Liberty Head Half Eagles: A Guide for Collectors

Liberty Head half eagles were produced from 1839 until they were discontinued in 1908. This long-lived series is becoming popular with collectors who are attracted to these coins becuase of their history and rarity. This article is an attempt to make sense of the Liberty Head half eagle series for the beginning and intermediate collector. First, let's take a look at some of the historic background of the series and the half eagle denomination. This was one of the original denominations that was authorized by the Act of 1792 and it was one of three struck in gold, along with the quarter eagle ($2.50) and eagle ($10.00). The half eagle denomination was the workhorse of these three and the issues from 1795 to 1813 are far more available than the other gold coins of this era. The half eagles from 1814 through 1833 tend to be extremely rare due to large-scale meltings.

In 1839, the half eagle was redisgned by Christian Gobrecht. The design was modified in 1840 and experimented with through 1843. It stayed unchanged until 1866 when the motto IN GOD WE TRUST was added to the reverse. For most collectors, the following types of Liberty Head half eagle are included in their collection:

1. First Head; mintmark on obverse. (1839 only) 2. Second Head; mintmark on reverse. No Motto. (1840-1866) 3. Second Head; mintmark on reverse. With Motto. (1866-1908)

The Liberty Head half eagle series is unique in that it is the only United States gold type that was struck at seven mints. These are as follows: Philadelphia, Charlotte, Dahlonega, New Orleans, Carson City, San Francisco and Denver. A novel way to collect this series is to assemble a seven-mint set; this will be discussed later in his article.

I can think of at least seven different ways to collect Libeerty Head half eagles. If you are creative, there are probably more but for the sake of brevity, let's focus on these methods.

1. By Mint

Probably the most popular way to collect Liberty Head half eagles is by mint. To do so, a collector generally focuses on one (or two) of the seven mints that produced this series.

The most popular mint to specialize in is Dahlonega. The half eagles from this mint were produced from 1838 to 1861. There are no major rarities in the Dahlonega half eagle series and this is a set that can be completed in grades that range from Very Fine all the way to Uncirculated. One of the things that is interesting about this set is how affordable the coins are. If a collector wanted to put together a set of the twenty-four major issues in the VF-EF range, this could be done for around $70,000-90,000. A set that featured Finest Known and Condition Census coins could run well north of $500,000.

The second most popular mint to collect is Carson City. These were issued from 1870 to 1893. This set is impossible to complete in Uncirculated but it could be done in AU55 and better grades. A collector who had a more limited budget could acquire virtually every date in Fine to Very Fine grades and the more affordable later dates (i.e., those from the 1890's) can be found in higher grades at relatively nominal sums.

Probably the most difficult mint to complete a set from is San Francisco. Virtually every half eagle produced at this mint from 1854 to 1877 is very rare in high grades and most of these are either unknown or extremely rare in Uncirculated. There are very few collectors who specialize in San Francisco half eagles and there are a number of reasons for this. The set is long (coins were issued from 1854 through 1906), full of rarities and it contains coins that are numbingly common (most of the issues from 1879 onwards).

2. By Decade or By Year

An interesting way to collect Liberty Head half eagles is by decade. This type was produced during the 1840's, 1850's, 1860's, 1870's, 1880, 1890's and 1900's. A "by decade" set appeals to many collectors due to the fact that there is a broad range of coins issued.

In my opinion, the 1840's would be the most interesting decade to specialize in. There were four mints that produced half eagles during this decade: Philadelphia, Charlotte, Dahlonega and New Orleans. Virtually all of the coins made during the 1840's are available in circulated grades but most are rare in Uncirculated. What I like about the coins from this decade, besides their historic association, is the fact that many are highly undervalued; moreso, I feel, than any other decade.

Another decade that is full of undervalued, overlooked coins is the 1870's. Nearly all of the coins struck between 1870 and 1876 are rare in all grades (there are a few exceptions such as the 1873) and most of the issues from this decade are very rare to extremely rare in Uncirculated.

An interesting half eagle set is a year set. This would include one example of every year in which Liberty half eagles were produced from 1839 through 1907. The beauty of this set is that in years in which there are rarities, there is always an affordable issue to lessen the cost. As an example, the mintmarked half eagles from 1861 (1861-C, 1861-D and 1861-S) are all scarce and in higher grades they are very expensive. But the 1861 Philadelphia half eagle is common and a very nice example can be obtained for around $1,000. There are only a few years in which all the issues are rare and these tend to be the ones (like 1863 and 1864) in which only a limited number of mints were striking half eagles.

