12 Undervalued, Affordable 19th Century Liberty Head Gold Coins: Part I

It’s been a while since I’ve written a blog discussing specific undervalued, affordable gold coins. This is a topic which has proven popular in the past and, unless I’m mistaken, some of my suggested sleeper issues have grown dramatically in popularity—and price—in the last few years. Due to space limitations, I’m keeping this list down to a manageable number but it could easily be doubled—or even tripled—in size.

1. 1865 Gold Dollar

In the past, I have focused on various Civil War gold dollars, usually the 1863 which is the rarest of these issues. The 1863 has become well-known but the almost-as-rare 1865 remains an excellent value for the astute collector.

A total of 3,700 business strike examples were produced. This issue appears to have seen little circulation as it is almost never found in grades below MS60. As an example, PCGS has graded a total of 48 with 38 of these (over 79%) in Uncirculated grades. Interestingly, Uncirculated 1865 gold dollars are seen more often in Gem (MS65 and above) than in the lower grades (MS60 to MS62) and this suggests that a small hoard existed at one time.

The current Coin World Trends valuation for this date in AU55 is $900 and $1,100 in AU58. I’d contend that if you are able to find a PCGS or NGC AU55 or AU58 for anywhere near those kind of numbers, you have just stolen a coin and you can pat yourself on the back.

2. 1867 Gold Dollar

In 1867, the mintage of gold dollars “soared” to 5,200 business strikes. The 1867 is more available than the 1865 but not by much and it is less widely known or regarded.

The current population for this date at PCGS is just 64 coins in all grades with 46 of these (or 71.87%) grading MS60 and above. You can find the 1867 with more ease than the scarcer Civil War dates but what I like about this date is its current affordability. I have sold some nice higher end AU examples in the last year for around $1,000 and I have sold nice Uncirculated coins in the MS63 to MS64 range for $2,000-3,000.

This list is about “affordable” and, in my opinion, coins like the 1867 gold dollar check all the boxes: scarce in all grades, not terribly expensive even in higher grades, occasionally available and historically interesting.

3. 1844 Quarter Eagle

I’ve discussed this issue before so it’s not really a “secret date.” But the 1844 quarter eagle remains curiously undervalued. Of the 6,784 struck, there are under 100 known. PCGS has graded just 39 examples in all grades and this includes only three in Mint State.

So why is this date seemingly a permanently undervalued issue and why has it shown virtually no price appreciation in the past decade? I’d say the answer has a few components. Firstly, the 1844 quarter eagle doesn’t fit into any neat compartments. It doesn’t have a mintmark so it isn’t a branch mint coin. It doesn’t have any historical significance or anything else to give it a level of demand; let alone multiple levels of demand. What it does have going for it is its unquestionable value.

You can buy a very presentable AU 1844 quarter eagle for $2,000-3,000. The same coin with a C or D mintmark would easily be double the price. This fact, in and of itself, may be all the impetus this date needs to become better appreciated in the future.

4. 1846-D/D Quarter Eagle

I’m going to go out a limb here and add a variety to this list of undervalued 19th century gold coins. I know the reaction that some readers will have: “what, there aren’t enough overlooked regular issues? You have to get esoteric on us and add a variety? Seriously?”

The 1846-D/D quarter eagle is a well-established variety that has an important place within a very popular series. Although it is still not recognized by NGC or listed in the Redbook, it is well-known within the specialist community and recognized by PCGS. This has made it better-known than any of the other Dahlonega quarter eagles.

There are an estimated 40-50 pieces known with most in the EF40 to AU50 range. The 1846-D/D is not an inexpensive coin. You are looking at $4,000-6,000 for a nice AU, unless you are able to cherrypick an example. Put another way, the 1846-D/D is about as rare as the 1855-D quarter eagle from the standpoint of overall rarity but at a fraction of the price.

5. 1855-S Three Dollar Gold Piece

The 1855-S is an issue which should receive a lot more attention from non-specialists than it does. It is more of a Condition Rarity than nearly any issue in this group of undervalued issues and as many as 300-350 are known from the original mintage of 6,600 coins.

Here’s why I think the 1855-S is a good value and why it is underappreciated: like the 1854-D and 1854-O it is a first-year-of-issue within the three dollar series. But unlike these two issues, the 1855-S is not a “one and done” coin. In other words, the Dahlonega and New Orleans mints both made three dollar gold pieces for just a single year while the San Francisco mint made them again in 1856, 1857, 1860 and in (sort of…) 1870. Plus the two southern mint threes have the branch mint cachet which its Western counterpart lacks.

As I mentioned above, this is a very rare coin in higher grades. An accurately graded AU55 with good eye appeal is about as nice an example as you are going to find. Such a coin, if available would cost around $9,000-10,000. Back in the heyday of three dollar gold pieces (around 2005-2006) the same coin would have cost $13,000-15,000.

6. 1842 Large Letters Half Eagle

There are two varieties of half eagle dated 1842-P: the Small Letters and the Large Letters. Both are rare, both are undervalued and both probably deserve to be included in this list. But I’m going to go with the Large Letters which is rarer.

This is the fourth rarest Liberty Head double eagle from Philadelphia after the 1875, 1863 and 1865. There are around three dozen known including three in Uncirculated; the finest is a PCGS MS64.

Despite the unquestionable rarity of this issue, it is still very affordable. A nice quality EF 1842 Large Letters still can be found in the $2,000-2,500 range while an AU example would cost $4,000-5,000+. In my opinion, this is extremely good value in comparison to the branch mint issues of this era.

