Assembling a Date Set of Civil War Gold Coins: Part One, 1861-1862

The combination of history and numismatic significance makes the United Sates gold coins struck during the Civil War era (1861 to 1865) a fascinating possible collecting area for the sophisticated numismatist. Let's take a look at each coin produced during this year and determine the most practical grade range for the collector.

1861 Gold Dollar. The 1861-P dollar is common in nearly all grades and can be found even in MS65. The finest known grade MS67 and there are as many as three to five known at that level. The best that I have personally seen is ex Heritage 2/10: 1420, graded MS67 by PCGS, that brought $19,550. This date typically comes with striated surfaces but it is well struck and well-produced with good luster and color. For most collectors, a nice MS64 to MS65 should be sufficient.

1861-D Gold Dollar. This is the most popular singular coin in the entire Civil War gold set due to its status as the only issue that is positively attributable to the Confederacy. An estimated 1500-2500 were struck and there are probably fewer than a hundred known today. This issue is typically seen in AU50 to MS60 grades and it is less rare in Uncirculated than commonly believed due to hoarding. As many as a dozen+ are known in Uncirculated including a few in the MS63 to MS64 range. The finest available in the last decade was Duke's Creek: 1493, graded MS65 by NGC, that sold for $138,000. This issue is always found with weakness on the U in UNITED and it has a unique appearance. For an advanced collector, I would suggest a nice MS62 to MS63 if available.

1861 Quarter Eagle. Over a quarter of a million were struck and this is a common issue which is well made and easy to find with good eye appeal. It is common through MS63, slightly scarce in MS64 and only marginally rare in Gem. The best I have seen are a small group of MS66 examples and even these are priced well below $10,000. There are two varieties: the old reverse (scarce) and the new reverse (common). For most collections of Civil War gold, I would include a nice MS64 or MS65 example of this issue.

1861 Three Dollars. Including Proofs, there a total of 6,072 examples produced. This is a scarce but not really rare date that is typically seen with lightly clashed dies and naturally striated planchets. The best I have seen is the Heritage 12/05: 30639 coin graded MS67 by Heritage which sold for $46,000. NGC has graded one coin an MS67 and it last sold for $47,000 in the Heritage 10/09 sale. The 1861 Three Dollar is typically seen in AU grades. It is slightly scarce in the lower Uncirculated grades, very scarce in MS63 and rare above this. For most collections of Civil War gold, I think a nice Uncirculated example would suffice. A Gem will be available with some patience at a cost of $20,000-30,000.

1861 Half Eagle: This is another common issue and it is by far the most available of the four half eagles produced in 1861. It is a well made coin that can be found with good luster and color and an oustanding strike. The best I have seen is Stack's 1/08" 949, graded MS66 by NGC, that sold for a record $52,900. There are probably around a dozen or so Gems and maybe two or three pieces that grade MS66. The current value for a nice MS64 is $10,000-12,000 while a Gem is at least double. Given the many expensive coins it takes to complete this set, I'd suggest going with an MS64 and saving your money for a true rarity.

1861-C Half Eagle: With only 6,879 minted you'd expect this to be a scarce coin and it is. But the 1861-C half eagle wasn't a really in-demand coin until recently. That said, this is still an affordable coin in EF grades and the collector can find a decent example in the $5,000-10,000 range. Most 1861-C half eagles are abraded and show poor quality surfaces. There are three or four known in Uncirculated with the finest being, by a large margin, the NGC MS63 sold as Heritage 1/00: 7769 at $59,800. I love the history and think it is an integral part of a comprehensive Civil War gold collection.

1861-D Half Eagle: I have discussed this issue comprehensively in other blogs and articles so I won't get too deeply into it here. I'd rather discuss, quickly, what the real value of this coin is right now in collector grades). Clearly, the price levels on the 1861-D (both the dollar and half eagle) have risen dramatically in recent years. I think a decent looking EF 1861-D half eagle is currently a $30,000+ coin and a nice AU is probably worth at least $50,000. Are these good values? That's hard to say and as someone who remembers buying nice AU's for $15,000 I may not be the best person to ask. But this is a critical coin in the Civil War set we are discussing here and the collector needs to be prepared to jump on the first good 1861-D half eagle he sees.