3. By Type

I described the three major types of Liberty Head half eagles earlier in this article. For collectors who choose to focus on these three coins, there are are many options.

The initial type was made only in 1839, at the Philadelphia, Charlotte and Dahlonega mints. None of these issues is rare although the two mintmarked coins are highly sought-after and very expensive in Uncirculated. An 1839 Philadelphia half eagle is more obtainable and a really nice piece can be found for just a few thousand dollars.

The No Motto type, struck from 1840 through 1866 contains issues that run the gamut from common to very rare. Most No Motto half eagles (even the common dates) are very hard to locate in Uncirculated grades and there are very few single coins that exist in MS63 and above. For type purposes, it might make sense to look for a common Philadelphia coin from the 1840's or 1850's in AU58 to MS62. Again, a very nice coin can be obtained for just a few thousand dollars.

The With Motto type was made from 1866 until the end of this design in 1908. There are a number of very rare With Motto issues but most of the pieces struck after 1879 are common, even in the lower Uncirculated grades. For a type coin, I'd recommend a common date from the late 19th century in MS63 to MS65 grades. Depending on the date and grade, you're looking at an expenditure of just a few thousand dollars.

4. Rarities

There are a number of rarities in the Liberty Head half eagles but not nearly as many as in the earlier half eagles that immediately preced this type. First and foremost is the 1854-S of which there are just three known. None has been offered for sale since the Eliasberg coin back in 1982 and, I believe, that if one were to become available today, it could bring as much as $3-5 million.

There are other rare issues in this series but none approach the 1854-S. In the Philadelphia issues, the 1875 is by far the key issue. Only 200 business strikes were made and it is believed that around ten or so are known today. Despite this coin's extreme rarity, examples have traded in the low six figures. After the 1875, the next rarest Philadelphia half eagles are the 1887 (struck only as a Proof) and the 1863.

The aformentioned 1854-S is, obviously, the great rarity from San Francisco. After this, there is a steep drop-off in terms of rarity. The issues from 1859 through 1867 are all scarce in circulated grades and extremely rare in Uncirculated. By far the rarest of these is the 1864-S. In fact, a strong case can be made for this date being the rarest collectible half eagle of this type. Despite this fact, it is not out of the price range of most collectors.

None of the Charlotte or Dahlonega half eagles is a major rarity as far as the total number known to exist. The key Charlotte issues include the 1842-C Small Date, 1844-C, 1846-C and 1861-C while the hardest Dahlonega half eagles to acquire include the 1842-D Large Date and the 1861-D.

Switching focus to the New Orleans issues, the two hardest dates to acquire are the 1842-O and the 1847-O. Both of these are actually affordable in the EF40-AU50 range, scarce but not bdget-busting in the middle to higher AU grades and extremely rare in Uncirculated. The Carson City series contains a number of scarce dates such as the 1870-CC, 1872-CC, 1873-CC and 1878-CC. Again, these are pricey but obtainable in the AU grade range.

In summary, the only Liberty Head half eagle that will prove to be unobtainable is the 1854-S. The other rare dates can be found with patience.

5. Proofs

Proofs of this type are very collectible and range from exceedingly rare to rare-but-collectible.

A type collector might want to acquire one example each of a Proof No Motto and With Motto Liberty Head half eagle. The former is very rare. Proofs were not issued in any sort of quantity until 1859. The Proofs produced in the 1860's are all very rare but can be obtained with patience. For a nice PR63 to PR64 example, a collector is looking at an investmnt in the $40,000- $50,000 range.

The With Motto Proofs were produced continuously from 1875 through 1907 (none were made in 1908). The 1875 and the 1887 are two dates that sell for large premiums; the former due to the rarity of business strikes and the latter due to the fact that it was made only in the Proof format.

As far as I know there are very few--if any--collectors are currently specializing in a date run of Proof Liberty Head half eagles. This would be a challenging and exzpensive set but one that could be completed. It is one that also contains coins that are great values. As an example, the Proofs from the late 1860's and early 1870's are extremely rare (typically fewer than a dozen are known) yet they do not command significnat premiums in PR64 and PR65 over the more available issues from the 1880's and 1890's.

6. Varieties

If you are a collector who fancies varieties, there are more interesting ones present in the half eagles than any other Liberty Head series. These range from significant Redbook varieties to minor, little-known ones.

