A Baker's Dozen of San Francisco Gold Treats

Collector K.U. recently asked me to help him construct a compact, meaningful list of San Francisco gold coins to form the basis of his collection. The parameters were as follows: the dates selected must have historic and/or numismatic significance, they must be selected for being the best value grade for the issue in question and, where possible, they should be dated around the Civil War era or earlier. I gave this list some thought and tried to narrow down the list to a dozen or so coins. I eliminated the 1854-S quarter eagle due to financial considerations and the 1854-S five dollar due to realism. I then tried to include at least one example of each of the six denominations of gold coins struck at the SF mint and, because of the collector's taste, limited the set to those issues struck in the 19th century. (I might have included the 1920-S eagle and a rare date Saint or two if the list had been longer...)

As I've pointed out before, San Francisco gold coinage of the Liberty Head design can basically be divided into two groups: the "golden era" issues struck from 1854 through around 1878 and the other issues made from 1878 until the new 20th century designs were incorporated in 1908. I personally find the former much more interesting due to their low mintages, the fact that they tended to be actively used in commerce and are thus often exceedingly rare in higher grades and their low overall survival rates.

Without further ado, here is the list:

1. 1854-S Gold Dollar: In my opinion, one of the ways in which to make this set more interesting was to include as many first year of issue coins as possible. The 1854-S is an ideal choice for inclusion in this set given its first-year status. With a mintage of 14,632 this is not really a scarce coin but it is not really easy to locate in higher grades. I am fond of the 1854-S because it tends to be much better made than the other branch mint gold dollars of this era and I find it to be quite undervalued. A nice Uncirculated example could be located in the $5,000-7,500 range and for the collector on a more limited budget, it is possible to acquire a really solid AU 1854-S dollar for less than $2,000.

2. 1856-S Gold Dollar: I wasn't originally going a second gold dollar in the set but the numismatic significance of this issue is hard to overlook. The 1856-S is the only Type Two gold dollar from this mint and it is also the only Type Two from any mint that was made in 1856; a transitional year in which the new Type Three design was struck at the Philadelphia and Dahlonega mints. The 1856-S is fairly easy to locate in lower grades and becomes rare only once the MS62 to MS63 level is reached. Many examples show a dramatically double punched mintmark which doesn't add value but which does increase the "coolness" factor exponentially. A choice circulated example can be purchased for $3,000 to $5,000 while a nice Uncirculated piece has become a bit pricey at $7,500-15,000 and up.

3. 1862-S Quarter Eagle: The obvious picks for quarter eagles are not so obvious. The 1854-S is out of the question due to its hefty price and the next few "early dates" (the 1856-S and 1857-S) aren't that interesting. So, given the collector's interest in Civil War issues, I selected the rarest Civil War quarter eagle from this mint: the 1862-S. Only 8,000 were produced and I have found the 1862-S to be a tough, elusive coin that is still not entirely recognized by rare date gold collectors. I've only handled one Uncirculated 1862-S in 25+ years of buying choice SF gold (the finest known PCGS MS63+ I purchased in the February 2012 Goldberg sale for $43,250) and know of just one or two others. A nice EF example, when available, is still affordable (in the $2,500-3,500 range). A mid-range AU is hard to find but still not priced at more than $5,000-7,500.

4. Scarcer Date 1870's Quarter Eagle in Uncirculated: You can't have just one quarter eagle in this set, right? But there really isn't a date from the post-Civil war era that stands out to me so my suggestion is to buy a better date issue from the 1870's (such as the 1871-S or 1872-S) in MS62 or MS63. These coins are legitimately scarce in this grade (with on order of five to ten known) but are not that expensive with prices ranging from around $4,500 up to $7,500 and more. What I like about these types of coins is that they tend to be well made, attractive and there are very few known in grades higher than MS63. A few sleeper dates are known and these include the 1870-S, 1873-S and 1876-S but even these aren't terribly expensive...yet.

5. 1855-S Three Dollar: To be varied and complete, this set needs a Three Dollar gold piece so why not include the first-year-of-issue 1855-S? Only 6,600 examples were made but this issue is generally available in EF and AU grades. And prices remain very reasonable for this issue, despite its numismatic significance. I recently sold a choice, original EF45 with CAC approval in the mid-3's and also sold a decent PCGS AU55 in the low 10's. In high grades, the 1855-S becomes very rare and I am aware of only three to five Uncirculated examples as well as a unique branch mint proof which is now in an East Coast specialist's complete set of Proof Threes.