1861-S Half Eagle: This is a much scarcer issue than its mintage of 18,000 would suggest and it is actually rarer in high grades than the 1861-C or 1861-D. I am not aware of a single Uncirculated 1861-S half eagle and I have never seen one better than AU55 to AU58. The few nice ones I have seen seem to have been off the market since the 1990's (like the Milas coin) and today it is very hard to find one better than EF. Most 1861-S half eagles are weakly struck, well worn and have abraded surfaces. An AU50 or better with original color and surfaces would be a great addition to a Civil War gold set.

1861 Eagle: This is a common issue in nearly all circulated grades and it is not hard to find a decent looking AU coin with good luster and scattered abrasions. In Uncirculated, there are probably fewer than fifteen to twenty known with most in the MS60 to MS61 range. I recently sold a nice NGC MS61 for less than $7,000 so this isn't an expensive coin in the lower Uncirculated grades. The finest known is an amazing PCGS MS66 from the Bass IV sale that brought $50,600; today this is easily a six-figure coin. I'd suggest an MS61 to MS62 for the Civil War collector.

1861-S Eagle: The 1861-S eagle is more available than its half eagle counterpart both in terms of overall and high grade rarity. A single Uncirculated coin is known (ex Heritage 1/12: 4977 where it brought $54,625; it is graded MS61 by NGC) as well as three to five properly graded AU55 to AU58 coins. This issue is most often seen in EF40 to AU50 grades and it is typically bright and baggy. Well struck, naturally toned examples are very scarce and it will prove very hard to locate an example in AU55 for this Civil War gold coin set.

1861 Double Eagle: With nearly three million struck, the 1861 double eagle has the highest mintage of any coin in this set. It is readily available in circulated grades and not hard to find in the MS60 to MS62 range. It becomes scarce in properly graded MS63, rare in MS64 and very rare in MS65. The finest known is a mind-boggling PCGS MS67 that, as far as I know, has been off the market since the mid-1990's. There are maybe a dozen or so Gems known but for most collectors, the best value grade might be MS63 to MS64 with coins available, from time to time, in the $12,500-25,000 range depending on appearance and quality. This is a well produced issue that can be really spectacular in higher grades.

1861-O Double Eagle: This is another very historic issue and one that you read about in great depth in my book on New Orleans gold coinage. It is scarce in all grades but it is offered a few times per year at auction or through specialist dealers like myself in EF and low AU grades. I am aware of between four and six Uncirculated examples with the finest of these grading MS61 to MS62. This is a very, very hard coin to find with good eye appeal as most are not well struck and have been cleaned in the past few decades. Examples with natural color and choice surfaces are extremely scarce and command a strong premium over typical pieces. For a high quality Civil War set, I'd suggest an AU example and I would be hold put for as nice a piece as possible due to the importance of this issues. (NOTE: A second variety is known but it is not included in this article due to its extreme rarity. There are just two 1861 Paquet Reverse double eagles from Philadelphia currently known).

1861-S Double Eagle: There are two important varieties of San Francisco double eagle dated 1861. The more common of the two is the 1861-S with a normal reverse. This date is readily available in grades up to AU55 and scarce but obtainable in AU58. In Uncirculated, it is very scarce and it is very rare in MS62 or better. For most Civil War collectors, a nice MS60 to MS61 will suffice. The rarer variety is the 1861-S Paquet Reverse. There are a few hundred known, at most, and many have been found overseas since the 1970's. This issue is typically seen in EF40 to AU50 and properly graded AU55 examples with good color and surfaces are quite rare. I have seen one or twwo with claims to Uncirculated and the nicest to be sold in recent memory was Heritage 1/12: 5039, graded AU58 by NGC, that brought $184,000. This is a coin that I would stretch on if I were a Civil War collector due to its unique back story and appearance.

1861 Summary: This is a very interesting year in the annals of American gold coinage. You have coins struck this year that are very common (gold dollar, quarter eagle and double eagle), coins that are extremely rare (1861-P and 1861-S Paquet double eagles) and coins that are highly prized due to their historic connotations (1861-D dollar and half eagle, 1861-O double eagle).

1862 Gold Dollar: This issue has a huge mintage of 1.36 million and it is very common in grades up to MS64. It is only moderately scarce in MS65 and I have sold MS66 examples in the last year for between $3,500 and $4,000. The best I have seen are a small number of MS67 and these are only valued at $7,500 or so. This is an issue that comes well made with good luster and color. I suggest that the Civil War collector buy a nice MS65 or MS66.

