The 1854-D Three Dollar Gold Piece

In my opinion, the 1854-D is to Three Dollar gold pieces as the 1907 High Relief is to St. Gaudens double eagles. It is an issue whose rarity has been overstated but whose level of demand is always destined to be very high. Because of its extreme popularity, the 1854-D is probably the single most in-demand coin from Dahlonega and I personally love to buy and sell these pieces. The 1854-D Three Dollar gold piece has a number of factors that make it a very high demand issue. It is the only date of this denomination from Dahlonega and it has an original mintage figure of just 1,120. It has the lowest mintage figure of any branch mint Three Dollar gold piece (except, of course, the excessively rare 1870-S) and only one Dahlonega coin, the 1856-D quarter eagle, has a lower overall mintage figure.

Given the usual survival rate for Dahlonega coinage of this era, one would expect there to be only two to three percent of the original mintage figure (or twenty-five to thirty-five pieces) to exist. Surprisingly, as many as 100-125 1854-D Three Dollar gold pieces are known; a rather amazing percentage of the original mintage figure. Why do so many exist? I would suggest that either a number were saved as souvenirs or a significant hoard was known at one time. Given the fact that most 1854-D Three Dollar gold pieces show a decent amount of circulation, I doubt whether a hoard was ever known.

Of the 100-125 that exist, I believe that two to four are Uncirculated, twenty-two to twenty-seven are About Uncirculated, twenty-nine to forty are Extremely Fine and the remainder are Very Fine or below (this figure includes a number that are damaged and/or repaired). My in-grade rarity estimates are far different than the figures which can be gleaned from the PCGS and NGC population figures. The reasons for this are that, in my opinion, many 1854-D Three Dollar gold pieces slabbed by both services are overgraded. In addition, the value spread between one adjectival level and the next (i.e. Extremely Fine versus About Uncirculated) are great enough that many have been repeatedly submitted.

There are a number of mint-made features that make the appearance of this coin extremely recognizable. Inserted below is a picture of a very nice 1854-D Three Dollar gold piece (graded AU-58 by NGC) which I recently bought and then sold to a collector. Take a careful look at both the obverse and the reverse and then read the following paragraphs.

One of the features that makes the 1854-D Three Dollar gold piece so easily recognizable is its quality of strike. By looking at the obverse of a few examples, it is possible to determine an 1854-D without even turning it over to see its mintmark.

The U in UNITED is always weak while the TED is very heavy and shows doubling. The denticles on nearly every piece known are non-existent from 7:00 to 3:00 on the obverse and all of the reverse except from 3:00 to 8:00. The obverse and reverse rim areas at the top are very flat in appearance and serve as strong contrast to the better detail seen in the middle.

A few other diagnostic features are seen on all known examples. There is always a bold clashmark on the obverse at the throat of Liberty and another behind the headdress. On the reverse, there are clashmarks in the wreath as well as separation of the bow knot at the right and the leaf at the left as a result of overzealous polishing of the dies. Any 1854-D Three Dollar gold piece that lacks these diagnostics is highly suspect and is probably not genuine.

This issue is usually found in the Extremely Fine-40 to About Uncirculated-50 range and tends to show noticeable abrasions on the surfaces. Most have been cleaned at one time and any 1854-D Three Dollar gold piece with original surfaces and color (as on the piece illustrated above) is very rare and worth a strong premium over the typical piece.

If you are offered an uncertified example, I would strongly recommend that it be sent to PCGS or NGC as many 1854-D Three Dollar gold pieces have been repaired. Most often, pieces have been rim filed or re-engraved on the edges. I have seen at least ten (if not more) that have shown this damage and some are repaired quite expertly and may fool the beginning collector.

The 1854-D has never been an affordable coin but prices have climbed quite a bit in the last few years. A few years ago, a collector could expect to locate a very respectable example for $10,000-12,500 with some patience. Today, it is very hard to find one for less than $20,000 that is not a "dog." Although some dealers (and collectors) now feel that this issue is overvalued, I do not. The simple reason for this is the strong demand for nice pieces versus the reasonably limited supply. Numismatics Economics 101 says that if demand exceeds supply, then prices will rise. This has clearly been the case with the 1854-D Three Dollar gold piece.

Listed below is the current Condition Census for the 1854-D Three Dollar gold piece. Note the extremely strong price realized by the PCGS MS-61 example in the recent Heritage January 2004 sale of the Green Pond collection; a new auction record for his date.

Harry W. Bass foundation. Mint State-62 or better. Fully struck. This coin is currently on exhibit at the American Numismatic Association Museum.

Great Lakes collection, ex Larry Hanks, Superior 1/96: 2277 ($74,800; as PCGS MS-61), Winthrop Carner, Kevin Lipton, George Elliott, Mid American 1/87: 1814, RARCOA Auction 81: 386 ($72,500). Graded Mint State-62 by PCGS.

Other coins that have been graded as Uncirculated by one of the major services include the following:

Robert L. Hughes, ex Heritage 1/04: 1037 ($92,000), Green Pond collection. Graded Mint State-61 by PCGS.

Private collection, ex National Gold Exchange/Ken Goldman, Bowers and Merena 5/98: 1034 ($72,600). Graded Mint State-61 by NGC.

Steve Contursi inventory, ex Stack's/Sotheby's 10/01: 318 ($48,875), Browning collection. Graded Mint State-61 by NGC.

Private collection, ex Heritage 1999 FUN: 7664 ($57,500; as PCGS AU-58), Leon Farmer collection, Hancock and Harwell, Stack's Auction 84: 1328 ($24,200), Arthur Montgomery, Stack's Goshen (2/78): 1093. Graded Mint State-61 by NGC.

Private collection, ex Kingswood 3/01: 438 ($46,575), Stack's 10/99: 658 ($52,900). Graded Mint State-60 by PCGS. Identifiable by a large mint-made defect in the right obverse field.

Grading Early United States Gold Coins

For a variety of reasons, early gold coins are among the most difficult United States issues to grade. There is often discrepancy in grading these coins, even between experts. While it is impossible to teach a collector how to grade based on digital images, I thought it might be a good idea to display a few pre-1834 gold coins here and analyze them as to why they grade the way they do. Before looking at these specific coins, there are a few things to consider. First are the reasons why these issues are more difficult to grade than 20th century pieces. The basic reason is the pre-1834 United States gold coins are, for the most part, hand-produced items made on old-fashioned screw presses while later-date issues are mass-produced items that were struck using more modern steam presses.

As I have discussed in other articles about grading, there are five components that experts take into consideration when examining an early gold coin: strike, surface preservation, coloration, luster and eye appeal.

Strike is a relatively important factor in grading early gold but it does require a good degree of attendant knowledge. As an example, it would be incorrect for someone to penalize an issue such as an 1806/4 quarter eagle for being weakly struck at the center as all known examples exhibit weakness in this area. Conversely, an issue such an 1812 half eagle which is generally seen with a good strike might be properly penalized if an example had a very weak strike.

Surface preservation is very important when determining the grade of an early gold coin. If a coin has deep marks in key focal points (i.e., on the face of Liberty or in the left obverse field) this will certainly cause a deduction in grade. One confusing area in relation to early issues is adjustment marks. These are parallel scratches that were intentionally placed on overweight coins in an attempt to get them to conform to then-current weight standards. Generally speaking, unobtrusive adjustment marks do not cause a coin's grade to be lowered. Marks that are positioned in prime focal areas are considered negatives and may cause the grade to be lowered.