6. 1855-S Half Eagle: Even if this collector had unlimited funds, he wouldn't be able to buy an 1854-S half eagle. So, for all intents and purposes, an 1855-S is the first-year-of-issue for the half eagles from this mint. As you might expect with a coin that had 61,000 struck, this isn't a real condition rarity and decent EF's are reasonably plentiful and very affordable. Lower end AU's remain a good value in the $2,000-3,000 range but properly graded AU55 to AU58 examples are rare and undervalued. I can only recall having seen one Uncirculated example (a PCGS MS62, ex Bass II: 1077). A piece of advice about 1855-S half eagles: be patient. There are a lot of crummy examples out there but a few nice ones do exist and with prices still so reasonable for this issue it pays to be selective.

7. 1864-S Half Eagle: This formerly obscure issue is becoming famous and well it should; it is the second rarest Liberty Head half eagle and a very rare issue in all grades with around two dozen or so known from the original mintage of just 3,888. Despite this coin's great rarity, it is not yet priced at the level that I believe it should be. I recently sold a PCGS VF30 for $21,500 which seems like a lot for a coin graded VF30 but, when you consider this date is far rarer than a number of coins that sell for six figures. I don't often say this but here is an issue that you should throw caution to the wind and be very aggressive if one becomes available. I think the 1864-S half eagle has great upside potential and as San Francisco gold grows more and more popular, this has the potential to be a six figure coin.

8. 1876-S Half Eagle: This has been a favorite "sleeper" date of mine for years. Only 4,000 were struck and it is an issue that exceeds the better known Civil War issues from the 1861-1863 era in terms of overall rarity. I regard it as the second rarest collectible half eagle from this mint (after the 1864-S) and I believe that there are fewer than fifty known in all grades. It is an easy issue to identify as all known examples have a dramatic ring-like punch in Liberty's earlobe. There is one known in Uncirculated: the Garrett I: 487 coin that sold for $34,000 back in November 1979 and which I think is one of the single most desirable (and least well known) Liberty Head half eagles of any date or mint. From time to time, EF's are available and they still can be had for less than $5,000 (cheap!!) while a decent AU will cost two to three times this amount.

9. 1854-S Eagle: The 1854-S is not even close to being the rarest early date SF eagle of this denomination but as the first-year-of-issue its certainly the most historic and a great Gold Rush artifact. The 1854-S has a high original mintage of 123,826 and there are certainly 500+ known in all grades (making it arguably the most available coin in this collection). But it has a coolness level that is off the proverbial charts and it is affordable. I sell nice AU's in the $2,500-3,500 range and I recently sold a great-looking PCGS AU58 for $5,750. Most examples are very abraded and few have original color; hold out for pieces that are relatively mark-free and nicely toned. I have only seen or heard of one Uncirculated 1854-S eagle, an NGC MS61 that was sold privately by a West Coast dealer around six years ago.

10. 1864-S Eagle: I've written extensively about this issue so I won't flog a dead horse. But I will say, for the dozenth time, this coin is rare, rare, rare. It is the second rarest Liberty Head eagle after the 1875 and it is certainly a coin that would sell for six figures if it were in almost any series other than the Liberty Head eagles. I just offered a lovely PCGS VF30 with CAC approval on my website and was surprised (but not really surprised) to get multiple orders for it within the first day it was listed. I would offer the same comments with this issue as I would with the 1864-S half eagle: if you get the chance to buy one that you can live with, act quickly and decisively.

11. 1854-S Double Eagle: The 1854-S is an odd coin. It seems like it shouldn't be that rare (over 140,000 were made) and the population figures aren't all that low. But the survival rate is astonishingly low with just a few hundred known. And what PCGS or NGC figures won't tell you is that nearly all the Mint State 1854-S double eagles are from the S.S. Yankee Blade shipwreck. This means that examples in any grade with original surfaces are rare and I have only seen two examples in Uncirculated (a PCGS MS60 and an NGC MS61) that didn't have seawater surfaces. After years of being inexpensive, the 1854-S got discovered a few years ago and it has probably tripled in price in the last three years. I still think its not a bad value and, in fact, just sold a PCGS AU50 for less than $9,000.

12. 1857-S S.S. Central America Double Eagle in MS64 to MS65: I wasn't going to put this issue in the proposed San Francisco collection but after some thinking, I just had to add it. How can you collect San Francisco gold from the 1850-1880 era and not own a nice SSCA 1857-S? They are big, beautiful, historic coins that beg to be included in any set. My parameters are pretty straightforward on this issue: buy a coin in the original gold foil SSCA PCGS holder, get the original bells and whistles that came with it and avoid a piece that has turned in the holder. That leaves probably over a thousand available coins in the $10,000-15,000 price range.

