What To Collect: Suggestions For The New Collector

For the new collector, one of the most difficult--and important--decisions he faces is what to collect. There are a number of factors that shape any eventual decision. These include price, practicality, availability of coins and aesthetics or personal taste. Nearly every collector, whether he is a seasoned veteran or brand new, has budget considerations. A collector's budget will quickly help shape the focus of his eventual collection. If you have a budget of approximately $10,000 per year to spend on coins, I would suggest dividing this amount into five or six purchases; or one every other month. This means that you can purchase interesting coins in the $1,500-$2,000 range and buy them often enough to maintain a high level of interest.

If your collecting budget is relatively small, you should establish your collecting goals accordingly. A budget of $500-$1,000 per coin is too low to collect early gold (i.e., issues struck prior to 1834) or Proof gold. But, as we will see below, there are other areas that $500-$1,000 will go quite far and this is where a collector with this budget should be focused.

Even if you have an unlimited budget, your collecting goals must be realistic. Let's say you have decided to put together a set of Liberty Head double eagles but only wish to purchase gem quality coins. This is not a realistic set, based on the fact that many pre-1880 issues do not exist in these grades and some don't even exist in the lower Mint State range. Being inflexible towards this goal would mean that this collector would soon hit a roadblock and he would be unable to add to his set.

Coin collecting budgets can basically be divided into three sizes: modest, average and above-average. For the sake of convenience, let's say that a modest budget is $500-$1,000 per coin, an average budget is $1,500-$3,000 per coin and an above-average budget is $5000-$10,000+ per coin. What are some of the best choices for interesting sets within these budgets?

I. $500-$1,000 per coin. Best Choice: A Set of Type Three San Francisco Double Eagles

The San Francisco mint struck double eagles from 1877 to 1885 and from 1887 through 1907. In all, there are thirty issues in this set.

The beauty of the San Francisco Type Three double eagle set is that nearly every coin can be obtained in Mint State-62 and Mint State-63 grades for under $1,000. The key issues of the set are the 1878-S, 1879-S, 1880-S and 1881-S and they can be obtained in MS-60 to MS-61 for below $1,000.

If the collector budgets an average of $750 per coin (figuring that he will spend $500-$600 on the common coins and $800-$900 on the scarcer pieces), he can count on spending approximately $22,500. With an approximately yearly budget of $7,500-$10,000, this set can be completed in two to three years.

I like this set for a number of reasons. The coins all have very limited downside risk as they have an intrinsic value of close to $250. San Francisco double eagles from this era tend to have very nice color and show good detail. And, at current price levels, many of these coins seem to be very good value.

OTHER CHOICES: Philadelphia gold dollars, 1849-1889, in Mint State-60 to Mint State-63. Philadelphia quarter eagles, 1880-1907, in Mint State-60 to Mint State-63. Classic Head quarter eagles and half eagles, 1834-1838, in Extremely Fine-45 to About Uncirculated-55.

II. $1,500-$3,000 per coin. Best Choice: A Set of New Orleans Quarter Eagles

The New Orleans mint struck quarter eagles from 1840 to 1843, 1845 to 1847, 1850 to 1852, 1854 and again in 1856-57. There are a total of thirteen issues, including the Large Date and Small Date 1843-O.

This is a set that I have liked for years and have recommended it to many new collectors. The coins are, for the most part, very undervalued in comparison to Charlotte and Dahlonega quarter eagles of this era. Unlike the other branch mint quarter eagles, the New Orleans set is short and completable.

The most expensive coin in this set is the 1845-O. This is a rare and very undervalued issue with an original mintage figure of only 4,000. Despite this coin's obvious rarity, a nice Extremely Fine-45 coin can be purchased in the $2,000-$3,000 range; still within the financial parameters of this set.

Using a $1,500-$3,000 budget per coin for this set, the most practical grade for each of the thirteen issues is still surprisingly high. This means that, when complete, this will be a good looking group with most of the coins in a grade range that is far above average for the date.

I would recommend building this set using the following grades. Along with these grades are approximate price range for nice quality pieces in PCGS or NGC holders.

1840-O: AU-55, $2000-$2500 1850-O: AU-55, $1750-$2000 1842-O: AU-53, $2000-$2250 1851-O: AU-55, $1900-$2250 1843-O Sm. Date: MS-61, $1750-$2000 1852-O: AU-58, $2100-$2400 1843-O Lg. Date: AU-53, $1750-$2250 1854-O: MS-61, $1500-$1750 1845-O: EF-45, $2000-$3000 1856-O: AU-55, $2400-$2700 1846-O: AU-55, $1250-$1500 1857-O: AU-58, $2000-$2250

To upgrade the 1845-O quarter eagle to AU-50 (which I think is a good idea, as it is the rarest coin in the set), the collector would be looking at spending $4,000-$4,500.

The price range for a complete set of New Orleans quarter eagles, as described above, is $22,500-$27,500. Assuming that a collector with a budget of $1,500-$3,000 per coin had an annual budget in the $15,000-$25,000 range, it would take between one and two years to complete the set.

OTHER CHOICES: New Orleans gold dollars, in About Uncirculated-58 to Mint State-63. Three dollar gold piece date set, in About Uncirculated-55 to Mint State-62. Philadelphia no motto eagles, 1840-1860 (no 1858), in About Uncirculated-50 to About Uncirculated-58.

III. $5,000-$10,000 per coin. Best Choice: A Set of Dahlonega Half Eagles

For this last category, I wavered between a set of Charlotte or Dahlonega half eagles. I decided to select the latter since there are no overly expensive or "impossible" coins.

Dahlonega Half eagles are a challenging set but they have some major advantages over their gold dollar and quarter eagles series. The gold dollars, while relatively short-lived, contain at least two dates that are too expensive for this price range (1855-D and 1861-D). The quarter eagle set not only has a number of rare and expensive dates but it has others that, in our required $5,000-$10,000 price range will have to be compromised in terms of quality. The half eagle set makes the most sense. The coins are large and attractive, scarce but available and well within the proper price parameter.

I would recommend building this set using the following grades. Along with these grades are approximate price range for nice quality pieces in PCGS or NGC holders.

1838-D, AU-53: $6000-$8000 1850-D, AU-55: $6000-$7000 1839-D, AU-55: $6000-$8000 1851-D, AU-55: $6000-$7000 1840-D, AU-55: $5500-$7500 1852-D, AU-55: $3500-$4500 1841-D, AU-58: $6500-$8500 1853-D, MS-61: $5000-$7000 1842-D Sm. Date, AU-58: $5500-$7500 1854-D, AU-55: $3000-$4000 1842-D Lg. Date, EF-45: $6000-$8000 1855-D, AU-55: $4000-$5000 1843-D, AU-58: $4000-$6000 1856-D, AU-55: $4000-$5000 1844-D, AU-58: $5500-$7500 1857-D, AU-55: $5500-$6500 1845-D, AU-58: $5000-$7000 1858-D, AU-58: $4500-$5500 1846-D, AU-58: $4500-$5500 1859-D, AU-55: $4000-$5000 1847-D, MS-61: $6500-$7500 1860-D, AU-55: $4000-$5000 1848-D, AU-55: $4000-$5000 1861-D, EF-45: $7000-$9000 1849-D, AU-55: $4250-$5250

To upgrade the key 1861-D to an AU-50, the collector would be looking at an additional $5,000 to $7,500. This would be a sensible outlay, given that this is the single most important coin in the set. The 1842-D Large Date could either be eliminated (using the assumption that the date 1842 is already represented by the more common Small Date variety) or it could be upgraded to an AU-50 for an additional $5,000 or so.

The total cost for the Dahlonega half eagle set in the grades listed above would be approximately $125,000-$165,000. Assuming that a collector with a budget of $5,000-$10,000 per coin had an annual budget of approximately $40,000-$50,000, this set could be assembled in two to three years.

OTHER CHOICES: Charlotte half eagles, in About Uncirculated-50 to About Uncirculated-58. New Orleans half eagles, in About Uncirculated-50 to Mint State-62. San Francisco Type One and Type Two double eagles, About Uncirculated-50 to Mint State-61.

With a bit of study and some realistic evaluation of financial considerations, there are numerous interesting gold coin sets that can be put together.

How Rare Are Rare Date Coins?

In the past few years, there seems to have been an explosion in the availability of rare date United States gold coins. Many issues that were considered very rare a few years ago now seem almost commonplace. Is this actually the case--or is this perception totally incorrect? The correct answer lies somewhere in the middle. A number of interrelated events have occurred during the past few years which have significantly altered the traditional relationship between supply and demand that has dictated the rare date gold market for the better part of three decades. All of these events are important and each needs to be analyzed individually to make any "big picture" conclusions in regards to this market.

I. Rising Prices Have Brought Many Coins Onto The Market

Ten to fifteen years ago, the prices for many better date United States gold coins were extremely low. It was possible to purchase outstanding pieces in the $500-$2000 range. Today, many of these same coins are worth five to ten times (or even more) their original purchase price. Many collectors have decided to take their profits. After all, it's hard to pay $7,000 for another AU-50 1840-C half eagle when the AU-50 you bought fifteen years ago was priced at $750.

II. Grading Standards Have Changed Considerably In The Past Few Years

Population explosions seem to be greater for high grade gold coins than for low and middle grade pieces. There is a good reason for this. The grading standards of the late 1980's and the early 1990's have loosened considerably. The very same coin that PCGS or NGC graded Extremely Fine-45 in 1989 is almost certainly an About Uncirculated-53 to About Uncirculated-55 today. And many of 1989's AU-55 and AU-58 coins are today's Mint State-60, Mint State-61, Mint State-62 or even Mint State-63 pieces. The result of this "gradeflation" is that many dates that once appeared to be very rare in high grade now seem much more readily available. The truth of the matter, however, is that many of these Uncirculated coins are the exact same pieces that were considered About Uncirculated a decade ago.

III. A Number Of Exceptional Hoards Have Come Onto The Market

The last ten years have seen some amazing groups of gold coins enter the market. Some, like the Brother Jonathan hoard of 1861-1865 San Francisco double eagles and the S.S. Central America hoard of 1857-S double eagles and territorial issues, are well known. Others, like the group of Uncirculated 1856-D half eagles discovered in South Carolina a few years back or numerous groups of key date eagles and double eagles found in Europe or other overseas locations, are not as well known. All of these have made certain formerly rare issues much more available in high grades than in the past.

IV. The Market Is Now Dominated By Investors

Until recently, issues such as Charlotte and Dahlonega gold were strictly collector-oriented. Investors were led to believe that these coins were "bad investments" because they were not available in Mint State-65 or because they were "too esoteric." After years of bad performance by investor series such as silver commemoratives or modern type, the same investment gurus who had badmouthed Charlotte and Dahlonega gold coins were now jumping on the bandwagon. The result was a major disturbance in the supply/demand ratio for such coins.

The most immediate result was a quick run-up of prices. Suddenly, a lot more people wanted high quality Charlotte and Dahlonega coins. Many of the Condition Census quality pieces that had previously been owned by serious collectors were now in the hands of investors. This became a negative factor for the short and medium range health of the Charlotte and Dahlonega market.

Collectors are great for markets because they tend to hold their coins for a long period of time. In order for Charlotte and Dahlonega prices to have risen in an orderly fashion, as they did through the 1970's and the 1980's, the coins had to appear to be rare (i.e., the demand had to outstrip the supply). One of the reasons why it has become so hard to find nice medium grade (i.e., Very Fine-35 to Extremely Fine-45) Charlotte and Dahlonega coins is that these are "collector grades" and the people who own these coins hold them for ten to fifteen years.

Investors are bad coin owners because they tend to sell very quickly. They will buy a high grade piece and sell it six months to a year later. This creates a situation where supply suddenly outstrips demand. Even more hazardous is the fact that the perception of rarity for these coins becomes altered. Coins that were once believed to be rare were now trading on a regular basis. While it might have been the same two examples of a specific date that traded over and over, the casual observer was now led to believe that a supposedly rare issue was more available than he had been led to believe.

The fallout from this has been very interesting. As this article is being written, I find that the demand for affordable, lower grade (i.e., Very Fine and Extremely Fine) Charlotte and Dahlonega gold coins, as well as most other branch mint issues, is extremely high. But coins like this are very hard to find as they tend to be in the hands of serious, long-term collectors who do not wish to sell them. I now find myself in the curious position that when someone calls me looking for a $1,500 version of a certain Charlotte or Dahlonega issue, I have to tell him that I do not have this coin but I do have a $10,000 version. The market now seems to be saturated with hard-to-sell expensive coins while the demand is for inexpensive coins.

V. Too Much Information Leads To Disinformation

In the 1970's and 1980's there was very little easily accessible information about United States gold coins. Today, there is an incredible amount of information. For the sophisticated collector or dealer, this data is a godsend. For the neophyte, this information can be confusing or even misleading.

