New Orleans Half Eagles: An Updated Look

It has been a number of years since I’ve written about New Orleans Liberty Head half eagles and given the popularity of this series, I thought it would be nice to finish out 2014 with a fairly in-depth look at these coins. We will not only discuss the coins themselves but will also look at the market for New Orleans half eagles, with some personal observations about the coins and the series as a whole and some interesting statistics.

Some quick background is in order. New Orleans began producing half eagles in 1840 and continued to produce them, with interruptions, through 1857. The No Motto type includes thirteen coins (two distinct varieties of 1843-O exist, see below). Production resumed in 1892 and for just three years, the With Motto type was struck.

For many years, the popularity and price of the New Orleans No Motto Liberty Head half eagles lagged behind the Charlotte and Dahlonega issues. This is no longer the case. New Orleans half eagles are clearly more popular than their Charlotte counterparts and while not as popular (yet) as Dahlonega half eagles, prices are not yet at a par.

New Orleans half eagles have become widely collected and for good reasons. The set can be completed even by a collector on a fairly limited budget and it doesn’t go on for decade after decade like the Philadelphia and San Francisco half eagles. There is no single White Whale issue to make collectors go crazy, and for most, a set of 14 No Motto New Orleans half eagles can be assembled for a reasonable sum in a three to five year period.

How is the market for these coins? For some of the more common issues like the 1844-O and 1854-O, prices have not risen all that much in the last five years. For the rarer issues, especially the key 1847-O, prices have shown rather healthy increases. Demand is clearly high for these coins and I base this on the short period of time which nice New Orleans half eagles stay available on my website when I have a few for sale. Given these facts, I would have to say that the future looks bright for choice, attractive No Motto Liberty Head half eagles from the New Orleans mint.

Let’s take a look at each individual issue.

1840-O: 

This is clearly a numismatically significant issue but it doesn’t have the Multiple Levels of Demand that its counterparts the 1838-C and 1838-D half eagles do. Part of this is due to the fact that the 1840-O doesn’t have a unique design like the two Classic Head issues I just referenced; nor does it have the mintmark prominently placed on the obverse.

The 1840-O is actually among the most common No Motto half eagles from this mint and it is very easy to find in VF, EF and even low AU grades. In the higher AU grades, the 1840-O is scarce and undervalued and it is rare in Uncirculated with fewer than a dozen known. The finest remains the NGC MS65 which sold for $41,250 back in October 1997 as part of the Pittman collection.

One thing I have noticed about this date in the last few years is just how hard it is to find a nice, original AU coin with pleasing color, choice surfaces, and a sharp strike. I’d estimate that over 90% of all slabbed AU 1840-O half eagles are either cleaned or dipped, or they have negative overall eye appeal. At current price levels (around $3,000 for an AU55 and a bit over $4,000 for an AU58), the 1840-O half eagle is dramatically undervalued.

The 1840-O Broad Mill or Large Diameter is a variety which should be better known and more avidly collected but it isn’t yet recognized by PCGS (NGC has recognized it for years but seems inconsistent in their designations). The 1840-O Broad Mill is very rare and very obvious to the naked eye. I sold the only known Uncirculated coin (an NGC MS61) to a New England collector around five years ago. I know of two or three AU58’s as well.

1842-O: 

The 1842-O remains the second rarest half eagle from this mint. There are an estimated 75-85 known with nearly all in the VF-EF range. A properly graded EF45 is about the nicest available quality for the date; AU’s are rare and many of the slabbed AU50 to AU53 coins have issues. There are exactly three known in Uncirculated, all of which are coins I have sold in the last decade.

The 1842-O is rarer than nearly any Charlotte or Dahlonega half eagle but it still doesn’t get the respect it deserves from collectors. Prices for Extremely Fine examples have stayed fairly flat over the last decade and this date seems undervalued by 25-50%, in my opinion.

It has been a number of years since a nice slabbed AU55 or AU58 was sold at auction and it would be interesting to see what a quality coin (especially if it were PCGS graded and CAC approved) would bring.

One closing thought about this date. Some 1842-O half eagles are rather weakly struck at the centers. Should this affect the value of an otherwise choice example? I don’t think strike is an important factor in determining value for a rare 19^th century gold coin so I would resoundingly say “no!”

1843-O Small Letters: 

This was the first of the two varieties made in 1843 at the New Orleans mint and it shares the reverse of 1842-O.

This is clearly the scarcer of the two 1843-O half eagle varieties and it appears less frequently at auction than such more heralded dates as the 1845-O, 1846-O and 1851-O. Most 1843-O SL half eagles are seen in the EF40 to AU50 range and rarely with original color and choice surfaces. On late die state issues, the detail on the reverse lettering appears weak from die lapping.

The finest known remains the PCGS MS65 which I bought a few years ago in a Stack’s Bowers auction for $69,000. It is the single finest of a small group of four Uncirculated pieces which were found in the South and later sold at auction in 2000.

This is a considerably scarcer coin than the 1843-C or 1843-D half eagles yet it still sells for less. There are an estimated 125-150 known. This variety becomes scarce in the medium to higher AU grades and I believe that there are just five or six extent in Uncirculated.

1843-O Large Letters: 

At one time, I felt that this variety was close to the Small Letters in terms of its overall rarity but it is at least twice as available. There are an estimated 250-350 known and the 1843-O Large Letters is fairly common in lower grades. It is scarce in About Uncirculated and very scarce at the upper end of this range with original surfaces and nice color. There are at least 10-12 known in Uncirculated, and this includes a few really nice examples in the MS63 to MS64 range. I handled one of the NGC MS64’s earlier this year and sold it privately but, as far as I know, none of the other high grade 1843-O Large Letters half eagles have traded in at least five years.

An interesting thing I’ve noticed about this variety in the last few years is how unappealing the typical piece is. A decade ago, it was not uncommon to find a really wholesome 1843-O Large Letters in, say, AU55, with natural color and decent surfaces. Today, this same coin now likely grades AU58 but it has been stripped-n-dipped and the marks which may have been hidden by the former natural color are now obvious on the bright, dipped surfaces.

I’ve mentioned for some of these other issues how undervalued they are in comparison to their Charlotte and Dahlonega counterparts. Let’s use the 1843-O Large Letters as an example. A decent quality EF45 is going to cost you $1,250-1,500. A similarly graded 1843-C or 1843-D half eagle will run $2,250-2,750, depending on the holder and whether its CAC’d or not. The 1843-O Large Letters is common by the standards of New Orleans No Motto half eagles but it is still a scarcer coin than the 1843-D and only a little more available than the 1843-C. At around half the price, it seems like wonderful value to me.