Some of the better known varieties include the 1840 Broad Mill and Narrow Mill, the 1842 Small Letters and Large Letters, the 1842-C Small Date and Large Date, the 1842-D Small Date and Large Date, the 1843-O Small Letters and Large Letters, the 1846 Small Date and Large Date and the 1846-D Normal Mintmark and D over D Mintmark. From 1850 onwards, there are fewer significant varieties.

There are only two confirmed ovedates in the series and neither is rare. The 1881/0 and the 1901/0-S are both quite affordable in circulated grades and can be located in the lower to middling Uncirculated grades without much effort or expense.

While I have done some fairly extensive research on the varieties of branch mint half eagles, there are probably a number waiting to be discovered. I think the most fertile area is probably the Philadelphia issues from the 1840's. This was an era in which countless blundered dates and other significant varities are already known on silver coins; it seems likely that others await discovery in the half eagle series.

If you are new to the series, one of the real questions you may have is how to price Liberty Head half eagles. For the more common issues this isn't very hard. You will find that many of he post-1880 issues from Philadelphia and San Francisco are regarded as "generics" and sell for little--if any--premium. Pricing the rarities is another story altogether.

If you decide to focus on the southern branch mint coins, you will quickly learn that locating original pieces (i.e., examples with attractive natural coloration) is very difficult. Surprisingly, the premium factor for original coins is often low; in many cases only 5-10% more than a bright, processed example. With many of the Charlotte, Dahlonega and New Orleans pieces, these issues are available in great enough numbers that the collector shouldn't have to settle for a marginal quality coin.

Pricing very rare issues can be a challenge. There are some dates in the series that come on the market very infrequently and the last comparable trade at auction might have occured as long as three to five years ago.

I just mentioned using auction comparables and I think this is a point worthy of a quick discussion. To my way of thinking, seeing what other examples of a coin have been bringing at auction is probably the best way to determine a price for a coin that you have an interest in. Let's say, for example, that you are contemplating buying an 1847-O half eagle graded EF40. Let's say that the last three auction trades are $5,290, $6,350 and $5,750. This gives a clear indication that a decent quality coin is going to be worth around $6,000. How about if you were to go back another two years and you see that there are three more trades; one for $11,500, one for $3,450 and another for $5,750? In the case of the $11,500 sale, I would dismiss this as it probably represents a coin that at least two bidders thought would upgrade. And the cheap sale of $3,450 probably represents a problem coin or one that is extremely low end for the grade.

What are the best values in the Liberty Head half eagle series? That's a hard question to answer as I believe that the entire series is chock full of good value. If I had to focus on a few areas that were the most undervalued I'd suggest No Motto Philadelphia coins in AU58 to MS62 (most are priced in the $1,000-5,000 range and harder to find than one might expect), the New Orleans issues in AU50 and above and the low mintage Philadelphia issues from 1862 through 1877. But it's hard to name just a few areas and I'd honestly say that just about any pre-1900 half eagle that is choice and original is desirable to some extent.

The Liberty Head half eagle series has become more and more popular over the years as people become aware of the challenges it offers collectors. I doubt if its appeal will ever become really widespread due to its longevity and cost but I look for it to become even more collected in the coming years.

Are you interested in the Liberty Head half eagle series? Would you like to form a collection of these coins? Feel free to email me for more information at dwn@ont.com

The Great Coin Drought

There’s an ebb and flow to the coin market cycle. When it is in perfect, Zen-like harmony, the market works well. When it’s disrupted, the market sputters as is the case of what we are seeing in the beginning of 2011. I call it the Great Coin Drought and it’s been happening for at least two years; maybe more. The coin market is based on a classic supply and demand relationship. When there is more demand than supply, prices rise. Simple, no? But what if there is strong demand but a backlog of supply due to reasons that aren’t that obvious?

(Before we get started, let me interject one quick point. There are zillions of coins for sale right now, ranging in value from a few dollars up to hundreds of thousands of dollars. If you aren’t selective, you can plow through a giant wad of cash in a matter of days. I’m referring to choice, rare and interesting coins; the sort that are reasonably hard to find in a “natural” market but which are incredibly challenging to locate in a constricted market like what we are seeing now.) People sell coins for a number of reasons. A collector might sell a coin because he has found a better example of a specific date and doesn’t want to have cash tied up in a duplicate. An investor sells for different reasons. In a nutshell, if prices rise he sells.

Let’s take a look at some of the things that are disrupting the flow of rare coins right now and why this so-called Coin Drought exists.