7. 1864 Half Eagle

It’s widely known that the Civil War half eagle from both Philadelphia and San Francisco are rare due to their low original mintages and their low survival rates. The 1864 is more available than the 1863 and 1865 but it is a scarce issue in its own right. There are an estimated 50-60 known from the original mintage of 4,170 business strikes. When seen, the typical 1864 half eagle is apt to grade in the EF40 to AU50 range.

I could have placed any one of at least ten other half eagles in this list of undervalued coins but I selected the 1864 due to its multiple levels of demand. Civil War gold coins have become very popular with collectors in the last few years and the 1864 half eagle is a relatively affordable issue in EF and even AU grades.

I sense the “affordable” aspect of this issue beginning to wane, though. As recently as a few years ago, it was possible to find a nice EF example for around $2,000-2,500 and an AU for a bit more than double this. Today, the collector will probably have to spend closer to $4,000-5,000 for a presentable 1864 but I still think this is reasonable for a coin with this degree of rarity and this much historic association.

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.

Overdated United States Gold Coins

One of the most interesting varieties of United States gold coinage is the many overdated issues that exist. Some are very rare and others are common; some are well-known and some are very obscure. But all share a common trait: a high “coolness factor” that makes them desirable with collectors. What are overdates and how can the collector of United States gold coins focus on these issues? An “overdated” coin is one on which two dates are present. A famous example is the 1942/1 dime. An overdate occurs when one of more digits from the current year is punched into an older working die. Overdates are often intentional creations and they may exist for a number of reasons.

In the early years of the US Mint, steel to make dies was scarce and funds were scarcer. The Mint operated on a shoestring budget and if any dies were leftover at the end of the year, there was good reason to reuse them. There are many overdates from the 1790’s and early 1800’s and many were probably caused by economic reasons.

Quality control at the Mint during the early years was often lax and some overdates appear to have been produced by accident. These accidents occurred when an engraver inadvertently employed a date punch that was not consistent with the die he was working on. This appears to be the case with some of the overdated coins produced during the 1830’s and 1840’s.

Let’s look at some of the more interesting overdates that occur on Liberty Head gold coins. We’ll save overdated early U.S. gold coins for another time as the list and scope of these is very comprehensive.

Gold Dollars: There are no gold dollars that were overdated. It is interesting to note that there are very few varieties of note in this entire denomination. The branch mints, where one would have expected an overdate or two to have occurred, never produced one in this denomination.

Quarter Eagles: The Philadelphia, Charlotte and Dahlonega issues from 1839 have been called 1839/8 overdates in the past but this is incorrect. The only genuine overdate for the Liberty Head type is the 1862/1. This is a clearly visible overdate that was probably caused by the stress involved with producing gold coinage during the most intense year of the Civil War. It was once believed to be extremely rare but now is only regarded as very scarce. In higher grades, the 1862/1 is very rare. I have personally seen two or three in Uncirculated including a PCGS MS62 that was the best of these.

Three Dollars: You would think that this odd denomination contained an overdate or two but it does not. In fact, there are virtually no significant varieties.

Half Eagles: The pre-1834 issues of this denomination are fertile ground for overdate collectors. The Liberty Head issues are not as interesting when it comes to varieties. There are only two legitimate overdates: the 1881/0 and the 1901/0-S.

The 1881/0 is an overlooked issue that I think is undervalued and quite interesting. There are hundreds known in circulated grades and it is available even in the lower Mint States grades without much effort. It is rare in MS63, very rare in MS64 and may not exist in Gem. A very presentable Uncirculated 1881/0 half eagle can be obtained for less than $2,000.

The 1901/0-S half eagle is probably the most common overdated Liberty Head gold coin of any denomination. A total of 3,648,000 half eagles were coined in San Francisco in 1901 and my guess is that a decent percentage of these were overdated. This variety is common in circulated grades and easily located in grades up to and including MS63. It is scarce in MS64 and rare in MS65 or better. In lower grades it sells for virtually no premium over a common 1901-S and it is a good introduction to the world of overdates coins for the neophyte.

Eagles: The first few “overdate” issues in this series are either controversial or simply wrong. This parade of suspects is led by the 1839/8 Large Letters (Type of 1838). As with the similarly dated quarter eagles, what has been described as an overdate is, in fact, a defect in the die which can be mistaken for an “1839/8.”

For many years, the 1846/5-O was believed to be an overdate but this has been disproven by me and other specialists. Some collectors believe that an 1849/1848 overdate exists but the pieces that I have are not convincing and I don’t think this variety exists. Same goes for the 1857/5; a variety that has been claimed to exist but which I am certain is not a true overdate.

The only legitimate overdate in the entire Liberty Head eagle series is the 1853/2. The variety has received some fanfare over the years but it is still underappreciated; especially given its status as the only true overdate in the series. I estimate that there are around 125-150 known with most in the EF45 to AU50 range. This variety is very rare in properly graded AU55 and above and extremely rare in Uncirculated. I have seen only one Uncirculated example, an MS61 graded by PCGS.

The 1865-S/Inverted 186 has been called an overdate but it is not; it is actually a blundered date caused by mis-entering the first date punch.

Double Eagles: There is only one overdated Liberty Head double eagle: the 1853/2. This is a somewhat controversial issue and it is one that I have seen a few prominent numismatists (including Dave Bowers) state that it is not an overdate but a recut date. I am of the belief that it is an overdate but that some of the pieces that have been designated as “overdates” but PCGS and NGC are later die states that are questionable. The real 1853/2 double eagle has a bold oblong obverse die dot below the foot of the R in LIBERTY. It also shows fairly clearly within the bottom loop of the 3 the straight-lined base of a 2. There are an estimated 200-250 known in all grades and the 1853/2 is quite scarce in the AU range. It is very rare in Uncirculated with probably no more than a half dozen known. I have seen three or four that grade MS61 or slightly better.

