Revisiting The 1841 Quarter Eagle

A few years ago, I wrote a blog about 1841 quarter eagles that basically stated that the currently-accepted belief that all of the known examples were Proofs was wrong. After recently being able to examine no less than four 1841 quarter eagles at one time, I am now totally convinced that this issue exists in two distinct formats. Numismatic tradition states that the 1841 quarter eagle was struck only as a Proof. This has never made sense to me. With as many as 15-17 pieces known, why would the Mint have made so many Proofs in 1841 when virtually none were struck in any other year between 1842 and 1853? And why would most of the survivors be in such low grades (EF40 to AU50) when most of the Proof gold coins from the 1840's that still exist tend to be in reasonably high grades?

This enigma has become a semi-obsession of David Hall's and when you are the head of Collector's Universe/PCGS you can get things done. David was able to wrangle four different examples of the 1841 quarter eagle including a PR60 illustrated below. A few weeks ago, one of his security detail flew the four coins up to my office in Portland and I am now more convinced than ever that 1841 quarter eagles exist in two formats.

First, a few words about the Proofs. One of the main reasons that you can determine that a Proof 1841 quarter eagle actually is a Proof is that is “looks like one.” These coins are not weakly struck, nor is there any question about whether they have squared edges or incomplete reflectiveness to the fields. These coins look just like other Proof gold coins from the 1840's. They may have some mint-made flaws such as pits in the planchet or lintmarks but their appearance is not much different than Proofs from the latter part of the 19th century either.

There appear to be just three or four Proofs known. The finest is a PCGS PR64 owned by a prominent Texas collector that is ex Heritage 6/04: 6204 where it brought $253,000; it was earlier in the Eliasberg sale and it sold for $82,500 in October 1982. The second Proof is owned by a customer of mine and it is graded PR60 by PCGS. I purchased it out of Bass II in October 1999 and paid $110,000 for it. A third Proof is in the Smithsonian. I have not seen the coin in person but it has been confirmed by Jeff Garrett whose opinion I respect. A possible fourth Proof is the ex Davis-Graves coin that was last sold as Superior 2/91: 2664 at $66,000. This coin might be the piece that appears in the PCGS population report as a PR62.

When I recently examined the Eliasberg and Bass Proofs, I made the following observations about them. I’m certain they apply to the other one or two Proofs as well.

*Proof 1841 quarter eagles have fully reflective fields that look like Proofs should. They are not "semi-prooflike" or "mostly prooflike." They are Proofs, no ifs and or buts.

*On Proof 1841 quarter eagles, there is sharpness of strike on the curls below the ear of Liberty. This sharpness does not appear on business strikes.

*The texture on the face of Liberty is different on Proofs. This may be attributable to the fact that the luster pattern on the cheek has not yet been worn off as it has on circulated business strikes.

*The curls on the back of the neck have a bold, almost three-dimensional look on Proofs. On business strikes they are not as sharp.

*On the Proofs the edges are sharp and fully squared. They are not as sharp and clearly not fully squared on business strikes.

I can quickly summarize why I think the lower grade 1841 "proofs" are not proofs at all and were clearly produced as business strikes (but using the same dies as the Proofs).

First of all, logic dictates that there are just too many 1841 quarter eagles known for all these coins to be Proofs. The number of coins that I feel are real Proofs (three or four) is consistent with the number known for other Proof quarter eagles from the 1840's. It just doesn’t make sense that the Mint would have made 30 or so Proofs in 1841 but five or so (if that) in every other year during the 1840's. Could they have been struck for a special occasion? It's possible but I have always doubted this reason and until documentation is found that states that they were made to commemorate an event or to give to VIP's, I am skeptical at best.

Secondly, many of the surviving 1841 quarter eagles are very low grade; in the Fine to Extremely Fine range. I have never seen or heard of another Proof quarter eagle from the 1840's that was this impaired.

Thirdly—and I believe most importantly—the business strikes, while Prooflike, just don’t "look" like Proofs. The marks on them don't fall in the same pattern that you see on Impaired Proofs; i.e., they look like circulated business strikes. As I stated above, they are not as well struck as the unquestionable Proofs and lack the squared rims and bold central details that are found on the true Proofs. They just don’t look or "feel" like Proofs.

In my opinion, David Hall and PCGS are to be credited for bringing this issue out into the opinion. It will be interesting to see if PCGS starts categorizing 1841 quarter eagles as Proofs and circulation strikes/business strikes and it will be interesting to see if the market starts according a premium to the Proofs as there should be, given their greater rarity.

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.