Since so few early gold coins show original coloration, this is no longer a critical factor in determining grade. If a coin that has the detail of an About Uncirculated-50 has very pretty original color, it is almost certain to be bumped up to at least an About Uncirculated-55 grade if not higher. Lack of color will not be a penalizing factor but the presence of good color is certainly a big plus for any early gold issue.

Luster is an extremely important factor in determining the grade of an early gold coin. Given the fact that so many pieces are poorly struck, show heavy marks or possess mint-made faults, the amount of luster that is present is a tangible fact that does not require great expertise to determine. In other words, an early gold coin either has luster or it doesn't and the amount that is present is a great aid in determining how much--if any--wear the piece has.

For any coin, the overall level of eye appeal is the single key element in determining grade (and value). When an expert grader looks at an early gold coin, the first thing he considers is the "look" of the coin. Is it attractive or unattractive? How does it compare to other examples of this date or type that he has seen?

Included below are good quality digital images of a few early gold coins that I have recently sold. After you view each image, I suggest you apply each of the five grading components I just discussed. Then, read my comments as they relate to the coin's strike, surface preservation, luster, coloration and eye appeal. I am going to list the actual grade for each coin at the end of this article so don't cheat and look at the grades before trying to determine what you think they grade!

1. 1801 Eagle

My first impression is that this is a fresh, original and attractive coin. It shows some weakness of strike at the stars on the right obverse but the rest of the detail is very sharp.

The surfaces are relatively well preserved. There are some scuffmarks in the obverse fields which are not overly detracting. The only significant abrasion is a reeding mark on Liberty's face. There is no rub on the cheek or signs of wear on the high spots, which means that this is an Uncirculated piece.

The luster is excellent. The obverse is very frosty while the reverse is more prooflike. Even if I had never seen another Eagle of this date or type, I would assume that the luster is decidedly above-average.

The coloration is a rich orange-gold hue which, from the image, looks original due to its evenness. Again, this is a very big plus and I would assume that not many 1801 eagles show this lovely coloration.

The overall eye appeal is very high. With the exception of the mark on the cheek of Liberty, I see no negatives about this coin. It is unquestionably "new" and it seems to be choice, based on its sharpness, luster and color.

2. 1803/2 Half Eagle

My first impression of this coin is that is has superb color and is about as original as one could hope for. It shows some light, even wear but is as attractive a circulated early gold coin as one might hope to find.

The surfaces of this coin are exceptional. Other than some light friction in the fields (which can be distinguished from weakness of strike by the difference of color between these areas and the high spots) there are no readily noticeable marks.

The luster is mostly obscured by the depth of the coloration. If the viewer looks at the protected areas (i.e., within the stars and around the date) he can see some traces of luster which would be more clear if the coin were lightened.

The best feature of this coin is its stunning deep reddish-gold color. This is what a 200 year old gold coin that is totally original should look like and it adds at least three (if not five) points to the overall grade. No more than 5% of all early gold coins show original color and just a smaller number have this lovely (and desirable) reddish-gold hue.

This is a very attractive, nearly flawless coin with just a bit of light wear noted. Its nice color, clean surfaces and originality give it a very strong degree of eye appeal.

3. 1830 Quarter Eagle

With the advent of new technology in the late 1820's, the quality of strike improved on United States gold coins. The reduced sized Capped Head Left quarter eagle was produced from 1829 to 1834 and it is generally found with good detail and a much better "look" than the quarter eagles produced from 1796 to 1808. This type did not circulate much and when available, survivors tend to come in relatively high grades.

My first impression about this coin is that it is very fresh and bright. It shows some marks in the fields but its vibrancy is enough to make these marks seem unimportant. It is important to remember on a coin like this that the number of marks that are present is not as important as their severity. In other words, a number of small scuffmarks in the obverse fields (as on this coin) are not as important as a few deep, detracting marks in similar areas.

This coin has excellent luster that is more suggestive of a late 19th century issue than one from 1830. From the image, it appears that the luster is very frosty in its texture with some slight reflectiveness in the fields. It appears to be unbroken and relatively undisturbed, leading the viewer to believe that this is an Uncirculated piece.

The coloration is an even medium to deep yellow and green-gold. It is attractive and even if the viewer has never seen another example of this date, this hue should appear to be well above-average.

The overall level of eye appeal is excellent. This is clearly an unworn coin that has a good strike, pleasing surfaces, great luster and nice color.

4. 1807 Bust Right Half Eagle

So how have you done so far? Getting more comfortable grading these early coins? Well don't get too comfortable because I've saved the hardest coin for last.

The 1807 Bust Right half eagle is the final year of issue for this type. It is found with a number of varieties as well as many different looks. This example is a late die state with a "sunken" look noted on the obverse.

But is the weakness at the center strike-related or is it wear? The answer lies in the fact that the luster on this coin is full with no breaks noted in the fields or on the high spots.

I stated earlier in this article that strike is the least important factor when grading an early gold coin. This is true but in the case of this piece, where the important central detail on the obverse has been partially obscured, it is likely that a grader will deduct some points from this coin's overall grade.

In addition, the surfaces show a number of marks. It is likely that this coin was transported loose in a bag from bank to bank in the early 19th century and in the process it picked-up some noticeable marks.

Not everything about this coin, however, is a negative. It has great luster and the coloration is lovely with rich green-gold and lemon hues strongly suggesting that it has never been cleaned or dipped.

While not everyone will agree with me, I happen to like this coin quite a bit. I am a stickler for originality and I would personally rather own a weakly struck, somewhat "baggy" early half eagle than one which was sharper and less marked-up but which was washed-out from having been overzealously dipped.

Early gold is an area where gaining knowledge will give the collector a decided advantage when making purchases. Given the fact that these are expensive coins, I would suggest that careful study is in order. For more information on grading early gold coins or on early gold in general please feel free to email me at dwn@ont.com.

The grades of the coins listed above are as follows:

1801 Eagle: PCGS Mint State-63

1803/2 Half Eagle: NGC About Uncirculated-55

1830 Quarter Eagle: PCGS Mint State-63

1807 Bust Right Half Eagle: NGC Mint State-61

Assembling A Set of 20th Century Liberty Head Double Eagles

For the beginning collector, one of the best gold coin sets to consider is a set of 20th century Liberty Head double eagles. This set contains eighteen issues produced at three mints (Philadelphia, Denver and San Francisco) between 1900 and 1907. There are a number of reasons why this set is a natural for many fledgling numismatists. These coins are big, attractive and contain nearly an ounce of gold; most of the eighteen dates can be found in reasonably high grade and there are no very expensive single issues. As a rule of thumb, it makes sense to assemble this set in Mint State. For the very common issues, I would suggest purchasing coins in the Mint State-63 to Mint State-64 range. For the scarcer issues (specifically the 1902 and the 1905) I would suggest looking for attractive, high quality Mint State-62 examples.

Before we start, here are some rules of thumb that the collector should keep in mind:

1. Try to assemble a set with a nice "matched" look. Your set will have more eye appeal if the coloration and the quality of the surfaces are nicely matched on each coin. If you are bothered by abrasions, wait for coins that are as clean as possible for the grade. If hairlines are what annoy you most, avoid coins that you do not like. The beauty of this set is that none of the coins is so rare that you will need to compromise your standards.

