Why is San Francisco Gold Hot Right Now?

As recently as a few years ago, I was wondering why San Francisco gold coins weren’t as popular as I thought they should have been (a blog from one year ago, for example). But a combination of factors has quickly turned the market for certain San Francisco gold coins, and still other factors bode well for the future popularity of nearly all gold coins from this facility.

Why have San Francisco gold coins gone from unpopular to popular in a relatively short period of time? I think there are a few factors at play.

The first is obvious: rarity has really become en vogue in the coin market in the last few years, and it is hard to argue with the fact that most pre-1878 San Francisco gold coins are both absolute and condition rarities. You don’t have to suspend disbelief when, for example, you look up the number of coins graded at PCGS for 1860-S eagles and you see a whopping 23 graded (and assuming the typical number of resubmissions, this might equate to as few as 15 separate examples). Many new collectors have become attracted to coins which are rare not just because a piece of plastic says so.

The second is less obvious: I see younger collectors coming into the rare date gold market and these individuals tend to not want to buy the coins that their parents were attracted to. Which, in certain cases, means out with the southern branch mint coins and in with the western mints. If you think about it, Charlotte and Dahlonega coinage has reigned supreme in dated gold popularity circles for over 25 years. Maybe it’s just time the pendulum swung somewhere else, and San Francisco coins became popular as a result.

The third is simultaneously obvious and not obvious: the various shipwrecks full of San Francisco double eagles have focused considerable attention on large-sized coins from this mint, and the newly-discovered Saddle Ridge Hoard is likely to do this yet again. Does the typical collector who buys an 1857-S S.S. Central America double eagle in MS65 suddenly take an interest in 1857-S gold dollars or quarter eagles? Probably not, but you can certainly make the connection between the new interest in San Francisco gold with all the publicity these finds have generated in both the pre-internet and internet eras.

The Saddle Ridge Hoard motivated me to provide readers with a basic guide to San Francisco gold coins of all denominations, and to provide some collecting tips as well.

Before we look at each denomination and type, a couple of things need mentioning for beginning collectors. The San Francisco mint opened in 1854 and struck gold coins, with occasional interruptions, until 1930. Gold coins were struck in the following denominations: dollars, quarter eagles, three dollar gold pieces, half eagles, eagles, and double eagles.

Gold Dollars

Type One (1854 only)

The 1854-S dollar is a one-year type which saw a mintage of 14,632. It is common in circulated grades and available from time to time in the lower Mint State grades. It becomes rare in MS63 to MS64, and Gems are extremely rare. There are probably two or three known in MS65, and the best I have personally seen is the Pittman I: 863 coin, now graded MS65 by PCGS, which was recently sold to a California specialist; it brought $33,000 back in its 1997 auction appearance. I like this issue a lot and find it to be much undervalued, given its numismatic significance as a dual first-year-of-issue and one year type.

Type Two (1856)

The ill-fated Type Two gold dollar design was introduced in 1854, but it didn’t reach the San Francisco mint until 1856; a year in which the Philadelphia and Dahlonega mints were already striking dollars with the new Type Three design.

The 1856-S dollar is a common issue in circulated grades and a surprisingly high number exist from the original mintage of 24,600. It is moderately scarce in the lower Uncirculated grades, rare in properly graded MS62 to MS63, and very rare above this. I have never seen a Gem, and maybe four or five in MS64 which I thought were choice. The current auction record for this date is $52,875, set by an NGC MS64 with CAC approval which sold as Heritage 2/13: 3910.

There are two varieties known for this date: the normal mintmark, and the visually impressive S/S which is actually the most common of the pair.

The 1856-S is another numismatically significant issue which is a one-year type.

Type Three (1857-1860 and 1870)

Type Three dollars were made at the San Francisco mint for just five years, including a ten year gap between the fourth and the final issue. The first four issues all have reasonably similar mintages (between 10,000 and 13,000) and similar rarity profiles. All are usually seen in EF45 to AU55 grades and are very scarce in the lower Mint State grades. Most are exceedingly rare in MS63 and above, and non-existent in Gem. The 1870-S has a mintage of only 3,000 coins but it is more available than its earlier counterparts, especially in comparatively high grades.

The Type Three gold dollars from San Francisco are very affordable and a nice About Uncirculated set could be assembled for around $10,000. I think these coins are very undervalued, especially in properly graded MS61 and above.

Liberty Head Quarter Eagles (1854-1863, 1865-1873, 1875-1879)

The quarter eagles from this mint begin with the second rarest gold coin ever produced in San Francisco: the 1854-S. A mere 246 were struck, and there are an estimated dozen or so known with the single finest of these grading AU50 at PCGS. For many years, the 1854-S quarter eagle was a neglected Classic Rarity. Prices began to appreciate around ten years ago and have risen since, but I still feel that the 1854-S is an undervalued coin compared to other less rare 19th and 20th century issues.

The other San Francisco quarter eagles from the pre-Civil War years are less interesting (and far more available) than the 1854-S. The Civil War issues themselves are scarce with the low mintage (8,000 struck) 1862-S leading the way.

The 1865 through 1873 issues form one of the more undervalued groups in all of American numismatics. These coins are certainly not rare in circulated grades, but nice AU coins are typically available in the $1,500-2,500 range and these represent excellent value. Most of these dates are even available, from time to time, in the lower Uncirculated and are still comparably affordable.

This denomination was terminated by the San Francisco mint after 1879. Today, quarter eagles from this mint are not terribly popular with collectors. This could very easily change and a nice quality set, minus the rare 1854-S, is still within reach of the collector with an average budget. In fact, if I were a collector with a budget of around $2,500 per coin, I would seriously look at specializing in San Francisco quarter eagles.

Three Dollar Gold Pieces (1855-1857, 1860 and 1870)

Production of this odd denomination was a seeming afterthought at the San Francisco mint with only one issue, the 1856-S, having a significant original mintage figure. The four obtainable San Francisco three dollar gold pieces are all reasonably obtainable in EF and the lower AU grades, but all are scarce in properly graded AU55, rare in AU58, and very rare in Uncirculated.

The rarest collectible three dollar gold piece from this mint is the 1855-S with an original mintage of just 6,600. It is a numismatically significant issue due to its status as a first-year issue, but unlike its counterparts the 1854-O and 1854-D, it is not a one-year type and it is not as popular as the two southern coins. The 1855-S is exceedingly rare in Uncirculated and there is a single Proof known which brought $1,322,500 in Heritage’s 8/11 auction.

The 1870-S is a unique issue which is in the ANA Museum. It was purchased by Harry Bass from the Eliasberg sale in October 1982, and when it next becomes available, it will shatter all prices records for a gold coin from the San Francisco mint.

As far as collecting this series goes, it is short-lived and fairly easy to complete with just four issues (not including, of course, the unique 1870-S). For $30,000 or so, a nice AU set could be assembled. An Uncirculated set is possible, but it would be very challenging, especially if the collector is careful to avoid coins graded MS60 and MS61 which are debatable as to their “newness.”

Liberty Head Half Eagles

a. No Motto, 1854-1866

The thirteen coin San Francisco No Motto Liberty Head half eagle is a very challenging set. Only one or two coins (the 1856-S and 1857-S) are reasonably easy to find in collector grades and every date in this series is, at the very least, rare to extremely rare in the higher AU grades.

The kingpin of this set, and arguably the most valuable gold coin ever struck at this mint is the 1854-S. Only 268 were made, and just three are known today with one in the Smithsonian Institution and the others in private collections. The finest of the three is the Eliasberg coin, currently owned by a Texas collector, which could bring $4-5 million or more if offered for sale today.

The next rarest No Motto half eagle from this mint is the 1864-S of which an estimated 30 or so are known including one gem PCGS MS65+ example which is ex Norweb/Bass.

Many of the San Francisco No Motto half eagles are either unknown or unique in Uncirculated, and even the reasonably common 1856-S and 1857-S are very rare in Uncirculated with just three or four known for the former and seven to nine for the latter.

For many years, demand for the rare No Motto half eagles from San Francisco languished. This was due to a combination of factors including conspicuous overgrading of available coins by the services, the lack of published references, inflated values in published price guides, and more.

Around three or four years ago, No Motto half eagles from San Francisco became more popular. Interestingly, prices rose from the bottom up. I began noticing coins like 1858-S half eagles in VF25 and 1860-S half eagles in VF30 selling for very strong prices at auction, especially if they were in PCGS holders, choice and original for the grade, and eye appealing for the issues. Coin like 1858-S or 1860-S half eagles graded AU55 haven’t quite shown this level of appreciation, but this tends to be because most of the coins of this caliber are not CAC quality.

b. With Motto, 1866-1888, 1892-1906

The With Motto half eagles from San Francisco can basically be divided into two distinct groups: the rare (and mostly) interesting issues from 1866 to 1876 and the available (and mostly) uninteresting issues from 1877 to 1906.

The motto IN GOD WE TRUST was added to the reverse of the half eagle denomination in 1866 but no before dual varieties were produced at the San Francisco mint. 9,000 of the No Motto half eagles were struck compared to 34,000 of the With Motto coons and the latter are more available.

My favorite “sleeper” date from this era is the 1867-S which is rarer than its mintage of 29,000 would suggest. There are only 60-80 known in all grades, and I have never seen one above AU55. Despite this issue’s obvious scarcity, it is affordable and I recently sold a pleasing PCGS EF45 for just a hair over $3,000.

The 1876-S is the single rarest With Motto half eagle from this mint. Only 4,000 were produced and this date is not often seen above AU50. It is unique in Uncirculated with the Garrett coin having been graded MS64 by PCGS; nothing else known comes close.

Beginning in 1877, mintage figures increase for half eagles from San Francisco and by the end of the 1880’s, they sometimes exceed 1,000,000 coins. Many of the San Francisco half eagles from the 1880’s, 1890’s and early 1900’s exist in significant quantity in grades up to MS64 and the high mintage 1901-S is common even in Gem Uncirculated.

The “sleeper” issue for the late dates from San Francisco is the 1894-S. It has a much lower mintage than the other post-1878 dates. This date is not often seen above MS62 although an amazing NGC MS69 (ex Clapp/Eliasberg) is known; it recently sold for $176,250.

The With Motto half eagles from this mint are not as popular with collectors as the No Motto issues. This means that there are some great values in this sub-set, especially in the 1867-1876 date range. The later dates are currently of interest primarily to type collectors but it is certainly possible that they may receive more focus from date collectors in the future.

Indian Head Half Eagles (1908-1916)

The attractive incuse Indian Head design was created by Bela Lyon Pratt and it was used on both the quarter eagle and half eagle denomination. The San Francisco mint produced half eagles using this design from 1908 through 1916.

There are no great rarities in the nine-coin Indian Head half eagle set from San Francisco, unlike the eagles and double eagles from this era. All of the San Francisco issues of this type can be easily found in AU grades and even in the lower Mint State range at reasonably affordable prices. These issues tend to become scarcer (and expensive) in the MS63 to MS64 range and nearly all are very rare in MS65.

Indian Head half eagles tend to be collected in one of two ways: in affordable AU58 to MS62 grades or in challenging MS64 to MS66 grades. In the case of the former, the San Francisco specialist will have an easy time. In the case of the latter, he will be greatly challenged as dates like the 1913-S and 1915-S are extremely rare in Gem.