As an example, let's look at the PCGS and NGC population reports. These monthly publications, which list the number of coins graded by each service, have become widely-recognized sources of information. According to the most recent reports (May 2000 for PCGS and April 2000 for NGC), there have been 21 1859-D gold dollars graded in Mint State by PCGS and another 16 have been graded by NGC for a total of 37 coins.

In my 1997 book "Gold Coins of the Dahlonega Mint, 1838-1861" I estimated that 10-12 Uncirculated examples of this date were known. Was my estimate that wrong or is there something misleading about the PCGS and NGC data?

What many people don't realize about the population reports is that the numbers are often greatly swollen by resubmissions. The "21" Mint State 1859-D gold dollars recorded by PCGS might actually be no more than ten or so separate coins. When you also realize the fact that many of the coins graded Mint State-60 or Mint State-61 by this service could just have easily been called About Uncirculated-58, then my original estimate of 10-12 truly Mint State 1859-D gold dollars seems a lot more accurate.

Another type of information that can easily be misinterpreted by neophytes is auction records. Many collectors make purchases based on the fact the a certain coin has or hasn't appeared a certain numbers of times at auction over the course of a few years.

I keep a meticulous database of Condition Census, rarity levels, and frequency of appearance for branch mint gold coins. I can cite numerous rare coins that have appeared in as many as five or six auctions over the course of one year. This is compounded by the fact that this exact coin may have appeared first as a PCGS AU-58, then as an NGC MS-61, then as a PCGS MS-61 and finally as a NGC MS-62. Same coin, four different holders. If you do not carefully track these appearances and study the plates in the auction catalogs (or view the coins in person), you can make some incorrect assumptions about the rarity of rare date U.S. gold coins.

VI. A New Type of Dealer Starts Buying Dated Gold

Until recently, the number of dealers who were serious buyers of rare date U.S. gold coins was fairly small. They tended to be knowledgeable purists who bought coins for collectors. They were stable in their business endeavors and didn't look at every coin as an upgrade or "breakout" opportunity.

This all began to change as price levels increased and value spreads widened. Suddenly, a date might be worth $1,500 in Extremely Fine-45 and $7,500 in About Uncirculated-50. The possibility of upgrading a coin from this proved to be extremely tempting; especially after grading standards became more loose.

The rare date gold market was then invaded by "crackout" dealers who would buy a wide range of coins in a wide range of grades. This type of dealer thinks nothing about submitting a coin five, ten or even fifteen times before he gets it into the "right" holder. If this dealer does not keep very careful track of the PCGS or NGC inserts from each of his submissions, the possibility of some--or all--of them becoming lost is great. I can cite numerous examples where the PCGS or NGC population for a truly rare coin is now totally out-of-kilter because one dealer submitted a coin ten times then either lost the inserts or is holding onto them for some reason.

VII. A Case Study: The 1840-C Half Eagle

To prove--or disprove--my thesis, I thought it would be interesting to look at a specific rare date gold issue and analyze its rarity. A good example is the 1840-C half eagle. This was a coin that I once believed was very rare in all grades and I would become excited whenever I had the opportunity to purchase an example. Today, I still think this is a scarce issue but I no longer seem to care about 1840-C half eagles when they are offered to me.

When my book "Charlotte Mint Gold Coins: 1838-1861" was published by Bowers and Merena in 1987, I estimated that 55-60 1840-C half eagles were known with just four or five of these in AU and none in Mint State. In 1999, I published a revised edition of this book and suggested that there were eight to ten known in AU and another one or two in Mint State. The May 2000 PCGS Population Report shows sixteen 1840-C half eagles having been graded in all AU grades and one coin in Mint State while the May 2000 NGC Census Report shows another sixteen in AU and three in Mint State. Has the 1840-C half eagle really become this much more available in the last decade and a half?

The answer is multi-faceted and somewhat complicated. I was clearly too conservative in my 1987 estimates; both in terms of this date's overall and high grade rarity. My 1999 estimates are more realistic but still probably on the low side. However, the PCGS and NGC population figures for this date are ridiculously inflated. The actual number of true About Uncirculated 1840-C half eagles is more likely in the area of a dozen pieces. There are three true Mint State coins that I know of and I was not aware of any of these in 1987 and two of them in 1999. The third is a coin that only recently "came out of the woodwork."

I believe that the following conclusions can be reached in regard to this date:

The PCGS and NGC population figures are inflated due to resubmissions. Many of the coins graded AU-50 and AU-53 by PCGS and NGC are coins that would have been graded Extremely Fine in the 1980's and early 1990's. A few very high grade pieces came on the market (the finest known Pittman coin, graded MS-64 by NGC and the PCGS MS-62 Milas coin which first surfaced in the 1994 James Stack sale). Both of these coins had been off the market since the 1940's and I had no idea that they existed until they reappeared. Price levels for this date have risen to the point that few collectors can afford to buy high grade 1840-C half eagles. Thus, this is now an "investor coin" in high grades and, as a result, the overgraded high grade pieces that exist tend to bounce between dealers and in and out of auctions.

Are rare date gold coins not as rare as we have been led to believe? In some cases, the answer is yes but in most cases I feel that a combination of factors have conspired to distort the true rarity of these issues. Hopefully, the next generation of collectors will be able to make sense of this increasingly confusing jumble of data.

The Ten Coolest United States Coins

About five years ago, a dealer who specialized in ultra-expensive United States coins had an advertising campaign that said, basically, your entire coin collection should be able to fit into a single PCGS/NGC coin storage box. Such a box holds exactly twenty coins. This was obviously an elitist sentiment and it was generally derided as being pretentious. But I thought it had some merit. In numismatics, quality is always a surer bet than quantity (although a large quantity of great quality is best of all...)

I recently got a phone call from a wealthy new collector who asked me to draft a very interesting proposal for him. He was interested in collecting coins but he had very little spare time available to devote to learning about them. So he asked me to come up with a list of ten coins that, in my opinion, were the most significant United States issues.

As I got to thinking about this list of coins, I drew up the following parameters:

The coins had to be very historic. Their historic significance had to be easily understood, even by someone who didn't know much about U.S. History or coinage. They had to be coins that were always in demand, in good markets and bad. They had to have multiple levels of demand. In other words, they had to be considered desirable by a number of different groups of collectors. They had to be attractive in terms of their design. They had to be rare, but not so rare that they commanded an inordinate date premium.

This collector gave me some other parameters to consider as well. While wealthy, he did not have unlimited funds; nor did he like coins enough that he wanted to put an inordinate amount of his net worth into his collection. This collection would not consist of the "finest known" or the "best" of anything. Rather, it would consist of ten attractive, original, above-average quality examples of the ten most interesting and readily liquid United States coins. In essence, this collection would be themed as the "coolest coins ever struck in the United States," if you will.

Here is the list that I prepared for this collector, along with why I thought each coin should be in this small but special collection.

1. 1776 Continental Dollar

This is not a regular issue coin but, rather, a proposed or speculative issue. Varieties are known in silver, pewter and brass and with different spellings of the word CURRENCY. For this set, I would suggest a pewter piece with the spelling "CURENCY" and the lack of the designers initials (represented on this coin as "EG FECIT," which is believed to signify that the design was by Elisha Gallaudet).

It is probable that these coins did circulate in colonial America and that they did have a recognized value. This fact makes them a legitimate candidate for the first "dollar" struck in this country as well as the largest coin, in terms of size, issued prior to the establishment of the United States. The magical date 1776 makes them even more desirable, in my opinion. And, finally, the charming design on the reverse (featuring thirteen interlinked rings with the name of each colony and symbolizing unity) is believed to have been suggested by Benjamin Franklin.

For this set, I would opt for a very slightly worn piece; perhaps in the About Uncirculated-55 to 58 range. I like the idea that the coin saw some light circulation during the colonial era but would want it to be lustrous and well struck. Such a coin would cost $7,500-$10,000; making it an exceptional value for such an incredibly historic issue.

2. 1792 Half Disme

After obtaining its independence from Great Britain, one of the first legislative acts that the United States considered was the establishment of its own coinage. The first experiments were conducted in 1792. Most of the initial United States mint issues are extremely rare today. The most available is the 1792 Half Disme (the spelling of the word "Dime" was not changed until the beginning of the 19th century).

The story behind this coin is very interesting. George Washington was actively involved in its production and legend has it that he contributed his family's personal silverware for use in the striking of these coins.

Approximately 1,500 pieces were made and survivors are a bit more plentiful than generally realized. This is an extremely significant coin as it is the first United States issued struck by mint personnel in any quantity for use in circulation.

For this set, I would look for a nice About Uncirculated coin with original coloration and nice surfaces. The current value of such a coin is approximately $10,000-$15,000.

3. 1793 Chain Cent

The first two denominations to be struck by the United States mint were the half cent and the cent. Coinage for both began in 1793. Three designs are known for 1793 cents. The first, and most appealing in my opinion, is the Chain Cent.

A total of 36,103 1793 Chain cents were produced. The very first of these are easily identified by having the abbreviation AMERI. (for AMERICA) in the reverse legend. In my opinion, these are by far the most desirable of the major varieties and it is believed that around 7,000 were produced.

Chain Cents are often found very well worn and generally come with the obverse much weaker than the reverse. For this set, I would select a nice brown Extremely Fine to About Uncirculated piece. I would be very careful in making my selection and would look for a piece with good eye appeal, an above average strike and nice surfaces. Coins like this are rare and in great demand and I would expect to pay well in excess of current published values. An Extremely Fine coin is currently valued in the $20,000-$30,000 range while an About Uncirculated coin is worth $35,000-$45,000+.

4. 1794 Silver Dollar

The silver dollar was among the first coins authorized by the United States government. It is hard to think of a more significant coin for the fledgling United States than the dollar as it was the largest circulating coin at the time, both in terms of its size and its value.

This was a very difficult coin for the new mint to strike as they did not own equipment for coins larger than a half dollar. In addition, most 1794 dollars were struck from improperly aligned dies, making the date, the left stars, and the words UNITED STATES appear very weak.

Of the 1,758 pieces believed to have been struck, around 125 are known today. For this set, I would look for a nice, evenly worn Extremely Fine with as sharp a strike as possible. In particular, I would look for a coin with a well-defined date and reasonably sharp stars. This is another issue that is in great demand and nice coins always bring much more than published values. I would expect to pay between $75,000 and $90,000 for the right piece.

5. 1795 Eagle

The eagle, or ten dollar piece, was the highest denomination American coin until the twenty dollar gold piece was authorized in 1849. The essence of this coin is very easy to state in a few words: it is the first year of issue of the most important early gold type.

Only 5,583 1795 eagles were struck. There are a few hundred pieces known and this includes more high grade pieces than one might expect. The 1796 eagle is a much rarer coin and it is very undervalued in relation to the 1795. But I would much rather have the 1795 due to its significance.

For this set, I would choose a nice About Uncirculated example with clean surfaces, no significant adjustment marks, original color and a sharp strike. Such a coin, when available, would probably cost in the area of $30,000-$35,000.

6. 1836 Gobrecht Dollar

After a three decade hiatus, the silver dollar was resurrected in 1836. Its design was considered one of the most important projects undertaken by the new Mint Engraver Christian Gobrecht. From 1836 to 1839, he prepared a number of designs; which are among the most attractive coins ever struck in the United States in my opinion. My personal favorite is the so-called 1836 "original" with the engraver's name on the obverse and the reverse with stars above and below the eagle.

1,000 of these were struck as Proofs at the end of 1836. They were made for circulation and can be distinguished from those struck in 1837 (but dated 1836) by the orientation of the eagle on the reverse. They are generally found with some degree of wear and, for some reason, uncleaned pieces generally have extremely deep toning.

For this set, I would select a Proof-62 to Proof-63 example with attractive coloration, minimal detracting hairlines and good overall eye appeal. I would expect such a coin to cost in the area of $15,000-$20,000.

7. 1850 Double Eagle

The first regular issue double eagles are dated 1850; examples were struck at both the Philadelphia and New Orleans mints. Although the Philadelphia issue is much more available than its branch mint counterpart, I have long felt that the 1850 double eagle was one of the most important United States coins. In a nutshell, it is the first collectible Double Eagle and the twenty dollar gold piece is the largest and most popular United States gold coin.

1,117,261 1850 double eagles were struck and this is not an especially scarce issue in circulated grades. There are around 40-60 known in Uncirculated with most of these in the MS-60 to MS-61 range. This date is often found with an especially sharp strike, nice coloration and very good eye appeal.

For this set, I would select a Mint State-61 example that was original, lustrous and minimally abraded. The cost of this coin would be in the area of $6,000-$9,000; making it among the best values in this collection.