2. Don't overspend on the common issues. There are a number of coins in this set that are reasonably affordable in Mint State-63 or Mint State-64 but become very expensive in the next grade up. I would suggest that the coins which should be the most expensive in this set are the rarities: 1902 and 1905.

3. Try and include at least one Gem. Mint State-65 Liberty Head double eagles are currently an extremely good value at current price levels (around $3,500 as of late October 2003) and every set should have one lovely Gem.

4. Buy my book on Type Three Double Eagles. Self-serving, yes, but if you are going to collect this series than you should have the best reference work on it. (Contact me for ordering information at dwn@ont.com). I would also suggest that you have access to a PCGS and NGC population report and a recent copy of Coin World Trends to help you with pricing.

Listed below is a quick date-by-date analysis, along with suggestions of which are the best "value grades" for each date and approximate price ranges for each issue.

1900: The 1900 is a very common date that can be found in all grades up to and including Mint State-65. For most collectors, a Mint State-63 ($700-900) or Mint State-64 ($1,200-1,500) will suffice.

1900-S: This is one of the harder dates in this series to find in Mint State-63 or better although its high original mintage figure suggests that some nicer pieces could be laying in wait. A nice Mint State-62 is just $600-700 but I think Mint State-63 examples are still good values in the $1,650-1,950 range. Look for coins with good color and luster and no severe marks.

1901: This is one of the most common dates in the set. You can actually find nice Mint State-65's (these are currently worth around $4,000) but most collectors will be content to purchase a Mint State-64 in the $1,250-1,500 range. Avoid examples which are overly spotted as many 1901's are found as such.

1901-S: Despite a high mintage figure, this date is very elusive in higher grades. But I would caution the collector that it is possible a group of better quality examples (in this case Mint State-63 and above) could turn-up in Europe. I would stick with a nice, premium quality Mint State-62 and expect to spend $700-900.

1902: The 1902 is one of the two keys in this series and with an original mintage figure of just 31,254 coins, it is unlikely that any large hoards will be found. Nice Mint State-62's currently trade for around $1,200-1,500 and are very good values. A Mint State-63 will cost $6,500-7,500 (if available) and may be out of the price range of many collectors.

1902-S: As with a number of the San Francisco issues in this set, there is a big price spread between Mint State-62 and Mint State-63 for the 1902-S double eagle. You can buy a nice Mint State-62 for just $500-600 while a Mint State-63 will run you $2,500 to 3,000. Seems to me like this is a coin that makes more sense in Mint State-62.

1903: The 1903 is an extremely common issue and can be found even in Mint State-65. I would personally recommend a nice Mint State-63 ($700-800) or a Mint State-64 ($1,250-1,500). A Gem makes an interesting alternative to a 1904 as your single "super grade" coin in the set as it is considerably scarcer yet sells for essentially no premium.

1903-S: A much easier coin to find in higher grades than the 1900-02 San Francisco issues, the 1903-S can be obtained in Mint State-63 for around $1,000-1,250. In my opinion, this is the best value grade as a Mint State-64 jumps to $2,500-2,750.

1904: The 1904 is the most common Liberty Head double eagle by a huge margin. It is extremely easy to locate in Mint State-64 and even in Mint State-65. In my opinion, I would rather buy this date in Mint State-64 and have a slightly better date (such as a 1901 or 1903) in Gem in this set. Given the availability of specimens, I suggest you be picky when buying a 1904.

1904-S: The 1904-S is the most common San Francisco date in this set and it is the only issue that can be found in Mint State-65 for just a small premium over the common 1904. Given the fact that it is a mintmarked issue, I would suggest at the very least buying a nice Mint State-64 ($1,250-1,500) or even "stretching" for a 65 coin ($4,000-4,500).

1905: Traditionally, the 1905 has been regarded as the rarest 20th century Liberty Head double eagle. While I personally think the 1902 is scarcer, there is no denying that the 1905 is a very tough coin. I think Trends is a bit too high for better quality pieces and that $3,000-3,500 is the right number to pay for a decent quality Mint State-62. Trends for a Mint State-63 is $15,000 but I have seen examples trade in the $9,000-10,000 range.

1905-S: This is yet another date with a big price difference between Mint State-62 and Mint State-63 but with a big enough population in Mint State-63 to convince me that a PQ Mint State-62 is the way to go. With nice Mint State-62's selling for just $550-650, this is a good value.

1906: The 1906 is not as tough an issue as the 1902 or the 1905 but it is scarce in its own right. A nice Mint State-62 coin is currently valued at $800-900 while a Mint State-63 jumps up to $3,500-4,000. Because of this large price spread, I would suggest trying to locate a very high-end Mint State-62 with good color, luster and surfaces.

1906-D: The 1906-D is not a rare date but it is historically significant as the first double eagle produced at the Denver mint. It is quite a bit harder to locate in higher grades than the 1907-D. Given its desirability as a first-year issue, I'd look to purchase a nice Mint State-63 which should cost $1,600-1,900.

1906-S: This issue is easy to find in Mint State-62 and Mint State-63 and only moderately scarce in Mint State-64. You can find a Mint State-62 for just $550-650 while a Mint State-63 will cost $1,300-1,600. I would probably go with a Mint State-63 but there is certainly nothing "wrong" with a Mint State-62 and its current $50-100 premium over a common 1904.

1907: A nice Mint State-63 example, which should be available for $600-700, is probably just fine for most 20th century Liberty Head double eagle collections. Should a collector wish to purchase a Mint State, these are readily available in the $1,400-1,800 range.

1907-D: The 1907-D is the final of two Liberty Head double eagles produced at the Denver mint. It is not a particularly scarce coin and it can be found in Mint State-63 and Mint State-64 grades without a problem. The former is currently valued at $1,110-1,400 while the latter is a very good value in the $1,450-1,750 range. A Mint State-65 coin should cost $3,500-4,000. I would consider stretching for one of these, not so much because it is a rare coin but because it is the only Denver issue that can be fond in Gem condition.

1907-S: This final-year-of-issue double eagle from the San Francisco mint is comparable to the 1907-D in Mint State-62 and Mint State-63 but is much scarcer in higher grades. A Mint State-62 coin can be purchased for $550-600 while a Mint State-63 will cost $1,500-1,750.

Many new collectors are intimidated by Liberty Head double eagles because of the price that the rare issues command and the seeming impossibility of completing a set. I feel that a 20th century date set is a great place to begin, due to the affordability of these issues and the fact that many can be purchased in Mint State-62 and Mint State-63 grades for under $1,000.

A Guide To Collecting New Orleans Double Eagles: Part Two

The first part of this article looked at New Orleans double eagles struck from 1850 through 1856. Part Two includes the remaining Type One issues from 1857 to 1861 and the sole Type Three issue from 1879. 1857-O: It's easy to overlook this issue as it comes directly on the heels of the ultra-rare 1856-O. This is a scarce coin in its own right, although it is far more available than its predecessor. There were 30,000 struck of which an estimated 200 exist today. Most 1857-O double eagles are in the Very Fine to Extremely Fine range and show heavily abraded surfaces with a cleaned, unappealing look. There are around four or five dozen About Uncirculated coins known with most in the lower part of this grade range. The 1857-O is very rare in the higher AU grades and it is exceedingly rare in Uncirculated with just two or three known. The finest I am aware of is the Bass/Kaufman coin, graded Mint State-63 by PCGS, that sold for $97,750 in May 2000. While prices have risen considerably for higher grade 1857-O double eagles in the past few years, this date still represents excellent value for the collector.

