Trophy Coins for the Rest of Us

The last article I wrote was about Trophy Coins. It generated a lot of buzz among my readers, not all of it positive. The negative comments I heard, not all underserved, typically went something like this: “You are an elitist, writing about coins which are $50,000, $100,000 and more.” I can understand these comments, although I would counter with the argument that a true Trophy Coin is by its very nature meant to be exclusive.

Is it possible to own a true Trophy Coin at a more realistic price point? I would resoundingly say that yes it is, although I would still place the minimum amount required to attain Trophyness, at least in the arena of United States gold coinage, to be in the $5,000-10,000+ range.

Here is a list of ten Trophy Coins for the 99%, plus “pitches” which quickly explain what makes each coin so clearly identifiable as being “special.”  I’ve also listed some “runners-up” which can be considered Trophy Coins in their own right.

1. 1875 Gold Dollar

The Pitch: Only 400 business strikes were made, giving this the lowest reported mintage of any gold dollar.

The 1875 gold dollar is a coin which was famous soon after it was made but whose popularity has diminished over the years. Most non-specialists are aware that it has an absurdly low original mintage, but they have little knowledge of this coin’s special attributes above and beyond its mintage. Interestingly, for some collectors the 1863 has replaced the 1875 as the “go to” Philadelphia issue of this denomination as a result of its status as “rarest Civil War gold dollar.”

The appearance of this issue is unusual for a gold dollar of this era. Many of the 100-150 which exist show fully reflective mirror surfaces which carefully resemble those seen on Proofs of this year. The typical example grades AU50 to low end Uncirculated and a very presentable 1875 gold dollar can be obtained, with patience, for around $7,500. In the higher grade range, there are at least five or six gems known including a PCGS MS66+ owned by collector Bob Simpson and Steve Duckor’s PCGS MS66; these are the two finest I have seen and am aware of.

While not as rare as its low mintage would suggest (clearly, examples were saved at the time of issue by dealers and collectors), the 1875 gold dollar is a significant scarcity whose value would quickly increase were it better known.

Runners Up: 1855-D gold dollar (rarest collectible branch mint issue), 1863 (rarest Civil War issue).

2. 1864 Quarter Eagle

Pitch: The rarest collectible business strike Liberty Head quarter eagle and a key Civil War issue.

For many years, the 1864 quarter eagle was a “sleeper” within a series (Liberty Head quarter eagles) replete with undervalued issues. But with the increased interest in Civil War issues, the true rarity of the 1864 quarter eagle became better known and, quickly, values escalated.

It is likely that no more than two dozen examples exist from an original mintage of 2,824 with most in the EF45 to AU55 range. The finest known is a superb Gem, graded MS67 by NGC and ex Byron Reed. The last few examples which have appeared at auction have brought in the $40,000-60,000 range; a level which is out of keeping with the spirit of these Trophy Coins but which, in my opinion, still represents fair value for an elite rarity.

With the exception of the extremely rare 1854-S, this is the rarest Liberty Head quarter eagle produced in an unquestioned business strike format, and it is clearly the rarest of the ten Trophy Coins on this list.

Runners Up: 1838-C and 1839-D (popular first year of issues), 1856-D (rarest Dahlonega quarter eagle), 1875 (lowest business strike mintage of the series except for the 1854-S).

3. 1854-O Three Dollar Gold

The Pitch: Popular first year of issue and one year type.

My natural inclination was to include the 1854-D as an obvious Trophy Coin, but at $50,000 this didn’t fit in with the spirit of this list; especially after I just listed a $50,000 item as coin #2. So, I chose the “poor man’s 1854-D,” namely the 1854-O.

As with its expensive cousin, the 1854-O is a one-year type and a first-year-of-issue. It is a surprisingly plentiful issue given its relatively low mintage of 24,000; over 1,000 exist, mostly in the EF40 to AU50 range. Accurately graded AU53 to AU55 examples with natural color and choice surfaces are still affordable and, in my opinion, they are very scarce due to the fact that 90+% of the surviving 1854-O threes have been cleaned and/or processed.

I handle dozens of 1854-O Three Dollar gold pieces every year, in grades ranging from EF40 to MS61, and this issue continues to fascinate me.

Runners Up: 1855-S (first SF issue), 1865 (rarest Civil War date).

4. Draped Bust Half Eagle

The Pitch: Old gold.

I’ve specialized in rare United States gold for close to three decades and I don’t think I’ve ever met a collector who didn’t like early gold. What’s not to like? These coins are historic, hefty, attractive and rare. Of the three denominations struck from 1795 to 1834, the half eagle is the most affordable and the most obtainable.