13. 1861-S Paquet Reverse Double Eagle: The thirteenth--and final--coin in the set is probably the most expensive but certainly among the most interesting. The story of the Paquet has been told many times before but I think the important things to remember about this issue is that it was virtually unknown until examples were found in Europe in the 1950's. It jumped dramatically in price a few years and mid-range AU's were topping out at over $125,000. Prices have receded since then but I note that demand for this issue is coming back. It is extremely hard to find examples with good eye appeal and many of the "real" EF's have been scrubbed into AU50, AU53 and even AU55 holders. My advice: if you see a good looking Paquet and the price isn't goofy, get aggressive. I'd budget at least $75,000 for a nice Paquet.

Do you need help devising a collection of United States gold coins? Email me at dwn@ont.com and perhaps I can answer your questions with a blog just like this one.

The Great RYK/DWN Mashup Redux: Two Numismatists, Nine Questions, Eighteen Answers

One of the most popular blogs that has appeared on this website was entitled "The Great RYK/DWN Mashup" and it appeared around two years ago. In it, I volleyed back and forth with collector Robert "RYK" Kanterman and discussed gold coins, the coin market and more. After much pleading from our respective fan clubs (OK, actually from me pleading with him to help me come up with another popular blog...) we've decided to agree to disagree, 2012 style. And away we go!

Note: For each answer, "RYK" represents Robert Kantertman while "DWN" represents Douglas Winter Numismatics.

1. If you could own any shipwreck gold coin, which would it be?

RYK: I have a strong preference for the SS Central America coins. In my opinion, they were the best preserved and best conserved. Even though I am a "dirty gold" guy, I would choose the nicest 57-S $20 I could afford, and these are available in a range of price points. I would be tempted to find one of the branch mint gold specimens, a territorial piece, or even a 55-S or 56-S $20, if I wanted to get a little more exotic.

DW: Agreed. I've become a fan of nice, natural-appearing 1857-S SSCA double eagles in the MS64 and MS65 grades. But, and this is a big but, I caution buyers to be highly selective and stick with PCGS coins in original gold foil holders that haven't changed. The coins were conserved; some very successfully and some not so successfully. Take a look at any Heritage sale and you'll see coins caked with white gunk from conservation gone awry. Yuck....

2. Should established US gold coin collectors consider territorial gold?

RYK: I would say a resounding "Yes!" A nice Bechtler piece or set complements a southern gold collection nicely, and some of the California private mint or assay gold pieces go well with any set that includes early San Francisco gold. The Colorado, Oregon, and Utah gold pieces are also a good fit for 19th century gold enthusiasts. One drawback is that they are generally fairly expensive, and might burn coin money required for the big hole in the set.

DW: I like Territorials but am not sure that I share RYK's enthusiasm for them in a rare date gold set. Now, if you are collecting Charlotte gold dollars than a C. Bechtler and A. Bechlter dollar makes sense. Or, if you collect Liberty Head double eagles from the No Motto era a Moffat double eagle makes sense. But I'm not sure how an Oregon or a Mormon piece fits into a regular issue set. And as RYK said, the big bucks that such a coin costs might take away needed funds from a regular issue that is more integral to your set.

3. What is your favorite Dahlonega coin for someone wanting just one for their collection?

RYK: In the sub-$2500, an original, choice VF or XF quarter eagle or half eagle from the mid-1840's would be my choice. They are generally well-produced, nearly 170 years old, and made from gold mined in the southeast.

At the next price level, there are two choices that I see: going up in grade from my lower price point selection or choosing a more interesting coin. I would do the latter, like an 1839-D $2.50, 1838-D $5 or 1839-D $5 in original XF-45.

If money is unlimited, I would wait for on of the super high-grade pieces that come on the market once a year or so. The most recent was the 1855-D quarter eagle in 63.

Overall, unless I was a half dime or trime collector, I would avoid the gold dollars as a consideration.

DW: For a first purchase in the $1,750-3,000 range its hard to argue with a nice EF half eagle. Look for an original coin with nice surfaces and color. They still only command a 15% premium over the junky coins I see daily.

For a "tier two" coin, I like Robert's idea of buying something snazzy like a one-year type or a first-year issue. Coins like this have become very popular and the value isn't quite as good as it used to be but the liquidity of, say, a nice EF45 1838-D half eagle is better than ever.

If you are lucky enough to have the budget for a five figure "exotic" issue, I'd look for a high grade example of something really rare, not a high grade example of a common date. I like coins like 1856-D quarter eagles, 1854-D threes, 1842-D Large Date half eagles, etc because they are so seldom seen in high grades.

I disagree with RYK about gold dollars. Don't hate on the little guys, RYK. Gold Dollars are a great series to collect and the 1849-D is a wonderful first coin for the collector. Plus its hard to not like rare dates such as the 1855-D, 1856-D, 1860-D and, most of all, the coveted 1861-D.