The beginning collector should look for an 1857-O that grades Extremely Fine-45 and expect to pay $2,000-3,000. A more advanced collector should look for an About Uncirculated-55 and expect to spend around $7,000-8,000. If available, an Uncirculated piece will sell for $25,000+.

1858-O: The 1858-O double eagle closely compares in overall rarity to the 1857-O. In my opinion it is slightly scarcer, especially in the middle to higher range of About Uncirculated. Both are exceedingly rare in Uncirculated. There are around 150 to 175 examples known of the 1858-O and well over half are in the Very Fine to Extremely Fine range. As with the 1857-O, the typical example shows very heavily abraded surfaces and has been cleaned. Any 1858-O with original coloration and reasonably clean surfaces should sell for a significant premium over a typical example. I am aware of just two Uncirculated 1858-O double eagles: an NGC MS-60 in a Midwestern collection and a PCGS MS-62 that sold for $50,600 in the May 2000 Bass III sale. This is another date that has appreciated quite a bit in price over the last few years but which is still very fairly valued in Extremely Fine and About Uncirculated.

The beginning collector should look for an 1858-O that grades Extremely Fine-45 and expect to pay $2,000-3,000. A more advanced collector should look for an About Uncirculated-55 and expect to spend around $7,500-8,500. If available, an Uncirculated piece will sell for $25,000+.

1859-O: This is the fourth rarest New Orleans double eagle, narrowly trailing the 1855-O. Only 9,100 were struck and 75-85 are known today. When available, the typical 1859-O grades Very Fine to Extremely Fine. There are fewer than twenty properly graded About Uncirculated specimens known and currently only one Uncirculated, a PCGS MS-60, has been certified by either of the major services. This issue was not as well made as some of the earlier New Orleans double eagles. It is generally flatly struck with weak stars and hair on the obverse. Almost every known 1859-O double eagle is covered with deep, detracting abrasions and most have been cleaned at one time. On the few higher grade pieces that are known, the luster is prooflike and is actually better than one might expect. This is a coin that is currently in extremely high demand as many advanced collectors lack an 1859-O. When a nice specimen does become available, it is advisable to take a deep breath and "go for it" as it is likely that if you pass on such a coin, the next one that comes around will be even more expensive.

The beginning collector should look for an 1859-O that grades Extremely Fine-45 and expect to pay $6,000-7,000+. A more advanced collector should look for an About Uncirculated-55 and expect to spend around $20,000-30,000+. If available, an Uncirculated piece will sell for $70,000+.

1860-O: Even though fewer 1860-O double eagles (just 6,600) were produced than in 1859-O, the 1860-O is actually a slightly more available coin. It is likely that just 85-95 1860-O double eagles are known with fewer than twenty in About Uncirculated and none in any Mint State grade. When available, the typical piece is likely to grade Very Fine to Extremely Fine. As with the 1859-O, this is an issue that is exceptionally hard to locate with good eye appeal. Most 1860-O double eagles show extensive detracting abrasions and have been repeatedly cleaned or dipped. I have not seen more than a small number of choice, original coins and these have typically sold for strong premiums to very knowledgeable specialists. Here is another issue that appears on a great number of want lists and nice ones tend to get quickly snapped-up and go off the market for many years.

The beginning collector should look for an 1860-O that grades Extremely Fine-40 and expect to pay $6,500-7,500+. A more advanced collector should look for an About Uncirculated-55 and expect to spend around $22,500-32,500+. If available, an Uncirculated piece will sell for $60,000+.

1861-O: After many years of being almost completely ignored, the 1861-O double eagle is currently experiencing near cult-like popularity. There are a number of reasons why this date has become so popular. First of all, it has been very undervalued. The current Trends valuation of $4,500 for an Extremely Fine-45 example strikes many collectors as being low, given this coin's true scarcity. Secondly, this coin is a very important issue from an historic viewpoint. 1861-O double eagles were struck by three authorities: the Federal government, the State of Louisiana and the Confederacy. The 1861-O is the most poorly produced New Orleans double eagle. It is often very weak on the date and shows little detail on the hair. The surfaces are almost always excessively abraded and most have been cleaned and/or dipped. Of the 135-165 pieces that survive, between two and three dozen grade About Uncirculated. One or two Uncirculated examples are known and these have been graded very recently (between August and September 2003).

The beginning collector should look for an 1861-O that grades Extremely Fine-40 and expect to pay $5,500-7,500+. A more advanced collector should look for an About Uncirculated-55 and expect to spend around $15,000-20,000+. If available, an Uncirculated piece will sell for $60,000+.

1879-O: After it was shut down in 1861, the New Orleans mint reopened in 1879. The first two gold issues produced were Eagles and Double Eagles. Only 2,325 of the latter were made. Somewhere in the area of 100-125 pieces are known. These tend to grade Extremely Fine-40 to Extremely Fine-45. There are possibly as many as 15-20 known in About Uncirculated as well as another three or four that grade Uncirculated. The finest 1879-O double eagle that I am aware of is the Dallas Bank Collection that sold at auction in October 2001 for $115,000. Most have prooflike surfaces that are riddled with severe marks. Many also adversely affected by heavy copper spotting. This is an issue that is very hard to find with good eye appeal and like most of the other rare New Orleans double eagles, really pretty examples sell for very strong premiums. Given the fact that this is a one-year "stand alone" type coin, it is likely that demand for the 1879-O double eagle will remain extremely high.

The beginning collector should look for an 1879-O that grades Extremely Fine-40 and expect to pay $6,000-8,000+. A more advanced collector should look for an About Uncirculated-55 and expect to spend around $15,000-20,000+. If available, an Uncirculated piece will sell for $40,000+.

Short, Completable Sets of United States Gold Coinage

When completing a set, many gold coin collectors reach a point where they are waiting on extremely expensive and/or difficult-to-locate issues. A good solution for the collector who wants to remain active in the market is to start on a short, completable set that can be worked on while waiting on the big ticket items for their #1 set. There are numerous short, completable sets of United States gold coins that they can pursue in addition to their major interest. Listed below are some examples, along with pertinent comments.

NOTE: The values listed below are for average quality coins. Very high-end or premium quality coins can add a considerable amount of cost to any of these sets. The "completability factor" is based on a scale of 1 to 5 with one being easy and five being very hard. In the comments listed below, "2/5" would mean two out of five which equates to being "relatively easy" to complete.

Obverse Mintmark Issues, 1838-1839: During these two years, an interesting group of coins were struck. These are notable for being the very first gold branch mint issues and they are readily distinguishable by the use of mintmarks on the obverse. This set includes the following:

Quarter Eagles: 1838-C, 1839-C, 1839-D, 1839-O Half Eagles: 1838-C, 1838-D, 1839-C, 1839-D

Comments: These eight coins include a number of issues that are found in set #3 below. This is an extremely popular group. The dual popularity of these with type and date collectors mean that they are somewhat fully valued in relation to other branch mint issues. However, their extreme popularity makes them relatively "safe" places to park your numismatic dollars.

Cost: In Extremely Fine grades this set would cost in the area of $30,000-35,000. In About Uncirculated, this set would cost $75,000-100,000. The rarity of the 1838-C half eagle in Uncirculated (there are only two known) make this set essentially impossible to complete in Uncirculated.