1844-O: 

The 1844-O is by far the most common No Motto half eagle from this mint and it is actually as available as some of the Philadelphia issues from this decade. I estimate that at least 750-1000+ are known and if one includes all of the no grades or lower quality pieces which exist, the number clearly exceeds 1,000 total. The 1844-O is easy to find in any circulated grades, although a really nice AU58 with natural color and choice surfaces is scarcer than generally realized. In Uncirculated there are at least two to three dozen known and possibly more. In MS62, this is a scarce coin and it is rare in properly graded MS63. I am aware of three to five that grade MS64 (and have handled all of them) and one Gem, a PCGS MS65 which is ex Bass.

The 1844-O is a perfect type coin for the new collector who would like to own an appealing No Motto half eagle from this mint. $1,500 to $1,750 will buy you a very choice PCGS AU55 while $2,500 to $3,000 will buy you a great looking AU58. Since this date can still found with natural color, sharp strikes and choice surfaces, I’d suggest that you be fussy when it comes to an 1844-O. Spend a little extra time and a little extra money and you will be rewarded with a special coin; hopefully one which will motivate you to form a more comprehensive collection of New Orleans half eagles.

1845-O: 

The 1845-O is probably the only No Motto New Orleans half eagle whose rarity in 2014 is, at least in my experience, a bit less than I believed five or ten years ago. Part of this is happenstance as there were clearly some decent quality 45-O half eagles which I didn’t see when I compiled my old(er) rarity levels. And part of this is new discoveries including a few nice Uncirculated examples from the S.S. New York  treasure. I regard the 1845-O as clearly less scarce than the 1846-O and comparable to the 1851-O but more available in higher grades.

My best current estimate for total surviving population for this date is around 125-150 coins and that might be a bit on the low side. The 1845-O is relatively available in VF and EF grades and it is just a bit scarce in the lower AU range. High-end AU’s, especially with natural color and surfaces, are much scarcer than their crazy high PCGS/NGC populations would suggest (30 AU58’s at NGC alone….yikes!). I believe that there are 10-12 known in Uncirculated including three in MS63.

Quality for the grade is finally being felt for this (and other) No Motto New Orleans half eagles. As an example, a nice CAC approved NGC AU58 1845-O sold for $6,463 as Heritage 12/13: 3845. The same date in the same grade but not CAC approved and appearing less choice sold for just $4,406 as Heritage 4/14: 6360.

1846-O: 

I have long lumped the 1846-O half eagle with the 1845-O and 1851-O but at this point in time, I believe that the 1846-O is the scarcest of the three. There are an estimated 100-125 known with most in the VF-EF range. Properly graded AU50 to AU55 examples are scarce and this date is rare in full AU58. I am aware of six or seven in Uncirculated including a solitary MS63 at NGC and three or four MS62’s.

This is another issue whose overall level of appearance seems to have really diminished in the last few years. A decade ago, it was possible to find O mint gold which had escaped the clutches of those individuals who’ve seemed to destroy much of the remaining Charlotte and Dahlonega coinage. Today, it’s not so easy and most 1846-O half eagles now have that bland, lifeless zombie appearance which many of their southern counterparts shuffle through their coin lives. Sad.

1847-O:  

The unquestioned King of the New Orleans half eagles, this issue has finally been recognized for its rarity and it appears to have demand outside of the community of specialists who collect these coins. A nice NGC AU53 sold for $14,100 as Heritage 1/14: 6658 and this may be an indication of higher prices to come in the future for this key issue.

But a case can be made that the 1847-O is still highly undervalued. As an example, the PCGS Price Guide suggests a value of $30,000 for an 1847-O half eagle graded MS61. What the Price Guide doesn’t state is that this date is currently unique in Uncirculated (at PCGS) and it is very rare even in grades as low as AU55 (just three in this grade at PCGS and none in AU58). I, for one, would be thrilled to purchase a PCGS graded MS61 1847-O half eagle for $30,000 and I think the true value is more like $50,000 to $60,000.

To offer a further comparison, let’s compare the 1847-O to the King of the Charlotte half eagles, the 1842-C Small Date. In terms of overall rarity, these two dates are fairly comparable while the 1842-C is clearly more available in AU55 and above (PCGS has graded only two in AU55 but they have graded no fewer than eight higher than this; compare this to the PCGS population figures for the 1847-O listed above). The 1842-C Small Date is currently worth around $30,000 in AU55 and an accurately graded PCGS MS61 is worth close to $100,000. Given the fact that the 1847-O is a rarer coin and it is priced at half of the less popular 1842-C Small Date, I know which issue I regard as the better value.

1851-O: 

A few interesting new higher grade examples of this date have appeared on the market in the last few years. One of them caused me a case of coin angst the like of which I can still recall clearly even though it happened nearly four years ago.

Heritage 6/11: 5113, graded MS62 by PCGS, was a coin I clearly “needed” to buy for inventory. It was fresh, it was properly graded and it had a lovely appearance. Except for one big “but.” The coin had a major mint made lamination on the obverse from the rim at 7:30 through the neck down to the 85 in the date. This wasn’t a “slight” lamination; it was huge and in a noticeable place. It wasn’t so severe that I thought it might drop off the coin someday (don’t laugh; this has happened to me before) but it was detracting. I really wanted the coin but the lamination scared me off and I decided to pass. Did I do the right thing? I think so and I got a chance to buy an even nicer PCGS MS62 example of the same date in January 2013 which lacked the lamination.

1854-O: 

Repeat after me: This is not the common date everyone thinks it is. This is not the common...

By the rigorous standards of the No Motto series, the 1854-O is more available than most of its New Orleans counterparts. In higher grades, this date is far scarcer than most people realize and I believe it is scarce and significantly undervalued even in AU55. The availability of this date in VF and EF grades seems to hurt its reputation in higher grades; a situation more often seen with Philadelphia No Motto half eagles than coins from New Orleans.

There are probably fewer than 10 true Uncirculated examples of this date and unlike sexier dates like the 1846-O and 1851-O, a nice higher grade 1854-O half eagle hasn’t appeared at auction for many years.

1855-O: 

The final three No Motto New Orleans half eagles are typically lumped together but in my experience the 1855-O is the scarcest. I believe that there are around 80-90 known with most in the EF40 to AU50 range.

I’d like to claim that this date remains a “secret” known only to specialists but two things lead me to believe that it isn’t. The first is the fact that a decent but, in my opinion, not upgradable NGC AU58 example sold for $10,575 in Heritage’s March 2014. The second is that I recently listed a nice PCGS EF45 example on my website and received no less than five orders for it within three hours of listing it.

1856-O: 

I regard this date to be almost exactly the same rarity as the 1857-O, but it is harder to find with original color and choice surfaces. In fact, I can’t recall the last time I’ve handled a totally original EF or AU example of the 1856-O half eagle.