Liberty Head Eagles

a. No Motto, 1854-1866

Unlike its quarter eagle and half eagle counterparts, the Liberty Head eagle series contains no stoppers like the 1854-S from both denominations. That said, the No Motto eagles from San Francisco contain many very dates and one—the 1864-S—which has finally been recognized as a truly rare issue.

The 1854-S eagle is an interesting issue as it has a comparatively high mintage of 123,826 and it is rather easy to locate in EF and lower AU grades. The real “sleeper” among the early San Francisco eagles is the 1855-S with a mintage of just 9,000. This date is unknown in Uncirculated and very rare in AU. Other early dates from this mint which are rare to very rare include the 1859-S and the 1860-S.

I mentioned the 1864-S eagle in the opening paragraph of this section and I think some more comments are in order about this date. Of the 2,500 struck, there are likely no more than 25-30 known. For close to a decade, most of the available specimens were sold to one collector and now that his collection is being sold, price records for this date are being shattered. Heritage recently sold a PCGS EF45 for $117,500 and it is likely that this price will be eclipsed if a nicer example is made available in the coming months.

Despite the great fanfare that the 1864-S eagle has recently received, other rare issues in this series remain fairly priced. I am a big fan of the 1860-S but I like the Civil War issues as well. With the exception of the 1854-S, 1856-S and 1857-S, virtually all of these No Motto issues are nearly unobtainable above AU50, especially with original color and choice surfaces.

b. With Motto (1866-1889, 1892-1903, 1904-1907)

As with the half eagles from this mint, there are two distinct rarity profiles for San Francisco With Motto eagles. The coins struck from 1866 through 1878 tend to be very scarce to rare in all grades and virtually impossible to find in Uncirculated. while the post-1878 dates were struck in greater quantities and are much more available. In fact, the 1901-S has the highest mintage figure of any Liberty Head eagle and it is the single most available date of this type to locate in MS65 to MS66 grades.

The top “sleeper” dates in the With Motto series? In the earlier dates, I like the 1870-S and the 1876-S (although this second date is not really a secret any longer) and in the later dates, I like the 1894-S and 1895-S; two issues which are very scarce in Uncirculated.

It is feasible to collect the With Motto San Francisco eagles by date as there are no stoppers and many of the later issues can be found in comparatively high grades. While this type hasn’t really been much collected by date, perhaps the discovery of some interesting With Motto San Francisco eagles in the Saddle Ridge Hoard might spur interest.

Indian Head Eagles (1908-1916, 1920 and 1930)

Augustus St. Gaudens’ Indian Head design was introduced on the eagle denomination in 1907, but the first San Francisco coins were not struck until 1908. They were produced without interruption through 1916, then in 1920 and 1930.

The two rarest San Francisco issues of this type are the 1920-S and 1930-S. Both were heavily melted and didn’t see much in the way of circulation. The 1920-S is the rarer of the two and it is extremely rare in higher grades. The finest known is the famous PCGS MS67 from the Duckor collection that realized $1,725,000 in March 2007. The finest known 1930-S is also graded MS67 by PCGS and it realized $299,000 in a January 2009 auction.

A date which is not as well-known is the 1913-S. This is the true “condition rarity” among San Francisco eagles of this design. It is only moderately scarce in the lowest Uncirculated grades but it is rare in MS63, and Gems are extremely rare. The finest known is an NGC MS67 (formerly graded MS66 by PCGS) which brought $299,000 in 2009, and $287,500 in 2007.

A Gem set of San Francisco Indian Head eagles would be extremely difficult to complete and very expensive as well. A set in MS63 to MS64 (with a few Gems included) is more feasible, but certainly not an easy accomplishment.

Liberty Head Double Eagles

a. Type One, No Motto (1854-1866)

For a variety of reasons, Type One Liberty Head double eagles are the single most avidly collected series of gold coins from the San Francisco mint. These coins are big, they can be found in relatively high grades, they are affordable, and only two issues—the 1861-S Paquet and the 1866-S No Motto—are hard to locate.

The first year of issue, the 1854-S, is a curious coin. It is reasonably available in higher grades but nearly every known example has matte surfaces from exposure to seawater. High-grade examples with original surfaces are extremely rare.

Many dates of this type are plentiful in Uncirculated due to shipwrecks such as the S.S. Central America, S.S. Brother Jonathan, and the S.S. Republic. Nearly every serious collector has seen or may even own a nice Uncirculated 1857-S double eagle from the Central America. There were thousands of choice to gem examples of this date, and they spurred considerable interest in other San Francisco double eagles and shipwrecks coinage in particular.

The rarest Type One double eagle from this mint is the 1861-S Paquet Reverse. A total of 19,250 were struck but most were melted and an estimated 100 or so are known today, mostly in EF40 to AU50. This issue is unknown in Uncirculated, and most seen have very heavily abraded surfaces, poor luster and negative eye appeal.

Another interesting variety is the 1866-S No Motto. 120,000 were struck before orders were received to changeover to the new With Motto reverse. Many were melted but this variety has lately become very popular with collectors. A PCGS MS62+ from the Saddle Ridge Hoard is the new finest known and this is likely to be the single most highly valued and sought-after coin from this treasure.

Type One doubles from San Francisco are popularly collected by date. With the exception of the 1854-S, 1861-S Paquet, and 1866-S No Motto, all eleven coins can be obtained in nice AU grades for four figure prices. This set could not be completed in Uncirculated due to the current status of the Paquet and most high-budget collectors “settle” for an AU55 or AU58 example.

b. Type Two, With Motto (1866-1876)

The 11 coin set of Type Two Liberty Head double eagles is very popular as well and, unlike the Type One series mentioned above, it can be completed in Uncirculated grades. The two rarest San Francisco Type Two issues in higher grades are the 1866-S With Motto and the 1867-S. Both of these are seldom seen above MS60 to MS61 and are characterized by heavily abraded surfaces and soft strikes.

A few of the Type Two San Francisco issues are relatively plentiful in MS62 to MS63 and, as a result, they are popular with type collectors. These include the 1875-S and the 1876-S.

The “sleeper” date of this type is the 1873-S Closed 3 which is an issue almost never seen above MS60 to MS61.

c. Type Three, With Motto and value spelled TWENTY DOLLARS (1877-1885, 1887-1907)

Type Three San Francisco issues are typically divided into two groups: those from 1877 to 1881 which are condition rarities and the later issues which tend to be far more available, even in higher grades.

The 1877-S through 1881-S double eagles are all extremely scarce above MS62 and mostly unknown (at least until the discovery of some exceptional pieces in the Saddle Ridge hoard) in Gem Uncirculated. These dates tend to be extremely abraded hence the reason most are graded AU58 to MS61 by the services.

The Type Three double eagles from 1882 onwards are found a bit more often in MS63 and even MS64 grades but nearly all dates are rare to very rare in MS65.

This is an easily completable series which should see the most immediate benefit from the Saddle Ridge Hoard due to the fact that most of the coins in this 1,400+ piece group were of this type. Some dates, such as the 1889-S and 1890-S, are suddenly far more available in MS64 and MS65 than before as a result of discoveries from the hoard but these coins are likely to be quickly absorbed into the market.

St. Gaudens With Motto (1908-1911, 1913-1916, 1920, 1922, 1924-27, 1930)

The beloved St. Gaudens double eagle was produced in huge quantities at the San Francisco mint. Dates range from very common to very rare.

The San Francisco double eagles which are hard to find are rare as a result of heavy meltings. As an example, there were 558,000 double eagles made at this mint in 1920 but the survival rate is low and today the 1920-S is represented by fewer than 300 coins. In Gem, this date is extremely rare with probably no more than four or five known.

The single rarest St. Gaudens double eagle from this mint is the 1930-S. It has the lowest mintage of any date from San Francisco except for the 1908-S (which was saved as a first year of issue) and around 125-150 are known, mostly in the MS62 to MS64 range.

Collectors don’t typically specialize in San Francisco Saints as they tend to focus on either the whole series if they have big ambitions, or they dabble in the series with occasional forays into the higher grade type coin realm and/or slightly better dates.

So there you have it. In around 4,000 words an encapsulation of the various types and designs of San Francisco gold coinage, with pieces ranging from super common to exceedingly rare (and even in the case of the 1870-S $3.00, unique).

I personally feel that the future for better quality gold coins from this mint is rosy. I’ve seen a strong influx of new collectors into this area of the market, and prices have risen accordingly. But there are many undervalued, sleeper issues that are as good a value as anything in the U.S. gold coin market.

Do you buy rare gold coins?

Do you have coins to sell?

Would you like to have the world’s leading expert with you assembling a set of coins?

Contact me, Doug Winter, directly at (214) 675-9897 or by email at dwn@ont.com.

The Ten Most Marketable New Orleans Gold Coins

I’m basically an old school coin dealer. I market coins all the time but am not really a “marketer” in the numismatic sense of the word—although I deal with firms which are marketers. These companies are always looking for angles and if there is one thing I am pretty cognizant of its coin angles.

So as a coin dealer who handles a lot of New Orleans gold coins, I thought it would be fun to put together a list of the ten most marketable gold issues from this mint.

Notice, I didn’t say the ten rarest New Orleans gold coins. Nor did I say the ten most expensive. This list is about coins which are easy to sell and fun to collect. These are coins with multiple levels of demand, and the sort of coins which are easily understood by beginning and advanced collectors alike. These are coins which the purist might call “overvalued” but the marketing-savvy dealer knows are great sellers in nearly any grade.

Without further ado, the list.

1. 1849-O Gold Dollar

This is a first-year of issue and it is interesting for a variety of reasons. The Type One gold dollars from New Orleans were made for just five years, and only one date (the 1850-O) is remotely scarce. It is a great set to collect and it is one which the collector of average means can complete in comparatively high grades (MS62 and above).

The 1849-O dollar is very easy to locate in circulated grades, and a presentable AU example can be had for less than $1,000. In the lower MS grades, the 1849-O can be found with some degree of frequency, and even MS63 examples are not terribly rare or expensive with average quality specimens currently selling in the $3,250-4,250 range. In MS64, this date becomes scarce and the collector can expect to pay at least $5,000 for a decent example. In MS65, this is a very rare coin with just three or four known. The last to appear at auction was a PCGS example that brought a very strong $29,900 in Heritage’s 10/11 sale.

It would be hard to accumulate a substantial number of 1849-O dollars in grades above MS62 but it is likely that a decent position of AU58 to MS62 coins could be assembled.

2. 1855-O Gold Dollar

The 1855-O gold dollar has been a favorite of mine for many years. It has two great things going for it: it is a distinct one-year type, and it is the only New Orleans gold dollar struck which uses the short-lived, popular Type Two design (made only from 1854 to 1856). A total of 55,000 were made, and it is not really a rare coin but it is extremely popular and become g harder to find every year.

The 1855-O dollar is most readily available in EF and AU grades. It becomes scarce in the AU55 to AU58 range, although it is available at most major shows or auctions. In Uncirculated, it has become a very hard coin to find with most in the MS60 to MS62 range. It is very rare in properly graded MS63, and it is essentially unknown above this. The popularity of this issue is apparent in its surge in price over the five+ years. In 2008, I can remember selling average quality AU58’s for around $3,000 and choice examples for closer to $4,000. Today, an average quality AU58 will cost more like $4,250-4,500 and a choice coin with CAC approval might bring as much as $5,500-6,000.