8. 1861-D Gold Dollar

The 1861-D gold dollar is the only coin that can be positively proven to having been struck by the Confederacy. After the branch mint at Dahlonega was seized in April 1861, a small number (1,000-2,000) were produced. Unlike such issues as the 1861-C half eagle and the 1861-O double eagle, which had mintage figures that include Federal and Confederate strikings, every single 1861-D gold dollar is a Confederate striking. This makes these coins, in my opinion, among the most historic issues available to collectors.

There are approximately 75-100 examples known with the typical specimen grading About Uncirculated. This issue is generally found with a poor strike and some planchet irregularities.

The 1861-D gold dollar I would choose for this set would be a very high end About Uncirculated-58 with as good a strike and as clean surfaces as possible. The cost for such a coin would be in the range of $17,500-$20,000.

9. 1879 Flowing Hair Stella

The four dollar "Stella" (so named because of the prominent star on the reverse) was a result of discussions regarding international trade coinage during the 1870's. A very limited number were made, with two different designs, during 1879 and 1880. The most available of these is the 1879 Flowing Hair.

The official mintage figure for the 1879 Flowing Hair Stella is 425 coins, although it is possible that a few more were produced. Approximately half of the original mintage survives today, in grades ranging from Very Good to Gem Proof.

My choice of Stella for this set would be a Proof-63. I would try to look for a coin with nice original surfaces, pleasing color and minimal hairlines or marks. A coin of this quality would cost in the area of $50,000-$55,000.

10. 1907 High Relief Double Eagle

Theodore Roosevelt believed that United States coinage designs had, by the early 1900's, become stale and out of touch. He was particularly eager to redesign the four United States gold denominations. For the eagle and double eagle he hired the prominent sculptor Augustus St. Gaudens.

St. Gaudens' battle with the entrenched Mint personnel is well known as is their subterfuge of his spectacular original design. The "High Relief" that most collectors are familiar with today is a severely watered-down version of his incredible "Ultra High Relief" design. Nevertheless, the 1907 High Relief is still widely regarded as the most beautiful American gold coin.

11,250 examples of this design were struck and the survival rate is uncommonly high. Despite this coin's relative availability, it is still a highly priced coin. But it is priced relative to its extreme popularity and, in my opinion, it is an essential member of this ten coin set.

The High Relief that I would include would be a high end MS-64. The cost of such a coin would range from $14,000 to $17,000.

Conclusion

The total cost for this set, with each of the coins in the grade ranges described above, would be approximately $250,000-$350,000. It would probably take a number of years to complete this set, especially if the collector is very particular in regard to the quality of each piece.

It is my opinion that this would be a great set of coins to assemble. There are certainly other American coins that can also be considered "cool," but these are the ones that I find most appealing.

Carson City Eagles: An Introduction and Overview

The Carson City ten-dollar gold piece or eagle series is the most difficult of the three gold denominations struck by this mint to collect. It contains the single rarest gold coin ever struck by this mint: the 1870-CC eagle, which is even rarer than its more celebrated and far more expensive counterpart, the 1870-CC double eagle. The completion of a Carson City eagle set is a very formidable task. Since only 35-45 1870-CC eagles are estimated to exist, only this number of complete sets of Carson City eagles can be formed. In comparison, 50-60 Carson City half eagle and 40-50 Carson City double eagles sets can be formed. As with the half eagle and double eagle series, completion of a set of the Carson City eagles is difficult but certainly realistic. There are only 19 dates in this series. Unlike the Philadelphia eagle series, the Carson City coinage is short yet, simultaneously, formidable. There are no impossibly rare or prohibitively expensive coins which make finishing a set impossible. Thus, it is a reasonable expectation to finish a Carson City eagle set, given enough time, money, and patience.

If a collector desires more of a challenge, he need only set his sights on higher grade coins. The Carson City eagles are generally rarer in higher grades (in this case About Uncirculated-50 or above) than their half eagle counterparts.

While Carson City eagles have never been touted as an investment vehicle, they have, in fact, shown excellent price appreciation over the past few decades. Values have risen steadily in the past decade despite a large price drop in the levels for common, "generic" coins. The western migration of the American people, along with a related increase of interest in western history and art, has caused Carson City coinage to be in demand among an increasing number of avid, well-heeled collectors and investors. The romance of the Old West along with the rarity of the Carson City eagles has made this a very popular series. These coins are also in demand by general collectors and type collectors.

Regardless of one's time and resources, a complete set of Carson City eagles in Uncirculated grades could never be assembled. Seven or eight of the 19 dates are currently unknown in full Mint State and there are many more dates in the eagle series that do not exist in Mint State than there are in the half eagle or double eagle series.

A partial Uncirculated set is just as daunting. The two most common issues from the 1870's, the 1871-CC and the 1874-CC, are exceedingly rare in Uncirculated. A half dozen or fewer Mint State 1880-CC, 1882-CC, 1883-CC, 1884-CC and 1893-CC eagles are known and nearly all of the Uncirculated pieces which exist for these dates are either in tightly-held collections or grade no better than Mint State-60. Even the second most obtainable Carson City eagle in Uncirculated, the 1892-CC, is a reasonably rare coin and the only issue that can be located in Uncirculated with any degree of regularity is the 1891-CC.

Choice Mint State (MS-63 and MS-64) Carson City eagles are very rare with probably no more than two dozen of all dates combined in existence. Gem Mint State (MS-65) Carson City eagles are essentially unobtainable. From the entire decade of the 1870's, only one MS-64 Carson City eagle (an 1874-CC) is known. Choice examples from the 1880's are currently unknown. The majority of the choice and gem pieces available are from the 1890's, specifically from 1891.

As with the other gold coin denominations from this mint, the rarity of the Carson City issues in high grades has to do with the fact that there were no coin collectors in Nevada who attempted to save these coins at the time they were struck. The few Mint State pieces that do exist have either survived by good luck or sheer coincidence. They may have been hidden in a bank vault for many years (as were some very high grade Carson City eagles purchased at the beginning of the 20th century by John Clapp, Sr. and later sold by his son to Louis Eliasberg, Sr. in 1942) or they were sent to Europe or South American banks as foreign trade payments. The coins that went overseas or that were found by collectors before the Depression were spared the cruel fate of being melted in the 1930's. Some of the other surviving Uncirculated pieces may have been assay coins that were shipped to Philadelphia and never destroyed after they were weighed and examined.

A careful look at the Carson City eagle series reveals some very interesting trends. Survival statistics depend, to some extent, on the original quantity minted and vary according to the era in which they were struck. In general (with the sole exception being the 1882-CC), the rarest coins in the series are the ones minted from 1870 through 1879. The 1882-CC is rarer than the most available date from the 1870's, the 1870's, the 1874-CC. The Carson City eagles produced in 1880, 1883-84 and 1893 are the next rarest. The 1881-CC is the most common date from the 1880's. The 1890 and the 1892 issues are considerably more difficult to locate than the 1891-CC which is by far the most readily available Carson City eagle.

The coins minted during the heyday of the Comstock Lode (1870-1879) have survived roughly--although not strictly--in proportion to their original mintage figures. I estimate that between two percent and as little as one half of one percent of each year's original production of eagles has survived. In general, the older the coin, the lower the average surviving grade and the fewer the high grade specimens that are known. This is intuitive reasoning as much as anything. The longer a coin remains in circulation, the more likely it is to become heavily worn or destroyed. Thus, the rarest Carson City eagle (the 1870-CC) is the oldest, despite the fact that this issue has only the sixth lowest mintage figure in the series.

The 1879-CC is the next rarest coin in the series and it has the lowest mintage figure of any Carson City gold coin with just 1,762 pieces produced. I estimate that around 40 to 50 of these survive. This makes it only a bit less rare than the more famous and far more expensive 1870-CC double eagle. Given the fact that it has such a low mintage, the 1879-CC eagle is actually a bit more available than one might assume. This issue has an estimated survival population of between 2.5% and 3% which is far and away the highest survival percentage of any pre-1890 Carson City eagle. This strongly suggests that there was a hoard of this date at one time.

The third rarest Carson City eagle is the 1878-CC. This date has the second lowest mintage figure--3,244 coins. I estimate that between 45 and 55 pieces exist. The survival percentage of this issue is higher than average and its rarity is primarily attributable to its very small original mintage. Interestingly, all of the 1877-1879 Carson City eagles have higher survival percentages than the rest of the coins in this series. This suggests that the hoard of 1879-CC eagles that was described above may have also included pieces dated 1877-CC and 1878-CC.

The 1872-CC is just a bit more available than the 1878-CC with an estimated 50-60 pieces known. This date has the fifth lowest mintage figure of all Carson City eagles with 4,600 pieces struck. However, as the 1872-CC is one of the earliest dates in this series, it had more time to acquire wear in circulation and/or to be destroyed. This has made the 1872-CC eagle rare both in terms of total numbers known and the average grade of its surviving population.

The 1873-CC and the 1877-CC eagles are similar to the 1872-CC in terms of the total numbers known. Each of these has an estimated surviving population of 50-60 coins. The mintage figures for these issues are fairly similar with 4,543 for the former and 3,332 for the latter. The comparable mintage figures for these two dates and the fact that they were struck just four years apart probably best explains why they are so similar in terms of their overall rarity.

A relatively high proportion of the surviving 1877-CC eagles grade Extremely Fine or higher. Of the 50-60 pieces believed to exist in all grades, twenty five to thirty one of these grade Extremely Fine or above. This is a disproportionately high percentage of high grade pieces when compared to the other dates from the 1870's. Interestingly, the same scenario is true in regards to the 1877-CC half eagle. This strongly suggests that there was, at one time, a small hoard of 1877-CC half eagles and eagles which included coins in the Extremely Fine to About Uncirculated.

The 1875-CC has one of the lowest survival rates of the 1870's dates and a much lower rate than the 1876-1879 issues. There has never been an explanation for this but my research has uncovered a fact that may provide an answer. It is possible that a quantity of newly minted 1875-CC eagles were damaged while stored in banks, shops or saloons during the great fire that ravaged Virginia City, Nevada in October, 1875.

The second most available Carson City eagle from the 1870's is the 1871-CC. Of the 8,805 that were originally struck, approximately 80-90 survive. With the exception of the 1874-CC, the 1871-CC has the highest mintage figure of any of the 1870's Carson City eagles. However, its rarity is maintained by its status as a very early date and its subsequent high rate of heavily worn and/or destroyed coins.

The most common Carson City eagle from the 1870's is the 1874-CC. Its mintage figure of 16,767 is more than double that of any other Carson City eagle struck during this decade. Much of this production was sent to Eastern states to meet a severe coin shortage. Despite its comparatively high mintage figure, the 1874-CC actually has one of the lowest survival rates of any Carson City eagle from this decade. This explains why this issue is still scarce despite its comparatively high mintage figure. It should also be noted that the 1874-CC half eagle also has a low survival percentage. It is likely that a similar fate befell both of these issues and destroyed an abnormally high percentage of the original mintage.

The 1882-CC is the only post-1880 Carson City mint that can be termed as scarce in any grade. An estimated 130-140 survive from the original mintage figure of 6,764. It has a relatively high survival percentage since it is a later date and, possibly, because a small hoard existed at one time.

The 1880-CC, 1883-CC, 1884-CC, and 1893-CC eagles are similar in regards to their original mintage figures and their estimated survival figures. The mintages for these four issues were 11,190, 12,000, 9,925 and 14,000 respectively. I estimate that between 125 and 175 of each issue have survived. Despite a slightly higher mintage figure and its later date of issuance, the 1893-CC may actually be the rarest of these four coins. The 1881-CC is the most common Carson City eagle struck prior to 1890. There are as many as 300 coins surviving from the original mintage figure of 24,015. This comparably high mintage figure accurately predicts that this date would be the most available from the 1880's.

The 1890-CC and the 1892-CC eagles are relatively close in rarity. The former has an estimated 350-400 known while the latter has approximately 400-450. These figures are interesting as the mintage figures for these two (17,500 for the 1890-CC and 40,000 for the 1892-CC) are so dissimilar. I noted in the overview on Carson City half eagles that fewer high grade 1892-CC half eagles have survived than of the other high mintage dates of the 1890's. The same is true with 1892-CC eagles. I cannot offer an exact reason for this curious anomaly. It does seem likely that many of the 1892-CC half eagles and eagles at some time underwent a similar destructive fate. Perhaps a large quantity of coins was not released and was later melted.

The 1891-CC eagle is by far the most common date of this series, as clearly suggested by its large mintage of 103,732 coins.

Carson City gold coins were struck for use in circulation. During the western gold and silver rushes, paper money was suspect. Thus, gold and silver coins were the accepted method of payment and saw very active commercial use. It is not surprising to find that those Carson City gold coins that did survive show extensive wear and heavily marked surfaces from their years in circulation.

It remains very curious that more higher grade Carson City eagles, especially from the 1870's, did not survive. Every eagle struck during this decade is now very rare in About Uncirculated and either unknown or excessively rare in Mint State. Why is this so, especially when quantities (albeit small ones) of eagles from Philadelphia and San Francisco from the 1870's are known in these higher grades?