There are around 100 known with most in the VF-EF range. This date tends to be the least well struck of the 1855-O to 1857-O triumvirate and of the five or six coins which have been graded Uncirculated by the two services, I think only one or two are truly, unquestionably “new.”

Quick thought: it is interesting to note that some of the New Orleans dates from the 1840’s (1843-O Small Letters and Large Letters, 1844-O, 1845-O) are represented by small numbers of obviously Uncirculated, fresh coins in the MS62 to MS64 range. The dates from 1854-O through 1857-O do not come as nice and it appears that while some very small hoards from the 1840’s exist, by the mid-1850’s, these New Orleans coins were not being saved.

1857-O: 

As I just mentioned, the 1857-O is similar in rarity to the 1856-O. I have actually handled more 1857-O half eagles in relatively high grades. This date tends to come “nicer” than the 1855-O and 1856-O with better overall detail and a few more non-stripped coins known.

I’ve written about the finest known 1857-O half eagle before. Graded MS63 by PCGS, this coin is a Numismatic Orphan, having bounced from dealer to collector to dealer to auction for more than a decade. Ironically, its next attempted sale is this Friday.

1892-O: 

For years, this was the ultimate sleeper amongst New Orleans half eagles; a date regarded as only slightly rare but which was, in reality, comparable to some of the higher priced No Motto issues. In the last few years, prices have risen for this date. I recently sold two nice PCGS AU58 examples with CAC approval for around $4,000 and as recently as five years ago, I would have had a hard time getting $3,000 for these. That said, I still think the 1892-O is excellent value.

1893-O: 

An interesting situation—the result of gradeflation—has occurred with this date. A decade ago, population figures for the 1893-O in MS63 were very low. This was a hard coin to make and, if I recall, the population was around four or five in MS63 at PCGS with one finer. Today, PCGS alone has graded 13 in MS63 and prices have dropped in MS63 as a result. This is a phenomenon which occurs routinely with 20^th century issues but rarely with New Orleans half eagles. It will be interesting to see how prices hold up as more are graded MS63.

1894-O: 

One of the things that’s interesting to see about CAC populations is how few New Orleans half eagles, especially in comparatively higher grades, get the coveted sticker. I recently bought an 1894-O in PCGS MS62 with CAC approval and was pretty surprised to learn that only two MS62’s had CAC stickers. I was even more surprised to learn that the PCGS population for this date remains at a low six coins in MS62 and only two finer. I think that the 1894-O suffers from being compared with the 1893-O. The 1894-O is many times scarcer and it remains a truly hard coin to find in properly graded MS62 and higher.

So there you have it: my take on the New Orleans half eagle series. I find these coins to be endlessly fascinating and I hope some of my enthusiasm has rubbed off on you.

Do you buy rare gold coins?

Do you have coins to sell?

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

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

Is it Time to Buy Indian Head Half Eagles?

I am generally not a participant in the generic gold market as I tend to favor scarce and rare dates over more common ones. But I like Indian Head half eagles a lot and a recent experience made me ask the question: “is it time to buy Indian Head half eagles?” I bought a nice, fresh deal of Indian Head half eagles about six weeks ago. All were in very old holders and I broke them out and sent them off to grading. My results were excellent and nearly every coin graded MS64 or MS65. As I got ready to cash in on my windfall, I did some price research and was shocked. Unless they stickered at CAC (more on this in a few moments) the levels I was going to have to sell them left me breathless…and not in a good way.

If you are like me and you don’t really follow the generic market on a day-by-day basis, it can be mystifying to see how cheap most issues have become in the last few years. My non-CAC MS64 Indian head half eagles were worth around $1700 per coin if they were in NGC holders and a bit more in PCGS holders. I was more shocked at how cheap MS65’s have become: around $9,000 for NGC coins and a smidge over $10,000 for PCGS coins. And that’s not to mention the fact that you basically have to twist buyer’s arms to get them to buy any quantity of these even at these cheap, cheap, cheap levels.

Why are Indian Head half eagles so inexpensive in MS64 and MS65? There are a number of answers.

1. Traditional Sellers of Generic Gold Now Sell Other Products

Firms like Blanchard, Swiss America, and Goldline used to sell lots of better quality generic gold coins; items such as MS64 or MS65 Indian Head half eagles. Today, they either sell few generics or if they do, they are focused on those coins with CAC approval. The supply of MS64 and MS65 Indian Head half eagles has stayed consistent as coins are continually found in Europe or upgraded from current holders. The demand has not kept up with the supply, however, and this has resulted in plummeting prices.

2. Owners of Generic Gold Don’t Want to Cost Average Their Positions

Let’s say you bought a few nice MS65 Indian Head half eagles for $15,000 each back around 2006-2007. You are clearly not a happy with today’s prices so much lower than when you purchased your coins. But why not by a few more and use cost-averaging to lower your overall price point(s)? This logic makes sense to me, but for most coin investors it is exactly what they do not want to do. They feel “burned” by Indian Head half eagles and probably want nothing more to do with them. This lack of continuity in the generic market, due to poor price performance, has clearly not helped this market.

3. The CAC Effect

One of the primary reasons why CAC was created was to identify those generic gold coins, particularly in series such as Indian Head half eagles, where the perception was that many coins in MS64 and MS65 holders were over-graded or not, at the very least, “solid” for the grade. CAC has proven to be very tough on Indian Head half eagles, and only a small percentage of the MS64 and MS65 coins sent in for approval have received a green sticker. As a result, stickered MS64 and MS65 Indian Head half eagles sell for very strong premiums; in most cases 25-50% over non-stickered coins. The market perception of non-stickered MS64 and MS65 Indian Head half eagles is they are not “good” coins and, as a result, the price gap between non-CAC and CAC stickered generic gold coins is widening. My gut feeling is that non-stickered MS65 Indian Head half eagles could ultimately be worth half as much as their CAC’d counterparts.

4. The Plus Grade Effect on MS64

It is a matter of opinion whether coins graded MS64+ are actually “better” than coins graded MS64, but the market perception is such that plus-graded coins have begun to sell for significant premiums, even in the generic market. If you are a new collector and you are offered a “regular” MS64 Indian Head half eagle for $1,750, or an MS64+ example for $2,250, the chances are good that you will spend the extra $500 and get the “better” coin. This has clearly hurt the market for MS64 Indian Head half eagles, and it is likely that we will see further price separation between MS64 and MS64+ coins.

