The Battle Born Gold Coins: A Quick Analysis

The recently concluded Battle Born sale, held by Stack's Bowers at the 2012 Philadelphia ANA convention, was clearly a benchmark for collectors of Carson City coinage. It was probably the finest collection of gold from this mint that has been sold at auction during our lifetime; only the Bass sales of 1999-2000, the Old West sale held in 2006, and the Lang collection in 2003 are comparable. I attended the sale and would like to share some quick impressions of each denomination in the gold section. (NOTE: All of the prices below reflect a 15% buyer's premium and not the 17.5% that was charged to buyers who spent less than $50,000, cumulatively, at the auction). Half Eagles: On a coin-by-coin basis, the half eagles were the strongest individual series in the gold portion of this collection. Fifteen of the nineteen coins were Uncirculated and at least seven or eight were either finest known or tied for finest. But this series is not currently being contested by multiple numbers of wealthy collectors (as are, for example, Carson City Dimes and Carson City eagles). I felt that prices for the half eagles were disappointing at best, and that there were some great values for bidders.

A few coins stood out as great values. The foremost of these was the 1870-CC in PCGS MS61 CAC that sold for $103,500. I expected this coin to bring at least $125,000-150,000 based on the fact the fact that it is possibly unique in Uncirculated and clearly the finest known example of the rarest and most numismatically half eagle from this mint. The 1871-CC, graded MS63 by NGC, sold for $63,250 and I thought this was very cheap as I expected a final price of close to $100,000. The 1873-CC in PCGS MS62 sold for $103,500, and this seems low based on its Heritage 2011 record of $161,000 but I always felt that price was an anomaly. The 1874-CC in PCGS MS62 CAC and the 1875-CC in PCGS MS61 CAC, at $43,125 and $37,375, were both very cheap and I expected them to sell for considerably more.

Which brings us to my favorite coin in the sale, the 1876-CC graded MS66 by PCGS and approved by CAC. When I bought this coin in 2003 for $138,000, it was a piece that I really wanted to put away for a decade as I thought it was an amazing coin and the sort of "freak" that could bring a lot of money in a more appreciative market. But I sold it to the owner of the Battle Born collection and it has stayed off the market since then. I bid up to $350,000 for it this time but was left in the dust as it sold for $415,000 plus the buyer's premium, or $477,250. I'm certain that this is a record for any Carson City gold coin at auction and the buyer of the coin is a dealer I greatly respect who will, thankfully, not mess with this wonderful piece or worry about regrading it.

There were a few other half eagles that must have been disappointing for Mr. Born. The 1879-CC, graded MS62 by PCGS and approved by CAC, had sold to the collector for $69,000 in the Heritage 2/11 auction. This time around it brought $37,375. The 1881-CC in NGC MS63+ sold for what was close to the mid-way point of my pre-sale estimate of $40,000-50,000. A coin I really wanted to buy was the glorious PCGS MS65 CAC 1890-CC. I figured this coin would bring around $50,000 and it sold for $46,000 in the sale. Perhaps the biggest bargain, though, was the NGC MS65 1893-CC that sold for $18,400. I didn't especially like the coin, but I estimated that it would bring around $25,000.

Eagles: I expected this to be a strong part of the sale but was curious to see what impact the mixed quality would have on prices. There were some PCGS coins with CAC approval that I thought would do well. There were other coins that I thought were a bit generously graded and which were the sort of pieces that generally need to be priced at some sort of discount to sell to advanced collectors. At this sale, it didn't matter about the holder. As long as the coin had a "CC" on the back, the price was strong.

I disliked the 1870-CC in PCGS AU55 and strongly disagreed with the cataloger who claimed it was the finest known (the Old West: 1341 coin is clearly finer). It sold for $126,500 which in theory seemed like a marginal price but I would have passed at $100,000 if the coin had walked up to my table for sale at a show. The 1871-CC in PCGS MS62+ CAC seems pricey at $126,500 until you realize that it is the finest known and the only true Uncirculated example. One coin that sold for nearly double my pre-sale estimate was the 1874-CC in PCGS MS63. I thought bidders would be scared off by the two big scratches on the obverse (otherwise, it was a Gem...) but two collectors had to have it and the coin sold for a crazy $195,500.

A coin that really surprised me was the 1873-CC in NGC AU58. I really liked the appearance of the coin but graded it AU55 and thought that bidders would also see it as such. Ummm...wrong. It sold for $92,000 which made the nicer PCGS AU55 I sold a few years ago for a lot less seem like a really good deal.