Putting together a set of overdated Liberty Head gold coinage would be a fairly easy task. It would consist of only five coins and only one—the 1853/2 double eagle—is expensive in higher grades. The really fun and challenging overdates tend to occur on the pre-1834 issues but as I mentioned above these are often expensive and some are extremely rare.

America's Forgotten Rarities: The 1842 Quarter Eagle

In the second part of this series on coins that I believe are truly rare but not fully appreciated I am turning my focus on an issue that is very interesting to me: the 1842 quarter eagle. 1842 is, in general, an interesting year for quarter eagles. Four mints produced these coins: Philadelphia, New Orleans, Charlotte and Dahlonega. The mintage figures ranged from a low of 2,823 at Philadelphia to a high of 19,800 at New Orleans. With the exception of the 1842-O, all four are quite scarce in any grade and each is very rare in high grades.

Although it is not the most highly valued quarter eagle dated 1842 (that honor goes to the 1842-D), the 1842 is the rarest, both in terms of overall and high grade rarity. There are an estimated 35-45 known in all grades with most in the Very Fine to Extremely Fine range. I believe that there are six to eight in properly graded About Uncirculated and I think this date is unique in Uncirculated.

The most recent PCGS/NGC population figures show a combined total of fifty graded. This includes two in Uncirculated (more on these in a moment...) and eighteen in About Uncirculated. The population figures are, as usual, inflated, especially the AU coins listed by NGC.

This is generally a well made issue which shows good overall detail at the centers and borders. The luster tends to be semi-reflective but most 1842 quarter eagles are either worn to the point that they show no luster or they have been stripped and display little if any original surface. Most of the pieces I have seen have been abraded and at least a few are either damaged from having been scratched or show evidence of rim filing. The natural coloration is a bright yellow gold.

The finest known 1842 quarter eagle is a piece in a Midwestern collection that has been graded MS62 by PCGS. It first came to the market as Superior 9/99: 1863. I bought it for $31,050 and immediately sold it to a collector in Nevada. A few years later, when I handled the sale of his collection, I placed it privately with the Midwestern collection referenced above.

A few quick words about this PCGS MS62 1842 quarter eagle. I think this is one of the truly great Liberty Head quarter eagles of any date. No, its not a Gem. But it is so head and shoulders better than the next finest piece that it is an unbelievably important coin and certainly one of the less well-known but really significant pieces known from this era. Not to mention the fact that it is choice, original and very attractive as well.

There are two nice AU 1842 quarter eagles that come to mind. The first is ex Bass II: 340 where it was graded AU55 by PCGS and it sold for $13,800. I known that this coin subsequently upgraded to AU58 when it was sent to NGC; I am not aware what its current grade is. The other is ex Pittman II: 1736 where it was conservatively graded "XF" by David Akers. It sold for $12,100 and was later graded AU58 by NGC.

I believe that this date is extremely undervalued. The most recent Trends prices are $3,250 in EF40, $5,000 in EF45, $6,250 in AU50 and $10,000 in AU55. As befits a coin of this rarity in high grades, there is no published valuation over AU55.

A quick check of my records shows that I have handled a whopping three 1842 quarter eagles in the last five years with the most recent being a PCGS EF45 that I sold a few months ago to an advanced collector.

I doubt if this date will ever get the attention it deserves. Its a quarter eagle, its a Philadelphia issue and its too rare to ever promote. That said, the 1842 quarter eagle is a coin that I have great respect for.

The Philadelphia Gold Coinage of 1870

The 1873 and 1875 gold issues from this mint have received considerable fanfare over the years but I think the Philadelphia gold coinage from 1870 is pretty interesting as well. Having recently sold a number of high quality 1870 Philadelphia gold pieces, I thought it would be interesting to present an in-depth study of these, going from the dollar all the way up to the double eagle. Gold Dollars: A total of 6,300 business strikes were produced along with 35 Proofs. This is a reasonably common date in most grades with an estimated 250-300 known. Probably half of (if not more) are in Uncirculated grades and the 1870 gold dollar is almost never seen below About Uncirculated grades, indicating that it did not circulate widely. There are at least two dozen Gems known and a few incredible Superb Gems including a PCGS MS68 and a group of four to six MS67’s. The finest known is Heritage 3/06: 1714 ($18,400), ex Superior 2/05: 3424 ($14,375), Superior 11/03: 1166 ($15,525). Some of the PCGS MS67 pieces include Bass II: 175 and Childs: 567.

The 1870 gold dollar is typically a well produced issue with attractive color and rich soft frosty luster. The natural coloration tends to a medium to deep golden hue. Many are a bit softly struck at the centers and the 87 in the date may not be fully formed.

This is an affordable issue that is good value with decent quality Uncirculated pieces still available for around $1,000. Gems trade in the $4,000-5,000 range and seem like good value.

Proof 1870 gold dollars are extremely rare and much undervalued. Of the 35 struck there are probably no more than ten to twelve known including a few impaired examples. Since 2000 there have been only five auction records and this includes one duplication (the Pittman coin) and an impaired example (ex Bass IV: 75).