5. Changing Tastes Amongst Gold Coin Buyers

More than anything else, the generic gold coin market has been hampered by a lack of demand. Past generations of new collectors and investors were introduced to numismatics by the assembling of the basic 11 or 13 coin U.S. gold coin type set. Today, new collectors are more inclined to collect something which is rare. For $10,000, an AU 1864 half eagle (slightly over 4,000 struck and under 75 known in all grades) is a more sensible purchase than an MS65 1909-D half eagle (nearly 3.5 million struck and over 100 graded in MS65 at PCGS alone) in the minds of these new collectors. It will take a large marketing promotion and lots of re-education to get new collectors to re-think this.

So what is my conclusion? Is it time to buy Indian Head half eagles in MS64 and MS65? I’d like to say yes, but I think that prices could easily drop another 20-30% on these coins in the next year or two. In my opinion, if levels get down to $1,500 for nice MS64’s and $7,500 for MS65’s, I would jump in the market, likely in a big way. For now, I’d avoid this coin unless you need one for a gold type set or if you are a contrarian with some tolerance for risk.

What’s your take on the Indian Head half eagle series and generic gold in general? I’d love to hear from you and encourage you to add your comment(s) in the section below.

Do you buy rare gold coins?

Do you have coins to sell?

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

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

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.

Collecting No Motto New Orleans Half Eagles

If you have a numismatic budget of $2,000-10,000 per coin and you want to explore a series that is reasonably short in duration but long on challenges, I'd strongly suggest No Motto half eagles from New Orleans. Let's take a brief look at this area of collecting and see if it is for you. The New Orleans mint opened in 1838 and began producing silver coins. The first gold issue from this facility was the 1839-O quarter eagle. The next year, coinage of half eagles would begin. Half eagles would be struck, intermittently, until 1857 with a total of twelve issues (thirteen if you count the two varieties of 1843-O). Production did resume in 1892 and three With Motto issues were produced but we are not going to discuss them at this time.

To my way of thinking, No Motto New Orleans half eagles are a great collector-based series for a variety of reasons. These include the following:

*The coins are scarce and undervalued but they are affordable. If you can budget around $5,000 per coin for most of the issues (and $7,500-10,000 for the two keys) you can assemble a really nice group of coins with most of the pieces in the AU grades.

*The coins are well made. Unlike the sometimes poorly produced half eagles from Charlotte and Dahlonega, the New Orleans issues tend to be very well made. If you are a collector who finds strike to be a critical issue, this is going to be an important factor for you.

*There are no unobtainable issues. In both the Charlotte and Dahlonega half eagle series you have at least one very expensive issue (the 1842-C Small Date and the 1861-D). In the New Orleans series, there is nothing that will bust the budget of an average collector.

*There is a great book available on these coins which just happens to have been written by yours truly.

As I mentioned above, there are a total of thirteen different No Motto half eagles from this mint. There are two issues which I would call very scarce to rare, two issues which I would call common to somewhat scarce and nine which are scarce-ish to scarce but which can prove to be challenging if the collector is picky to very picky.

The two really challenging No Motto half eagles from New Orleans are the 1842-O and the 1847-O.  The former has a mintage of 16,400 while the latter has a mintage of 12,000. Both have well under 100 known in all grades and both are usually seen in low grades. Despite the rarity of these two issues, they are still relatively affordable..

As an example, a presentable PCGS VF20 1842-O half eagle sold at auction for just $2,300 in Heritage's 8/11 auction. In 2010, two PCGS EF45 examples brought $3,881 and $3,738. While neither of these coins was what I'd call "PQ" for the grade, they represent amazingly good value at less than four thousand dollars for a date which has not been sold at auction in any AU grade since 2004.

The 1847-O is even rarer than the 1842-O and it is actually less available in higher grades than the far more pricey 1861-D half eagle.  A nice, wholesome NGC VF35 brought $4,025 in the Heritage 12/11 sale and two PCGS EF examples (one in 40 and the other in 45) sold for $7,475 and $8,052 in Heritage's January and August 2011 auctions. In my opinion, a pleasing original EF or AU example of this date at current levels is a terrific value.

The next category of dates--the ones I called "scarce-ish to scarce" include the 1843-O Small Letters and Large Letters, 1845-O, 1846-O, 1851-O, 1855-O, 1856-O and 1857-O. These can actually be sub-divided into the classes: the dates in the 1840's (scarce-ish) and the dates in the 1850's (scarce).

The 1840's dates are all very affordable in the EF grades. The collector is looking $2,000-3,000, on average for nice quality pieces. In AU grades, the collector is looking at $3,000-6,000 depending on quality.

Here are some very brief comments on each of these dates:

*1840-O:  This is the most common of the three first-year-of-issue half eagles from the southern branch mints. Varieties exist with a narrow mill (common) and a wide mill (rare).

*1843-O Small Letters:  The rarer of the two varieties struck this year. Often seen with weakness at the borders from die lapping. Very hard to locate with original surfaces and color.

*1843-O Large Letters:  The more common of the two. A reasonably available issue in EF; available in the lower AU grades but becomes rare in AU55. Generally well struck with good luster.

*1845-O:  Available in EF grades but harder to find than many more expensive C+D half eagles of this era. Generally well struck but often very abraded. Worth a good premium with natural color.

*1846-O:  Harder to find than the 1845-O but comparable in rarity below AU. For some reason, nice AU coins have become much more difficult to find than in the past. A really tough issue in crisp, wholesome AU55 and AU58.

*1851-O:  Similar in rarity to the 1845-O and 1846-O so included with the 1840's issues. Not quite as well struck as the last two but the luster tends to be good. Often seen dipped and worth a strong premium with natural color.

Given their lower mintage figures, one would expect the 1855-O, 1856-O and 1857-O to be scarcer than their counterparts from the 1840's. All three of these are hard to find and, in my opinion, very undervalued in relation to Charlotte and Dahlonega issues from this era.

These three issues are comparable in rarity but I would rank them in this order: 1855-O, 1857-O and 1856-O.

The 1855-O, 1856-O and 1857-O are hard to find in problem-free, original EF grades but, when available, they can still be had to under $3,000 a coin. As an example, look at the 1855-O. Since 2009, there have been four EF45's sold at auction. Prices for these have ranged from a low of $2,302 to a high of $2,700. In my opinion, that is very reasonable for a coin as rare as this.

The two common date No Motto half eagles from this mint are the 1844-O and the 1854-O. The 1844-O had a mintage over 364,600 and it is reasonably easy to locate in grades up to AU55. The 1854-O had a much lower mintage of 46,000. It is less rare than the 1851-O (which has a mintage of 41,000) and can be found in the EF40-AU50 range. In properly graded AU55 and AU58, it is scarce and undervalued.

My ideal set construction for this series would be as follows:

For the collector with a budget of $2,000-3,000 per coin, I would focus on obtaining EF40 to EF45 examples of the scarce dates and AU50 to AU55 examples of the more available ones. The 1842-O is going to require an outlay of at least $3,000-4,000 for a decent high end VF to EF coin. The 1847-O will be a bit more expensive but it is possible, with some patience and luck, to find one for around $5,000-6,000.

