was the 1883. The coin was really nice and it was in the “right” holder. Unlike the 1880 and the 1882, Gem 1883 Three Dollars are very rare. In fact, the PCGS population is just four in MS65 with two better. The fact that this coin didn’t sell (despite a pretty realistic reserve) indicates to me that there is real weakness in the upper end of this series right now. If this coin had been offered for sale in 2005 or 2006 (when the Three Dollar series was more active) it would have generated considerable interest.

1887 Graded MS66 by PCGS and 1888 Graded MS66 by PCGS. These two coins were offered as Lots 2698 and 2701. They sold for $23,000 and $24,150 respectively. In my opinion, both of these were very nice coins. In fact, when I sold them to the consignor, they were pieces that I had been very careful about selecting and had passed on a number of other examples of these dates. When the market for Gem threes was stronger, these two coins would have probably brought in the area of $30,000-32,500.

So what conclusions can we draw from this small but exceptional group of coins and the Heritage May 2009 CSNS sale? Here are a few things that come to mind:


1. There is no doubt whatsoever that the Three Dollar series is about as cold right now as at any time in the last decade. There are lots and lots of Threes on the market (though not many like the Gems from the American Princess collection) and the supply clearly outstrips the demand. That said, if I were a contrarian collector and I wanted to start a series where I could become King o’ The World it would probably be Threes.

2. In this series, collectors appear to be oriented more towards PCGS coins that NGC, especially very high grade pieces.

3. For most dates in the Three Dollar series, prices for MS65 and better coins appear to be down 20-30% from a year ago. There are exceptions to this rule but these would be for extremely rare and extremely fresh coins.

4. The market premium factor for semi-rare dates in this series is diminishing. As an example, a date like an 1887 or an 1888 in MS66, which is tons scarcer than an 1878, now sells for a much lower premium factor than it did a few years ago. For type collectors, this a great opportunity.

I’d like to dedicate this article to my friend TL. Hang in there, buddy, things will get better soon!

The 1884 Three Dollar Gold Piece

One of the things that’s fun about being a coin dealer is the variety of interesting numismatic items that come across your desk. Just yesterday, within the span of an hour, I handled a cleaned Extremely Fine High Relief double eagle, an interesting group of Dahlonega quarter eagles, a rare date Seated Liberty quarter dollar and what I believe is among the finest known 1884 Three Dollar gold pieces. I have liked this date for many years and as recently as a few days ago, I listed it as one of my 12 Great Values in the Market Priced at Under $5,000 in my December 2008 featured article. But handling this superb 1884 Three Dollar gold piece, graded MS66 by PCGS, gave me the motivation to write about this date in greater detail.

There were just 1,000 business strikes produced and these were not made until December 13th. This very late date of issuance leads me to believe that there was essentially no demand for this denomination at this point other than for examples to be given as Christmas presents or to sell to collectors. And this belief is borne out by the fact that very few 1884 Three Dollar gold pieces are known in circulated grades. As of December 2008, PCGS had graded 92 examples of which 83 (or a whopping 90%) were in Uncirculated.

As with most of the later date Three Dollar gold pieces, the 1884 is a very well produced issue. The strike is typically very sharp with complete definition noted on the hair, the wreath and the denticles. A few show some minor weakness on the curls just to the left of Liberty’s ear. The surfaces are generally clean although the examples that grade MS63 and below tend to show light handling marks or hairlines from previous cleanings. The luster varies from Prooflike to very frosty. The coloration on uncleaned, original coins is often quite attractive with a range of hues seen: light rose, green-gold and orange-gold. This date generally has good eye appeal and there are some truly handsome examples known.

While available from time to time in MS63 and MS64, the 1884 becomes a rarity in Gem. PCGS has currently graded five in MS65 and two in MS66. NGC has graded four in MS65 and three in MS67. I am pretty certain that the NGC numbers are inflated by resubmissions. I do know for a fact that at least one coin exists in MS67 as I handled it a few years ago and sold it to a collector in South Texas. The other PCGS MS66 resides in the Great Lakes collection, which is the finest set of high grade Three Dollar gold pieces ever assembled.