The exact same scenario played out with the 1878-CC in NGC AU58. It was a fresh-looking and very attractive coin but one I know for sure had been upgraded from AU55. It sold for $80,500 which is more than double what I was prepared to pay for it.

Even though it is a common date in Uncirculated, the quality of the 1881-CC (graded MS64 by NGC and approved by CAC) made it special. I paid $74,750 for the coin in the Old West sale and I imagined that it would bring around that much this time; possibly less. It sold for $97,750 which I think is a ginormous amount for the date.

My "sleeper" CC eagle in the sale was the 1882-CC in PCGS MS61 CAC. It is one of only two known in Uncirculated and I liked the coin a lot due to its fresh appearance and lack of rub or wear. It brought $27,600 and I was the underbidder.

The worst value in the sale? I'm sorry to pick on the buyer of this coin--and I don't know who it was--but the NGC MS65 1891-CC at $57,500 was just not a savvy purchase.

Double Eagles: While I sold many of the half eagles and eagles to the collector, I was not involved in much of the assemblage of the double eagle collection. I thought the overall quality was nice. I wasn't fond of the 1870-CC (the previous 1870-CC in the collection, which I sold many years ago, was far nicer) and a few of the more common dates in MS62 and MS63 did nothing for me, but there were some great coins available.

The 1871-CC, graded MS64, is a coin that has bounced around for years and I've never understood why it hasn't been more appreciated. It was a little overgraded in an NGC MS64 holder (I like it more as an MS63) but it is easily the finest known and extremely rare in Uncirculated. It last sold in the Heritage 2008 auction for $414,000 and this time it went very reasonably at $322,000.

One of my favorite coins in the sale was the finest known 1872-CC in PCGS MS62 with CAC approval. I first saw this coin a few years ago in a bid deal at a coin show and it was in an NGC MS62* holder. If I'm not mistaken it sold then for around $100,000. In the Battle Born auction it brought $161,000 which is a very strong, but not unreasonable, price.

My favorite "sleeper" coin in the double eagles was the PCGS MS61 (with CAC approval) 1874-CC that sold for $28,750 in the Heritage October 2010 auction. This is a common date in circulated grades but it is very rare in Uncirculated. I thought the coin was worth around $20,000 back in 2010 and was willing to pay a touch more today. It brought $24,000 and I was the underbidder.

I don't remember the exact price of what I sold the PCGS MS62 1877-CC for in 2002 when it went into the Battle Born collection, but I'm certain it was less than $20,000. It brought $63,250 today. This is a good indication that nice MS62 and better examples of virtually all CC double eagles have performed extremely well during the past decade, often doubling or even tripling in value.

One coin that I sold to the Battle Born collector (in 2003) that I thought went sort of cheaply was the NGC MS61 1878-CC that was bid up to $48,875. I was expecting it to bring over $50,000 as it is a date that is virtually unavailable finer.

If there was one double eagle in the collection that I expected the owner to lose money on it was the 1882-CC graded MS63 (and approved by CAC). Yes, it is a condition rarity (one of just two in this grade with none better and it is the only one in MS63 with a CAC sticker) but I just didn't care for the coin. It wound-up selling for a whopping $80,500. To me, this shows the strength of the CC double eagle market and it tells me that buyers are very anxious to acquire examples that are very low population.

I was really fond of the 1885-CC graded MS62 and approved by CAC. This exact coin had sold for $37,375 in Stack's Bowers 2011 auction and, just a year later, it realized $57,500 which is easily a record price for the date at auction. Why did it bring so much more this time? I'd attribute it to three reasons: the "hotness factor" of the CC double eagle market, the "frenzy factor" of the Battle Born sale and the "comfort factor" of it now having CAC approval.

From a quality standpoint, the 1889-CC in PCGS MS62 with CAC approval was one of my favorite double eagles in the sale. It was really nice for the grade with good color and luster and choice surfaces. I thought it had no chance whatsoever to upgrade but thought it was a textbook example of a "real" MS62 CC double eagle. The last three auction records for this date in this grade were $20,125, $25,300 and $20,700. The coin in this sale brought $27,600.

A few more thoughts on the sale. Kudos are certainly in order for Stack's Bowers who did a great job promoting the sale and certainly proved that they are a formidable competitor to Heritage in the specialized gold coin market. The catalog itself was extremely well done with great information and lovely graphics. I was pleased to see that my name was totally Stalinized out of the pedigrees as I expected it to be. The overall price realized for the collection was just shy of $10 million (including the silver coinage) and I would have to think that the owner was pleased with the results.