It would be challenging to accumulate a quantity of 1855-O gold dollars although a group ranging in grade from EF45 to AU55 could likely be assembled. The number of 1855-O gold dollars in Mint State that have been graded appears plentiful according to PCGS and NGC - statistics but this is misleading due to resubmissions and coins placed in long-term collections. I have only handled four Uncirculated 1855-O gold dollars in the last two years (two in MS61 and one each in MS62 and MS63), and even if I wasn’t the picky buyer I am, I doubt whether more than three to five could be found in a year’s time.

3. 1839-O Quarter Eagle

This is another of my favorite New Orleans gold coins. It is extremely popular and there are a number of great factors which make it so: it is a one-year type, it is a first year of issue, and it is the only New Orleans gold coin with the mintmark placed on the obverse. And one more thing…can you say “first gold coin of any denomination struck at the New Orleans mint?”

The comments that I made above for the 1855-O gold dollar apply (mostly) to the 1839-O quarter eagle. The mintage for this issue is much lower (17,781) but the survival rate is reasonably high with VF and EF coins available from time to time. In AU, the 1839-O is moderately scarce and it is rare in Uncirculated with most in the MS60 to MS61 range. In MS62 and above, this issue is quite rare.

The price performance for this issue rivals or exceeds that for the 1855-O gold dollar. In 2008, I would routinely sell an AU55 in the $4,000-4,500 range. Today, a nice CAC quality AU55 will bring close to $6,000.

This is another issue which might be hard to stockpile for a promotion unless a wide range of grades was acceptable. I’ve seen the availability of this issue really dry up in the last two or three years, and I’ve gone from almost always having a nice 1839-O in stock to now having one every three or four months.

4. 1845-O Quarter Eagle

This is hands-down the rarest coin on this list and it is an unlikely candidate for promotion, but I’m going to include it anyway. What makes this coin so interesting is its low mintage (only 4,000 were struck) and its relative affordability. (More on this in a second…)

There may be as few as 100-125 known in all grades which, obviously, makes this a hard issue to corner the market on. That said, it is a date that I handle on a reasonably regular basis. As a marketer, I’d think about this as a White Whale issue which is the key to the Liberty Head quarter eagle set; a short-lived and very completable run of 13-14 coins which should be more actively collected by date.

The 1845-O has increased in value over the past few years at the same pace as many of the other popular issues mentioned in this article. A presentable EF example can still be had in the $2,500-3,000 which I feel is one of the great values in all of New Orleans gold. AU examples, which are available more often due to gradeflation, can cost as much as $12,500-15,000 for a choice 58 coin and are hardly what I would call promotable.

If I were marketing New Orleans gold, I would put away every single 1845-O quarter eagle I could find, promote the hell out of the more common quarter eagles, and then sell these coins as “set finishers.” As I mentioned above, this is a set with potential and one with a number of great values at current levels.

5. 1854-O Three Dollar Gold

This is an issue which is absolutely ideal for marketing purposes. It has a great story (it is a one year type and it is the only three dollar gold piece ever made at the New Orleans mint), it is reasonably plentiful (especially in comparison to other issues mentioned in this article), and it is actually fairly affordable with decent quality examples still available in the $3,000-6,000 range.

The 1854-O three dollar has a reasonably low mintage of 24,000. As with its counterpart the 1854-D, this issue is more available than one might assume, and there are hundreds known in the EF and lower AU grades. The 1854-O becomes scarce in properly graded AU55 to AU58, and it is very rare in Uncirculated with fewer than ten known.

Three dollar gold pieces have been out of favor for close to a decade, and this has tended to drag down prices on the 1854-O. Another factor is grading: many examples are conspicuously overgraded and few are choice and original. But I think at current price levels, nice 1854-O three dollar gold piece are a bargain and they could increase nicely if properly marketed.

Could a savvy marketer stash away a decent amount of these? Probably so and certainly with less effort than, say, an 1845-O quarter eagle. Put me down as someone who would love to jump-start the market for this interesting issue!

6. 1840-O Half Eagle

In the last few years this issue’s counterparts, the 1839-C and 1839-D half eagles, have seen huge price increases. The 1840-O is also a first-year-of-issue coin but, unlike the 1839-C and 1839-D, it isn’t a one year type. And, most importantly, unlike the other two southern half eagles, it is still highly undervalued and much overlooked.

The obvious problem with marketing 1840-O half eagles is availability, especially in high grades. The 1840-O is a truly rare coin but it is not offered for sale with a great degree of frequency. A quick perusal of auction records over the last decade shows an average of four or five 1840-O half eagles per year available for sale. I have handled seven in the last two to three years. So unless a marketer got lucky, it would be very frustrating to try and include this date as a key item.

And yet…this is such a perfect coin to promote. It’s the first half eagle from this mint, it is reasonably affordable (a decent AU can be had for $2,000-4,000) and it is scarcer than the higher priced 1840-C and 1840-D half eagles.

Like I said, for the promoter, the 1840-O half eagle is probably a pipe dream. But that doesn’t keep me from putting it on my list of the ten most promotable gold issues from this mint.

7. With Motto Half Eagles (1893-O and 1894-O)

The No Motto half eagles design was made at the New Orleans mint through 1857 and it was then discontinued. It was not resumed until 1892 and then for just three years. The 1892-O is a very scarce issue and way too hard to promote, but the 1893-O and 1894-O are more available.

The 1893-O is the more common of these two dates with an original mintage of 110,000. It is fairly easy to find in circulated grades and available from time to time in MS60 to MS62. Nice circulated 1893-O half eagles can still be found for around $1,000 while a very presentable Uncirculated coin is available for around $2,000.

The 1894-O is more of a challenge. Only 16,600 were made and this issue is hard to find in Uncirculated although it is available in decent quantities in AU grades.

These issues are instantly promotable as short-lived representatives of the With Motto type. Pairing the 1893-O and 1894-O in AU and lower Uncirculated grades is certainly feasible. An ambitious project would be to add an 1892-O (generally priced in the $4,000-6,000+ range) and form a complete three-coin With Motto set.

8. 1909-O Half Eagle

This is probably the most obvious coin to put on this list, and it is an issue which has been subject to a number of promotions in the past. The 1909-O is a distinct one-year type coin which is immediately recognizable as the only Indian Head half eagle from New Orleans. In addition to being a one-year type, it is also a last year issue (how cool would a set of first year/last year half eagles be with an example of an 1840-O and a 1909-O?).

The 1909-O half eagle is one of the ultimate condition rarities. A total of 34,200 were made and from the pattern of grade distribution which exists for this date, it is plain to see that it did see a good deal of local circulation. Most 1909-O half eagles are seen in EF45 to AU55 grades and properly graded AU58’s are scarce. In Uncirculated, the 1909-O is very scarce with most seen in the MS60 to MS61 range. In MS62 and above, this issue is very rare. The finest known is a PCGS MS66 which I recently purchased in the 2014 Heritage FUN auction for $646,250 and immediately sold to a collector who is assembling the finest all-time set of New Orleans gold.

The great story and comparable availability of this coin make it perfect to promote. It is not an inexpensive coin with average quality examples typically selling in the $8,000-15,000 range. But it is possible to accumulate a decent position (although it is likely that any new promotion would run up against existing promotions creating a battle for the supply).

9. With Motto Liberty Head Eagles in Mint State

The With Motto design eagle was first struck in New Orleans in 1879. This issue is very rare and the next issues (1880-0, 1881-O, 1882-O and 1883-O) range from scarce to very rare. After a brief hiatus, production resumed in 1888 and during the next two decades, a total of 11 different New Orleans eagles were struck. The mintage figures for these dates weren’t that high but many issues were shipped overseas and now exist in reasonable quantities.

For a marketer, there are some interesting options with these later date New Orleans eagles. On a single coin basis, they are affordable (lower quality Mint State coins can be had for less than $1,500 each) and they have a relatively small premium when compared to more common “generics” of this era. I have personally assembled a number of 11 coin sets of New Orleans Liberty Head eagles from 1888 through 1906 in MS61 and MS62 grade and I can think of few other affordable collections of gold coins which can be completed this easily yet offer as much satisfaction for the owner.

Three issues (1901-O, 1903-O and 1904-O) can even be found in MS63 with comparable frequency and they are not only reasonably affordable (typically in the $2,500-3,000) range, they have dropped in price over the last five years and have become more available due to lack of demand. At one point in time, a coin such as a 1901-O eagle in MS63 sold for around four times the price of a common date 1901-S in this grade. Today, this ratio is more like three to one and I think the 1901-O in MS63 is great value as a high grade, affordable With Motto eagle from this mint.

10. Type One Double Eagles (1850-O, 1851-O, and 1852-O)

Few gold coins from New Orleans have shown as much price appreciation as Type One double eagles. This means that most of the issues from this dozen coin group are priced well into five figures; some, like the 1854-O and 1856-O are six figure coins. This leaves the first three issues, the 1850-O, 1851-O and 1852-O, as the most affordable and the only ones with some potential to be marketed.

To me, the neatest of the three issues is the 1850-O and for obvious reasons: it is the very first double eagle made at this mint. Of the three, it is the scarcest and it is quite rare in AU55 and above. I would think that it would be possible to accumulate a small position of these in EF grades but it is not likely to find more than a few in the lower AU range. The 1851-O and 1852-O are seen from time to time in EF and a nice example is now priced in the $4,000-6,000+ range.

In my experience, Type One double eagles from New Orleans are extremely popular and very easy to sell. They are the largest coins from this mint and among the most “valuable.” This makes them in demand with both new collectors and savvy, long-term specialists. As recently as five years ago, you could find these coins in enough quantity to justify a promotion; today, this is probably not as likely but it is certainly an interesting proposition.

For coin marketers, there are few coins with as many “slam dunks” as the gold issues from New Orleans. These are coins with great stories: one year types, low mintage pieces, coins with Civil War connections, etc. Some of these coins are no doubt being accumulated even as you read this for possible future promotions. Others are being avidly collected by an ever-growing cadre of specialists.

If you have any questions about New Orleans gold coins, please feel free to contact me via email at dwn@ont.com.

Do you buy rare gold coins?

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Would you like to have the world’s leading expert with you assembling a set of coins?

Contact me, Doug Winter, directly at (214) 675-9897 or by email at dwn@ont.com.

The 1854-S Double Eagle: A Study

The 1854-S double eagle is one of the most interesting Liberty Head double eagles. It is widely acclaimed by collectors due to its status as the first double eagle from this mint, and the rarity of the quarter eagle and half eagle from this year makes it a famous coin as well. That said, it is an issue that is not well understood and one whose rarity profile has been made confusing by inconsistencies from NGC and PCGS.

The 1854-S has a high original mintage figure of 141,468 and one would expect it to be available in higher grades. This is not necessarily the case, despite what appears to be a decent number in Uncirculated as per the grading services’ current figures.

As of August 2013, NGC had graded a total of 48 in Uncirculated, including 23 in MS63 and another 10 in MS64. PCGS had graded a total of 55 in Uncirculated, including 17 in MS63 and another three in MS64. With a total of 103 graded in Uncirculated, we can conclude that the 1854-S is only a marginally scarce coin in higher grades and it seems more available in comparably high grades (i.e., MS63 and higher) than such contemporary non-shipwreck dates from this mint as the 1855-S, 1858-S and 1859-S.