1. There are still too many low end, crappy coins in both NGC and PCGS holders on the market. Let’s face it, it’s really easy to sell nice coins right now. If I have, say, a beautiful piece of Proof gold or a fresh, crusty Dahlonega half eagle I can list it on my website on Monday and by Tuesday its almost a certainty that it’ll be gone; assuming that it is priced fairly. But the bottom feeders who you could count on in the past to buy the overgraded, puttied piece of Proof gold or the bright, processed marginally AU Dahlonega half eagle in the AU58 holder are no longer active. What happens with these crappy coins is that they either get stuck in a dealer’s inventory where they jam up cashflow or they are placed in an auction where they invariably sell cheaply and hurt the market.

In the rare date gold market, until more of this “swill” disappears from the market, the supply and demand ratio will remain broken.

2. As I have said a number of times before, the price reporting mechanism in the rare coin market is broken and needs to be fixed. How many times have you seen the Greysheet or Trends whack prices for a rare date or entire type because of one sale? Let me give you an example. Let’s say that a certain rare date San Francisco Liberty Head eagle has a Trends value of $6,000. Over the course of two years, three appear for sale and all bring in the range of $5,000-5,500. But then a real pig-in-a-holder appears at auction and it brings $3,500. Instead of looking at this coin on a case-by-case basis and interpreting the data, what tends to happen is that the price for this date gets chopped down to $4,000 to reflect this one trade. Suddenly the three people who purchased the nice AU’s of this date at auction are upside down and have no motivation to sell their coins.

If price reporting could become more accurate and reliable (and I realize that this is a monumental project) then the Coin Drought wouldn’t be as much of a problem as it currently is.

3. The economy is still shaky (although it is clearly better now than it was two years ago) and many collectors would just as soon own some nice quality extra coins than they would sell them. I often have this conversation with collectors:

Me: Would you be interested in selling that nice Carson City eagle that you bought from me in 2008? Collector: Well, I don’t really need the money, there’s no coins around right now that interest me and I can’t make anything if I sell it. Remind me again what my motivation is?

When collectors just don’t want to sell coins, this leads to a further drought. And can you blame them? Smart collectors are aware of the fact that nice coins are very hard to find and that by selling them, they may find themselves in the position of not being able to replace them. Couple this with the taxes they have to pay on profits and you can see why so many high end, neat coins are staying put.

4. Many dealers who were previously major players in the rare coin market are preoccupied with moderns and/or bullion. I can think of a number of dealers who are doing so well with moderns and generics that they are not participating in the rare coin market. This, too, interrupts the flow of coins.

5. Another point that I’ve made in the past bears repeating. The number of nice coins in any given 19th century series is fewer than most people realize due to rampant coin doctoring over the past few decades. There are a number of major submitters to PCGS and NGC who doctor virtually every coin that they own (be it a light dip, a small pinch of nose grease or a major “rebuild” with putty). For certain series, like C+D mint gold, I’m guessing that the percentage of original coins is now well less than 5-10% of the surviving population. This means that while there might be, say, three 1838-C quarter eagles on the market in AU50, none of these is choice or original and it is likely that they will choke the coin flow due to the difficulty in selling them.

It will be interesting to see how long the Coin Drought lasts. I’m thinking it will be for quite a while and may even become a semi-permanent condition. As I stated above, there aren’t that many nice coins around to begin with and as long as the demand stays constant or increases, collectors who are fussy and sophisticated will have their work cut out for them.

Is There an Upward Trend in the CC Half Eagle Market?

While I hate to make bold pronouncements based on a small number of auction results, it looks like an interesting trend may be occuring in the Carson City half eagle market. Within two months, three important CC half eagles have sold at auction and brought tremendous prices. Let's take a look at the three coins in question, analyze the results, and try to make some sense of this market. The first of these coins is a PCGS graded Mint State-62 1873-CC half eagle. This is a coin that I am very familiar with, having sold it twice via private treaty within the last five years. In fact, I sold it a few years ago to the collector who consigned it directly to the Heritage 2011 FUN sale, where it became Lot 5118 in the Platinum Night session.

This was a coin I always thought I was a little ahead of the curve on. When I sold it to a good client around five years ago, I told him, "this is going to be a six figure coin someday." But it seemed that "someday" was going to be quite far in the future.

Here's why I've always loved this coin. The 1873-CC is the rarest Carson City half eagle in higher grades. It doesn't have the cachet of the 1870-CC but it is rarer and, in Uncirculated, the 1870-CC, if available, would sell for a minimum of $125,000++. There are two 1873-CC half eagles known in Uncirculated: this example and an NGC MS62. The PCGS MS62 is not only nicer, it has a wonderful pedigree (ex Bass) and it is a solid coin for the grade with good luster and attractive, natural coloration. Unlike the 1870-CC, the 1873-CC is nearly unobtaianble in AU55 or AU58 grades, so if a collector wants to obtain a high quality piece he has very few options. I expected it to bring around $80,000 to $90,000 in the auction.