Some "Secret" Varieties of Early U.S. Gold

There are a few relatively unknown but numismatically significant varieties of early United States gold coinage that I think are likely to be included in comprehensive collections of these issues as they become more popular with collectors. Here are a few of the "secret" varieties that I would suggest collectors be on the lookout for. 1798 Close Date and Wide Date Quarter Eagles. Despite this date's low mintage figure, it remains undervalued in comparsion to the other 18th century quarter eagles. There are two distinct varieties known. The more avilable and better known of the two is the Wide Date (BD-2) on which the four digits in the date are quite widely spaced. An easy way to distinguish this variety is by the presence of five berries on the reverse. There are an estimated four to five dozen known in all grades.

The "secret" variety for this year is the Close Date. This variety has only four berries on the reverse. It is very rare in all grades with around two dozen or so known.

1825 Close Fraction and Distant Fraction Quarter Eagles. There are not many die varieties in the short-lived Capped Bust Large Size type of 1821-1827 but there are actually three varieties for the 1825.

Two of the varieties show a distant fraction on the reverse with the numerals relatively far from the fraction bar. The more common (BD-2) has a 5 in the date that leans far to the left and which is placed below the 2. The rarer variety (BD-1) and the 5 more upright and even with the 2. There are as many as 90-100 known of the former while the latter remains very rare and apears to have fewer than ten accounted for.

The third variety of 1825 quarter eagle (BD-3) has the same reverse as seen on the 1826 quarter eagle with a very close fraction where the numerals touch the fraction bar. It is also very rare, although not as much so as BD-1. I would estimate that around a dozen exist.

In the half eagle series, there are many interesting "secret" varieties; enough so that I am only going to mention a few here.

1795 Small Eagle Half Eagles. There are no less than dozen varieties of 1795 Small Eagle half eagles known. To me, the most interesting are the blundered reverse with the the final S in STATES erroneously punched over a D. There are two die varieties known that have this impressive reverse.

The first variety, BD-5, is recognizable by the left side of the 1 in the date touching the curl. It is extremely rare with fewer than ten known. The second variety, BD-6, has the date free of the curl. This is a much more available coin with as many as 75-90 pieces known. The S/D in STATES half eagles do not generally sell for a premium but they have a very high "coolness" factor due to the spectacular blunder on the reverse that is easily visible to the naked eye.

1798 Half Eagles. The 1798 Large Eagle half eagles are fertile ground for variety collectors. There are coins with a Small or "Normal" 8 in the date as well as those with a Large 8. The Large 8 coins exist with thirteen and fourteen stars on the reverse.

The "secret" variety is the 1798 Large 8 with fourteen reverse stars. While this variety already sells for a premium over the more common Large 8 with thirteen stars, what makes it interesting is that there is only one die variety known (BD-3). Only three dozen or so exist in all grades and the importance of this coin as a distinct naked-eye variety is only now being understood by specialists.

1799 Half Eagles. This is another very fertile year for variety collectors with an amazing nine varieties known. Seven of these have small reverse stars while two have large stars on the reverse.

The "secret" variety for 1799 half eagles is the large reverse stars. There are two die varieties known. The first, BD-5, is easy to recognize by the last 9 being too high and recut to the right. There are two to three dozen known. The second, BD-8, has the last 9 even with the first and there is no recutting. This variety is slightly rarer overall and it appears to be extremely rare in high grades.

There are a number of varieties in the half eagle series produced from 1800 through 1807 but these tend not to generate as much collector interest. In a future blog, I will be discussing the ones that have the greatest appeal to me.

The Ten Rarest Early Quarter Eagles

During 2009, I wrote a series of “ten rarest” articles on all the major denominations of Liberty Head gold coinage. These articles were well-received and I enjoyed producing them. It’s a logical progression to apply this topic to the early gold series. Except it’s not quite that easy. The eagle denomination is very short-lived (1795-1804) making a ten rarest study impractical. And the ten rarest early half eagles contain a host of issues that are so rare that collecting them becomes impractical. That leaves us, for the sake of practicality, with just early quarter eagles. Five designs of quarter eagle were produced between 1796 and 1834. There are a total of 23 distinct issues and even the most available of these is rare by the standards of American numismatics. Early quarter eagles have always been undervalued and under collected in comparison to their larger-size counterparts. This has changed somewhat in the last few years as price for early quarter eagles have risen; along with most early coins in general.

Each of the ten rarest early quarter eagles is very hard to locate and a few of them are even six-figure coins in most grades. But what is most intriguing about this list is the fact that a collector with a good deal of patience and a solid coin budget could actually assemble a complete top ten list; something that certainly can’t be said for half eagles.