Completability: 2/5. This is a fairly easy set to assemble, especially in Extremely Fine grades. In About Uncirculated it will prove to be more of a challenge given the rarity of the half eagles and the popularity of each issue.

First Year of Issue Set: For the sake convenience (and cost), it is best to focus this set on Classic Head and Liberty Head issues. This is a collecting theme that is already very popular in other areas of the market. As an example, first year of issue sets in 18th century coinage have been avidly sought by many generations of collectors. As it relates to gold coinage, this set contains one example each of the various United States gold types produced between 1834 and 1907.

This set includes the following:

Gold Dollars: 1849 (Type One), 1854 (Type Two), 1856 (Type Three) Quarter Eagles: 1834 (Classic Head), 1840 (Liberty Head) Three Dollars: 1854 Half Eagles: 1834 (Classic Head), 1839 (First Liberty Head), 1840 (Modified Liberty Head, No Motto), 1866 (With Motto) Double Eagles: 1850 (type One), 1866 (Type Two), 1877 (Type Three)

Comments: There are sixteen coins in this set. None are really rare but the 1866 issues and the 1838 and 1839 eagles will prove to be elusive, particularly in higher grades. The grade range of this set is hard to formulate as their are some very common issues (such as the Type One and Type Three gold dollars) and others that are nearly impossible to locate above About Uncirculated-55. A good average grade range for this set is About Uncirculated-50 to About Uncirculated-55.

Cost: An About Uncirculated set will cost $50,000-60,000. An Uncirculated set is possible but it will take deep pockets and a good deal of patience as a number of the coins are very rare.

Completability: 2/5. In About Uncirculated this is a fairly easy set to complete.

One Year Varities: There are numerous gold coin varieties that were produced for one year only. For this collection we are specifically referring to, as an example, an issue that was made at a certain mint for just one year. A coin that qualifies is the 1855-C gold dollar as it is the only Type Two gold dollar made at the Charlotte mint. A list of coins that qualify as such include the following:

Gold Dollars: 1855-C, 1855-D, 1855-O, 1856-S Quarter Eagles: 1839-D, 1839-O Three Dollars: 1854-O, 1854-D Half Eagles: 1838-C, 1839, 1839-C, 1839-D, 1909-O Double Eagles: 1879-O

Comments: All of these issues are very popular and relatively scarce but all are available without a huge degree of difficulty. Probably the hardest issue of the dozen listed is the 1855-D, especially with a sharp strike.

Cost: In Extremely Fine grades, this set would cost in the area of $55,000 to $65,000. In About Uncirculated, this set would cost in the area of $135,000 to $160,000+.

Completability: 2/5. The hardest issues to locate are the 1855-D gold dollar and the 1879-O double eagle, especially in higher grades.

New Orleans Quarter Eagles: The New Orleans mint produced thirteen quarter eagles between 1839 and 1857. If both varieties of 1843-O are included, this number is increased to fourteen. This is a great set for collectors as each issue has interesting peculiarities of strike and appearance. As an example, the 1840-O and 1842-O typically look completely different, despite the fact that they were produced within two years of each other. A complete set of New Orleans quarter eagles contains the following:

1839-O, 1840-O, 1842-O, 1843-O Small Date, 1843-O Large Date, 1845-O, 1846-O, 1847-O, 1850-O, 1851-O, 1852-O, 1854-O, 1856-O, 1857-O.

Comments: If a collector is not very particular about quality, this set could be assembled relatively quickly. If he is sensitive to quality of strike and originality, this will be a much harder set to complete. The key issue is the 1845-O. The other tough coins are the 1840-O, 1842-O, 1843-O Large Date and 1856-O.

Cost: In Extremely Fine grades, this set would cost between $15,000 and $20,000. In About Uncirculated it would cost $55,000-65,000. In Uncirculated it would be extremely hard to complete due to the rarity of the 1845-O (only two or three Uncirculated examples are currently known).

Completability: Completability: 1/5. An easy and interesting set to assemble.

Seven Mint Set of Liberty Head Half Eagles: Liberty Head half eagles are the only type of United States coin that were produced at seven mints. Back in the 1970's and 1980's, the so-called seven-mint set was very popular with collectors. It seems likely that it is poised for a comeback, especially now that NGC (and probably PCGS in the near future) are making holders that house multiple coins.

This set includes one coin from the Carson City, Charlotte, Dahlonega, Denver, New Orleans, Philadelphia and San Francisco mints. Generally speaking, most collectors purchase the common coins in Uncirculated and the rarer issues in About Uncirculated.

Comments: This is the most conventional of the sets discussed in this article and probably the most popular. I would suggest purchasing the Philadelphia, Denver and San Francisco coins in Mint State-64 (each should cost under $1,000), the Carson City coin in Mint State-62 to Mint State-63 (look for an 1891-CC in this grade range and expect to spend $1,000-2,500), a New Orleans coin in Mint State-61 or Mint State-62 (look for an 1893-O or 1894-O and expect to spend $1,000-2,000) and the Charlotte and Dahlonega issues in About Uncirculated-55 to About Uncirculated-58 (expect to spend $3,000-5,000+ per coin).

Cost: A really nice set as described above could be assembled for around $20,000. A slightly lower grade set could be assembled for slightly less than $10,000.

Completability: 5/5. An easy set to complete.

Transitional Issues: A Transitional issue is defined as one in which two distinct varieties were produced in the same year. As an example, in 1866 there are No Motto and With Motto issues.

The following gold coins are included in a Transitional Set:

Dollars: 1854 Type One and Type Two (Total: 2 coins) Quarter Eagles: 1796 No Stars and With Stars; 1834 With Motto and No Motto (Total: 4 coins) Half Eagles: 1795 Small Eagle and Heraldic Eagle; 1797 Small Eagle and Heraldic Eagle; 1807 Bust Right and Bust Left; 1834 No Motto and With Motto; 1866-S No Motto and With Motto; 1908 Liberty Head and Indian Head (Total: 12 coins) Eagles: 1797 Small Eagle and Large Eagle; 1839 Large Letters and Small Letters; 1866-S No Motto and With Motto; 1907 Liberty Head and Indian Head; 1908 Philadelphia and Denver No Motto and With Motto (Total: 12 coins)

Comments: If the 18th century coins are included, then this set is very expensive and hard to complete. If these eight coins are removed, the cost is significantly reduced. However, there are still a number of very tough coins including the 1834 No Motto quarter eagle and half eagle and the 1866-S No Motto double eagle.

This is unquestionably the most complex of the six sets listed and it may be a bit too esoteric for the beginning collector. However, it does include some very interesting issues and would be a great accomplishment if completed.

Cost: If all thirty-six coins listed above are included, this set will cost well into six figures and if high grade pieces are included then it could easily eclipse $1 million. If the 18th century issues are not included, the price becomes more realistic but it is still not "cheap." You can count of spending at least $150,000-250,000+ for a set with coins in the Extremely Fine-40 to About Uncirculated-50 range.

Completability: With all the coins listed above included, this set is a 5/5. With just the 19th and 20th century coins it is a 4/5.

These are just a few of the completable short sets of United States gold coins that come to mind. There are certainly many others that are possible which range from very basic to extremely exotic.