The 1873-CC sold for $161,000. This was an all-time auction record for this date (by a factor of around three) and it was significantly more than I expected.

Another interesting Carson City half eagle in the Heritage FUN sale was an 1878-CC graded AU58 by PCGS.

This is a very rare date and an issue that is extremely hard to locate in About Uncirculated and Uncirculated grades. I have never seen or heard of a Mint State piece so, for all intents and purposes, an AU58 is as nice an example of this date as you are likely to find.

The 1878-CC sold by Heritage was offered at Lot 5120. To be honest, I wasn't crazy about the coin. While sharply struck, it had color that I felt was questionable and it appeared to have been recently processed. But it was one of just five so graded by PCGS with none better.

It sold for $63,250. This is the exact same price that Heritage 5/08: 4235, the previous record holder for the date, brought a few years ago. The difference between the two coins is that, in my opinion, the piece that sold in 2008 was considerably nicer. The 2011 FUN sale price was extremely strong given the quality of the coin.

The third interesting Carson City half eagle to sell at a Heritage auction was an 1879-CC in a PCGS MS62 holder. This coin was not entirely fresh as it had been placed in a Heritage sale back in October 2010 where it failed to meet its reserve. It was reconsigned by the owner into the February 2011 auction and this time it brought $69,000; by far a record price for this date and considerably more than it would have brought in its earlier appearance had it hit the reserve.

This coin was different than the 1873-CC and 1878-CC. Unlike these other two dates, the 1879-CC half eagle is common in most circulated grades and it can even be found, with just a bit of effort, in nice AU55 to AU58. In Mint State, the 1879-CC has around six to eight survivors but nearly all grade MS60 to MS61. The MS62 in the Heritage sale was the best that I'd ever seen and I'm reasonably certain it was the finest known.

So, three different coins and three strong auction results. What can we deduce from these sales? I think the first thing we can determine is that there are at least two new individuals putting together sets of Carson City half eagles. I'm not certain if they are doing other CC gold coins or Liberty head half eagles from other mints, but they are clearly gaga for CC's. The second thing is that these collectors want coins that are the highest graded. And if they are "pop 1/0" coins, that's even better. The third thing is that they want the coins to be in PCGS holders. I'm not sure if the 1873-CC half eagle mentioned above would have brought anywhere near $161,000 if it had been the exact same coin but in an NGC holder. The fourth and final thing is that these buyers seem to like to purchase their coins at auction. But something tells me that if the right item came up for sale, and it were on a dealer's website, it would find its way into one of these collections.

One thing I've learned from nearly three decades of specializing in branch mint coins: the high end of these markets is very thinly traded and when just one or two new "mega collectors" start a collection of, say, finest known Carson City half eagles then prices can jump upwards in a hurry. And this seems to be exactly what's happening right now with this area of the market. It will be interesting to see if more important coin become available in the next few months and, if they do, what sort of record prices they will bring.

Dahlonega Gold Quiz

I'm busy updating my Dahlonega gold book (I hope to be finished with the manuscript in 45 days or so) and in honor of My Dahlonega Obsession, I thought it would be fun, or at least moderately amusing, to share some of my recent findings in the form of a Dahlonega Quiz. Here's how I would interpret your score on the quiz, should you decide to play along:

10 of 10: You are A Dahlonega Guru. Consider becoming a full-time specialist in this area; if you aren't already.

7/8/9 of 10: You are pretty good. Maybe not a Guru but you know your coins.

6 of 10 or below: You are a Dahlona-newb. You need to buy the upcoming third edition of my book, read it carefully, and then read it some more.

OK, are you totally excited and ready to take the quiz? Here we go!