1862 Quarter Eagle: For many years, the 1862-P quarter eagle was a "sleeper" and it was possible to buy a nice EF/AU coin for under $1,500. Prices shot up after an ill-advised promotion and now this issue is somewhat out-of-favor. It is relatively available in all circulated grades and there are around 15-20 known in Uncirculated. The best I have seen are a group of three or four in MS64; this includes two from the Bass collection. This date is found frosty or semi-prooflike and original coins can show very nice rich color. For most Civil War collections, a nice MS62 or MS63 will be a great addition but a properly graded MS64 at the right price (around $17,500-20,000) should merit strong consideration.

There is also an 1862/1 overdate known. I have always been a bit skeptical about this variety's status as a true overdate but it is recognized by both PCGS and NGC and always included in a date set of Liberty Head qurter eagles. It is scarce in all grades and very rare in Uncirculated. The best I have seen is a PCGS MS62 but I can't recall having ever handled an Uncirculated 1862/1 that I thought was choice. Nearly every example is bright from having been dipped and most are heavily abraded. It is possible to buy a nicer AU example in the $5,000 range and this is what I suggest for a Civil War set.

1862-S Quarter Eagle: Only 8,000 were struck and this overlooked issue is scarce in all grades with probably fewer than 100 known. There are three or four known in Uncirculated and the finest by a clear margin is Goldberg 2/12: 1217, graded MS63+ by PCGS, that I recently purchased for $43,700. The typical 1862-S quarter eagle grades EF and original examples tend to show nice deep orange-gold or lighter rose shadings. Abrasions tend to be a problem for this issue and most are marked in the fields. A world-class Civil War collection would contain one of the few known examples in Uncirculated.

1862 Three Dollars: The 1862 three dollar is scarcer than the 1861. It is an issue that is generally found in AU grades and lower end Uncirculated pieces aren't really scarce. This date becomes rare in properly graded MS63 to MS64 and Gems are very rare with maybe four to six known. The best I have seen are a pair graded MS66; this includes ANR 3/05: 625, encapsulated by PCGS, that sold for $36,800. Collectors should look for pieces with shimmering satiny luster and light clashmarks and avoid examples that are bright or over-abraded. For most Civil War collectors, an MS63 to MS65 will suffice.

1862 Half Eagle: Until recently, this was a nearly-forgotten issue but the 1862-P half eagle has suddenly becomes popular (and seemingly more available as well). Of the estimated 75-85 known, most are very heavily abraded and range from VF35 to EF45. This is a tough coin in the lower AU grades but not a really rare one until you reach AU55. There are two known in Uncirculated: a PCGS MS62 that is ex Goldberg 5/07: 1610 and a PCGS MS61 that is ex Bass II: 1140. I would suggest waiting for at least an AU55 to an AU58 for your Civil War set and I would hold out for a coin with choice, original surfaces if possible.

1862-S Half Eagle: While this is a very scarce coin, I think its rarity has been a bit overstated in the past few years. I think it is actually a bit more available than the 1862-P and, for some reason, it seems more available in AU grades than one might expect. That said, it is still a rare coin (probably just a dozen or so exist in AU) and most are low end coins with dipped, abraded surfaces. I know of two Uncirculated 1862-S half eagles: a PCGS MS62 (ex ANR 8/06: 1454, as PCGS MS61) and an NGC MS61 that was last sold as Heritage 11/07: 2047. A high quality Civil War set should aim for at least an AU55 to AU58.

1862 Eagle: As with its half eagle counterpart, this is a rare, undervalued date whose interest level has soared in the past two or three years. While 10,960 were produced, many were melted survivors tend to be in the EF40 to AU50 range. This issue is very scarce in AU grades although bagmarked AU55's are available from time to time. There are two known in Uncirculated. The finest, graded MS64 by NGC and pedigreed to the S.S. Republic shipwreck, sold for $41,975 as Lot 2004 in Bowers and Merena's 4/05 auction. The other is a PCGS MS62 from the Bass II sale (lot 681) that sold for a very reasonable $12,650. For most Civil War collectors, a nice AU55 to AU58 example will do the trick.