However, this is not the case.

What the NGC and PCGS populations fail to address is the fact that virtually every Uncirculated 1854-S double eagle is a shipwreck coin. And what’s worse is that these are designated on the holder as being from a shipwreck - and both services seem wildly inconsistent with how this date is graded and why some blatantly “environmental damage” coins are in “normal” holders while others are not.

Essentially every high-grade 1854-S double eagle is from the S.S. Yankee Blade shipwreck which was found in 1977. This wreck contained approximately 200-300 coins. These were Uncirculated coins which must have been spectacular before the boat carrying them sank; the survivors tend to show very few marks but they have matte-like surfaces from exposure to seawater. Some examples have less etching in the surfaces than others; some are clearly salvaged and have oxidation as well as scratches from the process of removing crud from the surfaces.

What few collectors realize is that, as with the 1854-S eagle, the survival rate of high grade 1854-S double eagles with original surfaces is exceptionally low. I have seen exactly three with original surfaces which I grade Choice AU to Mint State by today’s standards. In comparison, I have probably owned 20 examples graded MS62 to MS64 but with “unoriginal” surfaces.

The choicest 1854-S double eagles I have seen with original surfaces include a PCGS 61 from the Bass collection (ex Bass III: 781 at $10,450; I later sold this coin to a collector on the East Coast), an NGC MS61 which I bought out of a Heritage sale around ten years ago (and can’t currently remember the exact pedigree), and a PCGS AU58 which I purchased from a New York dealer around four years ago and which was very choice for the grade. I believe that a few others are known but I can stately with reasonably strong conviction that none exist in grades higher than MS61.

There are certain diagnostics seen on the Yankee Blade coin which are not seen on the coins with original surfaces. Some of these are as follows:

1. The shipwreck coins always have an obverse die crack which runs up from a denticle at 6:00 on the obverse through the left side of the 5 in the date, terminating at the truncation.
2. The reverse has a total of three cracks. The first runs into the field (at the viewer’s left) from the base of the N in UNITED. The second crack begins between the denticles left of the first T in TWENTY up to the left tip of the letter. The third begins at the tip of the T in TWENTY and travels left into the field ending below the N in UNITED. On the late die state, these three cracks meet below the base of the right foot of the N in UNITED.
3. The shipwreck coins always show a broken crossbar in the A in STATES.

The original surface coins do not show these die cracks. They do have a similar mintmark, and all seem to have the broken crossbar. Interestingly, there are a number of small raised die dots on the obverse with two to the right of the 4 in the date, and three at the throat. There is also a small raised die dot on the neck.

I don’t believe that the original surface coins are from a different die pair than the seawater coins; just a different die state.

Breen lists four different die varieties for the 1854-S, but one of these is a Proof-only die (the unique coin in the Mint Collection) while another, described as having “extra thin numerals and letters,” is just a late state with lapped dies. He states that 8 pairs of dies were created and that the mintmark “usually…touches the tail; though on one it is free.” (He then states that on one it is “embedded.”). I have only seen one reverse and it always has a broken A in STATES and a mintmark which firmly touches the tail at its top.

There is, of course, another significant difference on the original surface coins and that is a different texture from a lack of exposure to seawater and sand.

Original surface 1854-S double eagles typically show a deep green-gold or orange-gold hue. The luster doesn’t tend to be as frosty as that seen on 1855-S or 1856-S double eagles. The overall look tends to be subdued with multiple abrasions from hard circulation.

There are two distinct looks for seawater 1854-S double eagles. The first is blatantly matte-like with heavy environmental damage; some of these are slabbed as “normal” coins by NGC and PCGS while others are “details only” or “genuine.” The more familiar look on the Yankee Blade coins is bright and slightly matte-like with rich yellow-gold color and a virtual absence of circulation marks on the surfaces.

The normal surface 1854-S double eagles should sell for a significant premium in all grades due to the scarcity. This date is seen from time to time in the EF40 to AU50 range, but it becomes very scarce in AU53 to AU55, and it is very rare in properly graded AU58. As I mentioned above, I have seen only three examples with original surfaces in Uncirculated and doubt if more than five or six exist.

For more information on Type One double eagles, I invite you to look through the blog and articles archive(s) on raregoldcoins.com or email me at dwn@ont.com with specific questions.

United States Gold Coins with Multiple Levels of Demand

A trend that I have noted in recent years is that a subset of gold issues which have what I refer to as Multiple Levels of Demand (MLD). These are coins with more than one potential set of buyers competing for them. As an example, a coin such as an 1838-D half eagle is sought not only by Dahlonega specialists but by Classic Head half eagle collectors, first-year-of-issue collectors, one-year type collectors and collectors who just appreciate cool coins.

An 1844-D half eagle, in contrast, has a smaller pool of potential buyers which includes Dahlonega specialists and type collectors looking for a single nice half eagle for their set. MLD coins have increased significantly in value in the last five to ten years and this makes sense. Coin values are largely the result of a basic supply and demand relationship: the greater the demand, the more prices increase.

In this blog, let’s take a look at coins which are already stellar MLD’s and also at issues which might be the next wave of multiple level of demand coins.

GOLD DOLLARS:

If I had to choose the one single issue in this denomination which had the highest overall level of demand among collectors it would be hands-down the 1861-D. This scarce, low mintage issue is popular for a host of reasons: it is a coin with verifiable provenance from the Confederacy, it is the final issue from this mint (along with the similarly-dated half eagle) and the rarest gold dollar from any source. These facts (and others) have made it extremely popular and prices have soared as a result.

Other gold dollars which have a high degree of MLD include the Type Two issues: 1855-C, 1855-O, 1855-D and 1856-S. These four coins range from rare (1855-D) to relatively common (1855-O and 1856-S) but they have interesting stories attached to them and, in most cases, they are relatively affordable in circulated grades.

What are the gold dollars which are most likely to become MLD issues in the future? I would suggest that the 1849-C, 1849-D and 1849-O will due to their status as first-year-of-issue from their respective branch mints (side thought: this would make a great three coin set in AU for the collector of average means). I could see the 1870-S becoming an MLD due to it being the final year of issue from the SF mint for gold dollars, its low mintage and the sexiness of this date in general. The 1875, due to its mintage figure of just 400 business strikes, is another possibility as well.

QUARTER EAGLES:

As with many of the multiple level of demand coins, the list is dominated by Classic Head issues. The 1838-C and 1839-C have proven popular with collectors in the last decade as has the 1839-D. Of the three, the 1839-C tends to have the least MLD but this is partly due to the fact that many of the EF and AU examples which appear for sale are grossly overgraded and have problems. The 1838-C and 1839-D are both first year of issue with comparably low mintages and the latter is a one-year type.

A coin which is probably better classified as a Classic Rarity but which is also an MLD issue is the 1854-S. It has a tiny original mintage (246 pieces), very low survival rate and it is the first quarter eagle produced at the San Francisco mint. But this is already a solid six-figure coin and, thus, is not a realistic purchase for most collectors.

Other quarter eagles I regard as having a high MLD include the 1796 No Stars and the 1808; both are popular one-year types. The 1848 CAL is another obvious choice due to its status as a Gold Rush issue and as the first American commemorative issue.

What are the quarter eagles most likely to become MLD issues in the future?  I’d look at the four 1840 issues (P, C, D and O) as they would make a fun set to assemble, the 1845-O due to its status as the rarest issue of this denomination from New Orleans, and the rare Civil War issues from 1864 and 1865.

THREE DOLLAR GOLD PIECES:

I think there are really only two dates in this series right now that have MLD status: the 1854-O and the 1854-D and one of these (the 1854-O) has had a lot of its appeal ruined by blatant overgrading by the services.

The 1854-D is the clear MLD favorite right now. It is scarce in all grades but available enough to be a target for Dahlonega specialists, Three Dollar collectors, low mintage fans, and people who just like great coins with a real story to tell.

If I had to choose the dates most likely to have MLD status in the future, they would be the 1855-S (due to its status as the first Three Dollar from the San Francisco mint), the Civil War issues from 1861-1865 (all are collectible and could be turned into interesting subsets) and maybe the 1873 Closed 3 (very low mintage).

HALF EAGLES:

There are more issues of this denomination with high multiple levels of demand than nearly any other and this includes coins from the 18th, 19th and 20th century.

The first issue I’d place in the MLD category would be the 1795 Small Eagle. It’s available enough to be realistically obtainable by advanced collectors and it has a high “cool factor” as a first-year-of-issue with a great design.

Nearly any sub-$10,000 early half eagle has a high MLD factor, especially if the coin is choice and original. The reasons are obvious: old, gold, semi-affordable and very appealing from an aesthetic standpoint.

The 1838-C and 1838-D have oodles of demand due to their first-year and one-year type status. The 1839-C and 1839-D do as well but to a slightly lesser extent; both have, however, shown nice price increases in collector grades over the last decade.

The 1861-D certainly receives consideration as an issue with lots and lots of MLD and its counterpart the 1861-C has suddenly become quite popular as well. Both of these issues have demand that far exceeds the Southern branch mint box which other C and D half eagles are trapped within.

The 1870-CC, desirable as the first half eagle from this mint, is a coin with a high MLD. The same is true for the 1909-O as it is the only half eagle from New Orleans with the Indian Head design and it is a final year of issue. The 1929 Indian Head half eagle has become very popular in recent years due to its being the very last half eagle made.

Which half eagles have a good shot as showing high MLD in the next few years?  A few of my choices might surprise you. Due to its status as the only semi-affordable date of its type, the 1813 could have MLD. The same goes with the 1834 Crosslet 4 which is the key issue in the Classic Head half eagles; a set which is beginning to see appreciation by date collectors. The 1839-P is a neat, affordable one-year type coin which has lagged the market as has the first-year-of-issue 1840-O. The rare to very rare Civil War era half eagles from Philadelphia and San Francisco have new-found, widespread appeal and increased price levels to match.

EAGLES:

The first-year-of-issue 1795 has to be considered one of the most desirable eagles of any date or design. As with the similarly dated half eagle, it isn’t a really rare coin but it is an issue which “checks the boxes” for a host of collectors and has strong MLD as such. To a lesser extent, this is true with the 1799 as it is an 18th century-dated “big coin” which is still within reach of many advanced collector’s budgets.

The 1838 eagle has become exceptionally popular in recent years and it has soared in price. It is a first-year-of-issue with a low mintage and a very cool design which appeals to many different collectors. To an extent, the 1839 Head of 1838 has a degree of MLD but not as much as its earlier counterpart.

Many of the rare Civil War Liberty Head eagles have a high degree of appeal might they are probably not quite yet what I would consider MLD coins. An issue that clearly does have multiple levels of demand, though, is the 1870-CC which is desirable for a number of reasons. There are a few Indian Head eagles which have a strong MLD profile. The first is the 1907 Wire Edge, a coin of unparalleled beauty which has a great back story and which is rare but not impossibly so. The second is the rare and high valued 1933 which is the only American gold coin of this date which is legal to own.

I can think of numerous eagles which could have expanded levels of demand in the coming years. The key New Orleans issues, 1841-O, 1859-O, 1879-O and 1883-O, are beginning to show demand which exceeds the specialist community. The ultra-low mintage Philadelphia issues from 1873, 1876 and 1877 are becoming very popular as is the 1879-CC which has the lowest mintage of any Carson City gold coin.