The 1884 Three Dollar imaged above is one of the single most aesthetically attractive examples of this type that I have handled in many years. Unlike many of the high grade Threes that have thick, creamy luster (as seen on dates like the 1878 and 1888), this piece has a shimmering texture that can best be described as a blend between frosty and semi-prooflike. The coin has exquisite delicate green-gold and rose color and the surfaces approach perfection. The dealer who sent me this piece told me that it, literally, came “out of nowhere” and this is the first time it has ever been photographed or described.

One last thing before I close. How many 1884 Threes are known? In my book on this series (written with Q. David Bowers and published in 2005) I estimated that 55-75 were known in Uncirculated as well as another 25-35 in circulated grades for a total of around 80-110. I believe that this figure is a bit on the low side and I’ve recently revised my estimate upwards to 125-150. As I stated above, most are in the lower Uncirculated grades. The PCGS population in MS64 is highly inflated byresubmissions and properly graded examples in MS63 and above are quite rare. I would seriously doubt if there are more than five to seven Gems.

1854-D Three Dollar Gold Piece

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

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

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

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

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

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

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

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

13 Interesting Gold Coins Priced Below $2,500

Is it possible to build an interesting collection of desirable United States gold without having a large per coin budget? I think the answer to this question is a resounding “yes.” There are plenty of extremely interesting pieces that are within the average collector’s price range and this includes a number of coins that are both scarce and in comparably high grades. Here are a baker’s dozen suggested areas for a collector with a budget of $2,500 (or less) per coin. 1. San Francisco Gold Dollars: The San Francisco mint produced seven different gold dollars. These include all three types. The 1854-S is a Type One issue, the 1856-S is a Type Two and the 1857-S, 1858-S, 1859-S, 1860-S and 1870-S are all Type Threes. With the exception of the popular (but somewhat overvalued) 1856-S, any of these dates can be obtained in AU50 to AU55 grades for $1,500-2,500. My personal favorite date in this group is the 1857-S. Did you know that from the standpoint of overall rarity, this date is actually rarer than the 1857-C or the 1857-D? The 1857-S has a current Trends value in AU55 of $2,500 which is very cheap for a coin of this rarity; the 1857-C Trends for $7,000 in this grade, while the 1857-D is listed at $6,500.

2. Reconstruction Era Philadelphia Gold Dollars: The Philadelphia gold dollars produced from 1866 to 1872 all have mintages of 7,100 or below (except for the 1868 which had a mintage of 10,500) and all of these issues are reasonably scarce in all grades. This group of coins is not generally seen in circulated grades but very presentable Uncirculated examples (in this case in the MS62 to MS64 grade range) can typically be purchased in the $1,000-2,500 range. I like the 1865 and 1867 best. The former has a Trends value of $1,700 in MS60 and $2,500 in MS62 and is a great value at anything near these levels. The 1867 is listed at $2,000 in MS63 and if you can find a piece at this level, you’ve just bought a truly scarce coin at a most reasonable level.

3. Classic Head Quarter Eagles: If you have a limited coin budget, you won’t be able to buy any early gold as it has become too expensive. But you can still purchase a really nice AU55 to AU58 common date Classic Head quarter eagle for $2,000-3,000. Classic Head gold coinage is sort of a bridge between the pre-1834 “early gold” issues and the more familiar Liberty Head design which was employed all the way into the early 20th century. I personally like the Classic Head design and have seen some pieces in the AU55 to AU58 range which are really attractive. If possible, buy a date other than the ubiquitous 1834 as these issues are considerably scarcer. My “sleeper” date is the 1839 which considerably scarcer than the mintmarked issues of this year but priced much lower.

4. Philadelphia Quarter Eagles From The 1840’s: This group includes some dates that are well out of the price range of the $2,500 and lower budget but it contains a number of other overlooked issues that fall well within these parameters. Want some suggestions? How about the 1844. This is a low mintage coin with just 6,784 pieces originally produced. There are probably no more than 50-75 pieces known in all grades and this date is considerably scarcer than the mintmarked issues from this era. Despite this fact, Trends lists an AU50 example at $2,250. Other dates from this era that I think are very undervalued include the 1843, 1846, 1847 and 1848. Your $2,500 per coin budget will go a long way in this series and you should be able to buy some nice AU pieces if you are patient.