1862-S Eagle: This issue is probably the single rarest 1862 gold coin from any U.S. mint. It is seldom seen in any grade and when it is available, survivors are usually in very low grades. I believe that no more than five or six properly graded AU coins exist and most are in the AU50 to AU53 range. A single Uncirculated coin is known; it was recently sold as Heritage 4/11: 5427, where it brought a remarkable $103,500. It is graded MS61 by NGC and I have never seen another 1862-S even close to it in terms of quality. This will be an extremely hard coin for the specialist to find and I'd suggest that the Civil War collector aggressively pursue the chance to purchase any 1862-S eagle that grades AU50 or better.

1862 Double Eagle: The 1862 is the rarest Philadelphia double eagle made between 1850 and 1880. It is much scarcer than its original mintage figure of 92,133 would suggest and when it is available, it is likely to be found in the EF40 to AU50 range. It is very scarce in the higher AU grades and rare in all Uncirculated grades. The best I am aware of is an NGC MS64 now in a New England collection that is ex Heritage 11/05: 2459 (where it brought $62,100). This issue is well struck and typically has satiny luster but most are very heavily abraded. For a high quality Civil War set, any Uncirculated 1862 double eagle would be a great addition. You can count on spending at least $30,000 for one if it becomes available.

1862-S Double Eagle: Over 850,000 1862-S double eagles were made and this is by far the most available 1862-S gold coin of the four different denominations that were produced. It is typically seen in EF-AU grades and it is available even in AU55 to AU58 without much of a search. Virtually all examples show some weakness of strike at the centers and on the obverse stars and most are considerably abraded. There are shipwreck examples of this date available from both the S.S. Brother Jonathan and the S.S. Republic with a small number from the latter wrecking grading as high as MS62. The single best 1862-S double eagle that I have seen is ex Heritage 3/11: 4925. Graded MS63 by NGC, it brought $57,500. For most collectors, an MS61 to MS62 example of this issue will fit well into their set.

1862 Summary: There are fewer coins in the 1862 gold Civil War set than in the 1861 version and fewer great rarities. A few of the 1862 dated are common while most are scarce to rare. But none is unobtainable unless the collector has to have all Uncirculated coins; then some problems will ensue. All in all, this is a challenging but completable year for the Civil War set.

Some images appear courtesy of Heritage, with our thanks.

Two Cool Proof Civil War Gold Dollars Sold by DWN

Douglas Winter Numismatics recently sold two very rare and very beautiful Proof gold dollars from the Civil War era. These were an 1862 graded Proof-64 Deep Cameo by PCGS, and an 1864 graded Proof-66 Deep Cameo by PCGS. Both coins had also been approved by CAC. I'd like to share some information about these pieces with you and discuss very rare but comparatively affordable Proof gold from this era as well.

The rarity of Proof 1862 gold dollars is not widely recognized, probably due to the fact that business strikes are very common and were minted to the tune of 1.36 million pieces. Proofs are another story with just 35 coins struck for collectors. On the PCGS website, it states that "between 18 and 25 are known," but this number seems high to me given the typical survival rate for small-size gold proofs of this era. I believe that the number known is more likely in the area of 15 to 18, with the average piece grading PR64 to PR65.

As of the end of October 2011, PCGS has graded a total of 17 Proof 1862 gold dollars. This includes seven in PR65 and two in PR66 with no adjectival modifier(s), as well as two in PR64 Deep Cameo and two in PR65 Deep Cameo. NGC has also graded 17 Proofs for this date. Included in this number are four in PR65 and two in PR66 with no modifiers, as well as two in PR66 Ultra Cameo and a single coin in PR67* Ultra Cameo. I believe that these numbers are significantly inflated by resubmissions, especially in PR65.

The finest known Proof 1862 gold dollar is clearly the NGC PR67* Ultra Cameo that was last sold as Scotsman 10/08: 790 ($51,750). It was earlier ex Eliasberg: 50 and it is one of the nicer Proof gold dollars of this era that I have ever seen.

A number of Proof issues of this denomination are challenging to distinguish between Proof and business strike manufacture. This is not the case with the earlier Type Three Proofs. Business strikes from the 1856-1872 era tend to seldom come with the deep, reflective surfaces that are seen on the 1872-1889 issues and these early Type Three Proofs have an overall "look" that is totally different from business strikes of this era.