DOUBLE EAGLES:

You can make a case that many Type One Liberty Head double eagles have some degree of MLD as they are pursued by general collectors, specialists and “double play” investors. If I had to select one specific Type One issue as having the most widespread appeal, my experience would suggest the 1861-S Paquet Reverse. The Philadelphia issues from the Civil War years (1861-1865) are quite popular as well.

The rarest Type Two double eagle is the 1870-CC but this doesn’t have the widespread appeal that the similarly dated half eagle and eagle do because it is very expensive and tends to be found with poor eye appeal.

You can also make a good case that virtually all Carson City doubles eagles, from both the Type Two and Type Three series, have multiple levels of demand. This is especially true with the more common dates in collector grades.

An obvious MLD issue is the 1907 High Relief. Yes, it’s probably overvalued but there are few American gold coins which have a higher level of demand from a more varied group of potential buyers.

Which double eagles have the potential to be added to this list in the coming years? Two which come to mind (and some observers might state that they already have MLD) are the 1861-O and 1879-O. The same probably holds true for the low mintage Philadelphia issues from 1881-1887 and 1891.

As coins become more expensive and harder to locate, buyers want an item which is special and which justifies what they are spending money on. Coins which have a nice design, a fascinating back-story, a very low mintage figure or some association with an historic event are the exact sort of piece(s) which people are now seeking and this is likely to continue in the coming years.

Do you want to purchase coins with multiple levels of demand? I specialize in such coins. Please contact me via email at dwn@ont.com and we can discuss how you can become a collector of these coins.

Major Varieties of Type One Liberty Head Double Eagles

     The true test of popularity for a series is when collectors begin to focus on varieties within the series rather than just dates. Some series, like Capped Bust half dollars, are actually more avidly collected by variety than they are by date. As a rule, gold coins are collected by date, not variety. This is due to the fact of the high entry cost per coin for most gold issues and the fact that many series of gold coins do not have interesting varieties.      Even though Type One Liberty Head double eagles are an expensive type with a number of very rare and/or expensive individual issues, there are a decent number of individuals who have begun to either specialize in varieties or who have decided to add certain varieties to their date collections.

     What are the major varieties of Type One Liberty Head double eagle? How rare are they and how significant are they? In this article, I'm going to focus on the varieties that I think should be included in any collection of Type Ones and offer my insights into them.

     1852/1852:  The 1852 is among the most common issues in the entire Type One series with a mintage of over 2 million coins. There are a few minor varieties and one obvious one: the Repunched Date. On this variety, the date was first punched too high and all four of the digits are doubled at the top. What makes this variety fairly easy to recognize even with the naked eye is the fact that this doubling has made the date quite heavy.

    I would say that around one out of every 25-50 1852 double eagles that I see is the 1852/1852. It is obvious enough that it can be seen on comparatively low grade coins. I regard it as being very collectible and it seems to have a current premium of around 25-50% above a common date in circulated grades; in Uncirculated it is very rare.

     Most of the 1852/1852 double eagles that I have seen grade in the EF45-AU53 range. This variety is very scarce in properly graded AU55 and rare in AU58. It is very rare in Uncirculated with probably fewer than ten known; the best I have seen are a pair of MS61's.

     Both NGC and PCGS recognize this variety. The population statistics at both services are very low due to it having been recognized for a comparatively brief amount of time.

     Catalog Numbers:  Breen 7152, FS-301

     Collectability: **** (four stars out of 5)

     1853/2:  There are numerous interesting varieties seen on the 1853 double eagle. This include varieties with a repunched 1, a repunched 3 and a blundered date with traces of an erroneous 3 between the 53 . But the variety that is the best known and which is the most sought-after by collectors is the 1853/2 overdate.

     In my opinion, this is a controversial variety. Both PCGS and NGC recognize it but designate it as an 1853/'2' which shows that they are not totally convinxced it is an true overdate. In my opinion, its status remains debatable. The two lines in the lower loop of the 3, ostensibly from an effaced 2, don't convincingly match the former digit. Also, the major diagnostic of this variety, a dot below the R in LIBERTY, is sometimes seen on normal date 1853 double eagles with absolutely no trace of the supposed overdate.

     Whatever the true status of this variety is, it has been collected along with the regular issues since the 1970's and high grade examples have commanded strong prices since the late 1980's/early 1990's. The current  price record for this variety is $48,875 for a PCGS MS61 that was sold by Heritage in their 2005 ANA auction.

     The 1853/2 double eagle is probably overvalued in comparison to the other varieties on this list. It is interesting to note that its price levels did not drop after both NGC and PCGS changed its designation to 1853/'2' a few years ago. My thought at the time was that it would hurt this variety's creditability given the fact that the services were basically implying that they doubted its veracity.

     Catalog Numbers:  Breen 7162, FS-301 (previously FS-008)

     Collectability:  ***1/2* (three and a half stars out of five)

     1854/184 Repunched Small Date:  The 1854 double eagle is seen with a Small Date and a Large Date (for more information on this variety, see below). The Small Date is the more common of the two but there is an interesting repunched date variety that is beginning to gain traction with Type One double eagle collectors. On this variety, the tops of the 1 and the 54 are noticeably repunched at their tops while the 8 is not. On early die state examples of this variety, the repunching can be seen with the naked eye.

     When compared with the 1852 Repunched Date, the 1854/154 seems to be the scarcer of the two, especially in higher grades. It is seen most often in the EF40-AU50 range and it is rare in AU55 and above. I have seen just a few Uncirculated examples of which the best was a single NGC MS61. Others probably exist in Uncirculated but these have not yet been designated by NGC. PCGS does not recognize this variety (yet) while NGC does.

     This is a good variety for the sharp-eyed collector to try and cherrypick. It is hard to figure out accurate values for lower grade coins but examples in AU50 and above already command premiums over normal Small Dates and I would expect this premium to increase as this variety becomes better known.

     Catalog Numbers:  Breen 7167,  FS VP-001

     Collectability:  *** (three stars out of five)

     1854 Large Date:  No variety of Type One double eagle has increasded in popularity or price more in the last decade than the 1854 Large Date. After being more or less unknown for decades, this variety went on collector's radar screens in the 1980's and since the early 1990's it has at least doubled--if not tripled--in value.

     The Large Date used a silver dollar logotype and it is appreciably bigger than the more often-seen Small Date. My guess is that it is at least six to eight times more scarce than the Large date. As recently as five years ago, I was still able to find undesignated Large Date coins in third-party holders (or raw) but at this point, it has become extremely hard (and lucrative!) to cherrypick examples. This variety is seen most often in EF45 to AU53 grades. It is very scarce in AU55 and rare in properly graded AU58. Interestingly, the few nice AU's I have seen have a "Euro" appearance and likely were found overseas. The finest known is an NGC MS64 that was last sold as B+M 9/08: 831 where it brought a record $96,600.

     The 1854 Large Date is designated by both PCGS and NGC. The population figures at both services are misleading as this has only been attributed for a few years. This is especially true at PCGS where the variety is newer than at NGC.

     The 1854 Large Date is widely accepted and it is an integral part of the Type One set. While I do not think it will continue to show the rise in value that it has seen over the last decade to decade and a half, I d feel that it is a savvy purchase for the advanced collector, particularly in AU50 and above.

     Catalog Numbers:  Breen 7168

     Collectability:  ***** (five stars out of five)

     1856-S and 1857-S Varieties:   After the discovery of the S.S. Central America, a number of varieties were discovered for the 1856-S and 1857-S double eagles. These are mostly positional and are very minor in nature. The SSCA coins that are designated by PCGS do not sell for any premium over other 1856-S and 1857-S double eagles from this source.

     There are a few varieties, though, that are worth a short mention.

     The 1856-S is known with a sharply double punched 56 in the date (Breen 7184) that can be seen with light magnification. In my experience, this is a scarce variety in higher grades but it has little collector premium.

     The 1857-S is known with a Medium S mintmark and a Large S mintmark. Before the discovery of the SSCA hoard, the Large S was considered to be very rare in higher grades but it is now available. Ironically, PCGS does not use this designation and instead focused on very minor varieties such as the "spiked shield," etc.

     Catalog Numbers:  1856-S Repunched 56 (Breen 7184), 1857-S Medium S (Breen 7187), 1857-S Large S (Breen 7189).

     Collectability:  ** (two stars out of five)

     1859-S Double Die Obverse:  This variety shows clear doubling on the BERTY in LIBERTY. This doubling is mostly on the lower portions of the letters and it is farily easy to see with light magnification.

     I remember having an interesting "debate" with a very savvy double eagle collector a few years ago about this variety. He claimed it was reasonably common while I believed it was very scarce to rare. Sine then, I have examined close to 100 examples of this date and have not seen more than four or five of the Double Liberty variety. This may be because other people are looking for them as well but it is my belief that this is a very hard coin to find.

     NGC recognizes this variety (and has for a few years) while PCGS only just started recognizing it. This means that at both services the number graded are unrealistically low and collectors shouldn't think that this variety has the same level of rarity as an issue like the 1854-O or the 1856-O.

     The 1859-S Double Die Obverse (also known as the Double Liberty) is seen most often in the EF40 to AU50 range. It is rare in AU55 and very rare in AU58. I have only seen two or three in Uncirculated and none better than MS61. NGC has graded just a single coin in Uncirculated (an MS60) which I sold to a specialist collector around three or four years ago.

     My guess is that this variety will become a key addition to the Type One set as the years go forward. Once it is better recognized and people are certain what sort of premium they must pay for it, its popularity will increase.

     Catalog Numbers:  Breen 7199, FS-101.

     Collectability:  *** (three stars out of five)

     1861-S Paquet Reverse:   Early in the life of the Type One design, it was determined that it was hard to strike and it did not always wear properly. Nothing was done about this until 1859-1860 when the assistant Mint Engraver Anthony Paquet produced a new reverse with tall, narrow letters. Coins were produced early in 1861 at the Philadelphia mint but it was quickly determined that this design was faulty due to the fact that the inner border was too narrow which allowed the surfaces to easily abrade. Coinage at Philadelphia was quickly stopped but by the time this information reached the San Francisco mint, close to 20,000 1861-S double eagles with the Paquet Reverse had been produced.

     The 1861-S Paquet reverse was mostly unknown until the early 1950's when examples were found in Europe. Today there an estimated 100-125 known with most in the EF40 to AU50 range. The best that I have seen are two or three that I grade AU58; most of the coins in AU55 and AU58 holders, in my opinion, are overgraded. The current auction record is $184,000 for an NGC AU58 sold as Lot 5039 in Heritage's 1/12 auction. I know of at least two that have sold for over $200,000 via private treaty.

     Values for this issue increased dramatically during the late 1990's and early 2000's; to the point where the average quality example was probably overvalued. In 2012, I see very few offered for sale and I believe that a nice AU is worth at least what it was during the strong mafrket of 2007-2008, if not even more.

     The 1861-S Paquet reverse double eagle has been accepted as an integral member of the Type One set since the early 1960's and it will continue to be a highly prized issue. It is the rarest double eagle of any date or type from the San Francisco mint and I expect that the current low range of $40,000-50,000 for a presentable example is coming to an end. In the not-so-distant future, expect to pay in the $60,000-80,000+ range for the "right" coin.