The list of the ten rarest early quarter eagles is as follows: 1. 1804 13 Stars 2. 1834 No Motto 3. 1797 4. 1806/5 5. 1796 With Stars 6. 1798 7. 1826/5 8. 1824/1 9. 1827 10. 1833

1804 13 Stars: The 1804 13 Stars is clearly The Big Kahuna of early quarter eagles. In my opinion, it is the single rarest quarter eagle of any date or denomination, eclipsing such rarities as the 1841, 1854-S and 1863.

Estimates range slightly on the number of examples known but I think it’s safe to say that the low number is around eleven while the high might go up as high as fifteen. Most are in lower grades. There are probably not more than four or five in the various AU grades and none in Uncirculated. There have been ten auction records for this issue in the last twenty years. The two finest are Heritage 7/09: 1209 (PCGS 58) and Heritage 7/08: 1459 (NGC 55). Both brought $322,000. I purchased the PCGS 58 coin as an agent and it is now in an Eastern specialist’s early quarter eagle collection. The other choice example is in the Bass core collection.

Dannreuther and Bass estimate that between 250 and 1,003 examples of this variety were produced. I am inclined to believe that the number is on the low end of this scale; maybe somewhere in the area of 250-500.

1834 With Motto: Viewed strictly as a year, the 1834 is the rarest early quarter eagle (there are specific varieties, such as the 1804 13 stars listed above, that are rarer). There were 4,000 struck but nearly all were melted due to economic conditions and a weight change of gold coins in 1834. Today, it is likely that around 20 or so survive including at least a few Proofs. Most are in the VF to EF range and properly graded AU coins are very rare. I think that there are three or four in Uncirculated as well as three or four Proofs.

This date has always been underrated and not especially well-known outside of the specialist community. My guess is that it is confusing to beginning collectors that the 1834 also exists in the more familiar Classic Head design and that the latter is a common coin even in comparatively high grades.

The all-time auction record for the 1834 With Motto was set all the way back in 1980 when the Garrett II Proof sold for $60,000 (it would bring many times this today if offered for sale).

1797: The 1797 has long been one of my personal favorite dates in the early quarter eagle series. The mintage is reported to be just 427 coins (although Dannreuther and Bass believe it may be as high as 585) and there are probably not more than two dozen or so known to exist in all grades.

All 1797 quarter eagles have a very distinctive obverse die crack in the right field which can be seen even on very low grade coins. This crack does not affect the quality of strike and most are reasonably well-defined on both the obverse and the reverse.

The probable finest known is Superior 11/05: 484, graded MS64 by NGC, that brought $276,000; a record price for this date. I am aware of two other Uncirculated coins: a PCGS MS62 and the Bass coin, which grades at least MS60 if not higher, that is in the ANA Museum.

Given this coin’s rarity and lack of availability, I believe it is undervalued; especially in comparison to such better known (and less rare) issues as the 1796 No Stars and the 1808.

1806/5: Two distinct varieties are known for 1806 quarter eagles. The more common is an 1806/4 overdate with thirteen obverse stars arranged eight by five. The rarer is an 1806/5 overdate with the obverse stars arranged seven by six. Only 480 of the latter were produced and there are around 30 or so known today. This variety is numismatically interesting as it uses the exact dies of 1805 but after they had been annealed and overdated.

When available, the typical 1806/5 quarter eagles grades in the EF40 to AU50 range and has poor overall eye appeal. There are probably around three or so known in Uncirculated and the finest appears to be ANR 6/05: 1004 ($195,500), ex Goldberg 2/03: 1900 ($120,750).

Very presentable examples of this variety are still available for less than $50,000 which, in my opinion, is good value for a coin with such a low original mintage figure and with so few survivors.

1796 With Stars: The 1796 is the fifth rarest early quarter eagle. Surprisingly, it is not even the best known quarter eagle produced in 1796 as the No Stars has, for many generations, received greater acclaim. But the With Stars is considerably rarer.

There were 432 produced and I believe that no more than 40-45 are known. There are as many as five to seven known in Uncirculated including one Gem, graded MS65 by NGC (ex Heritage 1/08: 3059, Heritage 1/07: 3382 and Byron Reed). This coin brought $1,006,250 the last time it sold; the second highest price ever realized at auction for any quarter eagle.

As I mentioned above, the No Stars variety has, for many years, been more highly priced—and prized—than the With Stars. This is due to the fact that the former is a distinct one-year type. The pricing gap has closed considerably and this makes sense as the With Stars is at least twice as rare as the No Stars.