Quarter Eagles: There were 4,520 business strikes produced along with 35 Proofs. This issue is a bit more available in terms of overall rarity than one might expect with an estimated 100-125 known. Most 1870 quarter eagles are seen in the EF45 to AU55 range. Unlike the gold dollar from this year, there are only a handful known in Uncirculated; maybe five to seven at most. The undisputed finest is Bass II: 568 (later sold as Goldberg 2/03: 1924) which is a lovely PCGS MS65. None of the other Uncirculated coins grades higher than MS62.

This tends to be a well-made issue that has luster than ranges from frosty to prooflike. Most are very heavily abraded and I have not seen more than a handful with natural coloration.

Nice AU 1870 quarter eagles remain affordable and undervalued with examples trading in the $1,000-1,500 range. The few decent quality Uncirculated pieces I have seen have brought in the $3,000-5,000 which seems like extremely good value for such a scarce coin.

Proof 1870 quarter eagles are extremely rare. While the mintage is a reported 35, I believe that many were melted and today as few as seven to nine exist. Only two have been auctioned since 1996 and the finest that I have seen is Bass III: 224, graded PR65 by PCGS.

Three Dollars: There were 3,500 business strikes made as well as an additional 35 Proofs. An estimated 150-200 are known with most in the EF45 to AU55 range. In Uncirculated there are around two dozen known. There are no Gems and just two or three properly graded MS64’s. The finest that I have seen is ex Bass II: 685 and this PCGS MS64 sold for $16,100 in 1999. A decade later (in March 2009 to be exact), an NGC MS64 brought $18,400 in a Heritage auction.

The typical 1870 three dollar gold piece business strike is semi-prooflike and there are some that are so fully prooflike that that can resemble Proofs. Business strikes always show die striae in the fields and some have clashmarks at the centers. The natural coloration is a medium orange-gold and undipped pieces tend to show coppery hues towards the borders.

This is another affordable issue. A nice quality About Uncirculated 1870 Three Dollar gold piece will run in the area of $2,500-4,000 while presentable lower grade Mint State pieces run around $5,000 to 9,000.

Proofs are extremely rare. There are an estimated dozen known and only four auction appearances have occurred since 2000. Nearly every known Proof is in the PR63 to PR64 range and Gems are exceedingly rare with perhaps one or two accounted for.

Half Eagles: The mintage for business strike half eagles from 1870 is just 4,000 while an additional 35 Proofs were produced. I believe that there are 65-75 known with most in the EF40 to AU50 range. Properly graded AU coins are extremely scarce with twelve to eighteen accounted for and there is just a single Uncirculated 1870 half eagle, ex Bass II: 1169 (graded MS61 by PCGS) where it sold for a reasonable $14,375 back in 1999.

The luster on 1870 half eagles tends to be satiny but it also tends to be impaired due to heavily abraded surfaces. Most examples have been cleaned or dipped at one time and original pieces with nice color and surfaces are very rare.

Prices for this date remain very reasonable, given its scarcity. An Extremely Fine piece will cost in the $1,500-2,000 range while AU’s run in the $3,500-7,000 range depending on the quality.

Proof 1870 half eagles are extremely rare and it is likely that a number of the 35 struck were melted later in the year after they went unsold. Based on the fact that only four auction appearances have been recorded since 2000 (one of which is a duplicate), I would not be surprised if only seven or eight are known. The finest known by a large margin is the wonderful NGC PR66Cam that is ex Goldberg 5/08: 4437 ($92,000) and Goldberg 2/07: 2325.

Eagles: The mintage for 1870 eagles is 3,990 business strikes along with another 35 Proofs. The certified population figures for this date are higher than one would expect with a total of 147 graded between the two services as of December 2009. However, I believe that this is the product of numerous resubmissions and the actual number of 1870 eagles known is fewer than 100. The typical example grades in the EF40 to AU50 range and choice, properly graded pieces in AU55 to AU58 are extremely scarce. I do not know of a single Uncirculated 1870 eagle although NGC has graded a solitary coin in MS60.

This date is typically seen with very heavily abraded semi-prooflike surfaces. It is probably the most difficult gold denomination from this year and mint to locate with good eye appeal. I can’t recall having seen more than a very small number of 1870 eagles which had good overall eye appeal and attractive natural coloration.

Lower grade 1870 eagles are very reasonably priced and the last Extremely Fine I had brought in the area of $1,500. AU pieces range from $2,000 to close to $10,000 based on quality.

Proofs are exceedingly rare. As with the other denominations of this year, it seems likely that a number were melted. Today it is likely that as few as seven or eight are known and only three have sold at auction since 2000. PCGS has graded just one Proof 1870 eagle (a PR64) while NGC shows five including two each in PR65 Cameo and PR65 Ultra Cameo.

Double Eagles: The mintage figure for business strike 1870 double eagles is considerably more than for all the other denominations from this date and mint combined. There were 155,150 business strikes made along with another 35 Proofs. This date is much scarcer than generally believed and it is likely that only 400-500 business strikes are known with most in the EF45 to AU55 range. Uncirculated pieces are scarce and I believe around three dozen exist with nearly all grading MS60 to MS61. Properly graded MS62 examples are rare and there are no pieces currently graded higher than MS63. The best I have personally seen is Heritage 1/07: 3718, graded MS63 by PCGS, which sold for a record $48,875. There are five graded MS63 between the two services including two at PCGS and three at NGC.

The vast majority of business strike 1870 double eagles have very heavily abraded surfaces and show a moderate amount of frosty luster. The few higher grade pieces known tend to exhibit rich frosty luster and nice orange-gold coloration. The strike is better than average for a Type Two issue of this era with some definition noted on the hair strands and shaper radial lines than on the 1868 or 1869 double eagles.