One of the most likely reasons is the fact that, in the 1870's, ten dollars was so much money that only a tiny handful of people could even think of saving an eagle as a collectible item. But, conversely, there were some very wealthy people in the West at that time. Some of these newly made millionaires appreciated art and were collectors in their own right. So why didn't even a single one of these people decide to keep a newly-minted Carson City eagle from each year as a momento? It is even more surprising that no one bothered to save a new 1870-CC eagle as a first-year-of-issue souvenir, especially when one considers that a number of 1870-CC silver dollars were saved in this fashion.

The few Mint State Carson City eagles which do exist are invariably less choice than comparable Carson City half eagles. There is a sensible explanation for this. Eagles are larger than half eagles and they weigh more. When they come into contact with each other during transfer and storage, they cause larger marks. These coins were thrown loose into bags after they were struck and little care was given to them. This is precisely why they are so rare in high grades. And, Carson City double eagles are even more difficult to find in high grades since they are the heaviest of the three gold denominations produced at the Carson City mint.

For the collector, locating attractive Carson City eagles in higher grades (I.e., Extremely Fine and better) is very challenging. The typical coin, especially for the 1870-1879 dates, grades Very Fine or so and is characterized by excessive bagmarks and poor overall eye appeal.

The rarest Carson City eagle in Extremely Fine or higher is the 1870-CC with an estimated population of 11-13 coins. I estimate that only 12-15 1873-CC eagles are known in Extremely Fine or higher, making this the second rarest Carson City eagle in this grade range. Only 13-15 of the 1872-CC eagle are known to exist in Extremely Fine or higher. The 1875-CC and the 1878-CC have estimated population of 17-20 and 17-21 coins, respectively, in Extremely Fine or higher grades. The extreme condition rarity of these issues is a combination of their status as early dates and their very low original mintage figures.

The next rarity tier for higher grade Carson City eagles is led by the 1879-CC with an estimated 20-25 coins known in Extremely Fine or higher grades. Even though this issue is the second rarest Carson City eagle in terms of its overall rarity, it is more obtainable in higher grades than generally believed. This means that while this date does not appear for sale very often, when it does come up for sale, the average piece is likely to be in a higher grade than for such dates as the 1870-CC, 1872-CC, 1873-CC and 1875-CC.

As one would expect as mintage figures increase for these coins and the dates of issuance become more recent, the rarity of higher grade pieces diminishes. The two highest mintage dates of the 1870's are the 1871-CC and the 1874-CC and these are, not surprisingly, the two most available Carson City eagles of this era in higher grades. I estimate that there are between 32 and 37 1871-CC eagles known in Extremely Fine and above and between 44 and 61 of the 1874-CC.

Despite its very low mintage, the 1877-CC is more common in Extremely Fine than other Carson City eagles of this era. There are an estimated 19-22 known in Extremely Fine. However, this date is very rare in About Uncirculated, and it compares favorably to issues such as the 1872-CC, 1873-CC, 1875-CC, 1876-CC and 1878-CC in this very high grade range.

Like the similarly dated half eagle, the 1874-CC eagle is the most available issue from the 1870's both in terms of overall rarity and availability in high grade. In the overview on half eagles earlier in this book, I proposed a hypothesis which, I feel, explains this. The 1874-CC does have the highest mintage figure of any Carson City half eagle from the 1870's. But being an early date, one would guess that it would be less available in higher grades than it actually is. I feel that many 1874-CC eagles were shipped to the east coast to meet a need for circulating coins. It is very conceivable that a decent-sized group of 1874-CC eagles stayed in an eastern bank where they sat for many years and were later melted.

The 1882-CC eagle is a rare coin in terms of the total number of specimens that are known to exist. But it, too, is a bit less rare in high grades than one might assume. I estimate that 89-97 are known in Extremely Fine or above with approximately three dozen in About Uncirculated and just one or two in Uncirculated. For some reason, this date has an odd distribution of specimens known. One would expect there to be more lower grade and fewer higher grade 1882-CC eagle than there actually are.

The 1880-CC, 1883-CC, 1884-CC, and 1893-CC are fairly similar in terms of their high grade rarity. The 1880-CC is the most available of these issues in About Uncirculated while the 1880-CC and the 1884-CC are the most available in About Uncirculated. Taken as a group, all of these issues are reasonably available in Extremely Fine, scarce to very scarce in About Uncirculated and very rare in Uncirculated.

The 1881-CC is the most common Carson City eagle struck prior to 1890. The number of Uncirculated pieces has swelled in recent years, due to the discovery of a moderate-sized hoard in the late 1990's. The 1881-CC is now actually slightly overvalued in higher grades, based on its availability in About Uncirculated and Uncirculated.

The 1892-CC, on the other hand, is an underrated coin. This is due to its higher mintage and its late date of issuance. The 1892-CC is almost comparable to the 1881-CC in terms of the number believed to exist in About Uncirculated to Uncirculated but it is priced considerably lower.

The existing Carson City eagles from the 1880's and the 1890's are found in considerably higher grades than those struck in the 1870's. This may be the result of the diminishing use of gold coins as the 19th century drew to a close and also because the older coins were in circulation for ten to twenty years longer. By the 1880's, mintages of Carson City eagles had increased and a greater percentage of these coins were sent overseas to banks for debt payment. The existence of such a large number of 1891-CC eagles in higher grades is clear evidence that the coins of this era served a much different function than did the coins produced two decades earlier. These coins exist in higher grade today mainly because they were sent overseas and avoided the melting pot. There is no telling how many Carson City eagles from the 1870's and the 1880's were melted in the 1930's.

I estimate that more than 50% of all remaining Carson City eagles, regardless of date, are from the 1890's. This implies that these four issues have more surviving specimens than the other fifteen years combined. Approximately 90% of all existing Carson City eagles are from the 1890's. Furthermore, I estimate that around 75% of all the existing About Uncirculated Carson City eagles are from this four year period. The 1891-CC eagle is more plentiful than the other three dates from the 1890's combined. Approximately 90% of all the Uncirculated Carson City eagles which exist are from this one date. In fact, the only other date which is available with even the slightest degree of regularity is the 1890-CC, of which maybe five dozen are known.

Many of the early issues are weakly struck. This weakness of strike is most noticeable in the central portions of the coin, where the most pressure is needed to raise the metal of the planchet to give definition to the design. On the obverse, these softly struck coins often display considerable flatness on the neck of Liberty and brow as well as on the top and the rear of her hair. On the reverse, the weakness of strike is usually obvious on the neck feathers of the eagle, the central portion of the shield and the talons. This weakness of strike is often erroneously described as wear. Because of this, the Carson City eagles from the 1870's are often incorrectly graded; even by professional grading services.

The 1870-CC is often found with weakness of strike on Liberty's neck and the eagle's neck feathers. The 1871-CC is typically found with a reasonably sharp strike. The 1872-CC is usually seen with a very soft obverse and the 1873-CC is another issue that is often found flatly detailed. The 1874-CC shows a better overall strike. The 1875-CC, like its similarly dated half eagle counterpart, is probably the worst struck date in the entire series. The 1876-CC eagle is often weak at the centers while the 1877-CC tends to be found with a better quality of strike. The 1878-CC and the 1879-CC are both frequently seen with noticeable weakness at the centers.. The issues from 1880 to 1893 are generally better struck although it is not uncommon to find pieces with some weakness at the centers.

The survival estimates given in this book are based on current knowledge as of 2000. As time passes, it is inevitable that more coins will surfaces from previously unknown collections, hoards or accumulations. This will lead to even more accurate survival estimates and Condition Census listings. In some cases, future revisions may show that fewer examples of a particular issue are known than is currently estimated. In addition, today's grading standards will change the grades of some coins currently assumed to be a certain grade. Depending on the coin, certain pieces could lower or rise, considerably affecting the Condition Census.

My review of auctions, price lists and known private treaty sales should provide the reader of this book with some idea of how difficult it is to complete a collection of Carson City eagles. The rare 1870-1879 issues tend, on average, to reach the market at the rate of 0-3 pieces per year. For the rarest dates, it is not uncommon for a year or two to pass without a single decent quality coin being available. And often times the only coins that are available are rejects from someone's collection; pieces that are well-worn, extensively abraded and visually unappealing. Carson City eagles, like all rare coins, may experience both droughts and gluts of specimens. In some years, a rare date may come onto the market as many as seven or eight different times while in other years, this same date may be completely unavailable. As a rule, the rarer the date, the less frequently available it is. A good percentage of the Condition census or above-average Carson City eagles are tightly held by private individuals, families or institutions and are essentially not for sale at any price.

A nice quality Carson City eagle collection will probably take a minimum of one to three years to complete. This is a series that requires a fairly substantial budget but it can be completed by someone of slightly above-average means if this person is patient and willing to purchase Very Fine examples of the truly rare dates, Extremely Fine examples of the scarce dates and About Uncirculated examples of the more common dates.

The collector with a large budget is probably going to be more inclined to purchase Extremely Fine examples of the rare dates, About Uncirculated examples of the scarce dates and Uncirculated examples of the common dates.

The true connoisseur with a nearly unlimited budget and a great deal of patience can put together a set which contains About Uncirculated examples of the rare issues, Choice About Uncirculated to Uncirculated examples of the scarce issues and Choice Uncirculated examples of the common issues.

Carson City Half Eagles: An Introduction and Overview

Assembling a collection of Carson City five dollar gold pieces or half eagles is extremely challenging. Completing a set of these coins, regardless of grade, is among the more formidable tasks a gold coin specialist can endeavor to undertake. Consider the fact that only 45-55 examples of the key coin in this set -- the 1870-CC -- are thought to exist. This means that only 45 to 55 complete collections of Carson City half eagles can ever be assembled. Much of the allure of collecting these coins (in addition to the romantic appeal of the "Old West") has to do with the fact that this series can be completed. There are only 19 different dates. This aspect is very appealing to many collectors. Unlike certain series where the run of dates seems endless and often numbing, this is a relatively short yet challenging project. In addition, there are no great rarities which are impossible to locate or prohibitively expensive. The challenge of this set can increase dramatically when the grades and eye appeal for each issue are factored upwards.

For the collector who is not familiar with Carson City half eagles, this series will come as a surprise. These are true "collector coins." They tend to hold their value in bear markets and show strong, steady appreciation over time. Carson City half eagles have multiple levels of demand. They are sought by general collectors, type collectors and specialists. Certain pieces may attract the attention of half eagle specialists, Carson City specialists or general collectors who are putting together seven mint sets of Liberty Head half eagles (the only gold denomination struck at all seven United States mints).

It is impossible to complete set of Carson City half eagles in Mint State regardless of a collector's time or resources. Several of the dates are unknown in any Mint State grade. Currently, there is not a single Uncirculated 1872-CC or 1878-CC half eagle known to exist. Five other dates--the 1871-CC, 1873-CC, 1875-CC, 1876-CC and 1877-CC--are currently represented by just one or two Uncirculated examples. And six more dates--the 1870-CC, 1874-CC, 1879-CC, 1881-CC, 1883-CC and 1884-CC--have just two to four Uncirculated coins known.

The only Carson City half eagles which are relatively obtainable in Uncirculated are those struck in the 1890's. These range in scarcity from the 1892-CC with 50-75 coins known in Uncirculated to the 1891-CC with a population believed to be in the area of 400-500+. The availability of an issue such as the 1891-CC half eagle makes it very popular as it is the only half eagle from this mint which can be purchased in Mint State by the collector of average means. (But, at the same time, this issue is surprisingly rare in Mint State-64 and almost unknown in any grade above this level.)

An incremental breakdown for the Mint State-63 grade is as follows:

Choice (Mint State-63 and Mint State-64) and Gem (Mint State-65) Carson City half eagles are very rare. I estimate that there are probably fewer than 10 pieces surviving in true Mint State-65. As of the spring of 2000, only one Carson City half eagle has ever been graded higher than Mint State-65 by one of the major grading services.

There are probably fewer than three dozen choice Uncirculated Carson City half eagles known to exist. The vast majority of the choice and gem Carson City half eagles were struck during the 1890-1893 era.

Why are these coins so rare in Mint State? The best answer has to do with the fact that there were no coin collectors living in Nevada in the 19th century. No one saved these coins and the few Mint State pieces which exist today are here by chance. They may have been placed in a bank vault and forgotten for a century. Some found their way to European or South American banks where they were sent as payment for international debts. A few others may have been put in a drawer or a cabinet and subsequently lost by their original owners. And some were undoubtedly assay pieces which were sent to the Philadelphia Mint for inspection but never destroyed.