The 1862 dollar that is illustrated above is a choice enough coin for the grade that I think it merits a paragraph or two to discuss why it is "only" a PR64.

While not necessarily clear on the image, there are a few very light hairlines on the obverse that very narrowly preclude a PR65 grade. How hairlined can a Proof gold coin be to still garner a PR65 grade?

Back in the early days of PCGS and NGC, the grading services were extremely strict when grading Proof gold. A coin with any signs of friction or hairlines (even hairlines that were not from past cleanings) was automatically knocked out of the Gem level and this meant that larger denomination Proofs (specifically eagles and double eagles) were almost never seen in PR65 and were essentially unknown above this.

In today's market, a Proof gold coin can have a few very light hairlines and still grade PR65. But in order to garner a PR66 or higher grade, a coin has to be exceptional. And what about lintmarks or other mint-made features on the surfaces? Lintmarks (which are cause by polishing the blank planchets before striking in order to attain a highly reflective surface) are generally overlooked in the grading process unless they are extensive or they are situated in extremely obvious focal points such as the cheek of Liberty or exposed in the left obverse field.

In 1864, mintages of Proof gold coins actually increased to 50 pieces. Given the severe economic climate of the war-ravaged country, this seems like wishful thinking on the part of the U.S. Mint, and it is likely that at least some of these coins went unsold and were melted.

PCGS estimates that "17 to 22 examples survive." As with many of their estimates, I find them a bit on the high side. My guess for total number known is around 14 to 18, and this is based on the fact that there are only 12 auction appearances for Proof 1864 gold dollars dating back to the early 1990's.

The 1864 gold dollar is rarer than than the 1862 in high grades with at least a few pieces known in the PR62 to PR63 range. It is extremely rare in Gem, and there appear to be around four or five known that grade PR65 and higher grades.

As of the end of October 2011, PCGS had graded seven in all. The best non-cameo was a single PR66, while the best Deep Cameo was the PR66 DC shown above. NGC shows a very inflated population of 16 in all grades. The single highest graded was a PR67 Cameo. They have also graded two in PR66 Ultra Cameo.

The aforementioned NGC PR67 Cameo has never appeared at auction and I have not seen it. The record price at auction is $32,200, set by Heritage 10/11: 4625, which sold for $32,200. This is the exact coin shown above. I bought it for a client in an NGC PR66 Ultra Cameo holder, crossed it to a PCGS PR66 Deep Cameo holder, and received approval at CAC.

This coin has terrific overall eye appeal with deep, reflective fields that are strongly contrasted by the devices. There are a few very small lintmarks (as made), but no hairlines.

It is interesting to note that the collector I purchased this coin for has been working on an 1864 gold proof set for a number of years. The gold dollar was the last coin he needed and the set is now complete. I find this to be a real endorsement of the rarity of the 1864 gold dollar in Proof; given that this collector was able to find the rare (and expensive) eagle and double eagle of this year before he could locate the humble (and more affordable) gold dollar.

Which brings us to the final topic of this blog: it has been said again and again that Proof gold is the "caviar" of American numismatics. There is no question about the fact that Proof gold is an expensive area to collect and that specializing in this area of the market is ambitious, to say the least.

But within the area of Proof Gold, there are pockets of value. I have always liked the smaller-size (dollar and quarter eagle) issues with mintages of 50 or fewer in PR63 to PR65 grades. As an example, the 1862 dollar that I discussed above was a beautiful PCGS PR64 Deep Cameo example with CAC approval. Without knowing the market, would you care to venture a guess of this coin's value? $20,000? $30,000? More?

Surprisingly, I listed and sold this coin in the mid-teens.

Say a collector had a budget of $30,000-40,000 to spend each year on Proof gold. Would he be better off buying a few relatively common coins in exceptional grades (an example of such a piece would be a 1902 quarter eagle in PR67 cameo) or a few very rare coins in choice but not as spectacular grades?

Being someone whose numismatic decisions are typically based around rarity, I'd go with two very rare low mintage coins in the $20,000 range as opposed to one more common but spectacular coin in the $40,000 range. The exception would be if I were putting together a type set of Proof gold and I needed just a single example of each type. Then, I would tend to go with a coin like an 1886 gold dollar in PR66 as opposed to, say, an 1866 gold dollar in PR64.