A Guide To Collecting New Orleans Double Eagles: Part One

New Orleans double eagles are among the most popular series with gold coin collectors. They were produced from 1850 to 1861 and again in 1879. This series includes two reasonably common issues, two extreme rarities and a number of dates that are very interesting as a result of their historic background. Because of the great rarity and cost of the 1854-O and the 1856-O (the two extreme rarities mentioned above), it is exceptionally difficult to complete this series. There are some options that the collector might wish to consider if he can not consider acquiring these two significant rarities.

The first is to simply pretend they do not exist. Building a set of New Orleans double eagles that is complete except for the 1854-O and 1856-O is still a formidable accomplishment.

The second is to look at the New Orleans double eagles as type coin and to acquire two pieces: one example of the Type One and a Type Three. Because of the fact that the only Type Three from this mint is the 1879-O, this second task will be very specific.

A third option would be to assemble a three-decade set of New Orleans double eagles. This would include one coin from the 1850's, one from the 1860's and one from the 1870's.

Despite the high cost and great rarity of the 1854-O and 1856-O, there are still a number of collectors currently working on complete sets of New Orleans double eagles. Many of these individuals are focusing on very high grade pieces and prices for Condition Census quality examples have risen appreciably in recent years. But there are still some good values available to the informed collector as the date-by-date analysis below will show.

1850-O: This popular first-year issue is actually fairly common in lower grades and does not become scarce until the About Uncirculated-53 level. It is rare in About Uncirculated-55, very rare in About Uncirculated-58 and extremely rare in Uncirculated. I have only seen two that were fully Uncirculated and none were better, in my opinion, than Mint State-61. This issue is characterized by weak strikes, poor luster and excessively abraded surfaces. An example that is original, reasonably clean and sharply detailed is worth a strong premium above a typical example. Prices for About Uncirculated-55 and 58 coins have shot up in recent years but I think the 1850-O is still a good value as few people truly understand its rarity in this grade range.

The beginning collector should look for an 1850-O that grades Extremely Fine-45 and expect to pay $2,000-2,500. A more advanced collector should look for an About Uncirculated-55 and expect to spend around $9,000-10,000. If available, an Uncirculated piece will sell for $25,000+.

1851-O: The 1851-O is the most common New Orleans double eagle. As it is also among the best produced, it makes an ideal type coin. It is easy to locate in lower grades and this date can be found even in the middle to higher About Uncirculated range without a great effort. In Uncirculated, this is a rare coin with about a dozen fully Mint State pieces known. There are two or three Mint State-63 pieces plus another four to six Mint State-62's. A few years ago, high quality 1851-O double eagles were regularly seen at auctions or large coin shows but the supply has dried-up as type and date collectors purchased these. Today, a nice About Uncirculated-55 coin is about the nicest quality available. Most 1851-O double eagles are found with a good strike and good luster. It is preferable to search for one that is original and which lacks significant abrasions.

A beginning collector should look for an 1851-O that grades About Uncirculated-53 and expect to spend $2,000-3,000. A more advanced collector should look for an About Uncirculated-58 and expect to spend $7,000-8,000. If available, an Uncirculated piece will sell for $15,000-20,000+.

1852-O: The 1852-O is the second most common double eagle from this mint. It is similar in rarity to the 1851-O in circulated grades and is very slightly more available in Uncirculated. Around fifteen to twenty Mint State pieces are known including a single piece in Mint State-65 that is regarded as the finest known New Orleans double eagle of any date. As with the 1851-O, the supply of choice, higher grade 1852-O double eagles has been greatly reduced in recent years as type and date collectors have placed most of the really nice examples in their collections. It is possible to find an 1852-O with good color, luster and strike detail. The collector is strongly urged to wait for the right coin; especially if he is using an 1852-O as a type coin or as a representative example of a New Orleans double eagle produced in the 1850's.

A beginning collector should look for an 1852-O that grades About Uncirculated-53 and expect to spend $2,000-3,000. A more advanced collector should look for an About Uncirculated-58 and expect to spend $7,000-8,000. If available, an Uncirculated piece will sell for $15,000-20,000+.

1853-O: The 1853-O is a reasonably common date but it is considerably harder to locate than the 1850-O, 1851-O and 1852-O. It is not as rare as the 1850-O in About Uncirculated-55 and higher but is still quite scarce in the upper About Uncirculated grades. In Uncirculated the 1853-O is very rare. There are an estimated six to eight known in Uncirculated with the finest of these being a single Mint State-63. Other than this coin, I have only seen one or two examples that I regarded as being fully Uncirculated. Most examples on the market have been cleaned and show heavily abraded surfaces as well as some weakness of strike. On occasion, there are nicely colored, sharply struck coins without serious marks and these are very desirable. The 1853-O is an interesting issue to select for type purposes instead of an 1851-O or an 1852-O as it is considerably scarcer but not all that more expensive.

A beginning collector should look for an 1853-O that grades About Uncirculated-50 and expect to spend $2,000-2,500. A more advanced collector should look for an About Uncirculated-58 and expect to spend $8,000-9,000. If available, an Uncirculated piece will sell for $20,000-30,000+.

1854-O: The 1854-O is one of the two great rarities among the double eagles struck at this mint. Approximately 25-35 survive from an original mintage figure of 3,250. The 1856-O is a bit rarer in terms of overall rarity but both are considered to be among the most desirable United States gold issues of the 19th century. When available, the 1854-O tends to grade Extremely Fine-40 to About Uncirculated-50. There are around a half dozen known in About Uncirculated and none are currently accounted for in Mint State. Most 1854-O double eagles have been cleaned (or at least dipped) and show a lack of detail at the centers. Unlike a more common issue such as the 1851-O, the collector cannot be very choosy when it comes to acquiring an 1854-O. Only one or two specimens are offered for sale each year and prices have risen dramatically in the past decade.

A beginning collector will most likely not include an 1854-O in his set. A more advanced collector should look for a coin in the About Uncirculated-53 to About Uncirculated-55 range and expect to spend $150,000-200,000+.

1855-O: The "second tier" dates in the New Orleans double eagle set are the 1855-O, 1859-O and 1860-O. All three are very scarce in all grades but are not so expensive that they are unrealistic options for most collectors. Fewer than one hundred examples are known from an original mintage of just 8,000. The average 1855-O grades in the Very Fine-35 to Extremely Fine-45 range. Around a dozen properly graded About Uncirculated pieces exist and there are one or two with claims to Mint State. The 1855-O is generally well worn and not especially well struck. Most have been cleaned or dipped and show heavy abrasions on the surfaces. Around two years ago there were three or four nice pieces on the market at one time but these all went into tightly-held collections and there have not been many nice 1855-O double eagles on the market since then. It seems likely that demand will remain high for this date and very few choice pieces will appear in the coming years.

A beginning collector should look for an 1855-O that grades Extremely Fine-40 and expect to spend $4,000-5,000. A more advanced collector should look for an About Uncirculated-55 and expect to spend $22,500-27,500. If available, an accurately graded Uncirculated piece will sell for $50,000+.

1856-O: A strong case could be made for calling the 1856-O the rarest gold coin ever struck at the New Orleans mint. Just 2,250 were produced and approximately twenty to thirty are known. Four to six are in the About Uncirculated range while a single Uncirculated coin (graded Mint State-63 by PCGS) is accounted for. The 1856-O is typically only available for sale when important collections are auctioned. In the past five years I can only account for four or five different pieces and it is not likely that this rate of availability will change in the future. The typical 1856-O is actually a bit nicer in appearance than the 1854-O. Some are seen with semi-prooflike surfaces and exhibit a decent overall strike. There are not many that have original color and nearly all have noticeable abrasions in the fields. As with the 1854-O, the collector must realize that he can not be overly fussy when given an opportunity to purchase this issue as the demand for both of these rarities far exceeds the supply.