In examining the rarity of Carson City half eagles, several trends are noted. Survival figures depend on the original mintage figures for a specific issue and they also vary by the decade in which a coin was struck. In general, the rarest issues are those which were struck from 1870 to 1878. With the sole exception of those struck in 1881, the half eagles produced from 1879 through 1884 are less rare. And those coined from 1890 to 1893 are relatively common in comparison.

After careful analysis, it becomes apparent that one cannot simply deduce the number of surviving coins or the condition rarity of any Carson City gold coin solely from their original mintage figures. One must study auction records and private treaty sales and gather as much information as possible from prominent collectors and dealers as well as examine the population reports issued by PCGS and NGC. After carefully examining the currently available information, certain trends clearly begin to emerge.

The older coins (i.e., those struck from 1870 to 1878) have survived roughly in proportion to their original mintage figures below. I estimate that between 2 percent to as little as one-half of 1 percent of each year's half eagle production has survived. In general, the older the coin, the lower the average surviving coin's grade and the lower number of high grade pieces which exist. This is common sense as the longer an issue is in circulation, the more likely it is that coins of that date will be worn or destroyed. Thus, the rarest Carson City half eagle is the 1870-CC (which is also the oldest) despite the fact that it has only the third lowest mintage.

The second rarest Carson City half eagle is the 1873-CC. This issue has an estimated surviving population of only 50-60 coins. My research indicates that this date is even more rare than was previously believed. The reasons for the rarity of the 1873-CC half eagle include its low mintage figure of 7,416 and its early date of issuance combined with the fact that it was not saved.

One issue which I find very interesting is the 1878-CC. It has a relatively high mintage of 9,054 but it is the third rarest Carson City half eagle with an estimated population of 60-70. The reason for the rarity and unusually low survival rare of this issue is not known.

Another interesting issue is the 1876-CC. I estimate that 70-80 are known out of a low original mintage of 6,887 coins. Despite a significantly lower mintage than the 1878-CC, the 1876-CC is actually less rare. Conversely, the 1881-CC half eagle (with a mintage of 13,886) appears to be as rare as the 1876-CC.

The 1877-CC (with an original mintage of 8,680 coins) has a disproportionately high survival rate. Approximately 75-85 are known, making it as rare as the 1872-CC, which has an original mintage of 16,980 coins. There is no clear explanation as to why the 1877-CC half eagle is more common than its mintage suggests. It is interesting to note that the 1877-CC eagle is found in higher grades (i.e., Extremely Fine and better) out of proportion to the other dates in the eagle series. This strongly suggests that there was a small hoard of higher grade 1877-CC half eagles and eagles in existence at one time.

The 1879-1884 Carson City half eagles are found in proportion roughly to their original mintage figures with the notable exceptions of the 1880-CC and the 1881-CC. The number of surviving 1880-CC half eagles is less than its original mintage of 51,017 suggests. In fact, the surviving population of this date most closely resembles the 1879-CC, which has a mintage nearly two-thirds smaller (17,281 coins). The 1881-CC has a surviving population of 70-80 coins, which is much smaller than one might project from its original mintage of 13,886.

What is unexpected about these two dates is that they actually have lower survival percentages than the issues from the 1870's. I cannot state with certainty why this is so, but a possible reason might be that some 1880-CC and 1881-CC half eagles were melted. This explanation becomes more plausible when one notes that there was a bullion shortage at the Carson City Mint in 1880-1881. (This is further confirmed by the fact that no double eagles were struck in Carson City during these two years due to a lack of available gold bullion). Another reason might be that the original mintage figures are incorrect and fewer 1880-CC and 1881-CC half eagles were produced than the current figures indicate.

The general trend of the 1890's Carson City half eagles is that the issues with higher mintage figures are more available today than those issues with lower original mintages. The one exception is the 1892-CC. While it has an original mintage of 82,968 coins, it is less commonly found in high grades than the lower mintage 1890-CC (53,800 struck) and 1893-CC (60,000 struck). Again, there is no satisfactory explanation for this anomaly.

Carson City gold coinage was heavily circulated. In the early days of the western gold and silver rushes, paper money was viewed with suspicion and contempt. Gold coins quickly became the accepted medium of exchange. Thus, it is not surprising to learn that most surviving Carson City gold coins show heavy wear and excessive contact marks. These marks were often compounded when loose coins were thrown into bags and shipped by stagecoach to San Francisco or other distant cities. Gold is the softest coinage metal and it is relatively easy for coins struck in this metal to pick up heavy contact marks when they hit against each other. As a rule, half eagles have fewer marks than eagles and double eagles. This is because when these smaller coins hit against each other in bags they do not have the weight and surface area to make large bagmarks on each other (as do double eagles, in particular).

For the collector, locating attractive, higher grade Carson City gold coins without excessive surface marks is a tremendous challenge. Certain dates, especially those struck from 1870 to 1878, are inevitably found heavily worn and severely marked.

The rarest Carson City half eagle in Extremely Fine or higher grades is the 1878-CC. I estimate that only 16-20 such coins are currently known, of which only three or four grade About Uncirculated. Even though the 1870-CC is a rarer coin overall, it is more available in higher grades as witnessed by the fact that as many as 23-27 pieces remain in Extremely Fine or higher grades. One can speculate that the number of 1870-CC half eagles which do exist results from being a first-year-of-issue coin which may have been saved (albeit in very small quantities) as a souvenir. The 1878-CC, on the other hand, lacked this novelty value and those which survived the melting pot tend to show considerable evidence of hard circulation.

Two other Carson City half eagles which are prohibitively rare in higher grades are the 1873-CC and the 1872-CC. Approximately 17-21 of the former are known in Extremely Fine or higher while the latter issue has a population estimated at 19-22 coins. The 1873-CC is extremely rare in About Uncirculated with just five or six known and two known in Mint State while only 6-8 About Uncirculated pieces and no Mint State 1872-CC are known.

As one might well expect, dates with higher mintage figures are more available in high grades. The 1872-CC is more available than certain other dates in the early 1870's because of its relatively high mintage. But its age makes it a very rare coin in About Uncirculated (with just six to eight known). The 1871-CC, while also an "older date," is a bit more available in higher grades (46-52 known in Extremely Fine or better including one or two Uncirculated pieces) since it has the second highest mintage figure of any date struck in the 1870's.

The 1874-CC is the second most available Carson City half eagle struck in the 1870's. Between 40-46 coins are known which grade Extremely Fine or better with twelve to fifteen of these grading About Uncirculated and three grading Mint State. I have an interesting theory to explain why this date is not only one of the two most common Carson City half eagle struck in the 1870's (aside from having the highest mintage) but also why a higher percentage of the survivors than one would assume are in high grades. In 1874, there was a coin shortage on the East Coast. Much of the Carson City coinage from 1874 was transported to the East for use in circulation there. As paper money was more readily accepted in this area of the country, it is possible that many of these coins did not see wide circulation. Perhaps some of them were even stored in banks and were never used. This also seems to be the case with 1874-CC eagles which have a similar level of availability in higher grades.

By 1879 and into the 1880's, the mintages of Carson City half eagles were higher and more were sent overseas to banks for debt payment. These coins saw less circulation than those struck in the 1870's and, thus, are found in higher grades today.

The 1881-CC is the rarest Carson City half eagle struck in the 1880's. But more examples have survived in high grades than its low mintage and overall rarity would suggest. I estimate that 33-39 pieces exist in Extremely Fine or better with possibly nine to twelve of these in About Uncirculated and another two or three in Mint State. As one might expect, the diminished use of gold in the 1880's gives this coin an unusual grade distribution of survivors.

The 1890's Carson City half eagles are by far the most plentiful of these issues. More than 50 percent of all the surviving Carson City half eagles--regardless of date--are dated from 1890 to 1893. Approximately 90 percent of all surviving Mint State Carson City half eagles date from the 1890's. Furthermore, about 75 percent of the remaining About Uncirculated Carson City half eagles date from the 1890's.

The relatively large number of high grade Carson City half eagles from the 1890's stems from several causes. The mintage figure for coins in this decade was much higher than in the previous two decades. More of the coins were shipped overseas and thus escaped wholesale government meltings in the 1930's. As paper money became more readily accepted in the western United States, these coins saw less and less circulation. And the decline of the western mining industry in the 1890's meant that fewer coins were needed in circulation.

Most of the early issues (particularly those dated 1870 through 1876) are weakly struck. This weak strike is most noticeable in the central portion of the coin where the greatest amount of pressure is needed to raise the metal of the actual planchet. On the obverse, coins which are weakly struck will display flatness in the curls on the neck of Liberty as well as flatness on the top and the back of her hair. On the reverse, this weakness of strike is usually seen on the neck of the eagle, the central shield and on the talons of the eagle. This weakness is frequently misinterpreted as wear. Because of this, many early Carson City half eagles are often undergraded even by professional graders. Finding a sharply struck example of a certain date is very challenging at best and it is nearly impossible for others.

The 1870-CC is usually found weakly struck in the curls on Liberty's neck and in the neck feathers of the eagle. The 1871-CC half eagles are usually found with a better strike except for the shield on the reverse which often comes flat. The 1872-CC is nearly always very flat on the obverse as are 1873-CC's; this latter issue is also frequently weak on the eagle's neck. The 1874-CC shows a sharper obverse but the reverse comes weakly impressed, especially on the eagle's neck feathers. The 1875-CC is unquestionably the worst struck Carson City half eagle. Several varieties are known; some have a weak obverse and others have a weak reverse. The 1879-1893 issues do not suffer from these problems of strike although it is not uncommon to see examples with some weakness at the centers of the obverse and the reverse.

The estimates of survival given in this book are based on current knowledge, as of 2000. As time passes, it is certain that more coins will surface from old or previously unknown collections, hoards and accumulations. This will lead to more accurate survival estimates and Condition Census data. While most dates will show an increase in the number of coins believed to exist, others may actually show a decrease due to examples being lost by accident or ignorance.

When Walter Breen wrote his landmark monographs on United States gold coins in the 1960's, he stated that many Carson City coins are much, much rarer than we now know them to be. Multiple higher grade examples of even the rarest issues have surfaced in the past three decades. There are, without a doubt, several other very significant Carson City half eagles which will be "discovered" in the years to come. I have attempted to address this situation by providing a probable high end and low end spread in our rarity estimates. This allows for the inclusion of currently unrecorded coins which I believe may exist.

My review of auction data, fixed price lists, dealer advertisements and available private treaty sale records provides an accurate idea as to the difficulty in amassing a complete collection of Carson City half eagles. For the 1870-1878 issues, it is typical for between zero and four specimens to be available each year. Often the only examples which can be purchased are in lower grades and may have minor to significant problems. As probability would have it, in some years a certain date may be prevalent or it may be nearly impossible to find. As a rule of thumb, it is safe to say that the rarer the date and the higher the grade desired, the harder it will be to find a specific coin. Many high grade pieces are held by museums or are owned by collectors who have no intention of selling them.

It is certainly possible to put together a run of Extremely Fine to About Uncirculated Carson City half eagles dated from 1870 to 1884. Trying to complete this group in Uncirculated is, of course, impossible and an About Uncirculated set is a virtual impossibility as well. Obtaining nice Mint State examples of the 1890's issues, fortunately, is not that difficult or costly.

The budget-conscious collector should not feel excluded from this series. All of the Carson City half eagles (even the 1870-CC) can be found in nice Very Good to Very Fine grades. Although these coins do show substantial wear and are not as attractive as higher grade specimens, they are wonderfully evocative of the history of the Old West and the colorful characters who are the basis of its legends.

For the typical United States gold coin collector, obtaining one example of each date in grades ranging from choice Very Fine to Uncirculated is a realistic goal. This project can be completed in a year or two. Its estimated cost can be determined by obtaining a current numismatic pricing guide.

The connoisseur with a generous budget might be interested in putting together a set of Carson City half eagles grading Extremely Fine and better. For the 1870-1878 and 1881 issues, he should look for examples which grade Extremely Fine-40 or better and which have as few contact marks as possible. For the 1879, 1880 and 1882-1884 issues, the collector should look for pleasing, lustrous About Uncirculated-50 or better coins. For those issues struck in the 1890's, he should seek clean, lustrous Mint State-60 or better pieces. A collection such as this could be completed within a three to five year time frame.

There are a few advanced collectors who study die varieties. Such individuals seek to complete a collection which includes all of the known--and possibly some unknown--die varieties. To my knowledge, only a small number of individuals have a complete or nearly complete collection of Carson City half eagles by die variety.

Coin collectors of all budgets can enjoy the fun, romance and challenges of Carson City half eagles. To further assist collectors of all levels, the following pages give detailed information on each half eagle issue. Information on die characteristics, varieties and overall rarity as well as grade rarity are provided. Also, the current Condition Census listing of the finest known examples for each issue is listed for reference. The photographs of each half eagle are enlarged to twice their actual size for better clarity.