A decent quality Extremely Fine 1870 double eagle remains reasonably priced at around $2,000 while a nicer AU coin will set you back $3,000 to $5,000+.

Proofs are extremely rare although there appear to be more around than the eagles of this date. An estimated ten to twelve are known including a few very nice survivors. The finest known is the incredible Stack’s 1/09: 1410 that sold for $368,000 in a PCGS PR66 holder. This coin now appears to be graded PR67 Ultra Cameo by NGC and it is one of the very finest Proof Type Two double eagles of any date.

The Philadelphia gold coinage of 1870 is scarce and interesting but unlike other dates from this era, the set is completable and not expensive in medium grades. In fact, the collector of average means can put together a very nice set of these issues in Extremely Fine to About Uncirculated grades for well under $20,000.

The Great RYK/DWN Mashup: Robert Kanterman’s Twelve Undervalued Gold Coins Priced Below $5,000

At the end of my last blog I said that I’d like to hear from collectors about which coins they believe qualify as undervalued sub-$5,000 U.S. gold coins. Robert Kanterman responded with this thoughtful list and I thought I’d publish it along with my comments (which are in italics at the end of each of his paragraphs). Without further ado, take it away RYK... Doug Winter has challenged me to identify 12 gold coins that are under $5,000 that are relatively good values. As a hobbyist, I am not nearly as knowledgeable and up-to-date in pricing, availability, and recent transactions, as Doug is. Most of my information is from sources like Heritage's auction archives, Coin Values, and the PCGS price guide and population reports. Each of these resources has its inherent flaws and weaknesses, yet each represents a sizable block of information, as well. I will also add that as a collector, I am often willing to dip down in grade level to a point that is lower than Doug typically does. This allows me access to some rare coins that I might otherwise not be able to afford. I would also stress that my selections below all are for coins that are original and attractive for the grade. On this website, that goes without saying.

1. 1854-S Gold Dollar in MS-62

I am always attracted to better date coins that have a historic or numismatic significance. The 1854-S dollar is important as it is the first year of operation of the San Francisco Mint, and it is the only SF mint gold coin that can be purchased in MS for under $5,000, with an MS-62 running in the $3,000-4000 range. This is definitely an issue that flies under the radar screen.

DW Comment: Nice choice. I had actually considered this for my list. This is a historically significant issue with a high “neatness” factor. I think a properly MS62 at $3,500-4,000 is a wonderful value. Just as an aside, I think all of the SF gold dollars are exceedingly good values and I have written previous articles on them which detail each issue.

2. 1857-D, 1858-D, or 1859-D Gold Dollar in AU-50 to 55

The combined mintage of these three issues is about 12,000 coins--yes, I said combined--and they can be had in AU-50 for $4,000 or less and a little more for choice AU. These are all charming, scarce, and historic. Within four years of the earliest of the trio, the Dahlonega Mint was overrun by the Confederates, who struck the gold dollars for the last and most famous issue of the series--the 1861-D. Of the three, the 1858-D gold dollar typically comes with the best strike.

DW Comment: Having owned dozens and dozens of each of these three dates I tend to overlook them but I think RYK has raised a good point. All three are scarce in the true meaning of the word. If I were able to choose just one date out of the trio, I would pick the 1857-D as I think it is considerably scarcer than the 1858-D and 1859-D. A caveat: many of the AU50 examples I see in holders are poor quality, so be patient and wait for the right example to come along.

3. 1839-C and 1839-D Quarter Eagles in XF-40+

I do not see much value in the classic head series, in general, but compared to the rest, the branch mint issues from Charlotte and Dahlonega seem to still have some value. Neither is especially rare, but with MS graded coins pushing into the high five figures, a dirty, original mid-circulated grade coin for $5,000, give or take a few, in a very popular series, seems like a pretty fair deal.

DW Comment: Nice choice, RYK. Even though properly graded EF examples of these two dates have probably doubled in price in the last few years, they are still good overall value. I’m not certain I would call them “undervalued” but the important thing to remember is that coins like this are in great demand and many collectors can’t afford the higher grade pieces that seem so readily available. I would personally choose the 1839-D over the 1839-C if I had to buy just one.

4. 1881 Quarter Eagle in AU-55

I hope I do not get bounced for saying this here, but after 1865 or so and with the exception of the 1875, the Liberty coronet $2.50 series becomes a long, boring series with few coins of interest to all but the diehards of the series. 641. What's that number? That's the original mintage of the 1881 quarter eagle for circulation strikes. If I were going to own one late date coronet quarter eagle, this would be the one.

DW Comment: At first I was going to heartily disagree with this choice but the more I got to thinking about it, the more I realized that at $3,500-4,000 for an AU50, this date is pretty good value after all. I do disagree with RYK that the post-1865 quarter eagles are a “long, boring series...” but you don’t expect me to agree with everything he says, do you?

5. 1864 Three Dollar in AU-55 or 58

The Civil War dates in many series are becoming the focus of collectors, and this is no exception for the $3 gold series. The 1865 $3 gets all of the credit for being low mintage (1,140), low pop, and one of the handful or so better dates of the entire series. The 1864 $3, however, has a mintage of 2,630, with a survivorship of a little under twice that of the 1865 and a price tag less than half of the 1865. Additionally, there is no apparent premium when compared to the higher mintage and more common 1861 through 1863 $3's. By all metrics, it is the best value among Civil war date $3's.