A beginning collector will most likely not include an 1854-O in his set. A more advanced collector should look for a coin in the About Uncirculated-53 to About Uncirculated-55 range and expect to spend $150,000-200,000+.

Special Report May 2003: What's Hot and What's Not

Every year, I write a report that discusses what areas of the United States gold market are active and which are slow. Since the last report (summer of 2002), the overall coin market has performed very strongly and in 2003 there are really only a small handful of areas that are not performing well. Maybe a more accurate title for this report would be "what's really hot and what's just sort of lukewarm..." First, the good stuff: what are the hottest areas in what has proven to be a very robust coin market through the first quarter of 2003?

Type One Double Eagles: In 2001 I surmised that this would become a strong area for a number of reasons. Foremost among these was the fact that I was working on a book covering the series and a large West Coast firm was getting ready to do a promotion emphasizing Type One issues.

In 2001 I surmised that this would become a strong area for a number of reasons. Foremost among these was the fact that I was working on a book covering the series and a large West Coast firm was getting ready to do a promotion emphasizing Type One issues.

There are still some great values in the Type One series. I love the Philadelphia issues from the 1850's in About Uncirculated and Uncirculated grades and feel that a number of the San Francisco dates remain good values as well.

Three Dollar Gold Pieces: For a number of years, price levels of Three Dollar gold pieces have been very flat. This is about to change as the June 2003 edition of Coin World Trends notes substantial price increases for many issues.

Do these prices increases indicate that it is now "too late" to get in on the ground floor of this series? I personally believe that despite these price increases, most Three Dollar gold pieces are still very undervalued and will increase significantly in the coming years. And (hint, hint...) I hear that there may be a book on Threes coming out in the next year which should prove to be a further impetus for the popularity of this series.

The issues that I find most appealing include the very low mintage dates from the 1880s, the Civil War issues (still extremely underpriced in my opinion) and the mintmarked dates from the 1850's.

Dahlonega Gold Coinage: In the past year, many new collectors have entered the Dahlonega market. There have not been many who have been seeking to assemble high-grade complete sets. More people are collecting Dahlonega gold coinage by type or by year.

What this means is that significant one-year type issues such as the 1855-D gold dollar or the 1839-D half eagle are more popular than I can ever remember. I probably have five want lists for nice Extremely Fine-40 to About Uncirculated-50 1838-D half eagles but have not been able to find any available for sale.

The rarest Dahlonega issues are also very popular right now. As an example, the last two 1856-D quarter eagles I have had in stock sold within hours of being posted on my website. The same goes for any of the rare, low mintage Dahlonega issues such as 1861-D gold dollars, 1840-D quarter eagles, 1855-D quarter eagles, etc.

Trends values for Extremely Fine Dahlonega gold coins seem poised for an increase. The March 2003 Bowers and Merena auction contained around forty to fifty sub-$2,500 Dahlonega coins and, in most instances, they sold for substantially over Trends to dealers.

Early Gold: Although prices haven't really increased for pre-1834 United States gold issues, the level of demand for these coins is as high as I can ever remember. This is especially true with issues that are priced in the $2,500-7,500 and first-year types such as the 1795 half eagle and eagle.

I have been looking for nice, original early gold coins at the last three or four shows I've attended and have been amazed at the lack of available material. Clearly, these coins are quietly being absorbed into the market and they appear to be going into strong, long-term collections.

The only early gold coins that aren't really "hot" right now tend to be the more common issues (such as Bust Right half eagles) in higher grades. But I have noticed that coins like an 1803 half eagle in Mint State-64 (to use a purely random example) are now far more saleable than six months ago, especially if it is accurately graded and has decent eye appeal.

Let's not forget to add the price of gold to the list of "what's hot." Last year, gold was stumbling along in the $250-260 range. As the reality of war with Iraq loomed, gold zoomed to over $360 an ounce. It subsequently backed off to $320 but has risen to over $350 as I write this (mid-May) as a result of the weakness of the dollar versus the euro.

I know a whole lot more about gold coins than I do gold bullion prices, but it seems to me that gold has a very good shot of breaking the $400 mark in the coming months. This certainly can't be bad for price levels of rare date gold coins.

Most areas in the United States gold coin market are doing at least "OK" right now. Some of the series that aren't selling very well include the following:

Better Date Indian Head Half Eagles and Eagles: The market for scarcer dates in these two series, especially in Mint State-63 and higher, remains flat. Part of the reason for this is that collecting Indian Head half eagles and eagles has fallen somewhat out of favor with collectors. Another reason is that grading standards have eroded on higher grade Indian Head gold. There is now little difference between coins graded Mint State-63 and Mint State-64 or even between Mint State-64 and Mint State-65. This makes the price spreads between these levels much lower than in the past.

These formerly popular series do have a lot going for them. They are very attractive and many dates are genuinely scarce in higher grades. If they are properly promoted, it is likely that they will become popular again, like their quarter eagle counterparts.

"Unusual Date" Gold Coins: I refer to gold coins that are marketed as "rare date gold" but which really are not as "unusual dates." As an example, a Mint State-63 San Francisco eagle from 1887-S is certainly not a common date but since there are no collectors who really care about it, paying a strong premium over type coin price is probably not a good use of your money. Around four or five years ago, there were a few large retail firms that sold a number of low population higher grade half eagles and eagles from the 1880's and 1890's. These have fallen out of favor and now that these retailers will not market them, they are very hard to sell at levels anywhere near Greysheet Bid.

As a rule of thumb, coins like this are not performing well because no one really collects them. A date collector tends to focus on the rarer branch mint issues from Charlotte, Dahlonega, Carson City and New Orleans, while type collectors favor very high-grade examples of common dates.

I expect levels for "unusual date" coins to keep dropping. If it gets to the point that an issue with a population of, say, fifteen coins in Mint State-64 with ten better can be purchased for just a small premium over generic price, then these coins are good value for the type collector. Otherwise, stay away from them.

Mint State-65 and Mint State-66 Type Three Gold Dollars: Type Three gold dollars were produced from 1856 until this denomination was discontinued in 1889. Most of the issues struck after the mid-1870's are reasonably available in the higher Uncirculated grades. The dates from the 1880's were hoarded and saw little circulation, meaning that many issues are easier to find in Mint State-64 or Mint State-65 than in About Uncirculated.

High-grade gold dollars from this era have dropped in price to the point that they are great values. A common date in Mint State-65 is now valued at $1,500-1,750 while an MS-66 is worth $2,250-2,500. At these levels, these attractive, low mintage coins are excellent values. I would not be surprised to see these "heat up" in the next year or two as new collectors realize that they are undervalued and very interesting to collect.

Rare Coin Purchasing Strategies

In 1996, two collectors decided to assemble a million dollar collection of high grade United States coinage. Seven years later, both decided to sell. One now has a collection that is worth upwards of $2 million while the other individual's coins are worth $600,000. What did collector #1 do that was so much smarter than the other? I'd like to say that the answer was as simple as collector #1 carefully listening to me while collector #2 took his advice from other people. And while this is ultimately true, there were a number of important purchase strategies employed by the first collector that were ignored by the other.

