Building A High Quality 19TH and 20TH Century U.S. Gold Type Set: The BVG Theory

In the last few decades, specialized (and highly specialized) collecting has become all the rage in numismatics. But back in the day, anyone who was anyone collected coins by type. I believe that the type method of collecting still applies well to United States gold; especially those coins produced from 1838 through 1933. I wrote an article in March 2000 in which I coined the phrase “Best Value Grade.” This concept (if not this phrase...) seemed to have a big impact on the people who read it and to this day I still have people refer to it when discussing individual coins with me.

In case you’ve forgotten what Best Value Grade or BVG means (and I accept your apology if you have forgotten) I described it as follows back in March 2000: “every U.S. coin has a price point above which it no longer makes economic sense to purchase it.” Let me give you a quick example of the BVG.

Let’s say you can buy a nice MS64 1899-S double eagle for around $3,000-3,500. Seems like a pretty reasonable price for a coin that is relatively scarce in this grade, is probably quite attractive and which has a very limited range of popularity. The same coin, if you can find it, costs around $20,000 in MS65. My belief is that unless you are a large-budget collector who absolutely has to have the best of everything, it makes more economic sense to buy this coin in MS64 and use the saved money for other more interesting items.

My BVG theory applies really well to gold type collecting. Let’s take a look at the various major gold types produced between 1838 or so (the introduction of the Classic Head design) and 1933 (the abolishment of gold issues for circulation).

I. Gold Dollars

There are three gold dollar types that are included in all type sets. The first, known as the Type One, was struck between 1849 and 1854. I personally feel that MS65 coins are the best value in this type. Given the small size of these coins, many collectors have a tough time determining the difference between an MS65 and an MS66 and the former is about half the price of the latter. At the present time, you can find a really nice MS65 Type One gold dollar for under $5,000. I’d pay a small premium and choose an 1849 as this is a neat first-year-of issue.

Type Two gold dollars were produced from 1854 through 1856 and they are among the more expensive coins in a gold type set. Even though MS65 examples have dropped quite a bit in price from a few years ago, I think a nice high end MS64 is a really good value right now. I have seen examples selling in the $15,000 range and this price point makes sense to me. For type purposes, either an 1854 or 1855 will suffice.

Type Three gold dollars were produced from 1856 through 1889. This is one type that as a collector I might splurge a bit on. Very high quality pieces are more available than one might expect and they often have exceptional eye appeal. I would select an MS67 for my type set and these coins are now available for around $4,000. I’d try and pick a date from the early 1880’s as these are a bit scarcer than the late 1880’s issues, yet sell for essentially the same price.

II. Quarter Eagles

Some type collectors begin their quarter eagles with the Liberty Head type but I would suggest adding a Classic Head as well. Produced from 1834 to 1839, this type is attractive, historic and highly collectible. Gem examples of this type are rare and expensive but MS63 and MS64 pieces are available. I would be inclined to go with an MS64. An 1834 or 1836 are the two relatively available dates of this type and a nice MS64 should be available in the $15,000-17,500 range.

The next quarter eagle type is the Liberty Head that was made from 1840 through 1907. I would personally choose an MS66 example for my type set. These had been in a price slump and had dipped well below the $3,000 level. With the current strength in the generic gold market they are back up to around $4,000 but are still good deals at this level. If possible, I’d choose a coin made in the 1890’s as opposed to one made in the early 1900’s.

The third and final quarter eagle type in this set is the popular Indian Head. This is another issue that has seen some price declines in the past few years in higher grades. I’d suggest a nice, handselected MS65. This is going to cost in the $3,500 to $4,000 range and it seems to me to be better value than an MS66 at more than double the price. I’d select a 1908; again, due to its first-year-of-issue status. III. Three Dollar

The charismatic Three Dollar gold piece was struck from 1854 to 1889. This is one of my personal favorite types in this set. The type collector has a number of options here. He can choose a common date in MS65 and probably find a really exceptional coin for less than $20,000. Or, he might choose a common date in MS64 for around $8,000-9,000. Due to the scarcity and uniqueness of this denomination, I might splurge and go for the MS65. The most common dates in high grades are the 1854, 1874, 1888 and 1889.