How, then, would I rate the overall health of Carson City gold after the most important sale in this in close to a decade? I would, in a nutshell, make the following observations: the half eagle market is fairly weak and this sale would have been a great time to begin a serious collection of ultra-high quality pieces. The eagle market is extremely strong and there is far greater depth in the high end than I expected. I already knew the CC double eagle market was smoking hot, and this sale just confirmed it.

For more information on Carson City gold coinage, please feel free to contact me via email at dwn@ont.com

all images appear courtesy of Stack's Bowers

1853/2 $20.00 PCGS AU50 CAC

Its status as the only overdate in the Liberty Head double eagle series makes the 1853/2 a very in-demand coin. It is especially desirable in collector grades (i.e., EF40 to AU50) and it becomes prohibitively expensive in the higher AU to Mint State range. This lustrous example has light green-gold color and very good detail. Its shows the diagnostic die dot below the right foot of the R in LIBERTY and the "spray" behind the neck of Liberty (a clashmark). Remarkably, there has been but one PCGS AU50 example of this variety sold at auction since 2004, Heritage 7/10: 4823 which brought $4,313.

This is the only CAC approved example of this date in AU50. Three finer pieces have been approved as well.

1853/2 $10.00 NGC AU53 CAC

There is only one (count them: one) legitimate overdate in all the Liberty Head eagle series: the 1853/2. This is an unquestionable overdate with evidence of the 2 clearly in the lower loop of the 3. I think this variety is clearly underrated and this surprises me, given the surge in popularity of this series. This coin is very choice for the grade with the appearance of an AU55. Unlike most 1853/2 eagles, it lacks serious marks and the surfaces exhibit a good deal of luster below light green-gold color. The last APR for an NGC AU53 is Heritage 3/12: 4106 but this coin was non-CAC and not nearly as choice as the current example. Terrific value for the collector who likes unusual coins.

CAC has approved three in this grade with five finer.

1847-D $2.50 NGC AU55 CAC

Of the 200-250 known, only a dozen or so grade Uncirculated and most are in the EF40 to AU50 range. Nice AU55’s are regarded as scarce. This is a pleasing example with good color and surfaces. There is a considerable amount of luster on the obverse and reverse and the detail is above-average for the date and grade.

CAC has approved three in this grade with nine finer.

Ten Things I Did at ANA: A Follow Up to "Ten Things I Want to Do at the 2012 ANA Show"

The last blog I wrote was about ten things I wanted to do at the then-upcoming 2012 Philadelphia ANA show. So did I fulfill my numiswishes? Yes and no. I didn't do everything I wanted but I got a lot done, including buying oodles and oodles of good coins. Let's compare what I did to what I wanted.

1. Meet a Mystery Guest. I didn't see anyone who made my jaw drop (at least at the show) but I did have a few cool table visits. I'd say the most interesting was a collector of branch mint gold who I had sold some great coins to about twenty years but who fell out of touch. Yes, the first question out of my mouth (after "How's the wife and kids?") was, "Do you still have your coins and would you like to sell?"

2. Attend the Battle Born Sale. For collectors of Carson City gold, the sale of the Battle Born collection was a highlight of this or any show. I did attend and it was an event. Prices ranged from kind of reasonable to nuts. I'm going to write a detailed coin-by-coin analysis in a week or so, after I am caught up with listing new coins, sending coins in for grading, making deposits, and the dozens of paperworky things that I have to do after any ANA.

3. Have Something Great Walk Up to the Table. At the last Philadelphia ANA, I met a collector who sold me some great coins and I have since spent over a million dollars with him, purchasing some amazing items. I had hoped that I would have something comparable walk up to the table this year but no luck. I asked other dealers if they had the little-old-lady-with a-box-of 1880's Proof Sets scenario that I hoped against hope for. No one said they did. But one dealer made a point that I thought bears repeating: the hotel buyers that have invaded nearly every city in the U.S. have made these sort of deals even more unlikely to find.

4. Wear Nice Clothes in Very, Very Humid Conditions. Every time I ask myself "why did I move to the Pacific Northwest," all I have to do is spend a summer week anywhere other than Portland. Virtually every day of the show saw 90+ degree weather with brutal humidity. I would have been sweaty even in my typical shorts and t-shirt summer garb; in a tie and jacket it was just brutal. My dry cleaner would likely give Big Ups to Philadelphia's weather but I was dying...

5. View Exhibits:. I'm embarrassed to admit that not only did I not view the exhibits, I don't think I even made it across the room. That's what happens when you work your fanny off for ten hours a day in a room that's about the size of a football stadium.