5. Nice About Uncirculated New Orleans Quarter Eagles: There are a number of scarce New Orleans quarter eagles from the 1840’s and 1850’s that the collector can buy in AU55 to AU58 grades for $2,500 or less. This includes the 1846-O, 1847-O, 1850-O, 1851-O, 1852-O, 1856-O and 1857-O. In this same price range it is also possible to purchase nice MS61 examples of the 1843-O Small Date and the 1854-O. I would strongly recommend that the collector looking at these coins familiarize himself with their peculiarities of strike (these are described in my book “Gold Coins of the New Orleans Mint, 1839-1909”) and pay a premium for examples with original surfaces and color.

6. Low Mintage Quarter Eagles, 1880-1899: A collector with a budget of $2,500 per coin could put together a high quality set of Quarter Eagles dated between 1880 and 1899. With just two exceptions, every coin in this set would be Uncirculated and in some cases the coins could grade as high as MS64 or even MS65. What’s great about these coins is that they are well-produced and not hard to find with pleasing original color and surfaces. Some of the dates in this two decade production run are very challenging to find in Uncirculated (1880, 1883 and 1884 come to mind as the stoppers) while others (including nearly all of the coins struck in the 1890’s) are easy to find in Mint State. The real budget-busters in this set are the popular low mintage 1881 and 1885 issues. For $3,500-5,000, the collector will be able to find a nice AU 1881 should cost $4,000-5,000. This is a great set for the collector who wants to own some very high grade yet legitimately scarce gold coins.

7. Scarcer Date Three Dollar Gold Pieces: Three Dollar gold pieces have been a whipping boy in many “experts” recent newsletters but I think there is still great value in this series. For $2,500 you can buy a number of the scarcer issues from the 1860’s and 1870’s in Extremely Fine grades. These coins are not that easy to locate due to the fact that this denomination did not typically circulate enough to get word down to Extremely Fine detail. But when Three Dollar gold pieces are available in EF, they tend to be reasonably attractive and very affordable. All of the Civil War dates (except for the rare 1865) can be purchased in EF40 to EF45 for around $2,500 and a number of the tougher dates from the 1870’s (such as the 1870, 1871 and 1872) can be found in the same grade range for around the same price.

8. Classic Head Half Eagles: I like this series for the exact same reasons mentioned in Item #3, above. I’ve always looked at Classic Head half eagles as the “early gold for collectors who can’t afford early gold.” Think about it. You can still buy a nice Choice AU half eagle that is approaching 175 years in age for less than $3,000. The sleeper date in this series is the 1837 which is many times scarcer than the 1834-1836 issues but which commands just a 20-30% premium in AU. I’d suggest that the collector be fussy when looking at Classic Head half eagles as they are plentiful enough that he can wait for the “right” coin to come around.

9. No Motto New Orleans Half Eagles: This is an area where a collector with a budget of $2,500 per coin will be able to purchase some very scarce and desirable issues. One date that I feel is extremely undervalued is the first-year-of-issue 1840-O. I recently posted an example in NGC AU55 on my website (I priced the coin at $2,350) and received seven orders for it. For $2,500 or less, the collector will be able to purchase nice EF45 examples of such scarce dates as the 1843-O Small Letters, the 1845-O, 1846-O, 1851-O, 1856-O and 1857-O. All six of these dates are much harder to find in this grade than most of the Charlotte and Dahlonega half eagles from this era yet they are priced at between $500-1,000 less per coin.

10. 1890’s Carson City Half Eagles: No, the four half eagles struck at the Carson City mint during the 1890’s are not rare coins. But how can you not be attracted to the history and allure of any gold coin struck at this legendary mint. For $2,500 per coin, you could put together a set that would include an MS62 1890-CC, an MS62 1891-C, an MS61 1892-CC and a high end MS61 1893-CC. Four nice Uncirculated coins with a great story for under $10,000. How can you not like this collection?