     Catalog Numbers:   Breen 7205, Breen 7206

     Collectability:  ***** (five stars out of five)

     1863-S Mintmark Varieties:  Other than a minor date repunching variety on the 1862-S, there aren't many other post-Paquet varieties in the Type One series worth a mention. Probably the most interesting are the two mintmark varieties seen on the 1863-S.

     The more common 1863-S double eagle has a Medium mintmark, as on the reverse used in both 1861 and 1862. The more common has a Small mintmark, as seen on the 1864-S and 1865-S reverses.

     While somewhat interesting, I doubt if minor varieties such as these will ever catch on with Type One double eagle collectors.

     Catalog Numbers:  Breen 7126 (Medium S), Breen 7127 (Small S)

     Collectability:  * (one star out of five)

     I expect the varieties listed above that are four stars or higher to have significantly increased demand over the next decade. I don't expect any other varieties to have such widespread appeal but you never know; the blessing of PCGS or NGC would go a long way in creating collector demand.

     For more information about Liberty Head double eagles, please feel free to contact me directly ar dwn@ont.com.

Good Values in Type Three Liberty Head Double Eagles

If you collect rare United States gold coins, you'll notice that certain series have extremely compressed values. As an example, a common date Dahlonega half eagle grades EF45 might trade in the $2,300-2,600 range while the same date in AU50 often sells for a small premium; maybe as low as 10-15%. The reason for this is pretty simple. The market has decided that there is not much of an aesthetic difference between a Dahlonega half eagle in EF45 and one in AU50 and the formerly high price premium between the two grades is no longer merited. But there are some series where one small point on the grading scale can make a significant financial difference. One of these is Type Three double eagles.

The Type Three double eagle series dates from 1877 through the adoption of the new St. Gaudens designs in 1907. Type Three double eagles range from ultra-common to ultra-rare and they have proven to be quite popular with collectors over the last decade.

The grade distribution for most Type Three double eagles dictates their current rarity. By this, I mean that many dates were extensively melted and the surviving coins tend to have been shipped loose in bags to overseas sources. There are many Type Threes that are virtually unknown in grades below AU55 and virtually unknown in grades above MS63. When available, they tend to be heavily abraded due to poor handling and grade in the MS60 to MS61 range.

The exact point on the grading scale where availability and non-availability in this series tends to intersect is at MS63. There are numerous Type Threes that are fairly scarce in properly graded MS62 but are still affordable and, in my opinion, are very good values. These same coins might double, triple or even quadruple in price at the next grade up and I question the value of these MS63 coins. This is especially true when a nice, high end MS62 is often virtually indistinguishable from a typical quality MS63.

There are a number of "secret" and "not-so-secret" dates in the Type Three series that I think make for interesting analysis. Let's look at a few of these and determine what the best grade is for the collector seeking good value.

1. 1877-S There were three different Liberty Head double eagles issued in 1877 and the 1877-S is the most common of these. It is a numismatically significant date as it is the first San Francisco Type Three double eagle but it is very common in the lowest Uncirculated grades. As I was doing some basic research for this blog, I was very surprised to see the third-party population figures for MS62 examples of this date: 258 graded as such at PCGS and 163 at NGC. Even factoring in extensive resubmissions, this is still well over 100 examples graded MS62 between the two services.

In MS62, the 1877-S is worth around $4,000-5,000. This seems like a fairly high number for a coin that is more available than I would have thought but most 1877-S double eagles in MS62 are very low end. CAC has only approved four (with none higher) and this low number doesn't surprise me. I'd have to say that a choice, minimally abraded MS62 with CAC approval is pretty good value at, say, $4,500-5,000.

In MS63, this date is conditionally rare. PCGS has graded twenty five (with three better) while NGC shows only five with one better. An average quality MS63 is worth around $15,000 while a choice, high end piece could bring close to $20,000 at auction; more if it were CAC approved. Is this issue good value in MS63? I would have to say no, especially if the coin in question looks like the few slabbed MS63's that I've seen in recent years. My advice to the collector would be to patiently wait for a nice MS62 and pay a premium of as much as 10-15% if the coin has above-average luster and surfaces.

2. 1879 This is one of the more interesting years, numismatically, for Type Three double eagles. Four different issues were struck. The 1879-O is the rarest, followed by the 1879-CC. The 1879-P and 1879-S are condition rarities with similar overall profiles.

The 1879 is most often seen in AU55 to MS60 grades and it is very scarce in properly graded MS61. Nice MS62's are rare. PCGS shows a population of forty-five in this grade with twenty-one finer while NGC's figures are 32 with 19 finer. Only two MS62's have received CAC approval. In MS62, this coin has a current value of $4,500-5,000. This seems to me to be a great value in comparison to the above-referenced 1877-S.

In MS63 and higher grades, the 1879 is very rare. The combined PCGS/NGC population is twenty-five in this grade with fifteen finer. Factoring in resubmissions, this means there are perhaps a dozen known in MS63 or above. In the current market, such a coin would sell for $15,000 to $20,000. Do I think an MS63 is worth three to four times more than an MS62? Not really. Would I advise a collector to buy an MS63 example of this date? Doubtful, unless he was putting together a finest known/Condition Census set and he "had" to have a coin that graded at least MS63.

3. 1889. This date differs from the 1877-S and 1879 in that it isn't a total condition rarity. It has a reasonably low original mintage of 44,111 business strikes; a fraction of the number made for the 1877-S and the 1879.

This is an issue that didn't see a lot of circulation and it is seldom encountered in AU grades. But it is fairly easy to locate in MS60 and MS61. MS62 coins have a relatively high population (over 300 at PCGS and NGC combined) but many of the examples that I see in MS62 holders are not really all that special. This is evidenced by the fact that only five coins (as of 5/12) have received approval at CAC. An MS62 example of the 1889 can currently be purchased for $3,000-3,500.

MS63 and higher examples are another story. PCGS has graded 19 in MS63 with none better while NGC shows five in this grade with none better. We can assume the PCGS population is inflated and, in all likelihood, the number of properly graded MS63 coins is around six to eight. The value of this date in MS63 is in the $12,500-15,000 range. Is this is a good value?

In this case, I think that a really nice CAC-quality 1889 $20.00 in MS63 might be a pretty good deal at around $13,500. Here's my thought process. First of all, there are no coins currently graded higher than MS63. Secondly, with a reasonably low mintage figure you probably don't have to worry about extensive hoards being found. Thirdly, it is common in MS62 but few of the coins in this grade seem to be nice enough to upgrade, someday, to MS63. This makes it a reasonably "safe" condition rarity although, as always, there is some risk involved with a coin like this.

As you can see from the examples above, the "best value grade" for all these dates--and for many Type Three double eagles--is MS62. If you can find examples of these dates in high end CAC-quality MS62, at a fraction of the MS63 price, it is hard to argue with these levels of value.

2011 Heat Index: What's Hot and What's Not

A popular feature of the www.raregoldcoins.com blog is the "what's hot and what's not" article that I write at the end of every year. As its the very end of what's been an interesting and active year, let's take a look at what was in demand in 2011 and what you, literally, couldn't give away. We'll look at a number of areas in the market and determine a "heat index" based on my personal experience in the 2011 coin market. 1. Gold Dollars. This was a mixed market area but overall it was fairly strong and in some cases it was very strong. The segments of the gold dollar market that were strongest were superb, one-of-a-kind Type One and Type Three issues (especially "wonder coins" graded MS68 and MS69) and very high quality Dahlonega issues (especially better dates such as the 1855-D, 1856-D, 1860-D and 1861-D). Areas that remained flat or trended downwards in 2011 include mid-level Uncirculated New Orleans pieces and San Francisco issues. The weakest segments of the gold dollar market included Gem common date Type Two issues and MS65 through MS67 common dates from the 1880's.

2. Quarter Eagles. Early quarter eagles were a strong area in the market. This was especially true for attractive, original coins in the EF40 to MS63 range that were priced at $50,000 and below. A few nice 1796 No Stars quarter eagles sold in 2011 and these generally saw prices that were higher than in the previous couple of years. Early quarter eagles priced at $100,000 and up remained hard to sell, unless they were either very rare or very nice or, ideally, a combination of the two.

The Liberty Head series saw mixed results in 2011. Nice circulated Dahlonega pieces were good sellers and even Charlotte coins, at least those in the $2,000-5,000 range, sold well if they possessed good eye appeal. The very high end of the market was strong. Ultra rare issues such as the 1841, 1854-S and 1863 all saw strong price increases in 2011. The surprise "trendy date" of the year was the 1864 which, in a short period of time, saw explosive price growth as collectors realized how rare it was.

Most quarter eagles dated 1870 and later remained hard to sell, even those with low mintages. There were a few exceptions (the low mintage 1875 became popular in 2011) but this seems like an area in the market that offers good growth potential for collectors with a budget of $1,000-5,000 per coin.

3. Three Dollars. After a rough patch of five or so years, the Three Dollar market showed more strength than I can remember. Buyers were fussy and coins that were not high end were hard to sell. The most popular dates included the 1854-D, 1855-S, 1861-1864 and the low mintage issues from the 1880's. Dates that were hard to sell included the 1854-O, 1865 and 1877. The rare Proof-only 1875 was a good seller while the not-as-rare Proof 1876 was harder to sell.

Prices on better dates in MS63 to MS65 have dropped to levels that make them prime for a promotion in the coming years. There are enough nice to very nice coins available (not factoring in common issues such as the 1854, 1874, 1878 and 1889) that I would not be surprised to see prices for nice coins rise.

4. Half Eagles. The market for early half eagles was very quality conscious in 2011. As an example, a common date early five such as an 1803/2 in AU55 to AU58 was worth 5-10% more if it were CAC-quality as opposed to the typical washed-out, unappealing example. The grade range that really began to see price separation due to quality was MS63 to MS64. There are early half eagles in MS63 holders that are hard to sell at $25,000; the exact same issue in the same grade with a CAC sticker and real eye appeal can be an easy sale at $30,000+.

The market for very rare early half eagles was hard to gauge in 2011 due to so few pieces trading. But in the Heritage 2012 FUN sale there is a superb date run of rare half eagles including an 1819, 1821, 1825/1, 1826, 1828, 1828/7 and both varieties of 1829. I expect these coins to bring record prices and the "heat" that they generate is likely to spread to the rare but more more obtainable dates of this era.

The Liberty Head half eagle market was generally good in 2011. The areas that were strongest include collector quality Dahlonega pieces, rare Civil War dates and high quality New Orleans issues. Areas that began to show some tentative strength included No Motto Philadelphia issues in AU and Mint State grades and rare but formerly unpopular low-mintage dates from the 1860's and 1870's. The market for Carson City half eagles in 2011 was mixed. There were not many nice coins on the market and the better dates that did sell only brought solid prices if they were very choice.

5. Eagles. While not everyone realizes this, eagles were probably the strongest denomination in the gold coin market in 2011. Nearly all areas were as stronger or stronger than in 2010 with the exception of early eagles (1795-1804) which remained off their market highs of a few years ago. But this statement needs to be clarified. Most of the early eagles that are offered for sale are very low end for the grade. Nice early eagles sell for 10-20% premiums over their low-end counterparts.

The Liberty Head eagle series came into its own in 2009 and since then, prices have been strong for choice examples of rare and low mintage dates. In my opinion, prices of rare, low mintages issues such as the 1863, 1864, 1865, 1872, 1873, 1876 and 1877 are still very low in comparison to less rare but more popular double eagles from this era.

