When the "Best" Coin isn't the "Better" Coin

In many series, collectors are slaves to the holder. By this, I mean, they make purchases which aren’t always prudent based on what a PCGS or NGC holder says. This is most prevalent in Registry-oriented 20^th century series such as Lincoln Cents and Washington Quarters (amongst others) - series in which a single grading point can inflate the value of a coin by 5, 10 or even 20 times.

This tends not to be the case with classic 19^th century gold coins, but every now and then a situation arises in which a coin which is theoretically the highest graded may not be the best purchase for an advanced collector.

A situation involving this scenario emerged at the recent Baltimore Stacks Bowers auction and I’d like to share my thoughts.

Please note that this is not meant to be a negative rant about the following coin, and the buyer of this coin is, no doubt, happy with his or her purchase.

The 1876-S eagle has long been a favorite issue of mine. It has a small mintage of just 5,000 coins, and I think five or six dozen exist, with most in the VF to EF grade range. I have never seen an 1876-S which grades higher than AU53 to AU55, and my best estimate is that there are around six or seven properly graded AU examples known. Until recently it was an unloved and generally undervalued coin.

In the recent Stacks Bowers Baltimore show, a newly graded PCGS AU55 example of this date was offered. In theory, this is the “finest known” example as it is a population one, none finer, coin. It sold for $22,325. I examined the coin and, in my opinion, it was sub-par for the grade. (Had it been a very choice coin for the grade, I think it would have brought closer to $30,000).

While $10 Libs are not a typical Registry Set series, there are a few advanced, deep-pocketed collectors who are specializing in these coins. And the opportunity to acquire a PCGS finest known coin—with the “points” this would add to such a set—is an unusual opportunity to say the least.

But what if a cheaper example of this same date was actually a “better” coin? What if an 1876-S eagle graded AU50 by PCGS were more original, more appealing (in my opinion), and a fraction of the price?

Back in their 2011 ANA auction, Stacks Bowers sold a PCGS AU50 example of an 1876-S eagle. I didn’t buy it even though, in retrospect, I probably should have.

Take a look at this coin:

I think it compares favorably to the PCGS AU55 shown above. It is a bit less “meaty” but it is more original, less “baggy,” and has comparable—if not better—overall eye appeal.

Most intriguingly, it sold for just $6,325 - or around a quarter of what the AU55 brought.

Here is an instance where Registry-mania caused a so-so coin to sell for a lot of money but didn’t have an impact on a nice, slightly lower grade coin because it wasn’t “the finest known.”

Examples like this are becoming more and more prevalent in the area of 19^th century United States gold coins.

The moral of the story? Don’t always trust the plastic you buy to equate with the best value in your series. There is no substitute for knowledge and, in many cases, this knowledge will save you money and provide you with a better overall collection.

Do you buy rare gold coins?

Do you have gold coins to sell?

Would you like to have the world’s leading expert working directly with you when assembling a set?

Contact Doug Winter at 214.675.9897 or by email at dwn@ont.com.

1860-S $20.00 PCGS EF45 CAC

Original and solid for the grade with even medium green-gold hues seen on the obverse and the reverse. A few small reeding marks can be seen on the obverse with one at the truncation and another inside of the first star. This date is not easily found with better color and surfaces than what is seen on this pleasing, affordable example.

1872-S $10.00 PCGS AU53

Almost certainly from Europe as evidenced by the deep orange-gold color contrasted by darker toning on the highlights. Choice and very lustrous with some light scuffs in the left obverse field; the reverse is cleaner and very lightly marked. The 1872-S eagle is an overlooked issue with an original mintage of only 17,300. I believe that there are around 150-200 known with most seen in the VF-EF grade range. Properly graded AU53 to AU55 examples are very scarce and the 1872-S is a true rarity in Uncirculated withe just two or three known with claims to an Uncirculated grade. The last PCGS AU53 to be sold at auction was Stack's 8/10: 1153 which brought $3,450; before this was the B+M 7/06 coin (lot 1644) that sold for a strong $5,175. A really nice example of this underrated issue.

1875-S $5.00 NGC EF45+

While certainly not in the same league as the legendary Philadelphia half eagle of this year, the 1875-S is a very scarce issue in its own right. Only 9,000 were struck and it is likely that only 70-80 pieces are known. That makes the 1875-S a scarcer issue than the 1875-CC half eagle as well as a number of better known and higher priced half eagles of this era. Light orange-gold color is contrasted by some flashes of reddish-gold at the borders and within the protected areas. A good deal of luster is present but this coin is kept at the EF45 level by the presence of numerous small ticks in the fields. This piece is very similar in overall quality to Heritage 1/10: 3987 (graded EF45 by PCGS) that sold for $2,530. At less than $3,000 this seems like good value.

1860-S $20.00 NGC AU55

Recently expatriated from Europe and very crusty with plenty of dirt in the recesses, especially on the reverse. This coin has enough body to grade AU58 but there is a very thin and easy to miss hairline on the obverse from the area between stars four and five on the obverse into the top of the head. The typical AU55 example of this date is bright and very heavily abraded. This piece shows nice orange-gold and rose color and lacks the dense abrasions so typical to the issue. Scarcde in properly graded AU55, very scarce in AU58 and very rare in Uncirculated.

1861-S $20.00 NGC AU58

You can disregard the NGC population of this date. In AU58 it is quite scarce and it is a really tough coin in Uncirculated that is nearly impossible to find above MS60 to MS61. This fresh example has a good deal of luster, minimal marks and nice medium orange-gold color. It is cleaner than usual and quite well detailed with better sharpness at the centers than what is normally seen for the date. A small grease stain at star two on the obverse is as made and shows that this piece has not been dipped. If available, an MS61 1861-S double eagle would cost in excess of $15,000 and it probably would not have much more eye appeal than this "slider." Since the beginning of 2009, only three AU58 1861-S double eagles have appeared at auction and I have had only three in inventory in close to two years.

1857-S $3.00 PCGS EF45

The low mintage Philadelphia issues tend to get the attention in the Three Dollar series. But the branch mint issues from San Francisco range from slightly scarce (1856-S) to unique (1870-S) and the 1857-S is one of my favorite of the five Three Dollars issues made at this mint. Only 14,000 were struck and this date is scarce in all grades. I bought this coin due to its exceptional eye appeal for the grade. It is sharply impressed (except for some lightness on the date) and it shows very pleasing rich natural honey-gold color. This is unusual for the issue as nearly every 1857-S has been cleaned at one time. In fact, I regard the 1857-S as one of the rarest Three Dollar gold pieces with original color and surfaces and it is almost never seen in Choice EF with good eye appeal.

1859-S $2.50 NGC AU58

Only 15,200 examples were struck and this is one of my favorite "sleeper" dates in the entire San Francisco quarter eagle series. The 1859-S is very scarce in the higher AU grades and it is very rare in Uncirculated. The beauty of this date in AU58 is that it is affordable and there is a large price jump once the Mint State grades are reached. This piece is bright and quite lustrous with a good strike and just a few small marks in the fields. At less than $3,000 this is a really good value for the collector of undervalued United States gold coins.

1859-S $20.00 NGC AU53 CAC

This is certainly not a scarce date until you get into the Mint State grades but locating choice, unmolested About Uncirculated examples is much harder than you might think. In my experience, most 1859-S double eagles have been dipped and show extensive abrasions as well. This choice example has attractive deep original color and a considerable amount of luster for the grade. To find a finer 1859-D double eagle in this date and price range will prove next to impossible.