4. Is New Orleans gold more popular than Charlotte gold?

RYK: Ten years ago, I would have said that Charlotte gold is more popular, but today, I would say the opposite. One thing that favors New Orleans gold over Charlotte including is that more denominations are available, including the immensely popular $20 Liberty gold and the increasingly popular $10 Liberty gold. I think that the desirability of the New Orleans quarter and half eagles has increased and the scarcity of some of these issues is now more widely appreciated. In Charlotte, there is just not much new, and there appears to be a relatively steady march of coins on the market.

DW: RYK, you ignorant slut...Oh wait....

I'm afraid Robert is correct. As someone who has really helped to "create" the New Orleans market, I'm wowed at how popular these coins have become and much they have appreciated price-wise since, say, the late 1990's. And how Charlotte hasn't.

Charlotte gold is somewhat in the dregs although collector-quality coins are strong. I put an 1841-C half eagle in nice PCGS EF45 on my website the other day and got seven orders for it in less than a five or six hours. But, that's the exception and not the rule. There are alot of good Charlotte coins available right now and if a few heavy hitters decided to get serious, they could put together great sets over the course of a few years.

5. What gold coin or coins is/are currently in greatest demand from rare date gold collectors?

RYK: I think that the single coin that is in greatest demand among rare date gold coin collectors is the 1861-D $5. I recently told Doug that if he had a dozen XF-45s, he could quickly sell them all and for strong money. Honorable mention would go to the 1861-D $1, better date $5's and $10's from the 1860's, 1870-CC $10, and the 1861-O and 1879-O $20's.

DW: Ah, Grasshopper, you have learned well. Oh and where are those dozen 1861-D half eagles?

The market is very rarity-oriented right now and people are looking to buy sexy, low mintage coins with alot of "oomph." Other coins I would add to RYK's list include the 1855-D dollar, 1854-S quarter eagle, 1864 quarter eagle, nearly any pre-1800 half eagle, 1864-S half eagle, 1875 half eagle and eagle, 1841-O eagle, 1883-O eagle, etc.

6. Is collecting San Francisco gold on the rise/falling/stable?

RYK: San Francisco gold is, in my opinion, gaining in popularity. The market demand for the better date coins was evident in th e recent Littlejohn sale, and there was a very interesting San Francisco gold collection in the Heritage FUN sale that did very well, too. It would be great if a rare date gold specialist (ahem) or Western gold specialist would publish a book on SF gold (1854-1880) as I think that this could give these coins some much-needed publicity among potential collectors.

DW: Hey, thanks RYK. Make me do another book, huh?

Actually I have thought about doing a book on SF gold for many years and if I could get a partner to assist me I would (ahem, potential partner, you know who you are...). I think this would help the market for these coins. For years and years, this was a dead area. The popularity of SF double eagles, brought on by the shipwreck discoveries of the last two decades, has spurred demand for smaller denomination coins as well.

I think you have to look at SF coins as two distinct markets: the 1854-1879 coins and the post-1880 cons. The first group is suddenly doing pretty well and I personally am selling alot more interesting SF coinage today than I was two or three years ago. The second group seems dead but I can see the potential for coins like an 1888-S eagle in MS63 (to pick a random date in a random grade) with premiums so low over generic issues.

7. Should coin collectors bother with coin shows?

RYK: Absolutely! Aside from seeing lots of coins, the ability to view auction lots in person, view exhibits at the bigger shows, meet other collectors, and network with dealers makes any coin show worthwhile. I have often said that even if I were broke and had no coins to sell, I could have a great time at a coin show.

DW: To me, coins shows are somewhat of a necessary evil. With the exception of FUN and Summer ANA, most coin shows are too long and aren't always productive. But I'm jaded and have been going to 15-20 shows a year for nearly three decades.

For the collector, shows are great. You can't beat the ability to look at coins, to view auction lots, to look at exhibits, etc. I'd say you have to fine-tune your BS detector as you are going to hear alot of Newspeak.

8. Are auctions good venues to buy in?

RYK: Yes, with an asterisk. It depends a lot on factors including specifically which auction venues, have you viewed the coins, are you using an agent, are you bidding live or by proxy, etc. If you are playing sight-unseen with proxy bids over the internet, you are going to get burned a lot. If you are bidding in person or with a specialty dealer, there may be some opportunities.

I would add is that some coins that are purchased at auctions could be bought outside the auction venue for less money, less risk, and less hassle. If you are considering a 1901-S $10 in 64 in an auction, it makes no sense to bid sight-unseen and compete with others for the coin. If it is lovely and undergraded, someone smarter who has seen the coin will know that and outbid you. If the coin is a pig, you will win it. It's a classic "heads-I-win-tails-you-lose" situation.

DWN: The whole auction market has changed so much in the last five years. The simple way to put this is that they have transitioned from wholesale environments to retail environments.