11. No Motto New Orleans Eagles: If you have a $2,500 per coin budget, you won’t be able to assemble a complete set of No Motto New Orleans eagles; the 1841-O and the 1859-O will prove just about impossible to find in that price range. But you can buy every other date in Extremely Fine or About Uncirculated grades. On the lower end of the grade range, you’ll probably have to settle for EF45 examples of the scarce 1852-O, 1855-O, 1856-O and 1857-O and on the high end, you might be able to go as high as AU55 on the more common issues like the 1847-O, 1851-O, 1853-O, 1854-O and 1858-O. I personally think this would be an extremely interesting set to assemble and when you are done you can take pride in having assembled a group of coins that is genuinely scarce and, in my opinion, extremely undervalued.

12. Type One Philadelphia Double Eagles: A collector on a limited budget is going to find double eagles to be a frustrating area to collect. A date run of Philadelphia double eagles from the 1850’s can be assembled by the individual with tight budgetary constraints and most of his coins will actually be attractive. With just a few exceptions, nearly every coin in this group can be purchased in AU53 to AU55 for $2,500 or less. This includes the 1856, 1857 and 1858 which I feel are much undervalued. The only two dates that will cost more than $2,500 for nice AU’s are the overvalued but popular 1850 and the rare 1859. For $3,500, the collector will be able to purchase a nice AU55 1850 while an AU50 1859 will run around $4,000 and be a very good value.

13. Type Three San Francisco Double Eagles: If you are on a tight budget, you can forget Philadelphia and Carson City Type Three double eagles…they are too expensive. But a collector of average means could assemble a complete set of San Francisco Type Three issues in Uncirculated for a reasonable amount per coin. In my opinion, I think the best grades for this set are the ones just before big price jumps. In other words, I like an MS62 1889-S for this set at $1,000 as opposed to an MS63 at $6,000. With the exception of the 1878-S, 1879-S, 1880-S and 1881-S, every coin in this set could be at least MS62 (with some MS63 examples of the common later dates thrown in for good measure) while the scarcer early dates would all grade MS61.

So there you have thirteen suggestions of collecting areas for gold coin collectors with a budget of $2,500 per purchase. If your budget is a bit larger (say $3,500-5,000) you could greatly expand this list or take some of the items already discussed and move up a grade or two.

What Constitues A Complete Coin Set?

A client of mine recently asked me an interesting question about whether the addition of a specific Charlotte half eagle would—or wouldn’t—remove the stigma of Incompleteness from his set. I thought this was an interesting question and it got me to thinking about how the presence or absence of certain issues relate to rare gold coin collecting. Not everyone is cut out to work on a complete set. Some collectors do not have the patience; others do not have deep enough pockets. To some collectors, a complete set is monotonous and an exercise in futility. To others, it is an interesting challenge with defined goals.

So what exactly constitutes a complete set?

There is no standard answer to this question. As an example, what should a collector do if he collects Three Dollar gold pieces and he doesn’t want to spend $200,000+ to purchase nice examples of the 1875 and 1876. These are issues that were struck only as Proofs and, in theory, they do not need to be included in a set of Three Dollar gold pieces if the focus is business strike issues. In my opinion, a set of Threes is not technically complete without an 1875 or an 1876 but I can fully understand a collector’s decision to not purchase these two issues due to the fact that they were not struck for circulation.

In the case of Three Dollar gold pieces, what is the collector supposed to do about the proverbial elephant-in-the room, the unique 1870-S? My suggestion would be to ignore this date as its extreme rarity makes it an essentially impossible issue to obtain.

In the Charlotte series there are a few issues that are open to debate as to whether they should or should not be in a complete set. In my opinion, both varieties of 1842-C quarter eagles (Large Date and Small Date) and both varieties of 1842-C half eagles should be included. These are design variations which are readily visible to the naked eye. A set that has only one of these could be called a complete date set but it would not be a complete variety set.

What about mintmark variations on Charlotte coins, such as an 1850-C Weak C. Is a set complete without one of these pieces? This is a striking variation and it is not, in my opinion, an essential component of a set unless the set is very in-depth and it includes die varieties and strike variations. In this case, I would then include interesting items such as an 1855-C half eagle with a cud reverse or an 1840-C half eagle with broad and narrow milling.