For the collector who has a budget of $5,000-10,000 per coin, I'd look at AU55 to AU58 examples of all the dates with the exception of the 1844-O (where I would stretch for an MS62 at $6,00-7,000) and the 1847-O (where I'd hope I can find a nice AU50 or AU53).

For the collector with a big budget of $10,000+ per coin, the focus would be on Uncirculated coins. The majority of the No Motto issues from New Orleans have fewer than a dozen known in Uncirculated. Two issues, the 1842-O and the 1847-O, are exceedingly rare and might not be available above AU55 to AU58 while the final three (1855-O, 1856-O and 1857-O) are not as impossible but are not exactly slouches.

As I mentioned above, this is a series that I think has a ton going for it. It doesn't have the level of popularity which enshrouds the double eagles but it is easier to collect than the No Motto eagles from this mint and far more interesting than the gold dollars or quarter eagles.

No one--and I mean no one!--has handled more interesting No Motto New Orleans half eagles than I have. If this is a series which you want to collect, you should contact me by email at dwn@ont.com and we can discuss it.

Is the Market for Dahlonega Varieties Starting to Heat Up?

For years, I've been commenting on the die varieties of Dahlonega coins. My take has usually been somewhere along the line of "they are neat and they are fun to collect but I'm not sure that I ever see the market for these coins taking off." From time to to time, I talk to a collector who dabbles in Dahlonega varieties and I've even dealt with one or two who have been pretty hard-core. But, with some exceptions, I've never seen prices for these coins reflect this interest. Until possibly now. I'll be the first to tell you that you can't make a declaration about a market based on one auction but, the recent Heritage 2013 FUN sale had a large and varied collection of Dahlonega half eagles by die variety and there seemed to be a trend towards some of the rarer, more obvious varieties selling for premiums. Let's take a look at a few examples and try to make sense of them.

Lot 7189 was an 1854-D Medium D in an NGC VF30 holder. It was a nice coin, solid for the grade and original. NGC doesn't designate this variety so my brilliant plan was to break it out and send it to PCGS where it would grade, I hoped, VF30 and be designated as a Medium D. I bid $1,600 for the coin which would have put me into it at $1,880 with the buyer's premium. The coin brought $1,998 . The price was around 10% more than I expected. Certainly not a huge price premium but enough to make me raise an eyebrow.

The next coins that I found interesting were Lots 7193 and 7194; the former was an 1855-D Large D in NGC AU53 while the latter was an 1855-D Medium D also graded AU53 by NGC. In my experience, the Large D is the scarcer of the two (despite the fact that there were two Large D examples in the sale).

The first coin, lot 7193, sold for $3,182 while the second, lot 7194, sold for $3,290 which sort of disproves my theory that the market for Dahlonega half eagle varieties might be picking up. I partially attribute this to the fact that the Medium D coins are always weakly struck at the centers which means most collectors don't "get" this variety. Had Lot 7193, the Large D, been more attractive, I'm guessing it might have sold for some sort of premium. Clearly, this market is not yet developed enough that collectors are saying "this is a rare variety and even though the coin is kind of ugly I still need to pay a premium for it."

The two coins which were really interesting to me were Lot 7213 and Lot 7214. Both were 1859-D Large D half eagles. These varieties are designated by PCGS, they have very low populations figures and they are clearly visible to the naked eye; sort of the perfect storm for D mint half eagle varieties, if you will.

The first 1859-D (Lot 7213) was graded EF40 by PCGS and I thought the coin was extremely nice for the grade; maybe an EF45/AU50 on a good day. I figured it at $2,100, which meant a shade under $2,500 all in. The coin sold for $4,700 with the buyer's premium which I thought was remarkable.

The second 1859-D (Lot 7214) was graded AU55 by PCGS and I liked the coin even though it had an odd area of light toning directly above the head of Liberty at 12:00. I figured the coin at $3,750 or $4,406 with the fees. The coin wound up selling for $5,875 including the premium.

Were these prices strong? Just as a point of reference, an NGC AU58 1859-D half eagle in the same sale (Lot 7212) sold for $3,819 including the premium. The coin was a bit over-graded, in my opinion, but actually pretty decent and certainly an AU55 all day long.

Now, I don't know who bought the two 1859-D half eagles. They could have been bought by break-out dealers or telemarketers who figured the low PCGS populations meant a potential big score. But assuming they were purchased by variety collectors, I think these prices were extremely significant and they could portend an oncoming wave of interest in varieties.

My guess is that if varieties are to become of interest to collectors, they are going to be just the ones that are designated by PCGS/NGC and the ones that are easily seen with the naked-eye. Will someone care about one of the six varieties of 1848-D half eagle because of the position of the date or the placement of the mintmark? I doubt it. But I think they will care about a coin like the 1848-D/D half eagle which is genuinely rare and which can be appreciated by beginning and advanced collectors alike.

Kudos to Heritage for doing a nice job of cataloging these coins and my hats off to the collector who assembled this variety set, especially the two 1859-D half eagles.

A Neat Dahlonega Knick-Knack

As you become a more passionate collector, "oddball" items become more appealing. I refer to these as knick-knacks and, as you can guess, this is a pretty broad term. For the coin collector, knick-knacks become more appealing as they become more relevant to your collecting specialty. As an example, a collector of Morgan Dollars will be more excited by a canvas silver dollar bag from the Philadelphia mint dated 1885 then I would. To me, this is a neat item but not one that gets my numismatic juices really flowing. I probably shouldn't admit this but there is one area in numismatics that I love above all else: the coinage of the Dahlonega mint. There is something about the coinage from this southern branch mint that appeals to me a little more than any of the other mints. And as someone who loves Dahlonega gold coins, I am always on the lookout for interesting Dahlonega-related knick-knacks.

The problem is that there just aren't many interesting contemporary items from this mint. Sadly, while the Dahlonega mint has left a fascinating legacy of coins for collectors, there are very few items like patterns or mint records or drawings or items from the original mint left for collectors. Around ten years ago I was able to purchase a bullion receipt dated 1856 from the mint (a very rare item and, until a small group of these was found a few years back, one of just two that I had ever seen) but my Dahlonega knick-knack collection was pretty slim.

Until recently, that is.

At the Dallas ANA show, I purchased an item that I think is extremely cool  and probably very rare: a contemporary counterfeit 1842-D Small Date half eagle (shown below) that is the first counterfeit gold coin from this mint that I have ever seen:

The coin was made in brass and later gilt plated. It shows extremely good work, especially on the reverse. It is the proper size and weight (22 mm in diameter and a bit over 8.2 grams) and, as you can see, it appears to have seen a small amount of circulation.