1. What is the most common Dahlonega gold coin in terms of the total number known?

a) 1849-D gold dollar b) 1852-D quarter eagle c) 1854-D half eagle d) 1861-D eagle

2. What Dahlonega gold coin has the most known individual coins in Gem condition (i.e., MS65 and above?)

a) 1858-D gold dollar b) 1847-D quarter eagle c) 1855-D quarter eagle d) 1854-D half eagle

3. Which Dahlonega quarter eagle has an odd grade distribution where more survivors are high grade (AU55 and above) than low grade (EF40 and below)?

a) 1839-D b) 1843-D c) 1857-D d) All the above

4. What Dahlonega coin has the lowest mintage? (And you get extra credit if you know the mintage figure?)

a) 1854-D three dollar b) 1856-D quarter eagle c) 1854-D quarter eagle d) 1841-D quarter dollar

5. What is the rarest Dahlonega coin in terms of overall rarity (i.e., fewest known in all grades combined?

a) 1861-D gold dollar b) 1854-D three dollar c) 1840-D quarter eagle d) 1856-D quarter eagle

6. What is the rarest Dahlonega coin in Uncirculated? (Not the number graded by the services but the number of coins that specialists agree are really, truly "new?")

a) 1859-D gold dollar b) 1840-D quarter eagle c) 1856-D half eagle d) 1842-D Large Date half eagle

7. Which of the following is not a recognized Dahlonega variety?

a) 1842-D Small Date half eagle b) 1843-D Small Mintmark quarter eagle c) 1859/8-D gold dollar d) 1846-D/D quarter eagle

8. Which Dahlonega coin is known to have been produced exclusively by the Confederacy?

a) 1860-D half eagle b) 1861-D gold dollar c) 1861-D half eagle d) 1861-D three dollar

9. What coin holds the all-time auction record for a Dahlonega mint product? (Extra credit if you can name the sale and amount. A lot of extra credit, in fact....)

a) 1838-D half eagle b) 1861-D gold dollar c) 1861-D half eagle d) 1854-D three dollar

10. What collection of Dahlonega gold coinage, sold by Heritage in April 2006, contained many finest-knowns and set many price records?

a) Black and Gold b) Green Pond c) Ashland City d) Duke's Creek

11. Extra Credit: Name every one-year type of Dahlonega coin

So, did that frazzle you or did you find it fun? Here are the answers to the Dahlonega Quiz.

1= A. The 1849-D dollar is easily the most common coin made at the Dahlonega mint. There are as many as 750-1000 known and it is readily available in all grades.

2= A and B. Both of these are acceptable as correct answers. There are at least three Gem 1858-D gold dollars known. There are two or possibly three 1847-D quarter eagles known in Gem.

3= C. There is speculation that a hoard of 1857-D quarter eagles may have existed at one time. This date is almost never seen in lower grades but tends to be available in the AU50 to MS61 range.

4= B. The 1856-D has a mintage of just 874, which is the lowest of any issue from this mint and the only D mint coin with fewer than 1,000 made.

5= D. Again, the correct answer is the 1856-D.

6= D. This is a tough one but most specialists agree that the 1842-D Large Date half eagle is unknown in strict Uncirculated. The same could be said for the 1856-D quarter eagle but I'm tired of giving props to this date...

7= C. There is no such thing as an overdated Dahlonega coin. Of any date. Or denomination.

8= B. If you chose "D" and thought it was the 1861-D Three Dollar, you immediately fail this quiz and aren't allowed to buy any Dahlonega coins until you study my book!

9= C. Heritage 1/08: 3198, graded MS63 by PCGS, sold for a record-braking $207,000. When I sold the coin a number of years earlier, it was the first Dahloenga coin to have ever cracked the $100,000 mark.

10= D. The Duke's Creek collection of gold dollars and quarter eagles was sold in April 2006. The half eagles have yet to hit the market.

11= The one year types are 1855-D gold dollar, 1839-D quarter eagle, 1854-D three dollar, 1838-D half eagle and 1839-D half eagle.

So how did you do on the quiz? You can email me your result and comments at dwn@ont.com

The Two Varieties of 1840-C Half Eagle

Two newly discovered high grade 1840-C half eagles in the Heritage 2011 Platinum Night session of the FUN auction give interesting insight to the emission sequence and striking characteristics of the rare and popular 1840-C half eagle. Prior to the discovery of these two coins, which were graded MS63 and MS64+ by PCGS, there were an estimated three to five known in Uncirculated. The previous finest known, pedigreed to the Pittman sale, is graded MS64. Ironically, that coin was in the sale also (and how thrilled was the consignor of the Pittman coin when he opened the catalog?) and this gave students of Charlotte half eagles an unprecedented opportunity to study the three finest known examples of the 1840-C in one fell swoop.

The two varieties are designated as Variety 1 and Variety 2. The varieties share a common obverse and one that is characterized by a rather amazing mispunched date with one appears to be the tops of a 1 and an 8 coming up from the denticles. The reverse of Variety 1 has a large mintmark placed closed to the stem that is slightly tilted to the right. On the second variety, the mintmark is tilted more towards the left.