Many new collectors feel safe buying at auction as they figure that "if there was an underbidder, I'm safe having paid just 5 or 10% more." This is wrong on many levels. And it is even more wrong when you consider that most collectors are bidding at auction on a sight-unseen basis and relying on images.

It's just a matter of time before buyer's premiums at sales rise to 17.5% or even 20% and at that point, I'd say that auctions might not be the best venue to buy in. You have to take this with a grain of salt coming from a dealer who is essentially competing against the auction firms both for product and for buyers but I know that I am now much less reliant on auctions both as a buyer and and a seller than I was a few years ago.

9. What makes a coin desirable?

RYK: This is a very personal thing, and if you ask ten collectors, you will get eleven different answers (because at least one collector will change his mind). The factors that go into desirability include, but are not limited to, design, condition, value, metallic composition, age, scarcity, history, provenance, originality, and market demand. I tend to rank scarcity, numismatic history potential for price appreciation and originality in the more important category, and design, condition, and value in the less important group.

DWN: As a dealer, my answer is bound to be different from RYK's. I am looking for coins that I think will sell well and that I will be excited about handling again and again down the road.

To me, the factors that make a coin desirable include: its level of value (is it a good deal or a bad deal?), its degree of absolute rarity (is its price predicated solely on its grade?), its degree of originality (has it been cleaned, processed or dipped in recent years?), its eye appeal (is it pretty?) and its level of liquidlity (if the market pulled another 2008 contraction, could I sell this coin in 30 days or less?).

Robert and I will be taking our show on the road and expect to see us at a Holiday Inn near your town sometime soon.

Do you more questions that you would like to see answered by the RYK/DWN mashup team? If I can persuade RYK to take some time away from his busy Fantasy Baseball schedule, perhaps we can have a Round Three of the Great Debate sometime soon. Email your questions to me at dwn@ont.com

The 1856-S Eagle: A Study of Mintmark Varieties

I'd like to thank collector John Toffaletti for writing this interesting study of 1856-S eagles and contributing it to raregoldcoins.com for publication. I think you'll find it very interesting and it contains information that has never been published before. There appears to be new interest in the older gold coins from the San Francisco mint. This is especially true for the double eagles, but also for the other denominations.

In searching the eagles from this period, I have noticed that the 1856-S comes in two very different mintmarks: a large S located farther to the right between the arrow feathers and the stem of the right branch and a medium S, located to the left of these same arrow feathers and the eagle’s right claw (left claw as you view the coin).

I started searching the Heritage Auction Archives for this date and mint mark and noticed that the large S was sometimes described as “very rare” because that’s how it was described in Breen’s Complete Encyclopedia of US and Colonial Coins. To me, “very rare” means a coin that is really difficult to find, so I was puzzled when the two most recent 1856-S Eagles in the Archives for April 2011 were both large S types.

Continuing to look farther down, the Archives appeared to confirm that the large S was less common among the images that I viewed: of the first 20, 14 were medium S and 6 were large S. Still, not what I would call “very rare”. However, I was really interested by now, so I continued down the list until I got to 1999, at which point Heritage did not include images in their Archives.

All told, there were 80 1856-S Eagles sold from April 1999 to April 2011, with 55 being the medium S and 25 being the large S variety. So the large S would certainly appear to be rarer by about a 2 to 1 ratio.

Now for the “double S,” as in Steam Ship. I noticed one P55 1856-S eagle had an exceptionally high price for the grade. This was a shipwreck coin from the SS Central America. In a recent article, Doug Winter mentioned that certain shipwreck coins were selling at markedly increased prices relative to their landlubber cousins. Winter noted that the greatest differential was for such coins with low “shipwreck populations”.

As an example, the very common 1857-S shipwreck double eagle sells for a small premium in the middle Uncirculated grades, while most others would sell for a significant premium. Since the large majority of coins found at shipwreck are double eagles, eagles would certainly have low shipwreck populations. Here is a list of the 1856-S shipwrecked coins on the Heritage Archive:

April 2010 N25 SS Republic $1955.00 March 2010 P55 SS Central America $7475.00 May 2008 N50 SS Republic $2990.00 June 2008 N45 SS Republic $1610.00 January 2002 P58 SS Central America $3450.00 (typical 58s sold for around $2600 at the time)

While I much prefer an original, attractively toned coin that survived actual circulation with minimal wear and damage, it is clear that these shipwrecked coins sell for a premium.

Now back to the mintmark search. Breen states that the medium S variety has at least 2 positional varieties. As I looked at the medium S eagles, I noticed that one of the medium S mintmarks really stood out. It seemed to be much lower and to the right than the other medium S’s that I had seen (but still an obvious medium S).