The Dahlonega series has a few issues that are difficult to decide where they fall as far being included in a set or not. Clearly, the 1842-D Small Date and Large Date half eagles should both be included in the set as they are design variations. What about the interesting 1846-D/D and 1848-D/D half eagles? I have always regarded them as members of a complete set but can totally understand the argument that they are die varieties. And if these two varieties are included than what about the less well-known but equally significant 1840-D and 1841-D Small D and Tall D varieties? Again, my position on these is that they are die varieties and should only be included in a highly specialized collection that includes significant naked-eye die varieties.

And what about New Orleans gold coinage? I have always considered the 1843-O Large Date and Small Date quarter eagles to be essential components of a complete set as well as the 1843-O Small Letters and Large Letters half eagles. In my opinion, anything else is a die variety which does not need to be complete.

What about the 1854-O and 1856-O double eagles; two issues which now cost over $250,000 each for a presentable example? Sorry, but a set of New Orleans gold coinage that is complete except for these two coins is impressive but still not finished. These two coins are totally legitimate regular issues with no stigma of controversy attached to them. If you are a serious enough collector to want to assemble a full set of circulation strike New Orleans gold coins, you just have to face up to the fact, unpleasant or not, that there are two very, very expensive coins waiting for you down the road. And, for better or worse, these two coins are probably going to define the quality of your set.

(Oh, and by the way, the 1841-O half eagle does not exist. So don’t worry about filling a phantom hole…even if this coin is mentioned in the Redbook and the Breen Encyclopedia).

OK, so what about 20th century issues?

In my opinion, an Indian Head half eagle set is very straight forward. The Indian Head eagle set has traditionally required a 1907 Rolled Edge and 1907 Wire Edge to be considered complete. This is a pretty tricky question. The Wire Edge was issued in a large enough quantity that I think its safe to say that it was a regular issue and, thus, it should be included in any set. The Rolled Edge is a much tougher call. Only 50 or so pieces were produced and the fabric of this coin suggests that it is experimental in nature. The 1907 Rolled Edge is listed in the Judd book as a pattern (but, then again, so is the Wire Edge…) but it has traditionally been included in the regular issue set. I’m not certain what the right answer is but I think most advanced collectors have decided that they will purchase the Rolled Edge.

The St. Gaudens set contains some really tricky “include it vs. don’t include it” issues. Obviously, the Ultra High Relief does not belong in a regular issue set. Neither, of course, does the (currently) illegal 1933. What about the Wire Edge and Flat Rim varieties of High Reliefs? To me, it’s obvious that these are strike-related varieties and they do not constitute any sort of design change. The 1927-D? It’s a regular issue coin and you don’t have a complete set of Saints if you don’t have a 1927-D.

Three Dollar Gold Pieces From the 1880's

As I have mentioned before, I have long been a fan of the low mintage Three Dollar gold pieces struck during the 1880’s. I like these coins because of their very low original mintage figures and their relative affordability. Even though the Three Dollar gold series is currently showing a slowdown after two or three years of intense activity, these particular issues are still in great demand. Let’s take a quick look at these low mintage Threes from the 1880’s. 1881: This is the rarest of the five issues we are focusing on, from the standpoint of high grade rarity. There were just 500 pieces struck for circulation of which an estimated 100-150 are known today. Unlike many of the other Three Dollar gold pieces from the 1880’s, the 1881 was not saved by contemporary dealers and hoarders and most of the survivors are in the EF40 to AU55 grade range. This issue is nearly always seen with prooflike surfaces but most have poor eye appeal due to the fact that they have been cleaned or dipped. In addition, most have major abrasions in the fields and many show hairlines as well. There are probably no more than two dozen known in Uncirculated and many of these are marginal quality coins that grade MS60 to MS61. A properly graded MS62 is extremely scarce while an MS63 is rare. I know of approximately four or five examples that grade MS64 and just one Gem: a superb MS66 that has been graded by PCGS.

This is an issue that, in my opinion, is worth full Trends, if not more. For a nice AU55, I would expect to pay in the area of $8,000 to $10,000 while an AU58 is worth around $9,000 to $12,000. The Trends values for Uncirculated examples are fairly accurate although I think that a PCGS MS65 might actually bring more than the current Trends listing of $65,000.

