1856-D $1.00 NGC MS62 Duke's Creek

Duke's Creek Collection pedigree. Only 1,460 1856-D gold dollars were struck and this is the third rarest date of this denomination from Dahlonega, trailing only the 1861-D and 1855-D. In high grades, it is the second rarest, trailing only the 1855-D. There are just four or five known in Uncirculated and the present example, pedigreed to the famous Duke's Creek collection, is the first to be available to collectors in close to four years. This very appealing example is well-known within the specialist community on account of its flashy deep orange-gold color which highlights the obverse and the reverse. The underlying surfaces are clean save for a pair of shallow blunt marks in the left field and the strike is better than average for the issue with a nearly full date (the 5 is slightly weak) and a bold mintmark. As on all known examples, the U in UNITED is barely visible. The current high grade population for the 1856-D gold dollar is two in MS62 with none better at PCGS and one in MS62 (this coin) with one better (an MS63) at NGC. There are two auction records for PCGS MS62's at over $40,000 (Green Pond: 1009 brought $47,150 in 2004 and ANR 9/03: 425 was bid to $41,400). With the market for high end Dahlonega rarities seemingly as strong as it has been for at least five years, this coin is fairly priced and it represents the chance for the serious gold dollar collector to acquire a famous example of a famous, legitimately rare date.

From the Duke's Creek collection (Heritage 4/06), Lot 1488, where it sold for $40,250

1842-D SD $5.00 PCGS VF35 CAC

Small Date variety. An attractive, evenly worn example with nearly enough to detail to grade EF40 but with a few old, well-hidden surface marks keeping this at the Choice VF level. On both sides, the color is a uniform deep green-gold. A scarce date in any grade and a very hard coin to locate with original color and surfaces. This is the only 1842-D Small Date half eagle in any grade below EF40 to have been approved by CAC.

Where the %$#@ Are All the High Grade Dahlonega Half Eagles?

As I was reviewing my notes on Dahlonega half eagles this morning, I was struck by something very interesting as I updated Condition Census information: many dates haven't had a significant example sold in three, five or even eight years. This, in turn, made me ask out loud where the (naughty word) are all the high grade Dahlonega half eagles? Hence, the topic of this blog. Of the three primary denominations struck at the Dahlonega mint, half eagles are the most popular with collectors. It is easy to see why. The coins are comparatively large, the series is reasonably short and there are no impossible rarities to stop the collector of average means from attempting to complete a set.

As you might expect, even the common date Liberty Head half eagles from Dahlonega are rare in legitimate Uncirculated grades. If you discount the marginally Mint State coins that pop-up and the few higher grade common dates that have been available, the pool of available coins sold during the last few years has been shallow, at best.

Let's look at a few dates.

The 1841-D half eagle is a rare coin in high grades. There are around a dozen known in Uncirculated. Given that number of coins--and given the fact that this isn't an incredibly popular or numismatically significant issue--this would make you think that higher grade 1841-D half eagles should be available from time. Is this true?

Looking back at auction records from the past few years, the last high grade 1841-D to sell was Heritage 6/11: 4626. Graded MS63 by NGC (and approved by CAC) it brought $27,600. To find another high grade 1841-D (not including a few marginal MS61's and an S.S. New York example graded MS61) you have to go back to the Heritage 2008 ANA: 1965, also graded MS63 by NGC, that sold for a reasonable $18,400. And before this, you need to go back another three years to the Bowers and Merena 12/05: 2685, ex Bowers and Merena 1/05: 1554 coin, graded MS63 by NGC, that sold each time for $25,300.

And what if you only bought PCGS coins? How long has it been since a nice PCGS 1841-D half eagle was sold at auction? You'd have to go all the way back to the Green Pond: 1041 coin sold by Heritage in the 2004 FUN auction for $32,200. That's closing in on eight years (!)

Let's look at another date: the 1849-D. There are fewer than a dozen examples in Uncirculated and if you discount the marginal MS60 and MS61 pieces, the number of possible coins a high grade collector could pursue is around five or six.

The last significant 1849-D half eagle to sell at auction was the Bowers and Merena 2/08: 2544 coin, graded MS62 by PCGS, that sold for $24,150. Before this, there were two PCGS MS62 sales in 2004. Three coins in five years seems like a decent amount of availability UNTIL you do a little research and figure out that the 2004 appearances were the same coin and this piece was reoffered in 2008.

Here is one last example: the 1855-D half eagle. This is a tougher date than the 1841-D and 1849-D in higher grades, but it still isn't recognized as a rarity. There are around six or seven in Uncirculated.

There was a flurry of activity for this issue in high grades around 2004-2005. In fact, there were four auction trades for high grade pieces (three in PCGS MS63 and one in MS64) between the 2004 FUN show and the 2005 Summer ANA. That should have been a great opportunity for collectors, right?

Well, not really. You see, all four records are for the same coin and in the final appearance (Heritage 2005 ANA: 10356, at $38,813) the coin had now upgraded to MS64 (and lost its lovely original color in the process, but that's another story...)

But I digress. This blog isn't about coins re-appearing at auction. Its about coins not appearing for sale with much frequency.

So why don't nice Dahlonega half eagles show up for sale more regularly? I have a few suggestions as to why this is the case.

1. With few exceptions, really "new" Dahlonega half eagles are rarer than you think. You can throw-out the numbers in the population reports (especially NGC) as there are many resubmissions of these coins in Mint State. There isn't a single Dahlonega half eagle that isn't truly rare in MS63 and above and most are very rare even in properly graded MS61 and MS62.

2. The few nice coins that exist are in strong hands. The downward trend in the economy since 2008 hasn't brought more than a handful of significant Dahlonega half eagles onto the market. Clearly, these coins are owned by serious collectors who don't plan on owning their coins for a few years and then "flopping" them. And, surprisingly, this appears to be the case for both date and type collectors.