The 1796 No Stars Quarter Eagle

Dually popular as a one-year type and a first-year-of-issue, the 1796 No Stars is among the most desirable early United States gold coins. It is actually less rare than its With Stars counterpart but it is traditionally valued more highly and is certainly held in greater esteem by most collectors. Its low mintage, unique design and numismatic significance combine to make it an issue that is considered a cornerstone of any collection of early United States gold coins. STRIKE: Virtually all known examples are weak at the centers. On the obverse, this weakness is seen on the ear, the hair above and below the ear and the curls surrounding the face. About half of the 1796 No Stars that I have seen are weak on the E in LIBERTY. Some have detail on the obverse border while others show little or no definition on the denticles in this area. The obverse generally appears weaker than the reverse. This is not so much a function of strike is it is the design of the coin. The openness of the No Stars obverse causes this side to wear easily. The reverse is often weak on both the top and the base of the eagle’s neck. On some, the tip of the tail is weak; on others it is sharper. The tip of the left wing is always flat and the entire left wing appears less detailed than that on the right. The right claw is usually weak as well. The reverse denticles are typically visible from around 7:00 to 2:00 and hard to see or invisible from 3:00 to 7:00.

SURFACES: The surfaces often show numerous small marks in the fields but this issue tends to be a bit less abraded than the 1796 With Stars. Many have adjustment marks that range from light and unobtrusive to heavy and detracting.

LUSTER: This issue has a very distinctive type of luster. It is typically frosty with a somewhat subdued appearance. The fields are usually semi-prooflike and this is in contrast to the frosty texture of the devices. Many 1796 No Stars quarter eagles have been cleaned and show impaired luster as a result. There are some higher grade pieces that have a majority of the luster present and the one Gem that is known has magnificent thick, frosty luster.

COLORATION: The typical color for this issue is medium to deep yellow gold with a prominent olive undertone. A number show (or at least showed this before they were dipped) a nice coppery hue that was somewhat iridescent when tilted into a light source. As recently as a decade ago, it was possible to find a nice original Extremely Fine or About Uncirculated example with fully or nearly full original hues. Today, most of these have been processed or conserved and attractive 1796 No Stars quarter eagles with natural color are very rare.

EYE APPEAL: The typical 1796 No Stars quarter eagle actually has better overall eye appeal than many of the other early dates of this denomination. At one point, there were enough nice middle grade pieces to satisfy most collectors. Now, many of these coins have been conserved and rest in third-party slabs where they are enthusiastically graded, to say the least. That said, it is still possible for the patient collector to locate a reasonably attractive example for his type set or date set.

DIE CHARACTERISTICS: The left sides of the LI in LIBERTY are lightly recut. Most examples have a number of die cracks on the obverse with the most prominent located at the obverse rim around 9:00 extending crookedly into the field. On the reverse, there is an intermittent die engraver’s line from the top of the right wing through the tops of AMERI in AMERICA.

DIE VARIETIES: There are two varieties known.

Variety 1 (BD-1): The arrows reach to the foot of the I in UNITED. This variety is extremely rare with just four to six pieces.

Variety 2 (BD-2): The arrows reach to the end of the N in UNITED. This is by far the more common of the two varieties.

RARITY: Total Known: 90-110 By Grade: Very Fine: 10-15 Extremely Fine: 42-45 About Uncirculated: 33-43 Uncirculated: 5-7

AUCTION RECORD: The auction record for this issue was set by Heritage 1/08: 3058. This coin brought $1,725,000 which is the highest price ever paid at auction for any early United States gold coin. Higher prices have been paid, of course, via private treaty.

SIGNIFICANT PIECES: There are an estimated five to seven known that qualify, in my opinion, as being truly Uncirculated. These include the following:

1. Private collection via John Albanese, ex Heritage 1/08: 3058 ($1,725,000), Madison Collection via Heritage Galleries, ANR 6/05: 1002 ($1,380,000), Midwestern collection, Stack’s 11/95: 1498 ($605,000), Lelan Rogers collection, Stack’s 5/64: 1660, Phillip Ward collection, University of Pennsylvania, R.C. Brock collection, NY Coin and Stamp 6/1890: 719, Lorin Parmelee collection. Graded MS65 by PCGS.

2. Pogue collection, ex Stack’s 5/99: 1787 ($276,000), John Whitney Walter collection, Bowers and Ruddy 3/80: 732 ($125,000), obtained via private treaty from Harold Newlin in 1884. MS62 to MS63.