1883: A fairly large percentage of the original mintage of 900 examples struck has survived. I would estimate that there are 200-250 pieces known and very few of these grade below AU53 to AU55, suggesting that the 1883 did not readily circulate. This issue is not really all that rare in the lower Uncirclated grades but it becomes rare in MS62 to MS63 and it is very are in MS64 and better. Most 1883’s are prooflike and many show very nice original color, unlike the 1881 which is almost never seen with good eye appeal.

In the last few months, I have sold a number of nice AU 1883 Three Dollar gold pieces in the higher AU grades for under $5,500. I still can’t get over what a great deal this is. Think about it. A United States gold coin with a mintage of fewer than 1,000 business strikes in very presentable condition for such a reasonable price. Here’s another thing to think about when pondering the 1883 (or any of these other dates). A very common date Three Dollar gold piece in AU58 will cost the collector $2,250 or so. For a little more than double this number, he can buy a truly scarce coin like an 1883. Seems like a no-brainer to me…

1884: For many years this date was my “secret sleeper” in the Three Dollar gold series. I would buy every single example I could find and despite being willing to pay more than anyone else for this date I was still not able to buy many. The 1884 is the second rarest collectible date in the series (trailing only the 1877) as far as overall rarity is concerned. There were 1,000 examples struck of which an estimated 100-125 are known today. The majority of these grade MS60 or better, suggesting that the 1884 was a date that did not see much—if any—circulation. This is borne out by the fact that PCGS has graded only two coins lower than AU55.

I believe that the 1884 remains very undervalued. The current issue of Trends shows a value of $5,000 for this date in AU55 as opposed to $4,000 for the 1883 and $4,500 for the 1886. Given the rarity of the 1884 it should be priced at a premium of at least 50% over these two dates. In MS62, the 1884 is accorded a Trends value of $12,000. This is the same as for the 1885 in this grade and just $1,000 more than the 1883 and the 1886. I would suggest that if you are offered an 1884 at anywhere near Trends prices, you should purchase it.

1885: A total of 801 business strikes were produced. The 1885 was saved in much greater quantity than the 1884. An estimated 200-250 pieces are known; giving this date one of the highest survival rate of any 19th century American gold coin produced for circulation. That said, the 1885 is still a tough coin to locate and I have always found examples to be easy sellers when they are in my inventory. The overall eye appeal for this date is probably the best of the five in our discussion and there are some higher grade 1885’s known with superb color and luster.

The 1885 is almost never seen in grades below AU55 to AU58. It is scarce but still obtainable in the lower Uncirculated grades and only moderately rare in MS63 to MS64 (the PCGS and NGC population figures for MS63 and MS64 coins, by the way, are hugely inflated by resubmissions). I estimate there are as many as eight to ten Gems known and the finest I am aware of is a superb PCGS MS67.

1886: The 1886 has the exact same business strike mintage figure as the 1884: 1,000 pieces. The 1886 is less scarce than the 1884 in terms of overall rarity but it is much scarcer in higher grades. In fact, the 1886 is the second rarest of these five low mintage dates in Uncirculated, trailing only the 1881. There are an estimated 150-200 examples known with perhaps as many as 20-30 known in Uncirculated. The 1886 is generally seen with Prooflike surfaces. Many have been cleaned at one time and, for some reason, this date is found with deeper and more intense abrasions on its surfaces than are other Three Dollar gold pieces from this era.

Most 1886 Three Dollar gold pieces are found in the AU50 to MS60 range. This date is quite scarce in MS61 to MS62. It becomes very rare in MS63 and it is extremely rare in MS64. I am aware of just one Gem: a PCGS MS65 which I recently sold and which was earlier in the Richard Jewell collection (it is plated in my book on Three Dollar gold pieces). Current Trends values for this date are very low, in my opinion, and any example that can be bought for 80-100% of Trends is an excellent value, especially in MS60 and higher.

Are Three Dollar Gold Pieces Overpriced?

Few areas in the rare gold coin market have seen as much price appreciation in the past two years as Three Dollar gold pieces. I am asked on an almost daily basis “are Three Dollar gold pieces overpriced?” My answer is for the most part, no they are not. Let’s look at the series in a bit of detail and I’ll make a case for them being fairly priced and also point out the issues that I think are now fully priced.