DW Comment: This is a really good choice. I probably see three 1861, 1862 or 1863 three dollar gold pieces for every 1864 despite the fact that the latter gets very little price premium in circulated grades. You have to like the history of any gold coin dated 1864 and most Philadelphia coins from this year were extensively melted.

6. Bust Right (or Bust Left) Early Half Eagles in XF-40

This is a personal favorite and may not be right for all collectors, but there is recent auction data to back this selection up. When AU coins are regularly selling for nearly $10,000, a nice original, piece with a bit more circulation in the $5,000-6,000 range seems like a better buy.

DW Comment: I love this choice except for one problem. Finding a crusty, original EF bust right or bust left half eagle is going to be a real chore as most of the real EF45 coins are now in AU50 or AU53 holders. When I do see EF examples they tend to be net graded AU’s—in other words, they have the details of an AU50 but have been cleaned at one time. That said, I agree with RYK that a crusty, attractive EF45 at $6,000 makes more sense for most collectors than a marginal, bright AU55 at $10,000.

7. Dahlonega Half Eagle Varieties in XF or AU

There are a number of scarce, easily recognizable varieties of Dahlonega half eagles (1840-D Small D, 1843-D Small D, 1848-D D/D, etc.) which can be purchased for little and often no premium to the more common variety. The grading services and astute collectors are only starting to recognize them, but they are well-documented and described in Doug's book, “Gold Coins of the Dahlonega Mint.” Instead of buying the common example for the date in which 150 pieces are known, it makes sense to seek the one in which only 15 or so are known.

DW Comment: On this choice, I believe that RYK was “overthinking.” While I love the concept of buying a very rare die variety for little or no premium over a common one, the problem with these is that only a handful of collectors care. The 1840-D Small D half eagle is, as an example, a truly rare coin but I doubt if more than half a dozen collectors would pay a premium for it. My feeling is that the collector should learn these varieties and try to cherrypick them if possible but that there are just a small handful of Dahlonega half eagle varieties (most notably the 1848-D/D) that (currently) merit a premium.

8. Pedigreed Coins Better Date Gold Coins Under $5,000

I am a big fan of pedigreed coins, and I know that Doug is, as well. When I talk about pedigreed coins, I am generally speaking of the Big Three (Eliasberg, Garrett, and Norweb), but for rare date gold, there are others of significance, including Bass, Milas, Dallas Bank, to name a few. I am not talking about hoards like Wells Fargo, shipwreck coins (because they tend to be overpriced), or dubious pedigrees like Rainy Day. Often, the best way to buy pedigreed coins is to rediscover them yourself. Failing this, dealers like Doug Winter will often sell these with little or no price premium. I have found that while I enjoy owning them, selling them is usually painless as there seems to be quite a few collectors out there who also desire these. I make sure that I do not compromise my standards for quality for the grade and still seek good value.

DW Comment: I love this choice but would change the Big Three to the Big Four as I consider the Bass pedigree to be every bit as important as Eliasberg, Garrett or Norweb. RYK makes a great point when he suggests that the best way to find coins from these sales is to do some leg work. If you collect quarter eagles, make sure you own all of the major quarter eagle sales. If a coin has a distinguishing mark it may be reasonably easy to pedigree it.

9. 1870-CC Half Eagle Up To VF-20

Here is a coin that Doug Winter would not typically purchase for inventory, but I think is good value for the money. 1870 was the first year of the Carson City Mint and the 1870 gold issues are all the rarest in their respective series. The 1870-CC $5 is the most common of the three gold denominations and the only one that can be purchased in any form that resembles a coin for under $10,000. VF-25's have recently sold publicly for $6,000 or so, so it might require a drop in grade to F-15 or VF-20 to acquire this popular, historic, and legitimately scarce coin.

DW Comment: Actually RYK is wrong about me not typically buying a nice VF 1870-CC half eagle (or eagle or double eagle, for that matter...) for my inventory. I have actually owned three or four 1870-CC half eagles in lower grades and have always found them to be popular and readily liquid. On a rare, historically significant issue like the 1870-CC, I know I am willing to compromise my standards a bit. This would be a great addition to any collection.

10. 1838 Eagle in VF

Here's another coin that might be a bit lower in grade than what Doug might purchase for inventory, but when you consider that these coins actually did circulate (like the 1870-CC $5), it make sense to buy one that did circulate. This is a legitimately scarce, first year of issue, with a somewhat different design from the rest of the long series, and the first eagle struck for circulation in 35 years. A crusty, older holder example sold earlier this year in VF-25 for $4,000, which seems like a pretty good deal to me.

DW Comment: I wasn’t planning on including this issue in Part Two of my article but I like this choice. I am generally a big fan of first-year-of-issue coins, especially if they are genuinely scarce like the 1838 eagle. I would warn the potential buyer of this issue that Trends and CDN Bid tend to be unrealistically low in all grades and there are not many that can be bought in the sub-$5,000 range.

11. Any With Motto 1860's Eagles (except 1868-P) in XF-40 Through AU-50

The Liberty $10 series is chock full of scarce dates that fall below the radar screen of most collectors, even those who are active in rare date gold. From 1866 through 1869, there are multiple legitimately scarce dates that can be had in XF to low AU for under $5,000, but they do not come available very often. Omit the 1868 Philadelphia issue, as it is the most common of the group.

DW Comment: I couldn’t agree more with this choice although I might not necessarily single out the 1868 as the one “do not buy” coin from this era. These dates all have low mintages and low survival rates. They tend to be extremely expensive in AU and higher grades bit are surprisingly affordable in VF and EF.