If you think about it, a contemporary counterfeit Dahlonega half eagle makes sense, especially in 1842 which was just the third year in which the new Liberty Head half eagle was produced. For many people, especially those who didn't live that close to Dahlonega, there was not much familiarity with the new coins from this mint and a reasonable facsimile stood a decent chance of entering circulation and staying there.

But, there were other reasons why a coin like this is an amazing anomaly. It was die struck, and someone with real artistic sensibility took the time to create the obverse and reverse dies. A goodly amount of artistic and technological sophistication was required and this doesn't seem to be something that was found in excess in North Georgia in the early 1840's. Also (and I don't know this for sure) the penalties for counterfeiting in the South during this time period had to be excessively harsh. Someone was taking a huge risk to produce counterfeit gold coins in Georgia in the early 1840's, and you have to wonder how many were actually made let alone how many entered circulation.

So, why is this item special to me and why does it now hold a place high in my personal collection of knick-knacks? As someone who is a major dealer in Dahlonega gold, I won't collect the coins from this mint because I don't want to compete against my clients. So this is the closest thing to a "real" piece of D mint gold that I can hope to own. But beyond that, I love the rarity and the history of this piece.

How rare is it? I have never seen another and I'd like to think I've got the inside track on any pieces that would have come onto the market in the past two+ decades. How historic is it? A contemporary counterfeit 1842-D half eagle that is well-designed and which still retains much of its original gilt finish clearly has an incredible story to tell, although I may never know exactly what it is.

Getting back to the original point of this blog, items like this are what make collecting really fun. Regular issue coins are great and there is certainly a huge amount of pride-of-ownership to have a great 1842-D half eagle in your set. But the really esoteric items in the Dahlonega market--or in any other market--really appeal to me. Be they catalogs, original papers, plaster molds...anything that gives me deeper insight into the coins that I love add a lot of value to my personal holdings.

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.

Mintmark Varieties of Dahlonega Half Eagles

For variety collectors, the half eagles struck at the Dahlonega mint are fertile ground. There are a number of very interesting varieties, but currently just a handful of collectors appreciate them. With the upcoming release of the third edition of my Dahlonega book, I feel that this situation may change. In the first two editions of this book, the variety section(s) were not illustrated and, to be honest, had a number of errors and omissions. Thanks to the assistance of Brian Kollar, a cataloger at Heritage Auctions, this has changed. The variety information in the new Dahlonega book is truly "state-of-the art" and I think it will jump-start this area of the market.

Brian spent a lot of time and effort helping me with the varieties. One thing that I have learned from his groundbreaking work--and something I'd like to share with collectors of Dahlonega half eagles--involves the numerous mintmark sizes found on these coins. I think it will be helpful to illustrate each of the three mintmark sizes used and to discuss which years these are found on. I'm also going to discuss the relative scarcity and importance of these varieties.

There are three mintmark sizes seen on Dahlonega half eagles. These are as follows:

Small D: This mintmark is found on 1840-D, 1841-D, 1842-D Small Date, 1842-D Large Date, and 1843-D half eagles. In the new book, the reverses that employ the Small mintmark are lettered as follows: C,D, E and F. It is illustrated below:

Medium D: This mintmark is found on 1843-D, 1844-D, 1854-D, 1855-D, 1859-D, 1860-D, and 1861-D. In the new book, the reverses that employ the Medium mintmark are lettered as follows: G, CC and JJ. It is illustrated below:

Large D:. This mintmark is the most common size and it is found on the 1838-D, 1839-D, 1840-D, 1841-D, 1845-D, 1846-D (both the normal mintmark and the D/D), 1847-D, 1848-D (both the normal mintmark and the D/D), 1849-D, 1850-D, 1851-D, 1852-D, 1853-D, 1854-D, 1855-D, 1856-D, 1857-D, 1858-D, 1859-D, and 1860-D. In the new book, the reverses that use the Large mintmark are lettered as follows: A-B, H-Z, AA, BB and DD-II.

There are six different years in which Dahlonega half eagles are known with more than one mintmark size. Let's take a look at each of these years and discuss the different varieties.

1840-D: There are a total of two different varieties known for this year.

The first is the Large D (Winter Variety 3-B) which is recognized by PCGS as the Tall D. For the sake of consistency I refer to it here as a Large D, but it is sized and configured differently than what is seen in later years. My guess is that this punch was created by Gobrecht and shows his style; the later Large D punch was by Gobrecht and was executed in his distinctive style. The 1840-D Large (or Tall) D half eagle is the more common of the two varieties seen for this year.

The second is the Small D (Winter Variety 4-C) which is recognized by PCGS as the Small D. It is usually seen with a die crack from the rim through the right diagonal of the V in FIVE through the right side of the mintmark and then up onto the shield. This variety is very scarce.

1841-D: There are three die varieties for this year which use two different mintmark sizes.

Winter 5-B uses the Large (or Tall) mintmark first seen on the 1840-D. This is a rare variety and one that is likely to sell for a premium. It is believed that only 4,105 examples were produced early in the year.

Winter 5-D and Winter 6-D use the Small mintmark but it is not the same one as seen on the 1840-D half eagle. Variety 5-D is common; Variety 6-D (which shows repunching on all four digits of the date) appears to be rare.

1843-D: There are two die varieties known for this year.

The first has a Small mintmark as seen on the 1842-D Small Date. Designated as Winter Variety 10-F, it is quite rare and it should sell for a good premium over the other variety of the year.

The second, Winter 11-G, has a Medium mintmark and it is also seen on the 1844-D. Interestingly, it can be best determined by its obverse as it shows a line of three tiny die lumps between the first and second stars which is not present on Variety 10-F. This variety is quite common.

PCGS recognizes two mintmark sizes for the 1853-D half eagle, but this is not correct. All 1853-D half eagles have a Large mintmark. PCGS lists six coins in the population report as having a Medium mintmark.

The next year in which two different mintmark sizes are known for Dahlonega half eagles is 1854.

1854-D: There are a total of four die varieties known.

The two most common varieties of the year, Winter 36-AA and Winter 37-BB, have a Large mintmark.

The rarest of the four varieties is Winter 37-CC, which has a Medium mintmark. This variety should sell for a premium over the Small mintmark but it is less likely to than other years, given how common the 1854-D is as a date.

The most unusual variety of the year, Winter 37-DD, actually has "no" mintmark (!) It was, of course, struck at the Dahlonega mint but the mintmark was so faintly entered into the reverse die that it is sometimes totally impossible to see. Examples do exist, however, with traces of the top of the D.

1855-D: There are two die varieties known for this year.