I saved this image and another of the more common medium S coin with the mintmark located in the upper left area. Now able to clearly compare these two images, I confirmed that the two medium S’s were located in distinctly different locations.

The more common medium S is more toward the left and tucked up between the arrow feathers and the left claw, with a line along the right tips of the S pointing almost directly through the left bar of the “N” in “TEN” [for an example, see the coin sold in the Heritage January 2011 auction, graded P58].

On the other type, the right tips of the S point almost to the middle of the same “N” and the top of the S is no higher than the lower tip of the arrow feathers [for an example see the coin sold in Heritage’s April 2008 sale, graded P40].

Also, I felt that another of the medium S marks seemed a little different than the others. Indeed, this third type of medium S variety is somewhat between the other two: the right tips of the S point down to the right of the left bar of the “N” in “TEN” and the top of the S is just above the lower tip of the arrow feathers [for an example, see the Heritage March 2010 coin graded P58 CAC. This same coin was later upgraded to an N61 and sold in the September 2010 auction by this firm].

Breen speculated that the large S eagles may have been the last of three deliveries by the San Francisco mint: Jan 1856: 14,000; Sept: 55,000; Dec 2,500. However, the relative rarity figures of the Heritage Archives do not support this.

Since the 1854-S eagle has a large S, while the 1857-S eagle has a medium S in the lower right position, this suggests that the first shipment of 14,000 were the large S variety. Most of the 55,000 shipment (from September) were the upper left medium S, while the final shipment was the lower right medium S. These numbers are congruent with the Heritage Archive numbers.

The rarest variety appears to be the medium S in the lower right position, followed by the large S, then the upper left medium S. The center medium S is relatively scarce also, perhaps about the same as the large S type.

In closing, I have to tip my hat to Walter Breen, who amassed much useful information about a huge number of coins without the grading service population reports or the great convenience of the Heritage Archives.

The $103,500 1862-S Eagle

Lost in the hubbub surrounding the recently-concluded Central States coin show and the Heritage auction held with it was a sale that I think ranks as one of the more remarkable in the rare gold coin market all year. The coin of which I speak is an 1862-S eagle graded MS61 by NGC. Unless you are pretty knowledgeable, this coin probably doesn't seem like anything too impressive. But to those of us who know and love the Liberty Head eagle series, this is a coin that is impressive; downright impressive, in fact.

According to information from the cataloger, this coin showed up at the March 2011 ANA show in Sacramento where it was graded and encapsulated by NGC. The cataloger went on to add "the coin was apparently preserved by a single family for many years and we can find no previous auction appearances for it." Now that's a fresh coin!

The 1862-S, as a date, is sort of overlook-able. It is not even close to the 1864-S in terms of overall rarity and it is overshadowed by the 1865-S Normal Date as well. A total of 12,500 were struck of which an estimated 75 or so are known. This date is actually not all that hard to find in the lower grades (in this case, VF and EF) but it is very rare in properly graded AU and extremely rare in the higher range of this grade. It was previously unknown in Uncirculated and I have never seen one better than AU55.

As of the middle of 2011, PCGS hadn't graded any examples of this date higher than AU55. NGC had graded two in AU58. The previous auction record for an 1862-S eagle was $25,300 set all the way back in May 1994 by a PCGS EF40 in the Bowers and Merena sale that would grade at least AU50 by today's standards. The best coin that I can remember having seen prior to this newly-discovered piece was Bass III: 653, a PCGS AU55, that sold for a very reasonable $8,050.

When I examined the coin in person, I was impressed. I'm not certain that the coin would "cross" to a PCGS MS61 holder but I thought the coin was really Uncirculated with nice surfaces and a great overall look for the date. I was particularly impressed with the coin's luster. Considering what the typical 1862-S looks like (very worn and usually very abraded), this was clearly a special coin.

But here's the rub. While "special," this coin is as esoteric as all get-out. Its the sort of coin that, if it had been offered to me by the owner, I would have had the following conversation with myself:

Doug Winter's Adventurous Side: "This is a great coin! Its unique in Uncirculated! You love coins like this! You have to buy it!"

Doug Winter's Practical Side: "But who cares? Its a very expensive S Mint Ten and coins like this are unsaleable. The two biggest collectors for this series already have decent coins and they might not want to upgrade. If they pass, there might be no one else who cares. Cool, cool coin but I pass."

Usually, the DWPS is smarter than the DWAS and Mr. Practical wins. But in this case, Mr. Adventurous was right.

I don't know who bought this coin or who the under-bidder was. I was guessing before the sale started that the coin would bring in the area of $50,000-60,000. CDN Quarterly Bid was $31,000 in MS60 (which is a totally arbitrary number since none existed before this coin was slabbed in March but it was the basis that most buyers were going to operate from). I did make the statement to a fellow dealer a few hours before the sale began that this was a coin that I could put in my case at a major coin show, price at $60,000 and not get so much as a bite.