Incremental Grading

Old time collectors often bemoan the fact that there are "too many grades." In their opinion, there is no need for a ten point Mint State/Proof scale (i.e., Mint State-60 to Mint State-70 and Proof-60 to Proof-70) and even less of a need for multiple numerical levels in the circulated grades. I strongly disagree with the theory that there are too many grades. In fact, I can let you in on a secret that would make many of these old collector's eyes roll if they were aware of it. Expert graders, such as myself, actually use a whole series of "secret grades" (which I refer to as "incremental grades") when examining coins.

Before I explain what incremental grades are, it is important to understand why they exist. Back in the "old days," coins weren't very expensive and there were not very large spreads between nice coins and not-so-nice coins. A really superb 1927 $20 might sell for $55-60 while an average quality example was readily available for $50-55. This all changed when coins became more popular and a greater emphasis was placed on owning "the best." Today, a superb quality 1927 $20 might sell for $4000-5000 (or more) while an average quality Uncirculated example is worth just $400-500.

The most important thing to remember about grading is that it is subjective. While most experts can reach an impressive degree of consistency when grading a group of coins, there is always some room for disagreement. The reason this exists is due to the fact that a grade actually represents a shorthand for a range of grades. This is where the aforementioned "incremental grades" come into play.

Let's say, for example, that we are discussing a coin that grades Mint State-63. In actuality, the "63" grade is a shorthand for an entire range of grades that goes from 63.0 to 63.9. A coin that is regarded as a "63.0" is extremely low end for the grade. If it were examined by ten experts, four or five of them might not even call it a 63 and it could very well grade MS-62 if submitted to PCGS or NGC. A coin that is regarded as 63.9 is extremely high end for the grade. If ten experts examined it, half of them (maybe even more) would call it a 64 and it could easily grade MS-64 if submitted to a grading service.

An incremental breakdown for the Mint State-63 grade is as follows:

MS-63.0 to MS-63.2: A very low end coin for the grade. If a savvy dealer were offered such a coin already in a PCGS or NGC holder, he would not remove it for fear that it might be downgraded if it were resubmitted.

MS-63.3 to MS-63.5: A coin that is average quality to slightly above average quality for the grade. A coin at the upper range of this grade would be regarded as having a 50% chance of upgrading if it were resubmitted to PCGS or NGC. A knowledgeable dealer would probably pay a modest to significant premium for such a coin.

MS-63.6 to MS-63.9: A very high end quality coin for the grade. If such a coin were already encapsulated in an MS-63 holder, it would be regarded as an excellent candidate to "crack out" if shown to a knowledgeable dealer. Coins such as this generally trade for large premiums.

Grade and price go hand-in-hand. And when coins can be worth many multiples more in one grade than another, this means that two coins in the same PCGS or NGC holder can be worth considerably different amounts of money.

How significant are incremental grades on a coin in which a one-point improvement can mean a very substantial amount of money? Let's look at randomly selected issue: an 1860 double eagle in Mint State-63.

According to the March 2000 issue of the Coin Dealer Newsletter Quarterly, a Mint State-63 1860 double eagle is bid at $14,000 while an MS-64 is bid at $35,000--a value spread of $21,000. How would a smart dealer value a Mint State-63 1860 double eagle if he were figuring it as part of collection he were attempting to purchase or if it was a lot in auction he was attending?

This dealer's decision would be predicated on a number of factors. First, he might look at a PCGS or NGC population report and see just how rare the 1860 double eagle is in MS-63 and MS-64. A quick search of the February 2000 PCGS figures show that this service has graded two in Mint State-63 with two better (an MS-64 and an MS-65) while NGC has, as of January 2000, graded two in MS-63 and two better (both in MS-64). The combined population of four coins in MS-63 with just two better demonstrates that high grade 1860 double eagles are legitimately rare.

The next factor he would consider is the popularity and subsequent marketability of such a coin. Is the Liberty Head double eagle series popular and are there customers for an expensive, high grade 1860? If the dealer is a specialist in Liberty Head double eagles, he is well aware of his ability to sell such a coin and he probably already has a few potential customers lined up for it. If the dealer is not a Liberty Head double eagle specialist, he will either determine its marketability by asking another, more knowledgeable dealer or he will decide not to take a risk on such an expensive coin.

Now that our hypothetical dealer has performed his due diligence and has determined that this high grade MS-63 1860 double eagle is a truly rare and saleable coin, he can grade it incrementally and value it accordingly. An incremental range of prices that he would pay for this coin might be as follows:

MS-63.0 to MS-63.2: In this grade range, the 1860 double eagle would be regarded as "product" if it were already in a third-party grading service holder or as a low-end coin if it were unencapsulated. Assuming that the dealer had a client for the coin or he thought it could be sold in a relatively short period of time (60 days or less) he would probably figure its value in the $12,500 to $15,000 range.

MS-63.3 to MS-63.5: In this grade range, the dealer would be willing to pay more for the 1860 double eagle. If the coin were just a 63.3--meaning that it was just average quality--he would probably still figure it around CDN "bid" level. If the coin were a 63.5--meaning that the coin was nice and had maybe a 50% chance of grading MS-64--the dealer might figure it at $17,500 or a bit higher. This would mean that if the coin did not grade MS-64 after it had been submitted (and resubmitted) to a grading service, he would have a few thousand dollars downside (assuming he could not sell it to a retail client as a "premium quality" specimen) but would have had considerable potential upside if the coined had worked and been graded MS-64.

MS-63.6 to MS-63.9: Here's where determining the value for such a coin gets dicey. The dealer now has to really weigh the upside and downside of his potential purchase. Let's say the coin is a 63.8 in his opinion and he is willing to pay $23,000 for it. This means that he has around $9,000 downside (using the CDN bid of $14,000 in MS-63 as his "cash out" price should his gamble be unsuccessful) and $12,000 upside (using the CDN bid of $35,000 in MS-64 should the coin be graded MS-64 by PCGS or NGC). While I would not personally like the risk/reward ratio inherent in these numbers, many dealers would; especially the "adrenaline junkies" who populate the world of wholesale trading and the upgrading/"cracking out" subculture.

What these figures show is that an MS-63 1860 double eagle could be worth $12,500 to $23,000 based on its incremental grade. This explains why two identical coins in an auction might sell for vastly different sums.

If you are unwilling or unable to learn how to grade incrementally, you could be leaving thousands of dollars on the table the next time you sell an expensive coin with a high value spread between one grade and the next. My suggestion is that you work with a very knowledgeable dealer who understands the intricacies of incremental grading in your area of specialization.

The Concept of "Best Value Grade"

Unless you are Bill Gates, the chances are good that you have a coin buying budget. It is my contention that every United States coin has a price point above which it no longer makes economic sense to purchase it; unless you are an avid specialist within a series or you are totally compelled to have the best of every coin and/or type you collect. I refer to this price point as the "Best Value Grade." There are a number of applications of the Best Value Grade theory (heretofore referred to as the BVG) and these are directly related to the classification in which a specific coin falls.

In my opinion, coins can be classified in two distinct classes: absolute rarities (coins that are rare and desirable in all grades) and condition rarities (coins whose rarity is predicated solely on a high level of preservation). Using Type Three double eagles as the series to examine some coins, we find a number of perfect examples.

The 1891 double eagle is an absolute rarity. Fewer than 50 examples are known from the original mintage of just 1,390 business strikes. This is truly a coin that can be described as rare and desirable in any grade. Coin World Trends (dated 2/28/00) shows the following price information for this date:

EF-40: $4000 EF-45: $5000 AU-50: $7750 AU-55: $11750 No Trends values are listed for this date in any grade above AU-55.

Population data on this date is interesting as well. As of 2/00, PCGS had seen a total of just 25 examples in all grades (quickly confirming that it is a true rarity) with the breakdown as follows:

EF-40: 2 coins EF-45: 1 coin AU-50: 7 coins AU-55: 5 coins Five coins have been graded higher than AU-55 (all AU-58) with none in Mint State.

This data shows that the 1891 double eagle is seldom available and when it does come up for sale, it is most likely to be found in the AU-50 to AU-55 range. Assuming that your budget allows for a purchase in the $7500-15,000 range, the question you must now ask is: "at what point does the 1891 double eagle become overpriced?"

It could be said that there is no real point that the 1891 becomes overvalued as this is a truly rare coin that seems quite undervalued when compared to other more famous but less rare double eagles. But let's say that a collector has a choice between an AU-50 example at $6500 and an AU-55 at $10,000. In my opinion, I think the higher grade coin makes sense. It is priced at less than double the level of an AU-50 but is considerably scarcer, quite close to being the finest available quality (remember that the highest recorded grade level for this date at PCGS is only AU-58) and, from a cosmetic standpoint, a nice AU-55 should be considerably more appealing than an AU-50.

The 1891-S double eagle is a good example of a condition rarity. Nearly 1.3 million were struck and thousands of examples exist in the lower to medium levels of Uncirculated. Coin Dealer Newsletter bids for this date, as of 12/99, are as follows:

MS-60: $390 MS-63: $2,040 MS-64: $6,100 MS-65: No Bid (Note: While there is no published bid for this date in MS-65, we can establish a hypothetical value level of $15,000-17,500, based on other comparable issues of this era).

The 2/00 PCGS Population report shows that 1,840 1891-S double eagles have been graded in all grades with the majority of these in the MS-60 to MS-63 range. The breakdown is as follows:

MS-60: 164 MS-61: 459 MS-62: 784 MS-63: 217 MS-64: 23 MS-65: 0

This data shows that the 1891-S is easily obtainable in MS-63, somewhat scarce in MS-64 and extremely rare in MS-65.

If a collector were to ask my advice what the BVG is for the 1891-S I would unhesitatingly advise him to pursue a nice, high end MS-63.

To my way of thinking, there is nothing especially exciting about this date. If you are collecting Type Three double eagles by date, you need an 1891-S to complete your set but it is unlikely that I will be called by a single collector this year who just happens to be looking for an example. So, right off the bat, this issue lacks the "sex appeal" factor that the 1891 double eagle has.

A look at the price levels for this date are interesting. An MS-63 can probably be bought in the $1750-2000 range, an MS-64 would be at least three times that amount and an MS-65 (if available) might cost ten times the amount of an MS-63.

The population data above tells me that this coin is available enough in MS-64 that I would not want to pay $6000+ for one. And the possibility always exists that one or more of the coins currently graded MS-64 could be upgraded to MS-65. The first PCGS MS-65 example that is graded will, no doubt, command a strong price from a collector or investor who is sold on its status as a "finest known" piece. But what happens to the value level of this coin when two or three other MS-65's are graded?

I also believe that there are certain coins which it always makes sense to stretch for. A good friend of mine has a theory that the most desirable issues are those whose essence can be summed up in fifteen words or less.

An example of this is the 1861-O double eagle. Here's how I would distill the essence of this coin to a new collector: "A rare, historic issue with a strong possibility of having been struck by the Confederacy."

A little background research shows that the 1861-O double eagle is rare in all grades with an original mintage figure of just 5,000. It is probably unknown in Mint State and very scarce in all AU grades. Most interestingly, a number were produced by the Confederacy in the Spring of 1861, after the New Orleans mint had been seized.

According to the 2/28/00 issue of Coin World Trends, the price levels for better quality 1861-O $20's are as follows:

AU-50: $6,500 AU-55: $13,800 No trends value is listed for any grade higher

As of 2/00, PCGS had graded seven examples of this date in AU-50, seven in AU-53, three in AU-55, two in AU-58 and none better.

Now let's say a collector of this series is suddenly offered the chance to purchase two really nice 1861-O double eagles. One is an AU-55 that is priced at $12,000 while the other is an AU-58 that is priced at $17,500. Which coin is the better value?

In this case, I would strongly advise him to purchase the AU-58. To me, this is an easy choice. The price spread between the AU-55 and the AU-58 is not unreasonable. There should be a discernible difference in quality between the two coins. The AU-58 would be tied with just one other coin as the finest graded by PCGS. And, this is a very desirable, truly rare issue with a level of demand that extends beyond specialists within the series. All of these factors combine to make this a logical purchase.

What if the same collector were suddenly confronted with a fantastic, newly discovered 1861-O double eagle that had been graded MS-62 by PCGS and was clearly the finest known by a mile? Would this be a coin that he should stretch for?

It is always very hard to determine a value for coin such as this. But let's say that after careful reasoning, the collector and the dealer who owned the coin agreed that it should be priced at $45,000.

Clearly, $45,000 is a lot of money to pay for an 1861-O double eagle. It would represent a world record price for this date. In my opinion, this would be an instance where a stretch would make sense.

As discussed above, the 1861-O is an issue that passes the "fifteen word test" with flying colors. The finest known example of this date would be a coin that would appeal not only to specialists but to any collector of rarities as well. The price level of $45,000 is not way out of line with the value for an AU-58. And, presumably, this MS-62 coin would be vastly more attractive than the aforementioned AU-58.