IV. Half Eagles

The first design type in our set is the Classic Head. It was made from 1834 through 1838. Gems are quite scarce and very expensive so most type collectors will focus on coins graded MS63 or MS64. The former should be available in the $12,500-15,000 range while the latter will cost $20,000 and up. I can see the argument for both sides when considering an MS63 or an MS64 for a BVG gold type set. I think I’d opt for a nice MS63 and I might try and look for any date other than the common 1834. Even though the 1839 is a distinct one-year type, most collectors include it in along with the standard Liberty Head design. There are two major subtypes: the No Motto issues of 1840-1866 and the With Motto issues of 1866-1907. I’ve become a pretty big fan of No Motto half eagles over the years and this is one type that I feel is worth stretching for. For the BVG type collector, the best options are an MS63 or an MS64. A nice example of the former can be found around $6,000-8,000 while the latter will cost $12,500 or so. The Philadelphia issues from the 1840’s and 1850’s are the logical choice for a type set. With Motto Liberty Head half eagles are an easy type to find even in very high grades. For this set, I’d go with a nice MS65 and expect to spend in the area of $4,000-5,000. I would look for a date struck in the 19th century versus one from the 20th century and would expect to pay little—if any—premium for this. The final half eagle type for this set is the Indian Head. The BVG for this type is kind of a no-brainer, given the fact that an MS65 costs around four times more than an MS64. I would look for a nice, high end MS64 and expect to find one in the $4,000-5,000 range.

V. Eagles

The first Liberty Head design type of 1838-1839 constitutes a distinct design but most collectors do not include this as a separate type in their set. Instead, they begin their set with the No Motto Liberty Head issues produced between 1840 and 1866. This is an extremely rare type in Gem and most collectors will be content to add an MS63 or an MS64. As far as the Best Value Grade goes, I’d be inclined to suggest a nice, high end MS63 in the $15,000-20,000 range but could also see the benefits of an MS64; in spite of the healthy $30,000++ price tag and the difficulty in finding such a coin. For most collectors, a Philadelphia coin from the 1847-1856 era is going to be included in their type set.

The With Motto Liberty Head eagles were made from 1866 to 1907 and they are substantially easier to find in high grades than their No Motto counterparts. I would recommend an MS65 and such a coin will cost around $5,000-6,000. As usual, I’d look for a 19th century date versus a 20th but the most important thing to consider for such a coin is the appearance and surface preservation as opposed to the date of issuance.

The final eagle for this type set is the Indian Head. These were issued from 1907 through 1933. This is an interesting design and it features dates that range from very common to very rare. For our BVG set we would focus on one of the common dates and would probably select anything other than the ultra-available 1926 or 1932. An MS65 will cost in the area of $5,000-6,000 and this should suffice.

VI. Double Eagles

There are two distinct designs that exist for this denomination. The first is the Liberty Head. These coins were struck from 1850 through 1907 and are found with three important subtypes.

The first Liberty Head type is the Type One, which was issued from 1850 through 1866. Until the discovery of a number of shipwrecks, this type was extremely rare in higher grades. Now, these coins are plentiful in higher grades. For a BVG type set I would be inclined to go with either an MS64 which will cost around $8,000-9,000 or an MS65 which will cost $12,500 or a bit more. The best issue for a type set is the 1857-S from the S.S. Central America shipwreck.

The Type Two Liberty Head double eagles were made from 1866 until 1876. They are extremely rare in high grades and for most collectors, a nice MS63 is about the best quality that is realistic. For a piece in this grade, we are looking at an expenditure of around $12,500 or so as opposed to $40,000++ for an MS64. The most available dates for a type set include the 1873 Open 3, 1875, 1876 and 1876-S.

The third and final Liberty Head issue is the Type Three. These coins were made from 1877 through 1907 and they are exceedingly common in higher grades. Most BVG collections will feature a nice MS65 and such a coin can generally be purchased for less than $5,000. There are many good dates to choose from but I would suggest, if possible, finding one made in the 19th century as opposed to the 20th century.

The final major gold type is the popular St. Gaudens, struck from 1907 through 1933. Some collectors include a 1907 High Relief in their type set but, for most collectors, a common date in high grades will suffice. I would recommend a very attractive MS66. For well under $4,000 the BVG collector should be able to purchase an outstanding example.

Assembling a high grade set of gold type coins produced from 1834 through 1933 is a good challenge for the beginning, intermediate or advanced collector. By using the Best Value Grade theory, the collector should be able to assemble a very high quality set without overreaching on any of the specific coins.

I would be happy to answer any questions about gold type coins or the theory of Best Value Grade and can be reached by email at dwn@ont.com.

The Twelve Piece United States Gold Coin Type Set

In the 1970's and the 1980's, assembling a twelve coin U.S. gold coin type set was an extremely popular challenge for most collectors. Countless twelve coin sets were sold to investors and these dozens coins were often the starting point for in-depth specialized collections. As collecting habits became more focused in the late 1980's and the 1990's, the twelve coin set became less popular. But with the increasing difficulty of collecting by date, the type set is back and is becoming a very popular way to be introduced to numismatics. The basic twelve coin United States gold type set consists of the following issues:

Type One Gold Dollar, 1849-1854

Type Two Gold Dollar, 1854-1856

Type Three Gold Dollar, 1856-1889

Liberty Head Quarter Eagle, 1840-1907

Indian Head Quarter Eagle, 1908-1929

Three Dollar Gold Piece, 1854-1889

Liberty Head Half Eagle, 1840-1908

Indian Head Half Eagle, 1908-1929

Liberty Head Eagle, 1840-1907

Indian Head Eagle, 1907-1933

Liberty Head Double Eagle, 1850-1907

St. Gaudens Double Eagle, 1908-1933

Generally speaking, a twelve coin type set features coins that grade Mint State-60 or better. The most common issues are typically represented by coins in the Mint State-63 to Mint State-65 range while the scarcer issues grade Mint State-60 to Mint State-63. Since this is a type set, most collectors choose the more common dates of each design.