Here's a photo of Lot 5108 which is a Variety 1 coin in PCGS MS63. There are a couple of interesting things to note about this coin. The first is the poor overall quality of strike. Look at the weakness on the stars, the hair around the ear of Liberty, the neck feathers and the horizontal lines in the shield. Note as well the roughness at the peripheries. This is a characteristic of this variety: considerable roughness at the borders which is, of course, mint-made.

Even more interesting on the reverse are the extensive die cracks that can be seen at 4:00 and 9:00. This is a very late die state and, clearly, there were very few more coins produced before the reverse literally fell apart and was discarded.

Now let's take a look at Variety 2.

This Variety 2 coin is graded MS64+ by PCGS and it is easily the finest known. In fact, the coin is really "as struck" but probably didn't grade MS65 because of the roughness at the obverse center, as made.

The first thing you will probably gauge is how sharp the strike is in comparison to Variety 1. The stars have full radial lines, the denticles are complete and separated and the roughness seen at the inner border on the previous coin is lacking. Note, as well, how sharp the details are on the eagle in comparison to the previous coin.

But the most intruguing thing about this coin is the lack of reverse die cracks, except for a small one at the eagle's right wingtip.

Perhaps the most interesting thing about the two coins is, in some ways, one of the most subtle. You probably won't be able to tell from these photos but on the earlier use of this obverse (lot 5110) there are small die lines that run in from the border. On the second coin (lot 5108) these lines do not exist and they have been removed by the mint (this process is known as "lapping.")

What does this prove? That the sequence of these coins, as proposed by me, is incorrect and Variety 2 was actually made first. The reason that Variety 1 coins look so worn and weak is that they were made later in the production run, probably after the obverse die was lapped.

Ironically, neither of the two newly discovered 1840-C half eagles sold at the auction. This wasn't the result of a lack of bidder interest (I would have been thrilled to buy both coins) but because the reserves placed on both lots by the consignor were too high.

I can't imagine there will be many other times that collectors will be able to see such fresh, high grade Charlotte half eagles in one place and that each coin will not only be a different die variety but will have an entirely different "look" as a result.

Thanks to Heritage Auctions for allowing me to use the images of the two 1840-C half eagles above.

Overall Rarity Versus Grade Rarity

Even the most available pre-1933 United States gold coin has some degree of "rarity." A coin like a 1924 or 1927 St. Gaudens double eagle might have a total population in the 10,000's and this certainly does not mean it is rare but in comparison to, say, a modern coin, it does have a degree of scarcity. But when we are discussing the sort of coins that DWN buys and sells, we are generally talking about true numismatic rarity. There are a number of different degrees of rarity. The Sheldon Rarity scale, as an example, attempts to distinguish the rarity of copper coins (specifically early Large Cents) from "common" (R-1 or more than 1500 known) to R-8 (two or three known).

I think there are two interesting and important fundamental concepts of rarity that the gold coin collector needs to understand. These are overall rarity (or what I sometimes refer to as "fundamental" rarity) and grade rarity. Let's take a look at both concepts with some specific examples that help to explain them.

In my opinion, a coin that is fundamentally rare is superior to a grade rarity. An example of a fundamental rarity is an 1864 quarter eagle. Only 2,824 business strikes were made and probably no more than three dozen pieces are known in all grades. This means that, even in low grades, the 1864 quarter eagle is a rare coin. By the same token, a very high grade example of this date is rare as well. Thus, a fundamentally rare coin in a high grade is especially desirable.

An example of a grade rarity would be an 1854 Three Dollar gold piece in MS67. This is a very common issue in all grades up to an including MS65 and it is rare in MS67 solely as a result of its grade. While I think a coin like this is very interesting (and it is certainly desirable to a type collector specializing in great, high grade coins) as a collector I would rather own a coin that is rare and desirable in all grades; just not in "super-grades."

A few coins are very unusual in that they combine overall and grade rarity simultaneously. Getting back to the 1864 quarter eagle I mentioned above, a perfect example of this is the Byron Reed 1864 quarter eagle graded MS67 by NGC. Not only is this among the finest pre-1890 business strike quarter eagles of any date that I've seen, its also one of the rarest collectible dates. There aren't many coins that combine these two elements in one neat package but those that do are amongst the creme de la creme of American numismatics.