3. Stack’s 7/08: 2324 ($488,750), ex ANR 7/04: 82 ($345,000), Oliver Jung collection via Midwestern dealer, James Swan collection. Graded MS62 by PCGS.

4. Heritage 8/06: 5417 ($322,000). Graded MS61 by PCGS.

5. Heritage 7/08: 1451 ($276,000), ex Ed Price collection. Graded MS61 by PCGS.

As of July 2009, PCGS has graded three in MS61, three in MS62 and one in MS65 for a total of seven in Uncirculated. NGC has graded two in MS60, five in MS61, three in MS62, one in MS63 and one in MS65 for a total of twelve in Uncirculated.

The 1796 No Stars is probably the best known and most desired early quarter eagle. It is not as rare as the With Stars issue but its status as a one-year type and a first-year-of-issue leave it in heavy demand. There are approximately 100 known in all grades with the typical piece being in the Extremely Fine-40 to About Uncirculated-50 range. Properly graded high end AU coins are quite rare and the 1796 No Stars is very rare in Uncirculated with fewer than ten known. There is one Gem known.

The 1854-S Quarter Eagle: A Forgotten American Gold Rarity

In the early part of 2003, an excellent book entitled "The 100 Greatest United States Coins" was published by H.E. Harris. The coins were selected by a panel of experts including myself. The 1854-S quarter eagle was only listed as #87 and was outranked by a number of more common gold issues including the 1915-S Octagonal and Round Pan-Pacific $50 gold pieces, the 1879 Flowing Hair Stella and the 1848 "CAL" quarter eagle. I recently had the pleasure of selling an 1854-S quarter eagle. As I researched this coin, I quickly realized that I was every bit as guilty as most numismatists of overlooking its rarity and historical importance.

The San Francisco mint officially opened in 1854. Its first year was exclusively dedicated to striking gold issues. It issued gold dollars, quarter eagles, half eagles, eagles and double eagles in 1854 and added three dollar gold pieces to its roster in 1855.

Tradition states that the mintage figure for the 1854-S quarter eagle (along with its half eagle counterpart) was extremely limited because of an absence of sufficient parting acids required to remove silver from the impure gold that California was receiving from its local sources. Only 246 1854-S quarter eagles were produced, giving this the lowest mintage figure of any regular issue produced at the San Francisco mint (the 1854-S half eagle, with an original mintage figure of 268 is a close second). Only two Liberty Head issues, the 1875 half eagle and eagle, have lower business strike mintage figures.

Curiously, the mintage figure for 1854-S eagles and double eagles was relatively high with 123,826 of the former and 141,468 of the latter produced. The real reason for the extremely limited mintage figures of the quarter eagle and the half eagle is much more likely due to the fact that the depositors of gold who requested coins in 1854 wanted large-sized denominations such as eagles and double eagles. The quarter eagle denomination was never popular in the West. None were made in 1855 and mintage figures remained small at San Francisco through the discontinuance of this denomination in 1879. The other western branch mint, at Carson City, never struck any quarter eagles.

Despite the very low mintage figure of the 1854-S quarter eagle, it has never achieved much popular acclaim. It is believed that between nine and twelve are known, making it the single rarest Liberty Head issue of this denomination and one of the two rarest quarter eagles of any type, along with the 1804 13 star variety. Unlike the two other great Liberty Head quarter eagles rarities, the 1841 and the 1863, the 1854-S is never seen in high grades. In fact, it is unique above Extremely Fine.

It is believed that the discovery specimen of the 1854-S quarter eagle was located in a western bank sometime around the beginning of the 20th century. It was sent to B. Max Mehl, the flamboyant Ft. Worth dealer who had advertised extensively to purchase individual rarities. Mehl sold it to H.O. Granberg, a prominent Wisconsin collector in the early 1900's. It is believed that Mehl sold it for $500, a fabulous sum at the time for a coin that was both relatively unknown and very low grade. It was then sold by a Massachusetts dealer named Elmer Sears to John H. Clapp for $395 and it became the property of Louis Eliasberg in 1942. It sold in the 1982 Eliasberg auction for $7,150 and was later offered as Lot 587 in Bowers and Merena May 1993 auction where it realized $20,900. It then resided in a Nevada collection until early 2003 when it was purchased by Douglas Winter Numismatics of Dallas.

The Eliasberg specimen, graded Good-6 by PCGS, is illustrated above and was recently sold by Douglas Winter Numismatics to a Pennsylvania collector for a mid five-figure sum.