12. 1850 Double Eagle in AU

I generally have difficulty finding good value in the $20 gold series (Liberty and Saints). I chose the 1850 $20 among the 1850's Philadelphia issues because it is the first year of issue, and it often comes nice. If you like the value in this one, you would probably like the some of the other 1850's Philadelphia $20's because they are even less expensive. Big pieces of 150+ year old gold are impressive now and will remain so for the foreseeable future.

DW Comment: I’m going to disagree with RYK on this one. At one time, I was a huge advocate of this date and I even included it in an article I wrote about “A Dozen Cool U.S. Coins” a number of years ago. But that was before prices shot up and population figures in AU soared. While this date has the cachet of being the first collectible double eagle, I think dates like the 1855, 1856, 1857 and 1858 in nice AU55 to AU58 are much better values than the 1850.

I’d like to give a shout-out to Robert Kanterman for his exceptional list of undervalued coins and I hope I haven’t embarrassed him to the point that he’ll never participate in the new interactive raregoldcoins.com blog again. So, who is next??

Philadelphia No Motto Half Eagles & Eagles

I’m beginning to gain a new-found appreciation for --gasp!-- No Motto half eagles and eagles from the Philadelphia mint. Read on for some thoughts about these coins and why I’m beginning to see them in a new light. As I’ve mentioned more than once, No Motto half eagles and eagles from Philadelphia have never ranked high on the list of popular coins in the world of DWN. I’ve found these coins to be somewhat mundane and boring and haven’t really bothered all that much with them. So what’s happening to change my mind?

I love originality. It saddens me to see that such a large percentage of branch mint gold issues have been scrubbed and processed and now look like Frankencoins. Ironically, because of their lack of popularity, the major coin doctors have (temporarily) ignored No Motto Philadelphia half eagles and eagles. In essence, the connoisseur of truly original mid-19th century coins has almost nowhere to turn other than Philadelphia.

This was really clear to me when I was viewing the recent auctions in Milwaukee as part of the ANA festivities. I disliked most of the branch mint coins. But I saw a decent number of No Motto Philadelphia half eagles and eagles in the AU50 to MS63 range that were choice, original and quite attractive. Had my anti-Philadelphia gold prejudice begun to fall by the wayside?

Now, before you drop your jaw on the table and think that I’ve committed numisheresy, let me expand on what I just stated. I’m certainly not abandoning my strong interest in branch mint coins and starting to focus on Philadelphia coins; that’s far from the case. What I am realizing, though, is that these Philly issues may be more interesting than I thought.

Here’s a few reasons why I like these coins:

The collector of average means can put together nice date runs from the 1840’s and the 1850’s. As an example, there are really no rare Philadelphia half eagles struck between 1839 and 1861. Nearly every date can be found in nice AU55 to AU58 for well under $2,000 (in some cases under $1,000). If you can’t afford a nice collection of Charlotte, Carson City, Dahlonega or New Orleans gold, you can still participate in the Philadelphia gold market.

The coins are well made and are found with original surfaces with greater frequency than their branch mint counterparts. For the collector who insists on originality, you will find many more attractive pieces than in the branch mint series.

This is a virtually uncollected area. Good news: you have very little competition. Bad news: when you go to sell your collection, no one may care.

If you like varieties, this is a very fertile area. Other than Harry Bass, almost no one has ever searched through these issues for major varieties and I’m willing to bet some very interesting coins are awaiting discovery.

No Motto Philadelphia half eagles and eagles are close to a century older than Indian head half eagles and eagles yet they offer the gold coin collector a lot more bang for the buck. $2,500 won’t buy you very much in the way of an interesting or rare Indian Head half eagle. But it will buy you a pretty scarce Liberty Head half eagle from the 1840’s.

Unlike some of the 20th century gold series, No Motto Philadelphia gold has never really been promoted or heavily marketed. Price levels have stayed flat for many years and there are some real sleepers in both the half eagle and eagle series awaiting discovery by the student of the series. As I stated above, I’m not planning on abandoning my focus on branch mint gold coins any time soon. But after some careful thinking, I’ve decided that maybe No Motto Philadelphia gold coins aren’t the Numismatic Pariah that I thought they were for many years.

The 1864 Quarter Eagle

One of my all-time favorite “sleeper” issues is the 1864 quarter eagle. Although not well-known outside of the specialist community, the 1864 is not only among the rarest Liberty Head quarter eagles of any date, it is also one of the rarer Liberty Head issues of any denomination struck for general circulation. Production of gold coinage at all mints was extremely limited during the final years of the Civil War with the exception of double eagles. The Philadelphia mint all but eliminated the quarter eagle denomination from 1863 through 1865. In 1863, only 30 Proofs were struck (none were issued for circulation) while in 1864, a total of 2,824 pieces were struck for circulation. In 1865, the mintage dropped back down to a scant 1,520 and it would remain at well under 10,000 per year until 1873.

You would expect the 1864 quarter eagle to be a rare coin with an original mintage of just 2,824 but it has a very low survival rate. I estimate that no more than 15 or so exist including one or two which have been harshly cleaned. It is interesting to note that the 1865, with a mintage which is nearly 50% lower, is at least twice as available.

The moment you begin to study some numbers about the 1864 quarter eagle, the more impressive this date becomes. As an example, PCGS has graded just eight examples in all grades, giving it the second lowest population of any business strike Liberty Head quarter eagle (trailing only the extremely rare 1864). NGC has graded even fewer with just six coins recorded.