There are circumstances that might make this coin a bad deal. For example, its overzealous owner might originally price it at $85,000. At five times the price of an AU-58, this would not make sense. Or, the coin in question might be unappealing and, in the opinion of the collector, not all that much better than the AU-58 he already owned. In this case, the coin should be passed on at the inflated price and maybe even at the more realistic price of $45,000.

The Best Value Grade theory can be applied to all issues of United States coins. Every time I purchase a coin for my inventory, I do a quick BVG calculation. The immediate questions I ask myself are: does the value that this specific coin make sense to me and does this coin offer good value for my clients? I would strongly suggest that before you decide to specialize in an area of make any significant coin purchase that you make your own BVG calculations.

If this theory intrigues you and you'd like to know my thoughts on the Best Value Grade for the coins that you collect, please e-mail me at dwn@ont.com.

Numismatic Glossary

The following terms appear are commonly used in numismatics. A basic understanding of them can make the new collector's experience in this hobby more enjoyable. Abrasion:

A mark on a coin caused by contact with another coin.

Bagmark:

A mark on a coin caused by contact with other coins when placed inside a bag for shipment to a bank. Most large-sized gold coins, show extensive bagmarks from this process.

Border:

A design element employing a raised circle with the outer circumference called the rim. On Liberty Head gold coins, the border consists of beads.

Business Strike:

A coin which was struck for general circulation. Business strikes were intended to be used in the normal course of commerce.

Clashmarks:

Impressions of a portion of the detail of one side of a coin onto another in the field of a die facing it. Clashmarks occur when dies strike each other during the coinage process without a planchet or blank between them.

Comparative Rarity:

The relative rarity of a specific issue in a specific grade when compared to another issue in the same grade.

Condition Census:

A ranking of the five or six finest known examples of a specific issue.

Die:

A piece of fabricated steel which stamps the design into a planchet.

Die Variety:

Distinct varieties within a specific issue caused by using and/or combining new dies within a coinage run.

Edge:

The cylindrical boundary of a coin.

Edge Reeding:

Raised ribs on the edge of a coin which serve as an anti-counterfeiting device. All Liberty Head gold coins have a reeded edge.

Eye Appeal:

A combination of characteristics such as luster, strike and coloration which make a coin, literally, "appealing to the eye."

Grade:

The rating of a coin's place on a numerical scale which encompasses the range between extreme wear and perfection.

Hairlines:

Fine scratches which are caused by cleaning a coin with an abrasive.

Hoard:

A group of coins, which can vary greatly in size, which have been taken off the market by a non-numismatic source and which re-enter the market through a numismatic source. A hoard may contain one specific date or many dates. When a hoard contains multiple examples of one date, this issue will lose value but other dates which share its design may gain value through increased collector demand.

Key Date:

A date in a series which is recognized as an especially difficult date to locate in all grades. As an example, key dates in the Type Three double eagle series are the 1881, 1882, 1883, 1884, 1885, 1886, 1887 and the 1891.

Mintmark:

A letter or symbol that identifies the mint that produced a coin. As an example, the letter "S" indicates that a United States coin was struck at the San Francisco Mint.

Mint State:

A coin with no wear. Mint State coins are rated on a scale which goes from Mint State-60 to Mint State-70.

NGC:

Numismatic Guaranty Corporation, an East Coast third party grader and authenticator of coins.

Obverse:

The front or the "head" side of a coin.

Overall Rarity:

A term which refers to the total number of examples known of a specific issue.

PCGS:

The Professional Coin Grading Service, a West Coast third party grader and authenticator of coins.

Pedigree:

The chain of ownership of a coin or a collection. A coin pedigreed to a famous collection typically carries a premium over a non-pedigreed coin.

Population Report:

A listing published by both NGC and PCGS which lists the number of coins graded and how the individual coins break down. Each date in the various gold series is listed in both services' reports.

Premium Quality:

Within the parameters of this book, the term "Premium Quality" refers to coins which grade About Uncirculated-50 or higher for rare dates and Mint State-62 or higher for common dates.

Proof:

A coin which is struck specially for collectors on a polished planchet. Proof coins receive multiple blows of the dies and afforded special care and handling.

Prooflike:

A coin struck for circulation which has some of the reflective qualities of a Proof coin. Liberty head gold coins that are Prooflike can sell for substantial premiums.

Reverse:

The back or the "tail" side of a coin.

Sleeper:

A coin which is underrated and undervalued is said to be a "sleeper." In the Type Three double eagle series, the 1891 is one example of an issue that is currently regarded as a sleeper.

Type One Double Eagle:

A United States twenty dollar gold piece struck at either the Philadelphia, New Orleans or San Francisco mints between 1850 and 1866. This type is most easily identifiable by the absence of the motto IN GOD WE TRUST on the reverse.

Type Two Double Eagle:

A United States twenty dollar gold piece struck at either the Philadelphia, Carson City or San Francisco mints between 1866 and 1876. This type is most identifiable by the presence of the motto IN GOD WE TRUST on the reverse and the value denoted as TWENTY D.

Type Three Double Eagle:

A United States twenty dollar gold piece struck at either the Philadelphia, New Orleans, Carson City, San Francisco or Denver mints between 1877 and 1907. This type is most identifiable by the value denoted as TWENTY DOLLARS.

Weak Strike:

A coin which shows inferior detail as a result of the striking process. A weakly struck coin is only accorded a reduced value if most examples of the specific date in question are well struck.

Well Struck:

A coin which shows good detail as the result of the striking process. A well struck coin is accorded high value if most examples of the specific date in question are weakly struck.

Uncirculated:

A coin with no wear. See "Mint State."

How To Collect Type Three Double Eagles

Type Three double eagles have proven to be a very popular series with collectors. It is a long-lived and highly varied series with issues ranging from extremely common to extremely rare. Type Three double eagles are appealing for a number of reasons. They are big, beautiful coins which can be appreciated even by the non-collector. They are plentiful enough that many issues can be found in high grades. However, many are scarce enough that they also appeal to the rarity conscious collector.

There are a number of excellent ways to collect Type Three double eagles. Here are a number of suggestions.

Collecting Type Three Double Eagles As Type Coins Collecting Type Three Double Eagles By Mint Collecting Type Three Double Eagles By Year Assembling A Complete Set of Type Three Double Eagles Collecting By Die Variety Collecting Proof Type Three Double Eagles

I. Collecting Type Three Double Eagles As Type Coins

Type coin collectors seek to obtain one representative example of a specific type or design. For Type Three double eagles, they would focus on obtaining a common date in the highest grade which they can afford. There are a number of specific dates which they might purchase including the 1900, 1901, 1903, 1904 and 1904-S. Each of these is common enough in grades up to and including Mint State-64 that there is little--if any--date premium.

A type set could be made more interesting by including a common date from the 19th century in addition to one from the 20th century. The most common Liberty Head double eagles from the 19th century include the 1895, 1897 and 1899. These are easily obtainable in Mint State-63 but they are somewhat scarce in any grade higher than this.

If you are interested enough in Type Three double eagles to take the time to read a web article devoted to this series, the chances are good that you will become more involved with them than as mere type coins. If you decide to purchase a Type Three double eagle strictly as a type coin, it might make sense to pay a small premium and obtain a date which is a bit more rare in higher grades but which sells for a small premium.

II. Collecting Type Three Double Eagles By Mint

Type Three double eagles were produced at five mints: Philadelphia, San Francisco and Carson City, New Orleans and Denver. Some collectors are attracted to the issues from just one of these mints and they attempt to put together a complete set of dates and major varieties.

Assembling a complete thirty-one coin set of Philadelphia Type Three double eagles is very difficult and costly. The 1881, 1882, 1885 and 1886 each had extremely limited original mintage figures (between 571 and 2,199 coins) and are seldom available to collectors. The rarest of these are the 1882 and the 1886, both of which are represented by approximately 20-25 surviving examples. The 1883, 1884 and 1887 dates were struck only as Proofs. If a collector wishes to have a truly complete set, he will have to include this trio and can count on spending upwards of $50,000 per coin for examples in the Proof-63 to Proof-64 range and considerably more for Gems.

There are other Philadelphia issues which are far more elusive than generally known, especially in the higher Mint State grades. These include the 1877-1880, 1888, 1890, 1892, 1898 and 1905. The 1891 is an extremely rare and very overlooked coin, in spite of its tiny original mintage figure of 1,390 business strikes. It is actually comparable to some of the more-heralded dates from the 1881-1886 era and an acceptable specimen will cost the collector between $7,500 and $15,000.

A complete thirty coin set of San Francisco Type Three double eagles can be assembled with patience. There are no dates which stand out as being excessively rare and just a small number are very hard to locate above Mint State-62 to Mint State-63. The scarcest Type Three issues from this mint are the 1879-S through 1882-S date run and the 1887-S. After years of neglect, the San Francisco series is gaining in popularity. A very attractive set with all coins grading between Mint State-62 and Mint State-64 could be assembled for approximately $50,000-$60,000.

The Carson City Type Three double eagles are the most popular issues with collectors. A total of twelve different dates were produced between 1877 and 1893. Unlike the Type Two issues from this mint which have one issue (the 1870-CC) which makes a set nearly impossible to complete, the Type Three Carson City set is easily completable. The key issues are the 1878-CC, 1879-CC, 1885-CC and the 1891-CC. All four of these are very rare and costly in Mint State but choice About Uncirculated pieces can be obtained for under $10,000 per coin, depending on quality. An extremely nice set of Type Three Carson City double eagles can be assembled for under $75,000. This includes all of the more common dates in Mint State-60 to Mint State-62 grades and the "big four" mentioned above (plus the 1877-CC) in grades ranging from About Uncirculated-55 to About Uncirculated-58.

Production of Type Three double eagles at the New Orleans and Denver mints was very limited. The 1879-O is the only New Orleans issue of this type. Just 2,325 were struck and approximately 100 survive with most of these in Extremely Fine grades. The Denver mint opened in 1906 and produced relatively large numbers of Liberty Head double eagles in 1906 and 1907. The 1906-D is common in all grades up to Mint State-63 but it becomes scarce in Mint State-64 and very rare in Mint State-65. The 1907-D is the more common of these two issues as it is more often used as a type coin.

III. Collecting Type Three Double Eagles By Year

A popular and practical way to collect Type Three double eagles is by year. Such a collection would consist of a single example for each year in which the Type Three design was produced. In this case, such a set would have thirty-one coins.

In a year set, it is advisable to choose the most affordable issue produced in a specific year. For example, an 1879-S double eagle would be chosen over an 1879 Philadelphia, 1879-O or an 1879-CC since the San Francisco coin is the easiest to obtain in both circulated and Uncirculated grades. The 1879-O would be the least likely coin to include in this set due to its rarity and comparably high price.

There are a few years which are very difficult to find affordable double eagles from any mint. In 1885 only two mints struck double eagles. The Philadelphia issue is very rare while its Carson City counterpart is quite scarce but affordable, especially in lower grades. 1886 is perhaps the most difficult year in this entire set as only the Philadelphia mint produced double eagles and just 1,000 business strikes were made. Every other year contains at least one common issue which can be purchased by the collector of average means.

IV. Assembling A Complete Set of Type Three Double Eagles

Many collectors decide to assemble a complete set of Type Three double eagles. Such a set will include one example of each Type Two double eagle struck between 1877 and 1907. Including the Proof-only years of 1883, 1884 and 1887 a complete set consists of 76 coins. (Due to the price of these three coins, many collectors decide to not include them in their set. If this is done, the theme of the set can be changed from being a "complete set of Type Three Double Eagles" to a "complete set of business strike Type Three Double Eagles.") For the most part, the grades of this set will range from Extremely Fine to Mint State. The more common issues are generally represented by high grade coins while the rarer issues are represented by lower grade pieces. The rarities of this set are 1881, 1882, 1885, 1886 and 1891 which are seldom offered for sale and will cost at least $20,000 for above average examples. However, most of the other Type Three double eagles are well within the budget of the average collector.

There are some basic principles which the complete set collector should follow as he acquires coins. A complete set should be as well-matched as possible. The collector should try to purchase coins which have a similar appearance. As an example, a collector might try to acquire coins which are as original as possible and which show reasonably similar coloration.

A complete set should not be "all over the map" as far as grades are concerned. Instead of spending $10,000 on an unappealing, bagmarked 1879-O (as opposed to a choice example of this date in this price range) merely to fill a hole, buy two or three outstanding MS-62 semi-key dates from the 1870's. Do not assemble a complete set with unrealistic expectations. A collector who has previously worked on more common sets may approach Type Three double eagles with the idea that he will be able to complete this set in the higher Mint State grades. Since many issues in the Type Three double eagle series are essentially non-existent above Mint State-60 (and some like the rare Philadelphia dates from the 1880's are either unknown or excessively rare in Mint State), certain allowances will have to be made. Conversely, a collector does not have to settle for coins he does not like just because he thinks he will not be able to do any better.