In 1999, the Harry Bass example was offered for sale. It had been graded AU-50 by PCGS. It was purchased by a midwestern dealer for $135,700 and was later graded AU-55 by NGC. It is easily the finest 1854-S quarter eagle and it represents the high-water mark for this date in terms of its auction price. It is likely that if the Bass 1854-S quarter eagle were offered for sale today, it would bring considerably more.

Of the remaining pieces known, most are very low grade and at least three are damaged. For some reason, the 1854-S is nearly always found with surface impairments such as scratches or noticeable marks. The Eliasberg specimen, despite its extensive wear, is remarkable for its complete lack of detracting marks or damage.

Due to the rarity of this issue, it is likely that forgeries could be made by adding a mintmark to a common 1854 Philadelphia quarter eagle. However, the 1854-S has a noticeably different date position with the 1 placed very high and imbedded in the neck of Liberty. The other three digits slant downwards with the 4 far from the denticles. On the reverse, the right serif of the mintmark touches the arrow feathers while the left serif is nearly joined to the middle loop of the S. The mintmark is positioned to the left of the fraction line. All known examples show some weakness of strike at the curls at the center of the obverse. The reverse is much more weakly struck and appears to be a full grade lower. The wingtips and neck feathers are poorly defined and have a considerably different appearance than a Philadelphia quarter eagle of this era. Any 1854-S quarter eagle that is offered for sale should be certified for authenticity by third-party services such as PCGS or NGC.

As mentioned above, many experts feel that the 1854-S quarter eagle is an underappreciated and, consequently, undervalued issue. I believe that this is most definitely so. There are a number of reasons for this.

No 1854-S quarter eagle was offered at public auction until 1944 and only three have traded in the past decade. When specimens were offered during the Bass and Eliasberg sales, they were overshadowed by a host of other extremely rare issues and did not command the attention they would have in other less comprehensive "name" collections.

Another factor working against the 1854-S is that the survivors tend to be very low grade. The other great rarities of this series, the 1841 and 1863, are seen in higher grade when they are available. There are approximately fourteen to seventeen 1841 quarter eagles and this includes a number of Proofs. The 1863 is a Proof-only issue with an estimated fifteen known. Of these, at least half grade in the Proof-64 to Proof-65 range. The 1854-S has just nine to twelve pieces known and most of these are in the Good-6 to Very Fine-20 range. It is difficult for a low grade coin to sell for a high price, no matter how rare it is.

There are not many collectors who specialize in San Francisco gold coinage and this has also helped to hold down the price of the 1854-S quarter eagle. However, this issue could just as easily be collected along with Territorial and Pioneer issues as it is an important gold rush era relic.

For a number of years, I wondered if the population of the 1854-S quarter eagle and half eagle would increase from discoveries made on the S.S. Central America. With all of the gold coins on this ship, it seemed possible that at least a few would be dated 1854-S. There were no 1854-S quarter eagles or half eagles on this ship so these fears proved to be unfounded.

When one considers that only 246 of the quarter eagles were struck, a surviving population of just nine to twelve pieces is in line with other issues of this era. What remains very curious about the 1854-S quarter eagle is why these few remaining pieces are in such low grade. There are just three 1854-S half eagles known but two are in relatively high grades. How come there aren't a few more 1854-S quarter eagles that exist in the About Uncirculated-50 to Mint State-60 range as with other San Francisco gold issues of this era? This is a mystery that will probably never be solved.

Classic Head Gold Coinage, 1834-1838 Part One

For the first quarter of the 19th century, production of gold coinage was sporadic. Quarter eagles were produced intermittently and in very small numbers during this era. Half eagles saw the bulk of production but they were primarily storehouses of value and traveled from bank to bank. The eagle denomination was discontinued in 1804 and would not be resurrected until 1838. Many of the reasons for this lack of gold coin production were economically related. After the War of 1812, the economy of the United States was in shambles. Things became so bad by 1815 that, for the first and only year in the history of the U.S. mint, production of the Cent was suspended. In addition, the price of gold was very low in relation to silver and demand for high denomination gold coinage was non-existent.

A number of events converged to change this scenario. The Industrial Revolution, which overtook Western Europe during the early 1820's, was quickly transported to America, where it, too, revolutionized the economy and means of production. The discovery of large amounts of gold in Western North Carolina and North Georgia in the late 1820's and the early 1830's made gold more plentiful and made its price rise on the open market. By the middle part of the 1830's, there was clearly a need for circulating gold coins in the United States.

Chief Engraver William Kneass was ordered to produce a new design for the quarter eagle and half eagle. His design, known to collectors as the Classic Head, was to last until 1839 when it was replaced by the more familiar Liberty Head design of Christian Gobrecht.