The price realized of $103,500 is remarkable for a variety of reasons. The first is that this price is further proof that the Liberty Head eagle series, after years and years of neglect, has really come into its own. The second is that it shows that great coins, no matter how "esoteric" they appear, are capable of bringing startling prices in today's quality and rarity driven market. The third is the fact that a coin like this even exists and how it came onto the market with no prior history. It proves that there are great coins out there, still awaiting discovery.

San Francisco Double Eagles: A Date by Date Analysis Part Two

The second part of this study on San Francisco double eagles deals with the Type Two issues struck from 1866 to 1876. There are no absolute rarities in this series as with the Type One issues but there are a number condition rarities as well as affordable dates that are easy to locate in Extremely Fine and About Uncirculated grades. Let's take a look at each date and focus on the higher grade coins as these tend to be the most interesting Type Two double eagles from this mint.

1866-S With Motto: After a small number of No Motto double eagles were struck in San Francisco in 1866, the change was made to the new With Motto design. The 1866-S With Motto is desirable as a first year of issue date but it is not really rare in terms of overall rarity. It tends to be found in lower grades (EF40 to AU50) and is nearly always seen with heavily abraded surfaces and poor eye appeal. It is scarce in properly graded AU55 to AU58 and rare in Uncirculated with an estimated two to three dozen known. It is extremely rare in MS62 above and none have been graded better than this by PCGS or NGC. The population figures in MS61 seem to be very inflated at both services and a few of the coins that I have seen in MS61 holders are marginal at best for the grade. The current auction record is $39,100 set by Bowers and Merena 7/06: 1667, graded MS62 by PCGS.

1867-S: The 1867-S is a bit more available than the 1866-S With Motto in terms of overall rarity. In Uncirculated it is actually more rare with an estimated 15 or so known. The finest is a single MS63 at NGC; another five or six are known in MS62. This date is typically seen with a flat strike, very "ticky" surfaces and poor luster. Examples with good eye appeal are quite hard to locate and are worth a good premium over typical coins. Properly graded AU55 to AU58 pieces are very scarce and any example that grades above MS61 is extremely rare. The current auction record is $22,425 set all the way back in 2002 by Superior during the ANA auction; this was for a coin graded MS62 that is still the best that I can recall having seen.

1868-S: The 1868-S is the most common Type Two double eagle from San Francisco struck during the 1860's. It is plentiful in grades below AU55 but it is scarce in properly graded AU58 and rare in Uncirculated. I think there are around three dozen known in Uncirculated with most in the MS60 to MS61. Above MS61, the 1868-S is extremely rare. The highest graded is a single MS64 at NGC; the services have combined to grade four in MS62 with just one of these at PCGS. This date comes better struck than the 1866-S and 1867-S and has better luster as well. Like all San Francisco double eagles of this type, it is plagued by excessive surface marks. The natural coloration is often a pleasing rose-gold; others are found with orange-gold or greenish-gold hues. The current auction record was set by Heritage 2006 ANA: 5644, an NGC MS62 that sold for $32,200.

1869-S: The 1869-S is just a touch less available than the 1868-S in circulated grades but it is more available in Uncirculated. There are as many as 50-75 known in Uncirculated with most in the MS60 to MS62 range. This date is extremely rare in MS63 and above although there are a few really nice MS64 pieces known. The population in MS64 is currently eight coins (five at PCGS and three at NGC) but this includes some resubmissions. Interestingly, the NGC population in MS64 declined from nine in November 2009 to its current three and this indicative of the fact that one coin has been resubmitted numerous times in an attempt to make the first MS65 of this date. The 1869-S tends to have better luster than the earlier Type Two SF issues but it is nearly always found with abraded surfaces. The current auction record is held by Heritage 2005 ANA: 10413, graded MS64 by PCGS, which brought $83,375.

1870-S: I regard the 1870-S as one of the real "sleeper" dates in the Type Two SF double eagle series. It is similar in rarity to the 1869-S in EF and mid-range AU grades but it becomes very scarce in properly graded AU58. It is quite rare in Uncirculated with around 40-50 known but nearly all are in the MS60 to MS61 range. In MS62, the 1870-S is extremely rare (I know of only two) and there is just one graded better than this, an MS63 at NGC. This date has decent luster and can be found with an acceptable strike but many of the higher grade pieces have been processed and nice, original coins with decent surfaces are rare. The current auction record is $33,350 which was acheived by Heritage 4/10: 2311. This coin, by the way, was the single best 1870-S double eagle that I have personally seen.