First, let’s look at the bread and butter issues in the series: the common dates in the AU55 to AU58 range. For $1,750-2,500 you can still purchase a coin that is relatively scarce. While I am not especially excited about the common dates of this type in this grade range, I think that slightly better dates such as the 1857, 1859, 1860 and 1868 are good values. These were selling for $1,500 or so a few years ago and given the rise in gold prices in the past few years and the increased popularity of this series, I have absolutely no problem telling people to purchase these slightly better dates at what is just a tiny premium over common date price.

Are there still dates that are undervalued in this series? You bet there are. I think the San Francisco issues, with the exception of the 1856-S, are all very undervalued and attractive, properly graded pieces in EF40 and better are very sensibly priced. Want to know some other underpriced dates? The 1858 is a fantastic value at current levels and all of the Civil War dates in AU are exceedingly cheap relative to common date prices. And I continue to love the very low mintage dates from the 1880’s, most notably the 1881, 1883, 1884 and 1886.

Want to know another area in this series that is extremely underpriced? Proofs. Ironically, Coin World Trends for most dates in MS64 is now higher than for comparable Proofs. I hardly ever see PR63 and PR64 Three Dollar gold pieces and Proofs struck prior to 1885 are nearly impossible to find. If you can locate decent looking pieces in PR63 and PR64 grades at anything near published Trends and CDN Bid prices, I’d say you can laugh all the way to the bank.

What Three Dollar gold pieces are overvalued? There are a number of dates that I am struggling with buying for my inventory at current levels. I have sold some common dates in MS63 recently for close to $10,000 and this seems like a lot of money to me for these. If you have some extra 1854, 1874 or 1878 Three Dollar gold pieces in MS63 and you bought them a few years ago, take your profits.

The 1854-D and 1854-O issues, while both very popular and both numismatically significant as one-year types, have risen substantially in the past two years. Three years ago, I had a group of four 1854-D Three Dollar gold pieces in NGC AU58 and had troubling selling them at $35,000 per coin. Today, each one of these coins would sell for $60,000-70,000. The 1854-O in AU55 and AU58 also seems overvalued, especially considering how many of them are around and how overgraded most of these are.

Would I encourage a new collector to begin a set of Three Dollar gold pieces today? I would, but not with as much enthusiasm as I might have a year or two ago. I still believe that there are good values in this series but the new collector will have to be far more selective than in the recent past when nearly any Three Dollar gold piece he purchased would have been considered undervalued and desirable by me.

The 1854-D Three Dollar Gold Piece

In my opinion, the 1854-D is to Three Dollar gold pieces as the 1907 High Relief is to St. Gaudens double eagles. It is an issue whose rarity has been overstated but whose level of demand is always destined to be very high. Because of its extreme popularity, the 1854-D is probably the single most in-demand coin from Dahlonega and I personally love to buy and sell these pieces. The 1854-D Three Dollar gold piece has a number of factors that make it a very high demand issue. It is the only date of this denomination from Dahlonega and it has an original mintage figure of just 1,120. It has the lowest mintage figure of any branch mint Three Dollar gold piece (except, of course, the excessively rare 1870-S) and only one Dahlonega coin, the 1856-D quarter eagle, has a lower overall mintage figure.

Given the usual survival rate for Dahlonega coinage of this era, one would expect there to be only two to three percent of the original mintage figure (or twenty-five to thirty-five pieces) to exist. Surprisingly, as many as 100-125 1854-D Three Dollar gold pieces are known; a rather amazing percentage of the original mintage figure. Why do so many exist? I would suggest that either a number were saved as souvenirs or a significant hoard was known at one time. Given the fact that most 1854-D Three Dollar gold pieces show a decent amount of circulation, I doubt whether a hoard was ever known.

Of the 100-125 that exist, I believe that two to four are Uncirculated, twenty-two to twenty-seven are About Uncirculated, twenty-nine to forty are Extremely Fine and the remainder are Very Fine or below (this figure includes a number that are damaged and/or repaired). My in-grade rarity estimates are far different than the figures which can be gleaned from the PCGS and NGC population figures. The reasons for this are that, in my opinion, many 1854-D Three Dollar gold pieces slabbed by both services are overgraded. In addition, the value spread between one adjectival level and the next (i.e. Extremely Fine versus About Uncirculated) are great enough that many have been repeatedly submitted.