I have assembled a number of these sets over the years and would like to offer a few suggestions:

1. Type One Gold Dollar: This is an easy issue to locate in any Uncirculated grade up to Mint State-65. Type One gold dollars are currently a very good value and I would suggest purchasing at least a Mint State-64 example. A nice MS-64 is currently priced in the $1,250-1,500 range while an MS-65 can be obtained for $2,750-3,500. The best dates for type purposes are the 1849 and the 1851-1854 Philadelphia issues. Look for a coin that is well struck with clean surfaces and original color. Avoid coins that have spots or black streaks or those with naturally grainy surfaces.

2. Type Two Gold Dollar: The Type Two gold dollar is the shortest-lived issue in the twelve coin type set. There are only two practical dates for type collectors: the 1854 and the 1855. These are equally rare and are priced similarly. Type Two gold dollars are moderately scarce in the lower Uncirculated grades but are still costly due to their extreme popularity. A type collector on a limited budget should look for a piece that grades at least MS-61 to MS-62. Coins of this quality are available in the $3,500-5,500 range. High quality Type Two gold dollars are expensive but are seen in most major auctions or coin shows. A nice Mint State-64 is generally worth $16,000-18,000 while a Mint State-65 is valued in the $30,000-35,000+ range. When purchasing a Type Two gold dollar, eye appeal is crucial. Look for a coin with pretty original color and sharp detail at the centers. Pieces with excellent frosty luster are sometimes available and these are preferable to the typical dull, grainy example.

3. Type Three Gold Dollar: This is a readily obtainable issue with a variety of dates available to the type collector. A high end Mint State-64 is currently available for around $1,000 while an MS-65 can be obtained for $1,500 or so. Unlike the other two gold dollar types, this design is sometimes seen in extremely high grades. A common date from the 1880's can be found in MS-66 for $2,000-2,500 and MS-67's are currently priced at $3,250-4,250. The best Type Three gold dollar issues for type purposes are the lower mintage issues from the 1880's. These are typically well made and are often found with superb coloration and luster. I personally prefer pieces that have rich frosty luster as opposed to the prooflike examples that are often seen.

4. Liberty Head Quarter Eagle: With a duration of over sixty years, there are numerous dates (and price ranges) for the type collector to consider. Liberty Head quarter eagles are quite common in lower Uncirculated grades and a nice Mint State-64 is currently in the $650-850 range. A Mint State-65 can be easily located in the $1,250-1,500 range while a common date in MS-66 can be purchased for $1,750 to 2,000. Most type collectors focus on the issues produced from 1900 to 1907 as these constitute the majority of surviving high grade Liberty Head quarter eagles. They tend to be extremely well manufactured and the collector can expect a piece that is sharply struck with excellent luster. Coins that are heavily spotted or which are unnaturally bright should be avoided.

5. Indian Head Quarter Eagle: This is an attractive and popular issue which is one of just two U.S. gold coins with an incuse design. There are a number of common date Indian Head quarter eagles and type collectors typically pursue such dates as the 1925, 1925-D, 1926, 1927 or 1928. Coins that grade Mint State-64 are currently valued in the $1,000-1,250 range while MS-65's can be located with minimal effort for $2,750-3,000. This is a very hard type to find in grades higher than MS-65. Collectors should look for coins with nice, rich luster and color and avoid those that have obvious scratches or abrasions.

6. Three Dollar Gold Piece: In most twelve coin gold type sets, the Three Dollar gold is among the centerpieces. It is the second rarest issue and certainly among the most unusual. There are only three relatively common dates in this series: 1854, 1874 and 1878. Every other issue is quite hard to locate in higher grades, even though it may not sell for a high premium. For many collectors a Mint State-62 or Mint State-63 will prove suitable. These are currently valued at $2,500-3,000 and $4,000-5,000 respectively. Gems are hard to find although not impossible. A nice Mint State-65 is currently valued at $8,500-9,500+. The type collector should seek a coin that has very good luster, no major spots and pleasing natural coloration.