6. See the Barnes Collection. I went to the Barnes Museum on Monday and it was without a doubt the highlight of the trip. Utterly fantastic and a collection that has amazing lessons to collectors of everything, even coins. In fact, I am going to write an article soon about "what I learned from the Barnes collection." If you are ever close to Philadelphia I urge, urge, urge you to see this amazing museum!

7. Eat at Reading Market I did. Every day. Sometimes for breakfast and lunch. I ate Amish doughnuts. I ate Italian sammies. I had clams. I had pizza. I gained weight. But it kept me sane and kept me away from the convention for a few minutes every day. It was great.

8. Restocking Inventory. I wound up buying over 100 new coins and spent more than a million dollars. The first group of new purchases are up and listed on my website (www.raregoldcoins.com) and the next wave will hit in about a week. How was buying at the show? Brutally hard. It was a ton of work to find these coins but I am proud to offer some great fresh pieces in price ranges that go from cheap (around $1,000-1,500) to expensive ($25,000 and up).

9. Experience the ANA Buzz. Was it a great show? Yes and no. It was well-located, well-run, and massive. I'd go back to Philadelphia for another show although I much prefer New York or Boston for an eastern location. My biggest complaint was that it was too long. With the pre-show (and I could make a great argument for nuking it) and the regular show it was a very long week. I got so tired one night at the auction I actually had to go outside and get fresh air, fearing that I was about to have an out-of-body experience. ANA Week is clearly a marathon and, I'm afraid, I've become more of a middle distance kinda guy in my middle age.

10. Leaving the Show. I was supposed to leave the show on Friday but my flight was cancelled and I had to stay until mid-day on Saturday. It worked out just fine in the end but, yes, it was great to get home except for the fact that I have been working ten+ hour days since then catching up.

How was your ANA experience? Did you find what you were looking for? Contact me by email at dwn@ont.com and let me know.

1851-O $20.00 NGC AU58 CAC

There are a small number of Gem Sliders known for this date and when they become available, collectors get excited. The reason is simple: an MS61 example of this date, if available, is now approaching $40,000 and a very high end AU58 like this coin is a remarkable value at less than half the price. This piece probably never entered circulation and it has glassy semi-prooflike surfaces with rich light green-gold that is accentuated by splashes of rich lime-gold across the central obverse. The strike is as sharp as one could hope for and there is just the slightest amount of bag friction on the high spots of the obverse. A small mark on the obverse can be seen between stars two and three and it seems to be mint-made. An exciting coin for the advanced collector of New Orleans gold.

CAC has approved two in this grade and two finer.

2/2

1841-O $10.00 PCGS EF40

The 1841-O eagle is a significant issue for a variety of reasons. It is the first year of issue for New Orleans eagles and it has a tiny original mintage of just 2,500. It is the second rarest No Motto eagle from this mint in terms of overall rarity after the 1859-O but it is the rarest from the standpoint of high grade availability. It is unknown in Mint State and extremely rare in properly graded AU with less than ten known. While it is available from time to time in EF grades, most of these coins are dipped and very abraded with little or no eye appeal. This example has a great natural appearance with deep, even green-gold color. It shows very clean surfaces with fewer marks than normal and the strike is above average as well with good detail at the centers. In the recently-concluded Stack's Bowers 2012 ANA sale, a PCGS EF45 example of this date sold for $16,450 and I don't think it was significantly finer than the EF40 I am offering here for significantly less money. While prices have risen on this issue in the last few years, I think it is still very undervalued and I would buy an 1841-O sooner than later if you need one for your New Orleans eagle set.

1861-S $20.00 NGC AU55 CAC

This deeply toned example is among the few totally original 1861-S double eagles that I can recall having seen in many years. It shows rich Euro-style color with deep green-gold surfaces that are contrasted by the hues on the relief details. There is a good degree of luster below the toning and the surfaces are choice for the issue. This is probably the scarcest regular issue SF double eagle from the Civil War era and I am very fond of this coin's appearance. CAC has approved just two in this grade with eight finer.

1884-CC $20.00 NGC AU55 CAC

In years and years of specializing in Carson City double eagles, I can't recall a time that these coins have been more popular than they are now and I forecast continued growth in this market due to a greater demand than supply. The sort of coin that people are really clamoring for now are common and slightly better dates in EF and AU with great eye appeal; exactly like this example. There is minor wear seen on both sides, no detracting marks and attractive natural light golden-orange color. In short, this is exactly the sort of CC $20 you should be buying if you are just getting interested in this historic, highly collectable series.

CAC has approved seventeen in this grade with another twenty-five finer than this.