Do you have questions about Proof gold? Feel free to contact me via email at dwn@ont.com and I would be happy to answer them for you.

Which Civil War Gold Coins Will Be Promoted in 2011?

I don't consider myself to be a real pro when it comes to rare coin promotion but even I know a no-brainer when I see it. 2011 marks the 150th anniversary of the beginning of the Civil War. As sure as the sun will rise tomorrow, you can bet that rare coin promotion gurus who are far more clever than I have been preparing for this event for some time. So if you are Joe Coin Promoter and you are gearing up for the Civil War Sesquicentennial in 2011, what kind of gold coins can you get enough of to do a promotion? Let's go denomination by denomination and figure this out.

I. Gold Dollars

Only two mints made gold dollars in 1861: Philadelphia and Dahlonega. The 1861-P is common and cheap; the 1861-D is rare and expensive. The 1861-D is unpromotable; it is too rare to accumulate in quantity and is already too expensive. A clever dealer could probably stealthily buy 40-50 1861-P gold dollars in lower Mint State grades over the course of a year and have enough coins to promote. He could probably find as many 1862-P gold dollars and maybe have as many as 100 coins in total. I would have to wonder, though, if the intended audience for this promotion would get excited about gold dollars as they are small, common and not really "sexy." As a collector I'd probably avoid stockpiling any Civil War gold dollars to ride the coattails of a promotion.

II. Quarter Eagles

Two mints made quarter eagles in 1861: Philadelphia and San Francisco. The 1861-S is unheralded but scarce and I doubt if you could put together a group of more than three or four over the course of a year. The 1861-P is common in grades up to MS63 and it might be possible to accumulate enough to promote. I like the promotional possibilities of this issue and it might not be a bad idea for a collector to buy a few MS62 to MS63 pieces and see if prices increase in the next few years. None of the other Civil War Philadelphia issues can be found in enough quanity to promote. The San Francisco issues are all rare but it might be possible to put together a rag-tag group of circulated examples.

III. Three Dollar Gold Pieces You couldn't promote threes in Uncircirculated as all of the Civil War issues are rare enough and expensive enough to preclude this. But you might actually be able to acculate a few dozen nice circulated pieces. This promotion actually makes sense to me as the three dollar denomination is odd and interesting and it would appeal to non-collectors. It is also out of favor right now so the possibility of buying a fair quantity exists. The 1861-64 dates are all moderately scarce but available in the EF-AU range for less than $4,000 per coin. As a promotion bandwagon jumper, these three dollar gold pieces kind of make sense to me.

IV. Half Eagles

The two southern branch mint half eagles (1861-C and 1861-D) would be fantastic issues to promote but they can not be found in quantity. The San Francisco half eagles of this era are also very rare and while not as glamorous as the 1861-C or 1861-D, issues like the 1862-S and 1864-S half eagle are highly unlikely to be used in a promotion. This leaves the Philadelphia coins. The 1861 is the only one that is common although I wonder if a promoter could find, say, fifty to one hundred examples. I imagine that if you were willing to sell cheap pieces, like in EF40 or EF45, it might just be possible. Not "easy," but maybe "possible."

V. Eagles

Civil War era ten dollar gold pieces were made only at the Philadelphia and San Francisco mints. All of the west coast issues are rare in any grade and the possibility of finding more than a few in any grade is unlikely. The Philadelphia issues are even rarer with the exception of the 1861 which can be found in some quantity in circulated grades. But I just don't think you could come up with enough coins to make for a good promotion. Which is actually kind of shame as a group of 1861 eagles in EF and AU grades would make a great Civil War-themed promotion.

VI. Double Eagles

There isn't a better denomination to promote these days than the double eagle. The coin are big and with gold at $1,400 or so per ounce, they interest nearly every investor. Unfortunately, there is just a single Civil War double eagle that might be available in a quantity great enough to promote: the 1861 Philadelphia. This is probably the most common non-shipwreck Type One double eagle and it exists in significant quantity in circulated grades. But....there may be a fly in the proverbial ointment. Type One double eagles are currently as popular as any series of American coin and an issue like the 1861-P, which used to be fairly easy to buy in quantity, is now in demand by legitimate collectors. It still might be possible but its not going to be an easy task.