Narrowing down our choices for a Trophy Coin, I would select a Draped Bust half eagle, struck from 1798 through 1807. Nearly all collectors confronted with a choice of dates for this denomination would select an 18^th century issue, but the 1798 and 1799 are not cheap; thus, I suggest focusing on an 1800-1807. Nice AU coins are available, with some patience, in the $10,000-12,000 range. These coins have been excellent performers over the years (they have essentially doubled in price over the last decade) and they remain at the top of the list for many collectors’ dream coin.

Runners Up: Capped Bust type (1807-1812; cool but not as cool as the earlier Draped Bust type), 1813 (the most affordable Fat Head half eagle).

5. 1838-C or 1838-D Half Eagle

The Pitch: Very popular first year of issues and one year types. Mintmark on the obverse. Popular!

It was too hard for me to choose one or the other so I picked both…and for good reason. Both the 1838-C and 1838-D half eagles have become extremely popular in recent years and together they form a wonderful two coin collection.

The 1838-C is the more common of the two but it is much rarer in high grades than its counterpart. I have only seen one truly Uncirculated 1838-C half eagle (the Elrod/Bass coin graded MS63 by PCGS) and no more than five or six really nice high end AU examples.

The 1838-D is scarcer but it seems to have been saved in higher grades and as many as 10 are known in Uncirculated.

More than nearly any other southern gold coins (except for the 1861-D dollar and half eagle) these two issues have near-universal collector appeal.

Runners Up: 1840-O (first year of issue), 1842-D Large Date (rarest half eagle from Dahlonega), 1863-1865 (rare Civil War issues).

6. 1909-O Half Eagle

The Pitch: Popular one-year type coin and the last gold piece ever struck at this mint.

After discontinuing the manufacture of half eagles in 1894, the New Orleans mint struck 34,000 half eagles—seemingly out of the blue—in 1909-O. This has been a popular issue for many years and it has a grade distribution not unlike the 1854-O Three Dollar. The 1909-O is common in EF and lower AU grades, scarce in properly graded AU55 to AU58 and rare in Uncirculated.

I have handled dozens of 1909-O half eagles in the last few years ranging from affordable EF45 examples to the finest known, the incomparable Eliasberg MS66 which I purchased for a client in the January 2014 FUN auction. This issue appeals to a wide range of collectors and for good reasons: it is a unique issue with a great back story.

For most collectors a nice AU50 to AU53 example will fit well in their collection. A Trophy Coin aficionado could easily spend $50,000 or far more for a nice Uncirculated 1909-O.

Runners Up: CAC approved common date Indian Head half eagle in MS64 or MS65.

7. 1838 Eagle

The Pitch: First year of issue with a neat short-lived design.

The eagle denomination was discontinued after 1804 and upon its resurrection in 1838 it became, again, the largest denomination of American coinage. Only 7,200 eagles were made in 1838 but this date is a little more available than one might think. But most 1838 eagles show considerable circulation, and properly graded AU50 and higher examples are quite scarce.

I have been a big fan of this date for many years and I don’t think I’ve ever had a nice quality 1838 eagle that hasn’t a) sold quickly and b) received multiple orders off my website when available. The 1838 is a coin with strong demand from non-specialists, and while prices have risen accordingly over the years, $7,500-10,000 will still buy you a decent example. If you are willing to spend $15,000-20,000+ you can buy a smoking 1838 eagle, although many of the coins offered in recent years (in both NGC and PCGS holders) have had originality “issues.”

RUNNERS UP: 1841-O (first New Orleans eagle), 1865-S Inverted Date (very cool blundered date), 1873/1876/1877 (very low mintage issues).

8. 1854-S Eagle

The Pitch: Affordable first-year-of-issue San Francisco gold coin and a great Gold Rush memento

There were many other Liberty Head eagles I thought about, including the first-year 1870-CC, the low mintage 1879-O, and 1883-O, not to mention some of the rare, interesting Indian Head eagles. But I chose the 1854-S for a variety of reasons.

1854 is a magical year for San Francisco gold coinage. The mint opened its doors this year and produced five denominations. Two, the quarter eagle and half eagle, are formidable rarities. The eagle is actually the most common denomination from this year with hundreds known in EF40 to AU55 grades.

I wouldn’t call a marginally decent AU55 example of the 1854-S eagle a Trophy Coin. But a properly graded AU58, especially with a CAC sticker, is a great value at current levels ($5,000-7,000) and it is the best available quality for this date as the 1854-S is exceedingly rare in full Mint State.