Is one type of rarity "better" than the other? That's hard to say and, of course, it depends who you talk to. If you listen to a dealer that specializes in Gem coins, he'll tell you to steer clear of "lowly" coins like an 1847-C quarter eagle in Extremely Fine. Other dealers will tell you to avoid the same date in a super-grade for that issue (in this case, an MS64).

The correct answer often depends on the state of the market. When coins are doing very well, something like an 1854 Three Dollar gold piece in MS67 may show exceptional performance and may even double in price in a short period of time. But this is also the exact sort of coin that traditionally drops like a stone in water when the market gets cold. Coins that are fundamentally rare, like the 1864 quarter eagle I mentioned above, seem to show more consistent valuation. If the market for rare gold were to crash tomorrow, I'm sure that this issue would drop in value but it would remain far more liquid than something like a 1903 quarter eagle in MS68.

Most 19th century U.S. gold coins show a progression of rarity. Take, for instance, a typical Dahlonega half eagle. Let's say that the original mintage figure is 50,000 pieces. Given the typical survival rate for this denomination, we can assume that maybe 300-400 exist in all grades. This makes our hypothetical half eagle at least marginally scarce in all grades. Of the 300-400 that exist, at least three quarters of them grade Extremely Fine or lower. There may be as many as 50 or 60 that grade About Uncirculated but most are in the AU50 to AU53 range. So, we can see that this date is relatively scarce in the lower AU grades and probably rare in the upper range; especially with original color and surfaces. In Uncirculated, there are probably around ten or so known. Our D mint half eagle, thus is very rare in Uncirculated. And this progression continues through Mint State with the "cut off" point for extreme rarity tending to be around MS62 to MS63.

What this ultimately means is that this date progresses from being scarce in EF40 to rare in AU55, to very rare in MS62 to excessively rare (or even unknown) in MS64. The only factor that might change this progression, of course, is the discovery of a hoard of high grade pieces that skews the distribution.

Many collectors ask me for advice when it comes to purchasing rare gold coins. One thing that I really stress is avoiding common coins in uncommon grades. Let me give you an example of this. An 1881 eagle is a common coin in grades up to and including MS63. In this grade, PCGS has recorded 235 examples of of 2/11 and we're looking at $1,600-1,800 for a presentable example. In MS64, this date becomes scarcer with a current PCGS population of fourteen. This coin would cost you around $3,000; probably not a bad value although not a coin that I'd jump on. In MS65, there is but one PCGS MS65. If this coin became available, it would likely sell in excess of $12,500.

Here's why I think this coin is not great value for most collectors. This coin is readily available in MS63 and there are not enough specialists in this series demanding the highest possible grade. The MS64 might make some sense to these collectors but unless there are two "must have the best graded at PCGS" collectors competing at the same time, this coin seems to me to be the sort of coin that I think "cool piece but what exactly am I going to do with it?" if and when it is offered for sale to me.

I'd like to hear your comments on rarity. Please either add to the comments section below or email me directly at dwn@ont.com

1880 $20.00 NGC PR63

Brilliant Proof Liberty Head gold coinage is almost never seen anymore. Most examples have been dipped and/or conserved in an attempt to generate higher grades from the third-party services and in order to receive Ultra Cameo designations. In the 2011 FUN auction, Heritage sold a number of superb quality Proof gold coins from the Miller collection that were notable for having natural coloration. These coins were purchased in the 1970’s and 1980’s; back when collectors knew what original proof gold looked like and it was appreciated for what it was. This 1880 double eagle was from that sale and collection.

1847-C $2.50 PCGS MS64

The 1847-C is easily the most obtainable Charlotte quarter eagle and there are as many as three to four dozen known in Uncirculated. However, there are no Gems and probably no more than five or six MS64's of which this piece, which has been off the market for a number of years, is probably the second best that I have seen. The quality of strike is amazing with detail that would typically be equated with the Philadelphia mint and the luster is pillowy and full. The color is totally "right" for the issue with intense yellow-gold shades turning slightly to orange at the left obverse border.

1866-S With Motto $20.00 PCGS MS61

The motto IN GOD WE TRUST was added to the double eagle in 1866 but not before 120,000 examples were struck in San Francisco without the motto. This created an interesting transitional issue and the only other time that this occurred in the double eagle denomination is 1907 when both the Liberty Head and St. Gaudens design were made. The 1866-S With Motto double eagle is typically seen in EF40 to AU50 grades. It is scarce in the higher AU grades and rare in Uncirculated with an estimated dozen to dozen-and-a-half known. Almost all grade MS60 to MS61 and I have only seen two pieces higher than this (both in MS62).