Classic Head gold coinage represents an interesting transition between the old and the new types of United States gold coinage. These were the first United States gold coins to be produced in large quantities using technological breakthroughs such as the steam press and they were the first gold coins to be struck at the new branch mints which were authorized in 1835 and opened in 1838.

Despite the inherent collectability of these coins, they tend to be overshadowed by their earlier and later counterparts. It is my opinion that the Classic Head gold coins offer the collector an excellent value and a very fertile area in which to specialize.

A number of very interesting varieties exist for many of these dates. These are not currently popular with collectors but the affordability of most Classic Head issues (especially those produced at the Philadelphia mint) make them a good candidate to develop a strong die variety collector following in the future.

Classic Head Quarter Eagles

1834: More quarter eagles were struck in this year (112,234) using the Classic Head design than in the previous twenty years combined. The 1834 is, along with the 1836, the most common issue of this denomination and it is plentiful in all circulated grades. In Uncirculated, it is relatively available in the Mint State-60 to Mint State-63 range and is even available, from time to time, in Mint State-64. Gems are very scarce but are seen more often than any other Classic Head quarter eagle. The strike is usually sharp except for the hair curl around the ear of Liberty and on the corresponding reverse. The surfaces are often semi-prooflike or even fully prooflike and the natural color is often a very pleasing deep green-gold hue. Many show mint-made planchet problems. A small number of Proofs exist including the Pittman II: 1718 coin that realized $176,000 in May 1998.

A number of varieties exist. The most important are the Small Head (identifiable by the curl below star seven being somewhat distant and the curls at the back of the head being in a straight line) and the Large Head (identifiable by the curl below star seven being close, a much larger 4 in the date than on the Small Head and uneven curls at the back of Liberty's head).

1835: Despite a mintage similar to the 1834, this is a much scarcer date. It is typically seen in Very Fine to About Uncirculated grades. When available in Uncirculated, specimens tend to grade Mint State-60 to Mint State-62 and coins grading Mint State-63 and above are rare. I have only seen one or two real gems. The strike is not as sharp as on the 1834 with most showing considerable weakness at the central obverse. The luster ranges from frosty to semi-prooflike and the natural color is most often a medium to deep green-gold. The only Proof to be sold in recent memory was the Pittman II: 1719 coin that realized $176,000 in May 1998.

There are three minor die varieties with one obverse and three reverses employed.

1836: An incredible 547,986 quarter eagles were produced in 1836; a mintage figure that would not be exceeded in the quarter eagle denomination until 1851. This date is comparable to the 1834 in terms of its overall rarity and is also readily available in the lower Uncirculated grades. It is considerably scarcer than the 1834 in Mint State-63 and Mint State-64 and it is extremely rare in Gem condition. The strike is better than on the 1834-35 issues although most show weakness at the central obverse. The luster is typically a blend between satiny frost and prooflike reflectiveness while the coloration ranges from medium orange-gold to green-gold. A Proof was sold as Lot 1720 in the Pittman II sale and it brought $110,000.

A number of interesting varieties exist. This includes two distinct styles of 8 in the date: the Script or "Fancy" 8 and the Block 8. In addition, varieties exist with the Head of 1834 (the second curl on the top of Liberty's head lies directly the seventh star), the Head of 1835 (the second curl lies below the far left side of the seventh star) and the Head of 1837 (the second curl lies below the far right side of the seventh star). There are currently eight die varieties known and this is a very fertile issue for the die variety collector.

1837: The mintage figure for quarter eagles dropped to 45,080 in 1837. This issue is far more rare than the 1834-1836 and is exceeded in rarity only by the 1839 among the Philadelphia Classic Head quarter eagles. The 1837 is usually seen in Very Fine to extremely Fine grades and it is scarce in About Uncirculated. It is rare in any Uncirculated grade and very rare above Mint State-62. The only gem I have ever seen was the Bass II: 305 coin which was graded MS-65 by PCGS and which sold for $37,950 in 1999. This date is always found weak at the centers but usually has nice satiny luster and medium to deep green-gold color. In my opinion, it is a substantially undervalued issue.

There are a total of three die varieties but, unlike the 1836, none are significant.

1838: The 1838 has a mintage figure that is similar to the 1837 (47,030 were produced) but it is much more readily available. It is typically seen in slightly higher grades than the 1837 and locating a piece in any circulated grade is not hard. In high grades, the 1838 is moderately scarce in Mint State-60 to Mint State-62, rare in Mint State-63 and very rare above this. A few really superb pieces exist with the finest of these the incredible PCGS MS-67 that sold for $69,000 in the Bass II auction conducted by Bowers and Merena in October 1999. The 1838 is usually better struck than other Classic Head issues and has nice frosty luster, medium to deep orange-gold color and a very distinctive thick border on the obverse.