Runners Up: See above.

9. 1857-S SS Central America $20.00 in MS64

The Pitch: A borderline Gem 150+ year old big gold coin for around 10 grand.

Before the discovery of the SS Central America, I could have counted the number of Gem Type One double eagles that I had seen on one hand. This discovery brought thousands of superb pieces into the market. It not only made owning a superb quality Type One double eagle a reality for most collectors; it also jump-started the still-hot Liberty Head double eagle market.

Some readers of this article will bristle at my inclusion of this as a Trophy Coin. But consider this: there are hundreds of new collectors who began buying rare gold coins as a result of dipping their toes in the water with an SSCA. And an MS64 still seems like the sweet spot of this issue: the coins tend to be lovely and the price is reasonable when compared to an MS65 or an MS66.

My ideal SSCA coin has been carefully selected by a knowledgeable dealer to not have discoloration or signs of chemical reaction to the conservation performed after the coins were salvaged. I like the coins with all the “bells and whistles” you can add on: they should be approved by CAC, in the original packaging and accompanied by the presentation box and COA as issued.

Runners Up: 1850 (first year of issue), 1862 and 1863 (rare Civil War issues), 1865-S Bro Jo.

10. Common Date Saint in MS66 with CAC Approval

The Pitch:  A beautiful coin in a beautiful grade at a beautiful price point.

Remember: this is a group of Trophy Coins for collectors who can’t afford, say a High Relief in Gem Uncirculated. Everyone loves Saints and the Next Best Thing for the more casual gold collector is a Gem MS66 common date.

But we are talking Trophy Coins here so this common date Saint must somehow be uncommon. And for this I suggest buying a pretty, CAC approved MS66. To buy one you have to pay a strong premium over an average quality coin. You can find quantities of MS66 saints without CAC stickers for less than $3,000. CAC approved coins bring a 50+% premium but they are worth it. The quality of many of the MS66/CAC Saints I have seen has been superb with great color and luster and just a few small marks in the fields.

If you could add or delete coins from this list, what would they be? Feel free to leave comments or contact me directly at dwn@ont.com.

Do you buy rare gold coins?

Do you have coins to sell?

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

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

Which Rare Gold Coins Will Be Demand in 2014?

A few years ago, when my blog was more of a newsletter, I used to write an annual piece entitled “What’s Hot, What’s Not.” I’ve never had the heart to go back and look at these; analyzing my analysis has never had appeal. But these were popular features and I thought I would bring them back - but with a twist. Instead of pondering about what will be “hot” in 2014 and what won’t, I thought it would be more interesting to speculate on what are some potentially in-demand areas.

1. Coins Priced Below $2,500

As I write this, the market for interesting gold coins priced at $2,500 and below is extremely strong. Case(s) in point: I used to run a weekly e-mail based sale of coins I called E-Specials which were two or three interesting gold coins priced in the $750-1,250 range. I used to be able to go to a major show and buy a dozen coins like this so the E-Specials would be pre-set for a month or more. Now, I can’t find many coins like this anymore, and I’ve punted the E-Specials.

So, what qualifies as an “interesting” gold coin in this price range? From my selling experience with E-Specials, I found that the parameters that always met with selling success were: PCGS graded, CAC approved, and dated prior to 1880. The interest factor for coins in this price range was greatly improved when I offered large sized issues; i.e., eagles and double eagles.

If I had to list a few specific coins in the $1,000-2,500 price range that I feel will be in demand in 2014 and may show some appreciation as a result, I’d include the following:

• Dahlonega half eagles in EF40 and EF45. The level of demand for nice D mint half eagles is very strong now, especially if they are choice, original coins. In the last few years values have crept up from around $1,600-1,800 to around $2,200-2,500+, and I see no price resistance to even higher numbers for the right coins.

• With Motto New Orleans eagles in MS61 and MS62. I’ve written this before but if some clever marketer would quietly assemble a position in common and slightly better date With Motto (1888-1906) eagles from New Orleans, prices could go up 20-40% without anyone batting an eyelash. The possibility exists that set collecting could drive this series as no dates are rare and many are available even in MS63 and MS64.

• Low grade scarce/rare date issues.  One of the major changes in the rare date gold market in the last three to five years has been the sudden surge in demand for affordable examples of tough dates. As an example, a coin like an 1861-S eagle is too expensive in higher grades for most collectors. But a nice Fine or Very Fine can be bought for a few thousand dollars and if the coin is worn but cosmetically appealing, it has a strong level of demand that didn’t necessarily exist a few years back.