After thinking about Civil War era gold coins to promote for the Civil War Sesquicentennial in 2011, I've pretty much come to the conclusion that unless someone has been working on this project for at least a year already, it probably can't be done in time. Given the scarcity of these coins and the costs involved, maybe it would make more sense to work on buying 500 circulated 1861 Indian Cents or 750 circulated 1864 and 1865 Two Cent pieces.

America's Forgotten Rarities: The 1863 Eagle

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

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

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

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

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

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

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

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

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

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

Civil War Gold Coins

In the last few years, a number of Civil War coins have greatly appreciated in value and have become among the most sought-after United States gold issues by collectors. These include the 1861-D gold dollar and half eagle and the 1861-O and 1861-S Paquet Reverse double eagles. But, for some reason, the 1861-C half eagle has not achieved the cult status of these other issues from 1861; despite the fact that it is rare, interesting and historical in its own right. The 1861-C half eagle is the final coin produced at the Charlotte mint. It is the only Charlotte coin which bears the magical 1861 date and it has an original mintage of just 6,879. It is believed that 887 were struck in May, 1861 under the supervision of the Confederacy. If it were possible to determine with certainty which coins were struck by the Confederacy, I believe that they would among the most valuable and desirable of all the coins produced at this mint.

According to one theory, the coins produced by the Confederacy show a relatively extensive die crack on the reverse which begins at the rim over the first A in AMERICA and travels from the left serif of the M in AMERICA through the tops of the lettering to the middle of the I and then into the rim. These late die state coins also show scattered areas of rust on the reverse.

I have kept careful records of this date and in the past fifteen years or so, I have seen around 75 different pieces. Of these, I recorded ten that had this late state of the die break as well as die rust. Given that fewer than 10% of the original mintage are Confederate strikings, this survival rate is fairly plausible although by no means definitive.

As I mentioned above, the 1861-C half eagle has lost some of its appeal in the past decade or so. At one time it was considered to be one of the key dates in the Charlotte half eagle series and it was priced at a level fairly comparable to the 1861-D half eagle. Today, the 1861-D trades for considerably more and it appears on many more want lists. In my opinion, the 1861-C is now undervalued.

I estimate that there are around 125 or so known with most in the VF to EF range. I think there are 25-30 properly graded AU pieces and most of these grade AU50 to AU53. The 1861-C becomes very scarce in AU55 to AU58 and it is extremely rare in Uncirculated. I have only seen two or three that I regard as true Mint State coins. The finest is the ex: Elrod coin that has been graded MS63 by both PCGS and NGC. It last sold for $59,800 in the Heritage 2000 FUN sale and is owned by an Alabama collector.

The 1861-C half eagle is found with a good quality of strike which is interesting when one considers that the two half eagles made prior to this (1859-C and 1860-C) are the two worst struck coins ever produced by this mint. The reverse is the same as that used to make the majority of half eagles struck in 1858-C and it lacks the clogged appearance and extensive die damage seen on the 1859-C and 1860-C reverse.

The surfaces on most 1861-C half eagles are quite heavily abraded, leading me to think that nearly the entire mintage went directly into circulation and that most were used extensively in commerce. A number also show mint-made planchet flaws. The luster on higher grade 1861-C half eagles is mostly frosty with some satiny texture. It is almost impossible to find a piece that has original undisturbed luster due to the aforementioned surface abrasions as well as the fact that many have been dipped or cleaned over the years. The coloration seen ranges from deep green to a lighter yellow-gold shade. Very few remaining examples have natural color. Locating an 1861-C half eagle with good eye appeal is extremely difficult.

The population figures from PCGS and (especially) NGC appear to be highly inflated by resubmissions. NGC shows 23 (!) coins in AU58 as well as another 15 in AU55 while PCGS’s figures of nearly 50 coins in the various AU grades seems heavily inflated as well.

As I mentioned above, at current price levels the 1861-C half eagle appears to be good value. A nice EF coin, if you can find one, is going to run in the $4,500-5,500 range. I think the best value grade for this date is an AU53 which is worth around $8,000-10,000. In the higher AU grades, price levels jump to $12,500-15,000 for an AU58. I am aware of a few examples graded MS61 by NGC that have traded in the $30,000-40,000 range. I think a no-questions-asked Uncirculated example is a great value at this level but, as I mentioned above, I haven’t seen many in MS61 holders that I thought were legitimately “new.”