Only one die variety is known.

1838-C: This is the first branch mint quarter eagle and, obviously, the first Charlotte quarter eagle. Only 7,880 were struck and around 100-125 exist. Circulated examples tend to be well worn with most in the Very Fine to Extremely Fine range. While fairly hard to locate in the middle About Uncirculated grades, choice AU and Uncirculated 1838-C quarter eagles are actually a bit more easily located than generally believed; this is probably due to a small number being saved as souvenirs. There are as many as ten-twelve known in Uncirculated with the nicest of these being the North Georgia collection/Melish coin that sold for $40,250 in the 1999 FUN sale conducted by Heritage. Most show weak strikes at the centers, heavily abraded surfaces and low quality satiny luster. The original coloration tends to be a deep coppery-gold or green-gold.

Only one die variety is known. There are a number of Die States in which varying cracks are seen on the reverse.

1839: While almost never viewed as an important issue, the 1839 is actually the single scarcest Classic Head quarter eagle. I have personally owned more Uncirculated examples of the 1838-C, 1839-C and 1839-O than I have of this supposedly common date. The 1839 is most often seen in Extremely Fine and lower end About Uncirculated grades. It is very scarce in the higher AU grades and it is very rare in Uncirculated with fewer than ten known. The best I've personally seen are a pair of MS-62's including the Bass II: 309 coin that sold for $10,925. This is generally a well struck date that shows numerous surface abrasions and inferior luster. The natural coloration seen most often is light to medium greenish-yellow gold.

The 1839 is often described as an overdate but, in my opinion, it is a repunched date. There is only a single die variety known.

1839-C: The 1839-C is a much more available issue than the 1838-C. There are as many as 200-250 known and it is not hard to locate an example in Very Fine to Extremely Fine. There are more known in About Uncirculated than generally realized but many of these are enthusiastically graded. Uncirculated 1839-C quarter eagles are extremely rare and I have seen fewer than I have of the 1838-C. The finest known is the Miller/Bareford/Boyd coin, currently in an NGC MS-63 holder, that was last offered as Lot 6137 in Heritage's February 1999 sale. Most 1839-C quarter eagles are better struck than the 1838-C but tend to show weakness at the centers. The luster is usually not especially good and the natural color ranges from orange-gold to a medium green-gold hue.

There are three varieties known. An 1839-C recut date exists as does an 1839/8-C overdate. The overdate is found with two reverse varieties (one uses the reverse of 1838-C while the other is a reverse seen only on 1839-C quarter eagles).

1839-D: The 1839-D is the first quarter eagle produced at the Dahlonega mint and the only issue that has the Classic Head design. It is, in addition, the only quarter eagle from this mint with the mintmark on the obverse. It is quite comparable to the 1839-C in terms of its overall rarity and, like its Charlotte counterpart, it can be located in the lower to middle About Uncirculated grades without a great deal of effort. In Uncirculated it is more comparable in rarity to the 1838-C and less rare than the 1839-C but far rarer than the 1839-O. Some examples are very softly struck at the centers although a few exist that are reasonably well detailed. The surfaces are often abraded and the luster is better than average with a frosty texture most often seen. The natural color is a medium to deep orange-gold. The best piece I have ever seen is the James Stack coin, sold by Stack's in October 1994 for $55,000. It is now in a PCGS MS-64 holder.

1839-O: The 1839-O is the first gold coin produced at the New Orleans mint, the only quarter eagle that employs the Classic Head design and the only New Orleans gold coin with the mintmark on the obverse. These factors combine to make it extremely popular. More survive than the original mintage figure of 17,781 suggests and this is actually not a hard coin to locate in any grade up to and including About Uncirculated-58. There are a few dozen Uncirculated pieces known including a number in the Mint State-63 to Mint State-64 range. I have seen three or four accurately graded MS-64's and one that I consider a Gem by today's standards. Some show a good strike while others are weak at the centers; the luster is typically frosty and the natural coloration is often a pleasing orange-gold or deep green-gold hue. Many have been cleaned or dipped and original, problem-free pieces are desirable.

There are two varieties known. The more common has a high date with the 3 lower than the 89 and a widely spaced fraction; the scarcer has a lower date with the 839 more closely in line and a closely spaced fraction. These varieties are significant enough that I believe they will be collected side-by-side some day.

NOTE: Part Two will feature an analysis of Classic Head half eagles and will appear next month.