Set building is the key to realizing additional value without spending extra money. This phenomenon is known to numismatists as a "set premium" and it definitely applies to Type Three double eagles. Carefully assembled sets of coins have proven over the years to bring substantial premiums over randomly assembled, meaningless accumulations of coins. A set that has been assembled with the assistance of a professional numismatist should prove emotionally and financially rewarding to the collector or investor.

An especially good idea for the new collector would be to discuss assembling a set of Type Three double eagles with a dealer who specializes in 19th century gold coins. Get his thoughts as to which grade each specific date should be purchased in. Reading this article should also give the collector a good idea about this as it attempts to give a breakdown of the total number known of each date in each grade range.

V. Collecting By Die Variety

For most Type Three double eagles, a number of different obverse and reverse dies were employed. As one die became worn and/or damaged, it was replaced by a new die. The different combinations of dies created a number of die varieties.

The field of gold coin die variety collecting is extremely fertile. Very little has been written about the varieties of U.S. gold coins and next to nothing has been written about the die varieties of Type Three double eagles. It is very probable that a number of interesting, potentially rare die varieties exist for this series.

A collector wishing to start a die variety collection needs to pay attention to such things as date placement, mintmark placement and diagnostic characteristics such as die scratches and/or die breaks. He should record this information and compare each example of a specific date which he has the chance to examine.

While it is possible that this sort of collecting may become popular in the future, for now it is the province of a tiny handful of specialists. Therefore, the die variety collector should not pay an extra premium for supposedly rare varieties (such as a mintmark position previously unseen on a specific issue).

VI. Collecting Proof Type Three Double Eagles

Proof Type Three double eagles were struck in exceedingly limited quantities at the Philadelphia Mint from 1877 through 1907. In fact, the mintage for Proofs for the entire thirty one year period was just 2,414 pieces.

The tremendous rarity of these coins is what makes them appealing to a small segment of wealthy collectors. It is possible to assemble a complete set of Proof Type Three double eagles. However, this set would require considerable patience and a very deep pocketbook.

Historically, during bull markets, proof gold coins have been favorites with rare coin funds or wealthy individual investors. In the 1989-1990 bull market, the rare coin funds managed by Merrill Lynch and Kidder Peabody were major buyers of coins such as proof Type Three Liberty Head double eagles.

Most of the Proof Type Three double eagles which appear on the market grade in the Proof-63 to Proof-64 range. The extreme rarity of Proof-65 and better examples makes this set all but impossible to complete in the highest Proof grades.

Conclusion: These are just some of the ways in which to collect Type Three double eagles. Part of the appeal of coin collecting is the myriad possibilities it offers the collector with imagination.

Type Three double eagles have proven to be a very popular series with collectors. It is a long-lived and highly varied series with issues ranging from extremely common to extremely rare.

Type Three double eagles are appealing for a number of reasons. They are big, beautiful coins which can be appreciated even by the non-collector. They are plentiful enough that many issues can be found in high grades. However, many are scarce enough that they also appeal to the rarity conscious collector.

There are a number of excellent ways to collect Type Three double eagles. Here are a number of suggestions.

Collecting Type Three Double Eagles As Type Coins Collecting Type Three Double Eagles By Mint Collecting Type Three Double Eagles By Year Assembling A Complete Set of Type Three Double Eagles Collecting By Die Variety Collecting Proof Type Three Double Eagles

strong>I. Collecting Type Three Double Eagles As Type Coins

Type coin collectors seek to obtain one representative example of a specific type or design. For Type Three double eagles, they would focus on obtaining a common date in the highest grade which they can afford. There are a number of specific dates which they might purchase including the 1900, 1901, 1903, 1904 and 1904-S. Each of these is common enough in grades up to and including Mint State-64 that there is little--if any--date premium.

A type set could be made more interesting by including a common date from the 19th century in addition to one from the 20th century. The most common Liberty Head double eagles from the 19th century include the 1895, 1897 and 1899. These are easily obtainable in Mint State-63 but they are somewhat scarce in any grade higher than this.

If you are interested enough in Type Three double eagles to take the time to read a web article devoted to this series, the chances are good that you will become more involved with them than as mere type coins. If you decide to purchase a Type Three double eagle strictly as a type coin, it might make sense to pay a small premium and obtain a date which is a bit more rare in higher grades but which sells for a small premium.

II. Collecting Type Three Double Eagles By Mint

Type Three double eagles were produced at five mints: Philadelphia, San Francisco and Carson City, New Orleans and Denver. Some collectors are attracted to the issues from just one of these mints and they attempt to put together a complete set of dates and major varieties.

Assembling a complete thirty-one coin set of Philadelphia Type Three double eagles is very difficult and costly. The 1881, 1882, 1885 and 1886 each had extremely limited original mintage figures (between 571 and 2,199 coins) and are seldom available to collectors. The rarest of these are the 1882 and the 1886, both of which are represented by approximately 20-25 surviving examples. The 1883, 1884 and 1887 dates were struck only as Proofs. If a collector wishes to have a truly complete set, he will have to include this trio and can count on spending upwards of $50,000 per coin for examples in the Proof-63 to Proof-64 range and considerably more for Gems.

There are other Philadelphia issues which are far more elusive than generally known, especially in the higher Mint State grades. These include the 1877-1880, 1888, 1890, 1892, 1898 and 1905. The 1891 is an extremely rare and very overlooked coin, in spite of its tiny original mintage figure of 1,390 business strikes. It is actually comparable to some of the more-heralded dates from the 1881-1886 era and an acceptable specimen will cost the collector between $7,500 and $15,000.

A complete thirty coin set of San Francisco Type Three double eagles can be assembled with patience. There are no dates which stand out as being excessively rare and just a small number are very hard to locate above Mint State-62 to Mint State-63. The scarcest Type Three issues from this mint are the 1879-S through 1882-S date run and the 1887-S. After years of neglect, the San Francisco series is gaining in popularity. A very attractive set with all coins grading between Mint State-62 and Mint State-64 could be assembled for approximately $50,000-$60,000.

The Carson City Type Three double eagles are the most popular issues with collectors. A total of twelve different dates were produced between 1877 and 1893. Unlike the Type Two issues from this mint which have one issue (the 1870-CC) which makes a set nearly impossible to complete, the Type Three Carson City set is easily completable. The key issues are the 1878-CC, 1879-CC, 1885-CC and the 1891-CC. All four of these are very rare and costly in Mint State but choice About Uncirculated pieces can be obtained for under $10,000 per coin, depending on quality. An extremely nice set of Type Three Carson City double eagles can be assembled for under $75,000. This includes all of the more common dates in Mint State-60 to Mint State-62 grades and the "big four" mentioned above (plus the 1877-CC) in grades ranging from About Uncirculated-55 to About Uncirculated-58.

Production of Type Three double eagles at the New Orleans and Denver mints was very limited. The 1879-O is the only New Orleans issue of this type. Just 2,325 were struck and approximately 100 survive with most of these in Extremely Fine grades. The Denver mint opened in 1906 and produced relatively large numbers of Liberty Head double eagles in 1906 and 1907. The 1906-D is common in all grades up to Mint State-63 but it becomes scarce in Mint State-64 and very rare in Mint State-65. The 1907-D is the more common of these two issues as it is more often used as a type coin.

III. Collecting Type Three Double Eagles By Year

A popular and practical way to collect Type Three double eagles is by year. Such a collection would consist of a single example for each year in which the Type Three design was produced. In this case, such a set would have thirty-one coins.

In a year set, it is advisable to choose the most affordable issue produced in a specific year. For example, an 1879-S double eagle would be chosen over an 1879 Philadelphia, 1879-O or an 1879-CC since the San Francisco coin is the easiest to obtain in both circulated and Uncirculated grades. The 1879-O would be the least likely coin to include in this set due to its rarity and comparably high price.

There are a few years which are very difficult to find affordable double eagles from any mint. In 1885 only two mints struck double eagles. The Philadelphia issue is very rare while its Carson City counterpart is quite scarce but affordable, especially in lower grades. 1886 is perhaps the most difficult year in this entire set as only the Philadelphia mint produced double eagles and just 1,000 business strikes were made. Every other year contains at least one common issue which can be purchased by the collector of average means.

IV. Assembling A Complete Set of Type Three Double Eagles

Many collectors decide to assemble a complete set of Type Three double eagles. Such a set will include one example of each Type Two double eagle struck between 1877 and 1907. Including the Proof-only years of 1883, 1884 and 1887 a complete set consists of 76 coins. (Due to the price of these three coins, many collectors decide to not include them in their set. If this is done, the theme of the set can be changed from being a "complete set of Type Three Double Eagles" to a "complete set of business strike Type Three Double Eagles.") For the most part, the grades of this set will range from Extremely Fine to Mint State. The more common issues are generally represented by high grade coins while the rarer issues are represented by lower grade pieces. The rarities of this set are 1881, 1882, 1885, 1886 and 1891 which are seldom offered for sale and will cost at least $20,000 for above average examples. However, most of the other Type Three double eagles are well within the budget of the average collector.

There are some basic principles which the complete set collector should follow as he acquires coins. A complete set should be as well-matched as possible. The collector should try to purchase coins which have a similar appearance. As an example, a collector might try to acquire coins which are as original as possible and which show reasonably similar coloration.

A complete set should not be "all over the map" as far as grades are concerned. Instead of spending $10,000 on an unappealing, bagmarked 1879-O (as opposed to a choice example of this date in this price range) merely to fill a hole, buy two or three outstanding MS-62 semi-key dates from the 1870's. Do not assemble a complete set with unrealistic expectations. A collector who has previously worked on more common sets may approach Type Three double eagles with the idea that he will be able to complete this set in the higher Mint State grades. Since many issues in the Type Three double eagle series are essentially non-existent above Mint State-60 (and some like the rare Philadelphia dates from the 1880's are either unknown or excessively rare in Mint State), certain allowances will have to be made. Conversely, a collector does not have to settle for coins he does not like just because he thinks he will not be able to do any better.

Set building is the key to realizing additional value without spending extra money. This phenomenon is known to numismatists as a "set premium" and it definitely applies to Type Three double eagles. Carefully assembled sets of coins have proven over the years to bring substantial premiums over randomly assembled, meaningless accumulations of coins. A set that has been assembled with the assistance of a professional numismatist should prove emotionally and financially rewarding to the collector or investor.

An especially good idea for the new collector would be to discuss assembling a set of Type Three double eagles with a dealer who specializes in 19th century gold coins. Get his thoughts as to which grade each specific date should be purchased in. Reading this article should also give the collector a good idea about this as it attempts to give a breakdown of the total number known of each date in each grade range.

V. Collecting By Die Variety

For most Type Three double eagles, a number of different obverse and reverse dies were employed. As one die became worn and/or damaged, it was replaced by a new die. The different combinations of dies created a number of die varieties.

The field of gold coin die variety collecting is extremely fertile. Very little has been written about the varieties of U.S. gold coins and next to nothing has been written about the die varieties of Type Three double eagles. It is very probable that a number of interesting, potentially rare die varieties exist for this series.

A collector wishing to start a die variety collection needs to pay attention to such things as date placement, mintmark placement and diagnostic characteristics such as die scratches and/or die breaks. He should record this information and compare each example of a specific date which he has the chance to examine.

While it is possible that this sort of collecting may become popular in the future, for now it is the province of a tiny handful of specialists. Therefore, the die variety collector should not pay an extra premium for supposedly rare varieties (such as a mintmark position previously unseen on a specific issue).

VI. Collecting Proof Type Three Double Eagles

Proof Type Three double eagles were struck in exceedingly limited quantities at the Philadelphia Mint from 1877 through 1907. In fact, the mintage for Proofs for the entire thirty one year period was just 2,414 pieces.

The tremendous rarity of these coins is what makes them appealing to a small segment of wealthy collectors. It is possible to assemble a complete set of Proof Type Three double eagles. However, this set would require considerable patience and a very deep pocketbook.

Historically, during bull markets, proof gold coins have been favorites with rare coin funds or wealthy individual investors. In the 1989-1990 bull market, the rare coin funds managed by Merrill Lynch and Kidder Peabody were major buyers of coins such as proof Type Three Liberty Head double eagles.

Most of the Proof Type Three double eagles which appear on the market grade in the Proof-63 to Proof-64 range. The extreme rarity of Proof-65 and better examples makes this set all but impossible to complete in the highest Proof grades.

Conclusion:

These are just some of the ways in which to collect Type Three double eagles. Part of the appeal of coin collecting is the myriad possibilities it offers the collector with imagination.

For more information on Type 3 Double Eagles, I recommend purchasing Type Three Double Eagles, 1877-1907: A Numismatic History and Analysis by Douglas Winter.