The more common of the two, Winter 38-CC, has a Medium mintmark. It is appears that this is the same mintmark first used in 1854 to strike Winter 37-CC.

The rarer of the two, Winter 38-EE, has a Large mintmark. It appears to be very scarce and possibly even quite rare.

1859-D: There are two die varieties known for this year.

The first, Winter 43-CC, has a Medium mintmark and it is common. It is the same reverse that was used to strike Winter 37-CC (1854-D) and Winter 38-CC (1855-D).

The second variety, Winter 44-HH, uses a Large mintmark and it is very rare. It uses the same reverse first employed to strike Winter 42-HH (1858-D).

1860-D: There are three varieties known for this year.

The first, Winter 45-HH, has a Large mintmark. It uses the same reverse as on Winter 42-HH (1858-D) and Winter 44-D (1859-D). The second, Winter 45-II, also has a Large mintmark but it is placed closer to the branch than on Winter 45-HH. The former is very rare and the latter is rare.

The third and final variety of the year is Winter 45-JJ. It has a Medium mintmark and is also found on the 1861-D half eagle. It is common.

One can't discuss the mintmark size varieties of Dahlonega half eagles and not discuss the spectacular 1846-D over D and 1848-D over D varieties.

There are actually two different varieties of 1846-D/D half eagle, Winter 17-J and Winter 18-J. The first has a low date and it was also used on the 1846-D Normal Mintmark, Winter 17-I. On the reverse, the mintmark was first punched too high and too far to the right. The second mintmark is lower and further to the left. The second variety of 1846-D/D, Winter 18-J, has a slightly different date punch with the numerals placed a bit higher in the field. The 1846-D/D is common but it is popular due to the fact that it is clearly visible to the naked eye.

A similar but less known variety exists for the 1848-D. The 1848-D/D half eagle, Winter 22-O, shows the original mintmark punched too low and the second punched to the left and then effaced. This variety is much more subtle than the 1846-D/D and unless it is an early die state with both of the mintmark punches visible to the naked eye, it doesn't command a premium.

The mintmark varieties that I have listed here are the ones that I believe to be important and to be the most potentially collectible if and when Dahlonega half eagles become collected in this fashion. There are, of course, dozens of less obvious varieties and this includes some that are very rare.

Building a Basic Type Set of Five Dollar Gold Pieces

The half eagle is the very first gold coin to be struck at the United States mint. This denomination was struck without interruption from 1795 to 1929, and it is the only U.S. gold issue to be produced at all eight United States mints. It is very popular with collectors, but the seemingly endless duration makes it very hard to collect by date. Because of this fact, it is an ideal set to collect by type. Let's take at the eight major types that constitute a half eagle set from 1795 to 1929. The beauty of this set is that while it contains some rare coins, it can be completed by most collectors; even in relatively high grades. While probably not realistic in Gem Uncirculated (although certainly feasible, albeit at a significant price), this set is very realistic in Uncirculated. In fact, many of the coins can be purchased in MS63 and MS64 grades for less than the price of far less rare 20th century gold issues.

1. Capped Bust Small Eagle (1795-1798)

While this type is dated from 1795 through 1798, for most collectors the only two realistic dates for type purposes are the 1795 and the 1796/5. The 1797 is very rare and the 1798 is exceedingly rare with just eight known.

If I were going to be putting this set together, there is no doubt that I would select a 1795 as my Capped Bust Small Eagle type coin. Even though the 1796/5 is much scarcer and probably undervalued in relation to the 1795, the latter is a first-year-of-issue which gives it considerable numismatic significance.

A total of 8,707 1795 Small Eagle reverse half eagles were struck. There are hundreds of coins known, in grades that range from VF+ to EF all the way up to Gem. Depending on the collector's budget, I would suggest either looking for a nice AU50 to AU53 coin or a solid MS62 to MS63. A nice AU coin should be available in the $50,000-60,000 range while an MS62 to MS63 will cost $100,000-150,000.

Due to the price and significance of this coin, I regard it as one of the key members of the half eagle type set. Therefore, the collector should be patient and fussy in his quest for the "right" coin. I think it is important to find an example with choice surfaces and original color. Nice, cosmetically appealing 1795 half eagles used to be available with relative ease a decade ago, but they have become hard to find as so many have been dipped or lightened. A high-end, original coin is worth at least a 15-20% premium over a typical example.

2. Capped Bust Right, Heraldic Eagle Reverse (1795-1807)

This is one of my favorite types of half eagle. It can be neatly subdivided into two categories: those issues struck prior to 1800, and those struck afterwards.

For the pre-1800 issues, there are two dates that make sense for a type set: the 1798 and the 1799. There are a number of varieties of 1798, but the most available (and the one that is best for a type set) is the Large 8 with 13 stars on the reverse. The mintage figure for the 1798 half eagle is reported to be 24,867, and it is likely that no more than 500-750 examples survive in all grades. A nice AU example of the 1798 half eagle should be available for under $25,000-30,000. An Uncirculated coin will cost $40,000-80,000+. In my opinion, the best grades for a type set are AU55 to AU58 and MS62.

The 1799 has a reported mintage of only 7,451 and I regard it as a real "sleeper" in the early half eagle series. It isn't that much more costly than the 1798, yet it is at least two times as rare. I recently sold a lovely PCGS MS62 with CAC approval for less than $45,000, and this seems like truly good value to me.

For most collectors, the best coin to seek for their Capped Bust Right Heraldic Eagle reverse type is going to be a half eagle dated from 1800 to 1807. All of these dates are relatively common, and each has its own merits for inclusion in the set.

If you are going to stick with an AU coin, you should be able to purchase a lovely, high-end example in the $10,000-15,000 range. In Uncirculated, an MS62 will cost around $17,500-20,000+, while an MS63 is $30,000+.

A few important factors to consider when buying this type are originality, color, nice surfaces and a lack of detracting marks. This is a common enough coin that you can afford to be quite finicky when pursuing it. If you don't really like a specific coin, wait until you find the "right" one.

3. Capped Bust Left (1807-1812)

In 1807, Reich again redesigned the half eagle. The new design features a Capped Bust Left obverse and an entirely new reverse.

All six years of this design are basically similar in overall rarity. All six issues also tend to be well made and fairly easy to locate in grades up to and including MS63. This makes it among the easier types in this set to acquire.

What year is "best" for this set? I like the 1812, given its historic association with the War of 1812, but I also like the 1807 for its significance as the first-year-of-issue for the Capped Head Left type. But none of these dates is really "better" than any other.

The best buying tips that I can give for this type are similar with the other early types discussed in this article. If you are purchasing a nice About Uncirculated coins, look for a piece that has the appearance of a Mint State coin but just a slight amount of friction on the high spots. On Uncirculated coins, try and stick with those that are original and those that are minimally abraded with good color and good overall eye appeal.