1871-S: In my experience the 1871-S is considerably more common than the 1869-S and 1870-S although the populations figures for the 1871-S are just a bit higher. It is readily available in EF and AU grades and it is much less rare in Uncirculated than the preceding Type Two issues from SF. There are around 75-100 known in Uncirculated and examples in MS60 to MS61 are reasonably priced and available from time to time. In MS62, the 1871-S is rare and it is extremely rare above this. PCGS and NGC have both graded a single example in MS64 while only four are recorded in MS63 (three at NGC and one at PCGS). This date is sometimes seen with semi-prooflike surfaces and it tends to be well struck by the standards of Type Two double eagles. Surface marks and lack of originality are always a problem with the 1871-S. The current auction record is Heritage 1998 ANA: 7856 which brought $32,200. It is graded MS64 by NGC.

1872-S: The 1872-S is generally lumped with the 1871-S but I think it is a harder coin to find in all grades and it is somewhat undervalued. It is a well-made issue with a good strike and nice luster but surface marks tend to be a problem and it is very hard to find choice. The 1872-S is seen from time to time in the lowest Mint State grades but it becomes very scarce in MS62 and it is extremely rare above this. PCGS has graded nothing higher than MS62 (and just four at this level) while NGC shows a single MS63 and MS64 as well as three in MS62. The current auction record is Stack's 9/09: 5570, graded MS62 by PCGS, that brought $12,075.

1873-S Open 3: There are two varieties of double eagle known for the 1873-S. The Open 3 is the rarer of the two. It is usually seen in the AU50 to AU55 range and it is scarce in the lower Uncirculated grades. It is very rare in MS62 and appears to be unknown above this. Most examples are a bit flatly struck and are almost always severely abraded. It is also very hard to find pieces with nice natural color. NGC and PCGS have combined to grade only seven in MS62 and the current auction record is $28,750 set by Heritage 9/09: 1818 (graded MS62 by PCGS) which is, by the way, the only certified MS62 1873-S Open 3 double eagle to have ever been sold at auction.

1873-S Closed 3: This is the more common of the two varieties. I regard it as around three times more common than the Open 3. It is easy to locate in all circulated grades and it is not especially scarce in MS60 to MS61. It becomes scarce in MS62 and it is extremely rare in MS63. The finest graded are a pair of MS63's at PCGS; NGC shows nothing better than a group of fifteen in MS62. The 1873-S Closed 3 is nearly always very heavily abraded. It tends to have better color and luster than its Open 3 counterpart but it is clearly an issue that was handled roughly with many coins transported loosely in bags. The current auction record is Stack's 6/97: 1583 which brought $15,400. I do not know the current location of this coin or what it grades by today's standards.

1874-S: The 1874-S is one of the more common Type Two double eagles from the SF mint but it is less available than the 1875-S and 1876-S. It is well struck and lustrous but most higher grade pieces show numerous marks on the surfaces that limit the grade. It is reasonably available in the lowest Mint State grades but it becomes very scarce in properly graded MS62 and it is quite rare in MS63. The combined PCGS/NGC population for this grade is just seven coins with none better and I do not recall having seen more than two or three in MS63 that I thought were choice. The current auction record is $18,975 for an NGC MS63 sold by Heritage in their 1998 ANA auction as Lot 7861. Remarkably, this is still the only certified MS63 to sell at auction.

1875-S: The 1875-S is the second most available San Francisco Type Two double eagle. It is very common in all circulated grades and plentiful in the MS60 to MS61 range. It is moderately scarce in MS62 and very scarce in properly graded MS63. In MS64 it is extremely rare with a current PCGS/NGC population of just six. There is just a single Gem known and it is a mind-boggling PCGS MS67 (it has been graded as such by NGC as well) that was originally ex Stack's 3/95: 715 where it brought $82,500 as a raw coin. It traded for more than five times this amount last year when it was sold by private treaty. It is the single finest known Type Two double eagle of any date or mint.

1876-S: This is easily the most common San Francisco Type Two double eagle and this makes it perfect for the type collector who is seeking a single high grade issue from this mint. It is very common in the lower Mint State grades and it can be found from time to time in properly graded MS63. It is very scarce in MS64 and extremely rare in Gem. PCGS has graded just one in MS65 while NGC has graded two. The current auction record is held by Heritage 1/10: 2257, graded MS65, that brought $207,000. This is an all-time record for any Type Two double eagle from this mint at auction; at least one coin has brought more via private treaty.

The Type Two double eagles from this mint are a short-lived set that contain no rarities. The set can be assembled in Uncirculated grades although a few of the issues are essentially unavailable above MS61 to MS62. These coins are currently somewhat out of favor and it seems like a good time for the savvy collector to consider working on a nice, evenly matched set of San Francisco Type Two double eagles.