I’ve got to think that when (notice I didn’t say “if”) Charlotte gold coinage becomes popular again, the 1861-C will regain its place among the pantheon of popular Civil war related issues which are in great demand among collectors. It is a personal favorite of mine and it is an issue that I actively look to purchase when I am coin shows or examining auction listings.

Undervalued Areas in the Rare Coin Market

While I don’t claim to have a crystal ball, I usually have a pretty good sense of which areas in the field of rare gold coin collecting are poised to show an increase in interest in the coming years. Here are some areas which I feel are undervalued and which have the potential of becoming the Next Big Thing. 1. Classic Head Gold Coinage: If you are a regular reader of my blogs you know that I am a big fan of Classic Head gold coinage. I think the design of these coins is attractive and I like the fact that they neatly bridge the gap between “old gold” and the more familiar Liberty Head design that was employed for nearly 70 years.

One reason why Classic Head gold has not become very actively collected by specialists is the lack of a good Winter-esque style guide book. What I find very interesting about this series (in addition to the fact that it is short-lived and thus very completable) is that there are a number of fascinating varieties in both the quarter eagle and half eagle series. Many of these are touched on in the Breen Encyclopedia while others are described in detail and illustrated in the Bass catalogs. While I’m not a variety guy, per se, I do find a number of the varieties in these series very interesting and if someone were to better catalog and illustrate them clearly showing the differences, I think they would become very widely collected.

Another reason I like Classic Head gold is the interesting branch mint issues contained in both the quarter eagle and half eagle series. Clearly I am not a lone voice in the wilderness when it comes to issues such as the 1839-O quarter eagle or the 1838-C and 1838-D half eagles as these have seen considerable price increases in the last few years. Despite these increases, I still think the branch mint Classic Head gold issues are comparatively undervalued and if the Classic Head series becomes more widely collected by date then these issues will show even further appreciation in the coming years.

You need to remember that many of these varieties are quite rare to begin with and this is not a collecting specialty which could support more than a few serious collectors at any given time. I think the area which is likely to see the greatest number of specialists is the Capped Bust Large Eagle half eagles struck between 1795 and 1807; particularly the issues produced between 1800 and 1807. Dates like the 1804 and 1806, of which there are seven and six different varieties, respectively, are not prohibitively expensive on a per-coin basis as long as the collector is content to purchase nice EF and AU coins.

2. High Grade New Orleans Eagles: I base this prediction on how well coins like this sell for me when I list them on my website. I am referring primarily to common date New Orleans eagles (such as the 1901-O, 1903-O, 1904-O and 1906-O) in MS63 and higher grades.

Here’s why I love a coin like the 1901-O eagle in MS63. The current PCGS population for this date in this grade is forty-two with just nine graded better. Trends is currently $3,500 and when I have these available I generally ask in the area of $3,250-3,350. Now look at a common date like the 1901-S which has a PCGS population of 3,920 with 3,209 graded better. These routinely sell for $1,100 in MS63 and you can literally buy them by the wheelbarrowfull at any major show. In my opinion, the 1901-O at a three times premium above the 1901-S is great value.

A coin like a 1901-O eagle in MS63 traded for around $2,500 a year or two ago so the market has clearly started to rise. But at the same point in time, a 1901-S traded for around $1,250. This means that the premium factor has only risen from 2x to 3x. It would not surprise me if in the next year or two, the premium factor grew to at least 4x and possibly as high as 5x.

3. Civil War gold: It’s just a matter of time before someone starts promoting date runs of Civil War gold issues. It’s been done before and it seems like such a no-brainer promotion I’m sure it will be done again.

The only problem with doing a comprehensive promotion of Civil War era gold is, of course, finding enough quantity to make such a promotion worthwhile. As an example, the gold dollars from 1861 to 1865 seem easy enough to promote but just try to find a quantity of 1863’s in any grade. You can forget promoting quarter eagles from this era due to the extreme rarity of the 1863 and the 1864 issues - and the 1865 Three Dollar is rare enough to put the kibosh on this series. I guess if I had the answer I would be running the promotion myself right now. But I can just see that beautiful full-color brochure with the battlefield scene and the 1862 three dollar gold piece imposed on top of it….