2. Coins Priced in the $5,000-10,000 Range

Coins in the price range are my “bread and butter” but I would say this middle range (“middle” at least in the sense of rare gold coins) is the weakest part of the coin market going into 2014. Collectors who buy coins in this range are far more selective now than they were a few years ago, and a coin has to have an “it” factor to sell for $5,000, $7,500, or $10,000. I’ve invented a term called Multiple Levels of Demand to define what I regard as coins that have “it.”

As with coins priced below $2,500, coins priced at around $10,000 have to be interesting, and they have to have good visual appeal. Here are a few areas that I think will be in strong demand in 2014.

• Properly grade AU58 branch mint quarter eagles and half eagles. Nice slider examples if southern branch mint gold coins remain one of the best values in all of 19^th century numismatics. As I’ve explained before, a properly graded AU58 (not a coin that “looks like an MS64;” these don’t exist) is a coin that is being rewarded for positive eye appeal while a typical MS60, MS61 and even an MS62 is a coin with faults which are being punished. Most collectors would rather have a nice, natural AU58 Dahlonega half eagle at $5,000-6,000 than a “rubby” MS61 at $9,000-$11,000 and it is hard to blame them.

• Better date Three Dollar gold pieces. This is a series that has been out of demand for too long and with a little bit of promoting, I could see some improved level of collector demand in 2014 and beyond. There are some great values in this series right now and, interestingly, there are more nice coins available in the $5,000-7,500 range than in many other comparably priced types.

• MS64+CAC Indian Head gold.  From what I’ve seen, the quality of MS64+ Indian Head quarter eagles, half eagles and eagles is pretty nice and the typical example is visually better than MS64. As long as premium aren’t excessive over an average quality MS64, I can see the market expanding even further for these coins in 2014; especially when the price jump to MS65 is at least double or triple.

3. Coins Priced at $20,000 and Over

At this level, the air gets a lot thinner, but the market for nice quality expensive (notice I said “expensive” and not “trophy”) coins is as strong now as I can recall at any time since 2006-2007. Buyers of expensive coins are very discriminating (as they should be), but in my experience, the “right” coins in the $20,000-50,000 range are selling very well and will continue to do so in 2014.

There are a number of areas which fit into this category which I think have good upside in 2014. Here are a few of them.

• Really exceptional branch mint gold coins in MS63 and MS64. If you look at auction prices from 1999-2001 and compare the values of a coin like an 1847-C quarter eagle in PCGS MS64 then versus now, you will typically see a slight overall decline. There are a number of reasons for this, not the least of which is that many coins have been graded MS63 or MS64 which are not nice. But in my opinion, a choice, original CAC-quality Dahlonega half eagle in MS63 or a beautiful, naturally toned Charlotte quarter eagle in MS64 is truly rare. These coins may not have date collector demand in these high grades but there are numerous type collectors looking for one or two great coins in all of these series. Watch for demand to increase in 2014 and beyond.

• Rare date Proof gold in PR64 and PR65. Many of the Proof gold coins from the 1860’s, 1870’s and early 1880’s have tiny original mintages and fewer than half are known. Despite the rarity of a coin like an 1874 quarter eagle in Proof, the focus has been more on large denomination coins (eagles and double eagles) or super-grade pieces in the PR66 to PR68 range. While they are not often available, comparably “affordable” Proof gold dollars, quarter eagles, three dollar gold pieces and even half eagles seem to be increasing in demand and I see no reason that this will not continue through 2014 and beyond.

• Truly rare business strikes in Condition Census grades. The level of demand for formerly obscure business strike rarities will increase in 2014 as well. One thing I noticed in 2013 was that when I listed a choice, higher grade example of a truly rare coin on my website, I got multiple inquiries and not just from the “usual suspects.” As an example, I listed two very nice 1863 half eagles on my site in 2013 and I heard from numerous collectors for each of them, including two silver dollar collectors who wanted to buy an 1863 “just because it was cool” and a few dealers who I’ve literally never sold a coin to before.

4. Trophy Coins

In virtually all collectibles areas, the truly great “trophy” items are in huge demand and this will continue in 2014. The NGC MS63 Brasher Doubloon that will be sold by Heritage in a few weeks at the 2014 FUN auction could very well set a record for any coin - and there will be a number of million dollar+ coins in this sale and other auctions immediately afterwards.

A decade ago, the sale of a million dollar United States coin was front-page news; today it is relatively commonplace. As more “big money” discovers the coin market, I look for many exceptional prices realized in 2014, both at auction and via private treaty.

Do you buy rare gold coins?

Do you have coins to sell?

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

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