The Carson City eagle market was similar to that described above for the half eagles. If a coin was choice and rare, it sold for a strong price. If it were just so-so, the price ranged from decent to slightly above average. But if a real "pig" was offered (and some of the CC eagles in holders are grossly overgraded) it might bring a distortingly low price. Collectors are urged to work closely with an informed specialist and to learn how to distinguish a choice, original piece from an overgraded low-end example.

6. Double Eagles. For the last five years, the Liberty Head double eagle market has seen an inexorable march upwards in price. In the second half of 2011, this area of the market seemed to weaken a bit, probably due as much to the steep rise in bullion prices as a natural correction.

The always-popular Type One market softened a bit but remained strong. CAC approved coins brought good premiums, especially for issues like the rarer New Orleans mint coins where eye appeal was a real concern. Premiums for rare shipwreck coins remained very strong in 2011. If an S.S. Central America, Brother Jonathan or S.S. Republic coin that had a population of just a few coins was available at auction it brought many multiples of a non-shipwreck coin's price.

The Type Two market was a bit stronger than in the last past few years. The market for common dates in MS62 through MS64 dropped rather significantly but scarcer dates (such as the 1868, 1869, 1870 and 1871) rose in AU and Uncirculated.

The bullion-related Type Three issues and the condition rarity market declined in 2011 but the market for truly rare issues (1881-1886 and 1891 Philadelphia) was strong.

7. Proof Gold. This was a strong area of the market in 2011 and part of the reason was a greater supply of choice coins than in recent memory. Strong prices were seen at the Heritage 2011 FUN sale where the Henry Miller collection, which contained dozens of superb rare date Proofs, brought very strong prices. Coins that were in demand include very low mintage issues and virtually all pre-1880 half eagles, eagles and, especially double eagles.

8. 20th Century Gold. The various 20th century series saw a mixed year in 2011. Common date generic issues saw significant shrinking in premiums over spot and in some series, coins were trading for tiny premiums.

A series that was stagnant in 2011 but which is primed for attention is the St. Gaudens double eagle. The upcoming sale of the Dr. Steve Duckor collection, to be sold by Heritage next week in their FUN auction, includes many very choice, very rare issues which are likely to bring record prices. This may not necessarily impact lower quality examples of these dates but it will clearly bring a lot of attention to a series that has been flat since the Morse Collection sale of 2005.

A series that seemed to be quietly attracting collector and investor attention in 2011 was the Indian Head eagle. I only handled a few interesting Indian Head eagles in 2011 but the coins I did own sold quickly and generally to smart dealers.

All in all, I look at 2011 as being a good year for the rare gold coin market. Not a great year but certainly a stronger one than 2009 or 2010. It was a year that rarity and originality became more in vogue. It was a year that soaring bullion prices were a big story during the first three-quarters. My firm DWN had an excellent year in 2011 and I am personally excited about the coming year and what it will bring.

The State of the Liberty Head Double Eagle Market: 2011

The level of popularity for the Liberty Head double eagle series, struck between 1850 and 1907, shows no signs of abating. In fact, I think these are the most avidly collected United States gold coins by date. How has the market fared for $20 Libs. in the last three to five years and what does the future portend? Let's take a look at the State of the Market for Liberty Head double eagles. 1. The Impact of Bullion Prices on $20 Libs

At the end of May 2006, the price of gold stood at around $660 per ounce. Five years later, gold hovered near $1,530 and it had reached a high of over $1,600 earlier in the Spring. Obviously, this huge increase has had an impact on the market for twenty dollar gold pieces.

In May 2006, a generic Liberty Head double eagle in MS63 would have cost a collector around $900. Today, the same coin costs around $1800-1900. The first thing that is noticeable from this is that the value of a generic double eagle relative to its gold content has dropped appreciably. In fact, the spread between the spot price and the numismatic value is as low, in May 2011, as I can recall.

While generic prices have dropped, the demand for scarce and rare collector-oriented Liberty Head double eagles has increased considerably. Let's take a look at two examples.

In May 2006, an AU55 example of the popular 1850 double eagle would have cost a collector somewhere in the area of $3,000-3,500. Today, the same coin typically sells for $5,500-6,000. This is interesting as this is one of the few areas in the numismatic market where a rare coin (the 1850) has actually performed as well as the generic issue since 2006.

Let's also look at a common date Carson City issue. In May 2006, an AU58 example of an 1875-CC was likely to sell in the $2,500-2,750 range. Today, the same coin will bring $4,000-4,500. From an investment standpoint, the $20 Liberty Head market has performed well in the past five years. But this is not a blanket statement and certain areas have done better than others. We will explore these later in this article.

2. What's Popular in this Market in 2011?

As someone who buys and sells hundreds of Liberty Head double eagles each month, I have a good feel for what's popular and what's not. In my observation, I can see a strong level of demand in certain areas. These include nearly all Type One issues in the $2,000-5,000 range, most affordable Carson City double eagles, very scarce and rare dates in all three types, shipwreck coins (more on these later), and coins with exceptional eye appeal. If I had to name some of the specific dates that seem to be in particularly strong demand right now, I'd include the following: 1854-S, 1856, 1859, 1862, 1863, 1868, and 1880.

Areas in the market that seem weak include generics, grade rarities (an example of this would be a coin like an 1888-S in MS64 which is a fairly common date in grades up to and including MS63 but a "rare" and expensive one in grades above this), rarities that showed huge price increases in the middle of the last decade, and coins that have poor overall eye appeal.

3. The Market For Rare Date Liberty Head Double Eagles

The top end of the Liberty Head double eagle market showed incredible strength during the 2000's. Let's look at a few examples.

The 1866-S No Motto was an issue that was considered esoteric 10-15 years ago and I can remember literally begging clients of mine to buy nice EF and AU examples as they seemed incredibly undervalued to me at the time. This issue caught fire and prices soared. In the early part of the 2000's, an AU50 1866-S No Motto double eagle could be purchased for $8,000-10,000. By 2007-2008, the same date in this grade would have realized $40,000+ at auction; and probably would have been far less attractive, for the grade, as the example(s) available in 2000. Today, this same coin is worth in the low to mid-30's.

Possibly the most dramatic price swings in the $20 Lib. series have been for the major rarities like the 1854-O, 1856-O, 1861-S Paquet, and the 1870-CC. These coins became very expensive by the 2006-2008 boom years and, quite frankly, they became priced out of range of all but the wealthiest collectors and investors. These four issues have seen drops of 20-30% since their market highs, but I am noticing that they are starting to percolate once again and prices are raising. I think that buyers of these very rare issues are far more particular than they were five years ago and if a coin that is priced at $250,000 and up doesn't have good eye appeal it will prove to be a hard sell.

4. The Strength of the Market in Cool "One of a Kinds"

While the classic rarities in the Liberty Head double eagle series have taken a bit of a hit lately, the upper end of the market is far from weak. In fact, the market for really cool, really nice condition rarities is exceptionally strong and deep. Usually, coins of this sort wind-up at auction. I can think of a number of these; for the sake of brevity let's look at two.

In the recent Heritage Central States sale (April 2011) there was a gorgeous PCGS MS63 CAC 1869 double eagle. The coin had great color and surfaces and was fresh, choice and high end. Its a population four coin with two graded higher at PCGS and it was the second best I'd ever seen. Trends at the time was $28,500 and I expected this coin to bring in the low to mid-30's. It sold for $45,885. A great coin, yes, but a really robust price especially considering that Type Two double eagles are somewhat out-of-favor with collectors right now.

Another interesting "one of a kind" coin was the NGC MS65 1852-O that was sold as lot 5243 in the Heritage 2011 FUN sale in January. While I wasn't absolutely crazy about this coin from a quality standpoint (I graded it MS64 but didn't think it was a Gem) there was no denying it was a special coin for an O mint double eagle. And the fact that it remains the only New Orleans double eagle of any date meant that it was destined to bring a strong price. It sold for $276,000; not "crazy" money but still a heckuva lot for a common date New Orleans double eagle!

What's interesting to note right now is that any double eagle that is either finest known or well up in the Condition Census is destined to sell for a record price while some of the more classic rarities in the Liberty Head series might still be a bit soft.

5. Shipwreck Coins

No denomination of United States gold coinage has been more affected by shipwrecks/hoards than double eagles. The S.S. Brother Jonathan, S.S. Central America, and S.S. Republic hoards have added thousands of interesting Type One double eagles into the market.

For many years the supply of these coins far outstripped the demand. You couldn't wander through a coin show without tripping over a stack of 1857-S double eagles. (OK, a slight exaggeration but...)

As double eagles became more popular, the appeal of the shipwreck coins grew. There are now a number of retailers who actively sell these and the trend appears to be strongest for dates that have low "shipwreck populations."

Here's an example. Let's say you have an 1851 double eagle in AU58 from the S.S. Republic shipwreck. This coin could bring as much as $5,000 if it were put in an auction. The exact same coin without a shipwreck pedigree might bring $3,000 if it were extremely high end; $2,750 or so if it were just "average."

The shipwreck double eagles that seem to be in the greatest demand are the ones that appear infrequently. In other words, if you have a double eagle from the S.S. Central America that isn't a commonly seen issue (i.e., its not an 1857-S) then it is considered "scarce" by shipwreck collectors.

The entire shipwreck double eagle phenomenon is sort of a mixed blessing to me. I like the fact that these coins attract new collectors and I respect their history and pedigree. But I think many are cosmetically unappealing and I have a hard time justifying the premium that some of these coins are getting. Is a $3,000 double eagle worth $5,000 (or more) because its from a shipwreck? To me, no. But to a number of collectors the answer is clearly yes.

6. Tracking the Market by The 1856-O Specimen

Many collectors feel that the single most desirable Liberty Head double eagle is the unique Specimen-63 example of the 1856-O. The coin first surfaced in the late 1970's/early 1980's and it has bounced around quite a bit more than you'd think.

In Heritage 2002 FUN sale, the coin sold for $345,000. The owner held it for two years and then placed it in the Heritage June 2004 sale where it brought $542,800. It was purchased by an investor who, as I recall, had never purchased another Liberty Head double eagle before and he held it for five years, placing it in the Heritage May 2009 sale where it brought a record-smashing $1,437,500.

In just seven years, the price of this special coin has increased by nearly 5x. Given the fact that there are now numerous United States coins that have brought over $1 million at auction or via private treaty, I am not surprised at the value level of the 1856-O. I would have to think that if it appeared for sale again in the near future it would bring over $2 million.

7. Tracking the Middle Market

This article has been more focused on the upper end of the market than the lower and middle end and this is not representative of the $20 Lib market as there are a lot more transactions in the $2,500-5,000 range than in the rarefied air of six figure coins.

I make a strong two way market in Type One and Carson City double eagles in the $2,000-10,000 range and I find this area of the market to be quite strong. I have a few interesting observations to share.

I find the grading of these coins to generally be more consistent than on smaller denomination coins. That said, I still find inconsistencies. I love lustrous, unmarked "sliders" graded AU58, but see coins in 58 holders that range from terrific to terrible. In my experience, really nice AU58 coins with great eye appeal are now bringing at least 10-15% more than average quality coins and I think that this spread will increase in the future.