7. Liberty Head Half Eagle: This long-lived type offers the collector a variety of options. Pieces struck prior to 1866 are known as the No Motto type and are, for the most part, very hard to locate in higher grades. Type collectors generally focus on the With Motto issues, especially those produced from 1880 onwards. A common date Liberty Head half eagle in Mint State-63 is only $500-600 while an MS-64 is $800-1,000. Gems are not very hard to locate. An MS-65 costs $2,500-3,000 while an MS-66 will run in the $4,500-5,500 range. The "perfect" type coin will be one with above-average luster, choice surfaces and a sharp, even strike.

8. Indian Head Half Eagle: This uniquely designed issue is the third hardest gold type coin in this set to find in high grades, trailing only the Type Two gold dollar and the Three Dollar gold piece. It was struck from 1908 to 1929 and at three mints: Philadelphia, Denver and San Francisco. For type purposes, collectors tend to focus on issues such as the 1908, 1909-D, 1910, 1911 and 1912. A Mint State-63 Indian Head half eagle is easily located and generally sells for around $1,000. Mint State-64's are a bit harder to find and are valued at $2,500-3,000. Mint State-65's can prove quite hard to find and are priced in the $10,000-12,000 range. Collectors should pay close attention to the appearance of this type as eye appeal is crucial when evaluating an Indian Head half eagle. Coins should be selected for originality and those with excessive friction on the Indian's cheek should be avoided as should examples with unnaturally bright color or deep, detracting abrasions.

9. Liberty Head Eagles: As with the half eagle of this design, there are two major types: the No Motto (1839-1866) and the With Motto (1866-1907). All No Motto issues are hard to locate in Uncirculated and are very rare in Mint State-63 or above. For type purposes, the post-1879 With Motto coins are more suitable. For the collector on a limited budget, a Mint State-64 is a good option with a number of dates available for around $1,000. A Mint State-65 Liberty Head Eagle can be easily located for $2,500-3,000. The most common Liberty Head eagle in higher grades is the 1901-S and this date will be included in many type sets. The collector might want to consider spending a little more money and purchasing a pre-1900 date to add a little "pizzazz" to his set. Coins with excessive spots or with marks on prime focal points such as Liberty's cheek should be avoided.

10. Indian Head Eagles: Augustus St. Gaudens designed this issue and many collectors consider it to be among the most beautiful gold coins ever issued by this country. Two important types exist: the No Motto issues of 1907-1908 and the With Motto coins struck from 1908 through 1933. There are a number of dates that are available for type collectors seeking an affordable coin in the Mint State-63 to Mint State-64 grade range. These include the 1910, 1910-D, 1911, 1912, 1913 and 1915. But most type collectors will purchase either a 1926 or a 1932 as these are, by far, the most common dates of this type. A Mint State example of either of these two dates is valued at $1,000 or so while an MS-65 is worth around $2,500. Most Indian Head eagles exhibit heavy marks on the surfaces and the collector should seek a coin that does not have these marks in readily visible locations.

11. Liberty Head Double Eagles: The Liberty Head double eagle was produced from 1850 until 1907. There are actually three distinct types but most type collectors focus on the most common: the Type Three that was struck from 1877 through 1907. It is almost a certainty that a type set will include a 1904 as its Liberty Head double eagle selection. This is the only Liberty Head double eagle that is common in higher grades. Mint State-64 examples are priced at $1,000-1,200 while Mint State-65 coins trade for $2,500-3,000. For the collector on a somewhat limited budget, a slightly scarcer pre-1900 issue in Mint State-63 (as opposed to a common 1904 in Mint State-64) might be a good alternative. Many examples of this type are seen with heavily abraded surfaces and the type collector should seek a coin that has reasonably clean fields. It is also important to seek a coin with above-average luster and nice coloration.

12. St. Gaudens Double Eagles: Known to most collectors as the "Saint", this is probably the single most popular United States gold type coin. There are two distinct types known: the No Motto (produced in 1907 and 1908) and the With Motto (made from 1908 until 1933). Most type collectors purchase a common With Motto issue such as a 1924, 1925, 1926, 1927 or 1928. These are extremely common in Mint State-64 and are typically priced around $600 while MS-65 are valued at $900-1,000. In Mint State-66, Saint Gaudens double eagles are easily located and cost $2,500 or so. This is a type that will always be available, so the collector can be picky when deciding which coin to purchase. It is advisable to seek a Saint Gaudens double eagle that has attractive coloration and no major marks in the obverse fields.

Assembling a twelve coin set is an excellent introduction to collecting United States gold coins. Prices for many issues are currently very reasonable and even a collector with a limited budget can complete a set with all twelve of the coins in Uncirculated for $15,000 or less. For more information on assembling a twelve coin set of United States gold coins please contact me at dwn@ont.com.

NOTE: The prices quoted above are based on values as of December 2002 and are for coins that have been graded by either PCGS or NGC.