3. No great collections of Dahlonega half eagles have hit the market in at least five years. In fact, unless I'm forgetting something, the last really great collection to hit the market was Green Pond in January 2004. Contrast this with the prior seven to eight years, when you had James Stack, Milas, Pittman, Bass, North Georgia, Chestatee, Miller and others. Looking back at 1995-2003, this was probably the single most fertile time in the history of numismatics for advanced collectors of Dahlonega. Since 2004, we've seen almost nothing in terms of specialized collections.

(Oops. I am forgetting something: the Duke's Creek collection sale in 2006. But this was only dollars and quarters eagles, not half eagles. So my point #3 is still valid, at least as far as half eagles is concerned.)

4. As the supply of great coins has dried up, the number of avid collectors has increased. I can't think of any time that there was more serious collectors of Dahlonega half eagles than there is now. Clearly, the supply is not nearly enough to meet the current demand.

5. Dahlonega gold is one area where the auction companies haven't completely dominated the market since the mid-2000's. I've sold via private treaty considerably more high quality Dahlonega gold coins than what has appeared at auction. But in the case of half eagles graded MS62 and above, this is still isn't a ton of coins.

6. As I've stated countless times, the price reporting mechanism for rare date gold coins is broken and needs to be fixed. In most cases, published prices for higher grade Dahlonega half eagles are down since 2004 despite what most experts believe to be a strong(er) market. This is partly due to certain schlocky, overgraded coins dragging down levels on specific issues and partly due to published references being unable to keep up with the market.

I don't think we're likely to see many changes in the Dahlonega half eagle market, at least not if prices stay unrealistically low. There aren't a lot of good coins around to begin with and I see no hugely compelling reason(s) right now for owners of such coins to sell them.

So what do you do if you are a collector who is specializing in high grade Dahlonega half eagles? Be patient; the right coins will turn up sooner or later. And when they do, be prepared to pay up for them.

Do you have more questions about Dahlonega half eagles? If so, please feel free to contact me via email at dwn@ont.com.

1843-D $5.00 PCGS AU53 CAC

Medium D mintmark variety. Very well struck as is typically the case of this date and variety with full radial lines within the stars and sharp, individually defined hair and feather details. The color is an attractive medium to deep green gold which is "correct" for original examples of this date. This coin would probably grade AU55 or even AU58 if it were not for the presence of a reeding mark on Liberty's throat and small, thin nick on the cheek. A great piece for the type collector or a good piece for the new Dahlonega specialist who wants to get his feet wet with a nice quality but affordable half eagle.

1856-D $5.00 NGC EF45

I almost never see this date in the EF grades. Most 1856-D half eagles are in higher grades (AU53 and up) and this is due to the presence of a hoard as well as a lack of circulation. But this piece is not only a Choice EF, it has lovely warm reddish-gold color at the borders and smooth, lightly abraded surfaces. The strike is typically soft with the radial lines in the stars very flat and somewhat beveled edges.

1853-D $5.00 NGC AU53 CAC

Large D mintmark. This coin has among the more interesting back stories of any D mint half eagle that I've offered for quite some time. I purchased it from a dealer in the United States who imported it from Europe. This dealer, who is extremely knowledgeable about U.S. gold coins, says that this is one of the very few Dahlonega pieces that he has been able to buy in the last few years. He added that both Charlotte and Dahlonega coins are almost never found in Europe, despite his careful scrutiny of tens of thousands of gold coins every year. Besides the neat story, the coin itself is pleasing with lovely multi-hued reddish-gold hues on the obverse and, more extensively, on the reverse. Both sides are lightly abraded and both show a good deal of natural dirt in the protected areas. The 1853-D is one of the most common Dahlonega half eagles but you could look for years and not find an example with better color than this

1853-D $5.00 PCGS AU58

Large D Mintmark. This choice slider has good luster and pleasing medium orange-gold colors on the obverse and the reverse. The strike is somewhat above-average for the issue with less beveling at the rims than usual but some overall bluntness at the centers and on the radial lines of the stars. There is just the slightest amount of friction seen on the high points of the obverse; the reverse is fully Uncirculated and grades MS61 or better on its own. The fields are a bit scuffy with a few shallow marks seen on both sides. The 1853-D is among the more available half eagles from this mint but choice, original AU58 examples like this are not easy to locate. Personally, I'd rather have this coin in my collection than the typical rubby, dipped MS61 at nearly double the price.

1847-D $5.00 PCGS EF45 CAC

Deep reddish-gold hues are seen on the obverse and the reverse with the reverse the darker of the two sides. The underlying surfaces show some scattered marks that are consistent with the assigned grade. Well detailed, appealing and a perfect type coin for the collector seeking a single affordable example of a half eagle from the popular Dahlonega mint.

1846-D/D $5.00 PCGS AU53 CAC

D over D mintmark variety. I'm going to go out on a limb here and state that this is one of the loveliest circulated Dahlonega half eagles of any date that I have seen in some times. Both the obverse and the reverse are covered with thick warm amber-gold color which is slightly more intense in hue on the reverse than on the obverse. The fields are extremely clean with no marks of note and the strike is excellent with sharp, even detail seen at the centers and borders. A few spots of dirt can be seen on the reverse above and below the D in UNITED. Locating Dahlonega half eagles of this quality has always been difficult and the 1846-D/D is an extremely scarce variety with this degree of originality. A great coin for the connoisseur who appreciates extreme originality.

The 1846-D/D is a spectacular naked-eye variety on which the original mintmark punch was too high and then another was placed directly below it. It is scarce in terms of overall availability but it is actually seen more in high grades than its Normal Mintmark counterpart.