A nice AU Capped Bust Left should be readily available in the $10,000-15,000 range. A nice Uncirculated coin (one that grades MS62 to MS63) will cost in the area of $20,000-35,000+ depending on the date and grade.

4. Capped Head Left (1813-1834)

The half eagles struck from 1813 through 1834 include some of the rarest and interesting issues of this entire denomination. Unlike some of the very rare half eagles from the 1860's and 1870's, these issues tend not to be rare due to low mintages but because of intensive meltings that began in 1834. The weight of the half eagle was lowered during this year, making the old issues worth more intrinsically than their face value. Most of the issues from the 1820's were almost totally wiped out in the process. The most extreme example is the 1822, of which just three survive from an original mintage of 17,796.

But not all the Capped Head Left half eagles are extreme rarities and it is from the small number of more available dates that the type collector will probably make his selection. The most common issues of this design are the 1813, 1814/3, 1818, and 1820. "Common" is a relative term here, though, as some of these dates, like the 1818 and 1820 are quite rare when compared to the last two types that we discussed in this article.

For type purposes, the 1813 is clearly the best date to choose for this set. It is easily the most available date and it tends to come better produced as well. A nice AU example can be found for less than $15,000 and an MS62 to MS63 is available for less than $30,000.

Let's say that you want to add some real "meat" to this set and decide to include a very rare issue. Is this possible? With patience and a large budget, it is. The 1824, 1825, 1826, and 1827 are all very rare coins but they do become available on average of once (or possibly twice) per year. These issues didn't circulate very much so just a few exist in grades below MS60. If a nice AU coin is available, a collector is looking at an expenditure of at least $50,000-60,000+ while a solid MS62 to MS63 will cost in the $80,000-100,000 range.

In 1829, an important change occurred to the design of this type: the diameter was reduced. Design changes that reflect this include smaller date, letter and star sizes. The 1829-1834 subtype could certainly be included in this half eagle set but it is not absolutely necessary. If it is included, this is a challenging hole to fill as all six issues are quite rare due to the wholesale meltings, mentioned above, that occurred in 1834.

5. Classic Head (1834-1838)

The size and weight of the half eagle was reduced in 1834 and this is reflected by an entirely new design by William Kneass. The Classic Head type was struck from 1834 through 1838. This is a popular and numismatically significant type as it includes the first branch mint issues for this denomination. The southern branch mints at Charlotte, Dahlonega, and New Orleans opened in 1838. The 1838-C and 1838-D issues are scarce and extremely popular, but as they are not readily available in higher grades they are not generally included in a half eagle type set.

Most collectors will select a Philadelphia issue. Due to high original mintage figures, Classic Head half eagles tend to be readily available in circulated grades and are not rare in Uncirculated until you reach the MS64 to MS65 range.

In the highest circulated grades, a common date Classic Head half eagle can be purchased for less than $3,000. Even though these coins are reasonably common, it is remarkable that a classic United States gold coin that is over 175 years old is still so affordable. In MS62 to MS63, a nice coin will cost $6,000-12,000 while an MS64, if it is available, will cost around $20,000+.

Here are some suggestions when buying a Classic Head half eagle. First, if you can, try and buy a date other than the 1834. While interesting as the first-year-of-issue, the 1834 is appreciably more common than dates such as the 1835, 1836, and 1838. Yet in spite of this, these scarcer dates sell for a small premium, even in comparatively high grades. Second, look for a coin with deep, rich natural color. This type is available with good eye appeal and a pretty example is clearly going to add more "oomph" to this set than a washed-out, average quality piece. Finally, try and find a well-struck coin. This design is often weak at the centers so avoid coins that show little central detail.

6. Liberty Head, No Motto Reverse (1839-1866)

The Liberty Head design should be familiar to most collectors as it existed, in this basic format, all the way from 1839 until 1907. The coins struck prior to 1866 did not include the motto IN GOD WE TRUST on the reverse.

Known to collectors as No Motto half eagles, these Liberty Head issues were made at the Charlotte, Dahlonega, Carson City, New Orleans and San Francisco branch mints as well as at Philadelphia.

For most collectors, a Philadelphia No Motto half eagle makes the most sense as a type coin. The more common dates from the 1840's and early 1850's tend to be readily available in the lower Uncirculated grades (MS62 and below) and can be obtained for under $5,000. A collector who wants a nice MS64 will have his choice between a few different dates and should expect to pay around $20,000. Gems of this type do exist, but they are expensive and hard to locate.

The half eagles struck in 1839 are actually a distinct one-year type with a different rendition of the portrait as well as the mintmark on the obverse for the Charlotte and Dahlonega issues. The 1839 half eagle is not rare in circulated grades, but it is scarce in Uncirculated and quite rare in MS62 and above. Expect to pay at least $15,000-20,000 for a higher quality Uncirculated example. A nice AU piece can be found for less than $3,000.

7. Liberty Head, With Motto Reverse (1866-1907)

The With Motto Liberty Head is among the more common types in this set. It was produced from 1866 to 1907 in prodigious quantity at the Philadelphia, Carson City, New Orleans, Denver and San Francisco mints.

For type purposes, most collectors will select a common date Philadelphia or San Francisco With Motto half eagle. The lowest grade that should be included in a better-quality set is probably MS63 to MS64 and a really nice coin is going to be readily available for less than $2,000. As a hint, I'd suggest that you look for a date struck prior to 1900, as that adds a "neatness" factor.

This type is actually easy to find in grades up to and including MS66. I'm not certain I'd commit spending a lot more than $10,000 on an example for a type set unless this set involved a "best of everything" mindset.

8. Indian Head (1908-1929)

The final type in the half eagle set is the attractive and popular Indian Head design. These coins were struck from 1908 to 1929.

This is an easy type to locate in any grade up to and including MS65. An MS64 would be the lowest quality coin I'd recommend for type purposes and these have come down in price to the point where you can buy a nice one for less than $5,000. In MS65, prices have dropped as well and what was once a $20,000-ish coin can now be found for around $12,500.

Here are a few hints when looking for an Indian Head half eagle. First, try to find a slightly better date (like a 1909 or a 1911) that used to sell for a premium, but which is now essentially a type coin. Secondly, be patient and wait for a coin with great color and choice, original surfaces. This is an easy coin to locate so you should wait for a coin that really "speaks" to you.

Assembling this eight (or ten) coin set is a real challenge and quite a bit of fun. Depending on your budget, you could include coins grading from Extremely Fine to Gem Uncirculated. Because of the rarity and cost of the 1795, this is never going to be an inexpensive set, but it is one that I think has the potential to be very desirable in the future.