In the Type One series, there are certain dates that I literally couldn't keep in stock even if I had multiple examples. Collectors love the Civil War dates and the underrated Philadelphia issues from 1854 through 1859 have become very popular as well.

Carson City issues are collected both by date and as type coins. I find that the key issues like the 1878-CC, 1879-CC, 1885-CC, and 1891-CC are very popular in circulated grades and in Uncirculated as well. The more common dates (priced in the $2,500-5,000 range) are extremely easy for me to sell as long as they are attractive, lustrous coins with fewer-than-average bagmarks. Coins with CAC stickers are especially in demand amongst type collectors or collectors who, while not working on date sets, want to buy groups of four, five, or six different pieces to salt away.

8. In Conclusion: What does the Future Hold?

I think the future for collector-quality Liberty Head double eagles is as bright as for any other type of United States gold coin.

As gold continues to go up in value, more investors become aware of gold coins. For various reasons, more wind-up buying double eagles than any other type of numismatic "product" and due to good marketing, more of these will be steered toward Libs than towards Saints.

The beauty of the 20 Lib series is that, marketing aside, the coins themselves are very interesting. They were issued at a tumultuous time in US history and at significant mints such as Carson City, New Orleans, and San Francisco. And they come in a tremendous array of prices; you can buy $2,000 coins or you can buy $200,000 coins.

I think the more affordable $20 Libs have a really bright future; coins in the $2,000-5,000 range that are interesting, reasonably scarce and which contain nearly an ounce of gold are just about irresistible to collectors. The super high end coins will continue to shine as well; coins priced at $50,000 and up that are very rare or that represent the highest available quality for a specific issue.

The real question is what about the middle market? I could sell as many 1859-O double eagles as I could find in choice VF and EF grades and I'm sure I could sell the first, second, and third finest known(s) of this date. But what about the so-so quality AU50 and AU53 coins? How will those fare in the future? Check back in 2014 when I update this article and we'll see!

Some of My Favorite Obscure United States Gold Coins: Part Two

The first part of this article, published at the end of December 2010, discussed some of my favorite little-known United States gold coins in the dollar, quarter eagle and three dollar denominations. In the second and final part of this series, I'm going to look at some of the more interesting half eagles, eagles and double eagles that I have seen or sold over the course of the last two decades as a specialist in United States gold coinage. One quick note. I received some comments about the first part of this series that asked why I didn't include Proofs or 20th century coins. While I like Proof gold, I am not often that impressed with it (there are exceptions, of course...) and a great business strike is a coin that is more likely to stay with me. The same goes for 20th century gold coins. I love the designs and respect the collectors but I can remember more than a handful of Ten Indians or Saints that have left decade-long impressions on my coin psyche.

1. Half Eagles

a) 1838-C, graded MS63 by PCGS. There are a number of Charlotte half eagles that are rarer than the 1838-C. But this is among the more difficult half eagles from this mint to locate in higher grades. In Uncirculated, it is exceedingly rare and this example, which first surfaced in the Stack's 1978 Bareford auction, is the only unequivocally Mint State piece of which I am aware.

I first saw this coin in the October 1989 Superior sale. I badly wanted to buy it but didn't have a client for it at the time. It sold for $48,400 which seemed like a lot of money for an 1838-C half eagle twenty+ years ago. It was purchased by dealer Andy Lustig who was never able to sell it and I think he had it in his stock for close to two years before he gave up and put it into the 8/91 Akers/Rarcoa sale where it went cheaply at $38,500. It was later acquired by Harry Bass via private treaty with yours truly playing a small supporting role. After Bass died, it was sold in October 1999 by Bowers and Merena auctions where it was purchased by the Pogue family for $86,250.

I love this coin for numerous reasons. Its easily the finest known example of the first Charlotte half eagle. Its the only Charlotte half eagle that employs the Classic Head design. Its amazingly choice for the issue. It is one of those coins that every time I think about it I say to myself "why didn't you buy that coin for yourself when it was cheap and only a handful of people appreciated it?"

b) 1847, graded MS66 by PCGS

This was an especially memorable coin for me because I think it was one of the most controversial gold coins I can remember viewing. The coin in question was a staggering 1847 with a virtually perfect obverse and a reverse with the Mother of all Copper Spots. I'm not talking a small copper spot; I'm talking a deep, dark multi-hued stain that covered most of the reverse. I recall sitting in the bar of the Baltimore Marriott hotel the night before the sale began, talking shop with other dealers. Some people loved the coin (I was one of them) but other people absolutely hated it; and this was before the era that all copper spots "had" to be removed in order for a coin to sell!

The coin wound up bringing $110,000 which I though was a staggering price considering the dissent it caused among bidders at the sale. It later graded MS66 at PCGS (I graded it "67 net 66" and figured the spot would lower the grade by a point which it did). Years later it appeared as ANR 11/04: 1804 where it brought $92,000; a poor return for a seven year hold. Seeing it again, I still loved the coin but thought that, for $100,000, I'd prefer a No Motto half eagle with a little less "character."

3. 1864-S, graded MS65 by PCGS. I've written about this coin before. It's among my favorite United States coins ever and its one of those special coins that combine extreme rarity with amazing aesthetics.

The 1864-S is the second rarest collectible Liberty Head half eagle, trailing only the 1875. There are around 25-35 known in all grades but most are well-worn and I know of just two or three in the AU grade range. And then there is this piece, which must have either been saved as an assay coin or somehow put away (on purpose or accidentally) by someone in San Francisco at the time of issue.

You have to see this coin in person to appreciate its beauty. Other than some weakness of strike on the stars it is nearly flawless and probably would grade a point or two higher by today's standards. Harry Bass bought it out of the Norweb I sale in October 1987 and it is originally from Kosoff's Melish collection sale in 1956. It brought $176,000 in 1999 which I thought was a good deal then and which seems amazingly cheap now.

2. Eagles

1) 1839 Type of 1840, graded MS64 by NGC. The span of years from 1995 to 2001 was unique in that a lot of really great old collections were taken to auction and sold. Unless something totally unsuspected happens, I can't imagine we'll ever see another five or six years with so many great coins in so many sales. For me, the Pittman sale was one of the most fun and challenging.

Pittman was like the Super Bowl of coin auctions. All the coins were raw (I doubt we'll ever see a huge sale like this again with raw coins...), the material was as fresh as could be imagined, every major player was involved and the terms were cash and carry, meaning that you had little margin for error.

There were so many great coins in the Pittman sales but this 1839 Type of 1840 eagle is one that I still remember. It sold for $143,000 to Greg Roberts and I was the underbidder. I didn't have a client in mind for the coin and I was actually going to put it away in my own collection. Now graded MS64 by NGC, the coin is staggeringly beautiful with amazing deep yellow-gold color, great surfaces and superb luster. I have always liked the design of this issue and have found it to be a rare coin in AU and higher grades. The Pittman coin appears to be the finest known and there are only three Uncirculated pieces that exist.

2) 1848-O, graded MS66 by PCGS. The James Stack sale, held by Stack's in October 1994, is one of those auctions that don't get mentioned much but it was, in my opinion, one of the premier numismatic events of the 1990's. It was a great collection, put together by a sophisticated collector and there were a number of really wonderful coins.

My favorite coin in the sale was Lot 1298 which was a monumental 1848-O eagle. Later graded MS66 by both NGC and PCGS, this coin is certainly one of the finest No Motto eagles known and it is far and away the finest New Orleans eagle of this type.

The 1848-O eagle was a coin that caused quite a commotion during lot viewing. It was what I call a "pass around" coin, meaning that the dealers viewing the sale on more than one occasion stopped viewing the lots while the coin was passed around from person to person with appropriate comments made at each stop.

At the Stack sale, it brought $154,000 which was a huge, huge price for a New Orleans eagle in 1994. It resurfaced in the 2003 ANA sale and was later seen in the inventory of a California dealer around 2009-2010.

3. 1899-O, graded MS68 by PCGS. One of the really great numismatics accomplishments of the modern era was the group of gold coins put together by Les Fox known as Amazing Gold Rarities. Using Dave Akers as his adviser, in a few short years, Fox gathered a really superb group of coins that he proposed to sell at Sotheby's or Christie's presented as great artworks. Great idea, yes? Except not great enough to get either Sotheby's or Christie's involved and the holdings wound-up in a more conventional Stack's auction held in October, 1988.

There were many great coins in this sale but, for some reason, the one that sticks with me nearly twenty-five years later is the 1899-O eagle that was first sold in the Eliasberg sale and which was obtained by John Clapp directly from the mint at the time of issue.

I haven't seen this coin since 1988 but I remember it being the single most perfect 19th century U.S. gold coin that I'd ever seen. It had virtually perfect surfaces, superb color and sensational frosty luster. It was later graded MS68 by PCGS and I would be curious to see it today and speculate how it would grade by current standards. Just as an FYI, it brought all of $39,600 in October 1988.

3. Double Eagles

a) 1861, graded MS67 by PCGS. The discovery of thousands of high quality Type One double eagles in the S.S. Central America probably had a bigger impact on this specific coin than on any other issue I can think of. For many years this coin was THE Type One double eagle and I still think it is the best single example of this type that is known. But that didn't keep it from becoming an obscurity.

As far as I know, this incredible Gem was first sold at auction in Rarcoa's session of Auction '90 where it brought a remarkable $170,750. A year later, in a much less robust market, it sold for just $68,750 (ouch!) in the Superior May 1991 auction. I seem to recall it bouncing around from dealer-to-dealer until it brought $96,800 as Lot 7947 in Heritage's 1995 ANA sale. The value of this coin increased through the late 1990's and by the turn of the century it was probably worth around what it had brought in Auction '90. But after the onslaught of Gem Type Ones from the SSCA shipwreck its value yo-yo'ed back to its May 1991 level.

I've still never seen a Type One that compares to this coin. Great luster, great color, great surfaces...it was a really spectacular coin and it's something that I would very much like to see again after being off the market for so long.

b) 1891, graded MS64 by NGC. This coin was one of many great double eagles that was sold in the Dallas Bank Collection auction in 2001. This is a sale (and a coin) that offers an extensive backstory for me.

The Dallas Bank collection was owned by Jeff Browning, a Texas oil man who had died young in the 1970's or 1980's. I had known about this collection since I moved to Dallas in 1983 and because of the fact that I never got to see it, despite it residing in a bank less than two miles from my house, it became my numismatic Loch Ness Monster. When it was finally announced that it was going to be sold at auction in New York by Sotheby's and Stack's in October 2001, I was very excited.

The trip to New York for this sale was nerve-wracking as it was my first time on a plane since the 9/11 attacks. I remember lots of soldiers at DFW with machine guns, incredibly tight security and a nervous feeling on the plane that's hard to describe unless you flew yourself at that time. New York was still reeling from the tragedy. There were fliers on the walls searching for missing people and when I went downtown with a fellow coin dealer to see the Trade Towers site, you could still smell the smoke and chemical odor. Chilling...

I thought the coins in the sale didn't all live up to their legend(s) but there were many I liked. The one I liked the most was an amazing 1891 double eagle that was later graded MS64 by NGC. It sold for $80,500. It came on the market again in January 2005 and Heritage sold it, this time in the aforementioned NGC holder, for $155,250.

What are the obscure rarities that stand out to you? I would love to hear from you and can be reached by email at dwn@ont.com or, you can leave a comment at the end of this article.