Studying auction records for the last fifteen years provides even more impressive results. There have only been twelve coins sold at auction since 1993. Perhaps the most remarkable fact about this date is that the Bass collection, which contained multiple examples of most very rare quarter eagles, had just a single low grade example: a cleaned piece with the sharpness of Extremely Fine.

I thought it would be interesting to create a Condition Census for this date which is something I’m not certain has ever been done before. Here are the finest 1864 quarter eagles of which I am aware.

1. Private collection, via Spectrum Numismatics, ex: Spink America 10/96: 57 ($132,000), Byron Reed collection. Graded MS67 by NGC. I think this is one of the most amazing United States gold coins in existence. It is among the two or three best pre-1880 quarter eagles I have ever seen and it is among my favorite United States gold coins of any date or denomination.

2. Kansas collection, ex: Doug Winter, Nevada collection, Bowers and Merena 1/96: 1848 ($27,500; as NGC MS60). Graded MS61 by PCGS.

3. Kansas collection, ex: Doug Winter. Graded MS61 by NGC. It is in a different collection than #2. I actually handled both of these coins simultaneously and I am almost certain that this was the only time in numismatic history that a coin dealer had two Uncirculated 1864 quarter eagles in stock at one time(!)

4. PCGS has graded one piece AU58. It is possible that it may be either coin #2 or one of the coins listed below.

5. Heritage 9/02: 8005 ($20,700), ex: Heritage 1/01: 8099 (unsold). Graded AU58 by NGC.

In addition to these five coins, there is a single piece graded AU55 by PCGS, two coins graded AU50 by NGC and a single coin graded AU50 by PCGS. Altogether, there are a total of two pieces known in Uncirculated, another six or so in AU and probably another half dozen that grade EF.

Every 1864 quarter eagle I have seen is very well struck. Both the obverse and the reverse tend to display full detail in the centers. A few are just a bit weak on the eagle’s right (or facing) leg. The surfaces are quite scuffy and show a number of marks and hairlines. As one might expect from an issue with such a low mintage figure, the surfaces on most of the survivors are quite reflective. I have seen a few lower grade pieces which appeared to be more frosty than reflective but this was probably the result of long, intense wear. The natural coloration is a medium to deep orange-gold hue. Most every piece I have seen has been cleaned or dipped at one time, although the Byron Reed and PCGS MS61 coins listed above were both quite original. The eye appeal for this issue is definitely below average. Most 1864 quarter eagles show a good deal of wear, have been cleaned and do not possess pleasing color.

The current Trends value for this date is $21,000 in EF40 and $27,500 in AU50 with no prices listed for grades higher than this. In my opinion, these figures are way too low, especially for AU50. This is a remarkably rare coin that appears for sale at a rate of less than once per year and if it were a part of a more popular series than Liberty Head quarter eagles, it would trade for at least $40,000-50,000 in AU grades.

1841 Quarter Eagle Observations

I recently studied an 1841 quarter eagle graded PR53 by PCGS which was offered by Heritage in their February 2007 Long Beach auction. Numismatic tradition states that around 20 1841 quarter eagles were struck, all as Proofs. Numismatic tradition, in this case, is wrong.

The 1841 in the Heritage sale was unquestionably produced as a business strike. I’ve seen at least three other examples which I believe were produced for circulation as well.

Here are a few observations about the 1841 quarter eagle which I’d like to share:

1. Given the fact that around fifteen 1841 quarter eagles exist, let’s assume that the actual original mintage figure is more like 25-30 instead of the presumed 20 (I actually think it could be as high as 50). Then, let’s look at one other important fact: the mintage figure for Proof quarter eagles during the 1840’s is, with the exception of the 1841, less than ten coins per year. In some cases (i.e., 1847 and 1849) Proofs from this decade do not even exist. Why is the Proof mintage figure so high? Especially given the fact there is nothing “special” about this year; nothing, that is, which would cause so many Proofs to be struck.

2. Proof gold coins from the 1840’s look like Proofs, even when they are well-circulated. The 1841 in the Heritage sale did not look remotely like a Proof. It had absolutely no reflectiveness in the protected areas, the rims were not squared and the overall “look” of the coins did not suggest that it had been made for presentation purposes.

3. There are 1841 quarter eagles that exist in grades as low as Very Good to Fine. No other Proof gold coins from the 1840’s are known in very low grades so why should 1841 “Proofs” be found with this degree of circulation?

4. Despite having its own nickname (the “Little Princess”) the 1841 quarter eagle is a coin whose status as a Classic American Rarity seems to have diminished in recent years. My guess is that this is because specialists feel that since it is considered to be a “Proof-only” issue it isn’t necessarily an integral member of a business strike set of Liberty Head quarter eagles. It is curious that the 1854-S quarter eagle, an issue that was traditionally valued at lower levels than the 1841, is now regarded as a “better” coin and is bringing higher prices.

David Akers, who I regard to be the most knowledgeable expert of all-time on the subject of United States gold coinage has stated in his seminal work on quarter eagles that he believes that the 1841 quarter eagle was struck in two formats: as Proofs and as circulation strikes. However, in their 2006 book “Encyclopedia of United States Gold Coins,” Jeff Garrett and Ron Guth state that “only Proof quarter eagles were produced in 1841; circulated examples are said to exist, but these are actually mishandled Proofs that entered circulation.” I am clearly in the Akers camp in this debate and the 1841 quarter eagle I just viewed at Long Beach makes me feel more strongly than ever that business strike 1841 quarter eagles DO exist.