There are a number of mint-made features that make the appearance of this coin extremely recognizable. Inserted below is a picture of a very nice 1854-D Three Dollar gold piece (graded AU-58 by NGC) which I recently bought and then sold to a collector. Take a careful look at both the obverse and the reverse and then read the following paragraphs.

One of the features that makes the 1854-D Three Dollar gold piece so easily recognizable is its quality of strike. By looking at the obverse of a few examples, it is possible to determine an 1854-D without even turning it over to see its mintmark.

The U in UNITED is always weak while the TED is very heavy and shows doubling. The denticles on nearly every piece known are non-existent from 7:00 to 3:00 on the obverse and all of the reverse except from 3:00 to 8:00. The obverse and reverse rim areas at the top are very flat in appearance and serve as strong contrast to the better detail seen in the middle.

A few other diagnostic features are seen on all known examples. There is always a bold clashmark on the obverse at the throat of Liberty and another behind the headdress. On the reverse, there are clashmarks in the wreath as well as separation of the bow knot at the right and the leaf at the left as a result of overzealous polishing of the dies. Any 1854-D Three Dollar gold piece that lacks these diagnostics is highly suspect and is probably not genuine.

This issue is usually found in the Extremely Fine-40 to About Uncirculated-50 range and tends to show noticeable abrasions on the surfaces. Most have been cleaned at one time and any 1854-D Three Dollar gold piece with original surfaces and color (as on the piece illustrated above) is very rare and worth a strong premium over the typical piece.

If you are offered an uncertified example, I would strongly recommend that it be sent to PCGS or NGC as many 1854-D Three Dollar gold pieces have been repaired. Most often, pieces have been rim filed or re-engraved on the edges. I have seen at least ten (if not more) that have shown this damage and some are repaired quite expertly and may fool the beginning collector.

The 1854-D has never been an affordable coin but prices have climbed quite a bit in the last few years. A few years ago, a collector could expect to locate a very respectable example for $10,000-12,500 with some patience. Today, it is very hard to find one for less than $20,000 that is not a "dog." Although some dealers (and collectors) now feel that this issue is overvalued, I do not. The simple reason for this is the strong demand for nice pieces versus the reasonably limited supply. Numismatics Economics 101 says that if demand exceeds supply, then prices will rise. This has clearly been the case with the 1854-D Three Dollar gold piece.

Listed below is the current Condition Census for the 1854-D Three Dollar gold piece. Note the extremely strong price realized by the PCGS MS-61 example in the recent Heritage January 2004 sale of the Green Pond collection; a new auction record for his date.

Harry W. Bass foundation. Mint State-62 or better. Fully struck. This coin is currently on exhibit at the American Numismatic Association Museum.

Great Lakes collection, ex Larry Hanks, Superior 1/96: 2277 ($74,800; as PCGS MS-61), Winthrop Carner, Kevin Lipton, George Elliott, Mid American 1/87: 1814, RARCOA Auction 81: 386 ($72,500). Graded Mint State-62 by PCGS.

Other coins that have been graded as Uncirculated by one of the major services include the following:

Robert L. Hughes, ex Heritage 1/04: 1037 ($92,000), Green Pond collection. Graded Mint State-61 by PCGS.

Private collection, ex National Gold Exchange/Ken Goldman, Bowers and Merena 5/98: 1034 ($72,600). Graded Mint State-61 by NGC.

Steve Contursi inventory, ex Stack's/Sotheby's 10/01: 318 ($48,875), Browning collection. Graded Mint State-61 by NGC.

Private collection, ex Heritage 1999 FUN: 7664 ($57,500; as PCGS AU-58), Leon Farmer collection, Hancock and Harwell, Stack's Auction 84: 1328 ($24,200), Arthur Montgomery, Stack's Goshen (2/78): 1093. Graded Mint State-61 by NGC.

Private collection, ex Kingswood 3/01: 438 ($46,575), Stack's 10/99: 658 ($52,900). Graded Mint State-60 by PCGS. Identifiable by a large mint-made defect in the right obverse field.