Collector #1 did the following: he was patient, he chose his coins carefully, he was loyal, he was not a slave to published bid levels, he reached for the best available coins and he assembled a true collection as opposed to an accumulation. Collector #2 made rash, impulsive purchases, bought coins from a wide variety of sources (some reputable, some not), would never purchase a coin unless it was priced at a "bargain" level and wound-up with a strange, disconnected assemblage of coins rather than a true collection.

It is a good idea to look at some of these points more carefully to understand why one collector did so well while the other did not.

1. For the collector, patience is a virtue: One of the key reasons for the success of collector #1 was his patience. Instead of wildly charging out into the market and buying whatever looked interesting, he was highly selective. In fact, he typically purchased just a few coins each year. Collector #2 was extremely impulsive and purchased some coins that, in retrospect, made no sense. As an example, he bought at least three five-figure coins that he didn't really like and which he knew, even at the time they were bought, that they would have to be upgraded. And he purchased some other coins that had absolutely no thematic tie-in to what he was collecting. These were quickly jettisoned at a significant loss.

2. Always buy the best coins you can afford: If you care about the financial returns provided by your coins (and if you are buying coins that are more than $1,000 each you should) then it is important to buy the best you can afford. A collection should be centered around quality instead of quantity. This means that you will have to tailor your collection around your budget.

Both collector #1 and collector #2 had the same budget but collector #2 wound-up buying dozens of coins while his counterpart only purchased a few. The result was that the first collector had a small collection of superb pieces with enough of a synergistic tie-in that it was more valuable as a whole than as a sum of its parts. The second collector had an assemblage of expensive coins that, because of the presence of a number of "dogs", would have to be broken-up and sold piece-by-piece.

3. If you find one or two dealers you like, stay loyal to them: Yes, this is a self-serving comment. But in the non-numismatic areas that I personally collect, I have followed this advice and it works. If you establish a good relationship with a knowledgeable expert, you are more likely to get good deals from this person. He will be genuinely concerned about the coins he sells you, especially if he knows that he will have a chance to resell them in the future. Because I knew that collector #1 was loyal (and because we became good friends as a result of the time we spent together pursuing his coins) he purchased great coins at fair prices. I immediately figured out that collector #2, while a very good person as well, would never be a faithful customer and that as hard as I tried to earn his loyalty, it just wasn't going to happen. As a result, this made me less enthusiastic to sell him my very best coins.

Collector #2 made another mistake that I think ultimately cost him alot of money. He gave out his want list to a number of dealers. I know of at least two instances when many dealers were competing against each other for a specific rare coin, all thinking that it was for their "own" customer. In reality, everyone was working for the same collector and this allowed the original owner of the coin to hold out for a higher price. When it comes to rare or expensive coins, it is highly advisable to keep your want list as private as possible.

4. Truly rare and choice coins are seldom offered at "bargain" prices: Truly good items, whether they be houses, paintings or coins, are not cheap. You don't get a "deal" on a museum quality Van Gogh just like you don't get to "rip" a problem-free high grade 1793 Chain Cent. Collector #1 understood this and was willing to pay well over Greysheet, Bluesheet or Trends prices when it came to rare, important coins.

Collector #2 was always looking for a deal and would never pay above published price levels, even for rare, early United States issues. He was told again and again that they were impossible to buy at these levels but never took this advise to heart. As a result, when he did buy a significant early type coin, it tended to be a problem piece that was priced cheaply or which savvy buyers had rejected due to quality considerations.

Novice collectors typically do not understand what these published prices represent. The Bluesheet lists low sight-unseen wholesale bids. In other words, if a dealer I didn't know called me up and offered me a 1795 silver dollar in a PCGS AU-50 holder and explained that it was dark, poorly struck and enthusiastically graded, what would my offer be? While it is not impossible to buy nice coins at bluesheet bid levels, it should be understood that most attractive, desirable coins are generally priced at levels above "sheet."

5. Collections are better than assemblages: Many dealers believe that a collection of coins is worth more collectively than the sum of its parts. I generally agree with this but would offer the following caution. In the case of an expensive, high-powered collection it is likely that it will have to be broken-up when it is sold. But if the coins in the collection are properly connected than they can add value to each other. As an example, collector #1 had a small but outstanding group of early coins that were not only very choice but they were first year of issue pieces. It was a true collection that was worth more as a whole than as the sum of its parts, even if it were not realistic to think that it would sell intact.

Collector #2 also specialized in early coins but his grades ranged widely (from Extremely Fine to Mint State-65) and he typically chose "bargain dates" to represent a specific type (as an example he chose a 1795 half dollar instead of a 1794 because it was "cheaper.") When it became time to sell, his coins seemed to be more of a random accumulation than a true collection.

Which New Orleans Gold Issues Are Really Rare?

In 1992, my book "New Orleans Mint Gold Coins 1839-1909" was published. A decade later, the information in this reference is considerably out-of-date. Which gold issues from the New Orleans mint have remained rare and which are now more readily available? 1. Gold Dollars: The 1850-O is still the only gold dollar from this mint that can be called scarce in any grade. Properly graded Uncirculated pieces are quite rare, especially above Mint State-62. I have never seen a gem and only one or two at the Mint State-64 level. The 1849-O and 1851-O are more plentiful in the lower Mint State grades than I previously believed but are extremely rare in gem. The 1852-O remains reasonably scarce in the lower Mint State grades, quite rare in Mint State-63 and very rare above this. Price levels for the 1855-O have increased dramatically in the past decade. This issue cannot really be called rare but its status as the only Type Two gold dollar from New Orleans makes it extremely popular. The supply of high-grade examples (Mint State-62 and higher) has dried up in recent years.

2. Quarter Eagles: The only New Orleans quarter eagle that can rightfully be called rare in circulated grades is the 1845-O. It has proven to be almost impossible to find above About Uncirculated-55 and I still know of just two or three Uncirculated examples. The 1840-O, 1842-O and 1843-O Large Date quarter eagles are very hard to locate in the higher AU grades and all three are very rare in Uncirculated. The 1846-O, 1850-O, 1851-O and 1852-O have proven to be a little more available in Uncirculated than formerly believed but all four are extremely undervalued in comparison to Charlotte and Dahlonega quarter eagles of this era. The 1856-O is still the biggest "sleeper" date of the quarter eagles and I doubt if more than six or seven are known in Uncirculated. The 1854-O, while extremely common in circulated grades, is quite scarce in Mint State-62 and rare in Mint State-63 or better. It remains absurdly undervalued. The 1857-O is more plentiful in high grades than formerly believed but it remains very rare in Mint State-63 and above.

3. Three Dollar Gold Pieces: If one goes strictly by population figures from NGC and PCGS, it seems that the 1854-O Three Dollar gold piece is far more common than once believed in the higher About Uncirculated grades. This is not the case. Properly graded, sharply struck examples with original surfaces are very rare in Mint State and extremely scarce in About Uncirculated-55 and About Uncirculated-58. Many have been submitted to the grading services multiple times and a number I have seen in NGC AU-55 and AU-58 holders have been considerably overgraded.

4. Half Eagles: The 1842-O and the 1847-O half eagles are two of the rarest gold issues from this mint. There are two examples known of the former in Mint State and well under a dozen in properly graded About Uncirculated. The 1847-O remains unknown in Uncirculated and extremely rare in AU. Most of the coins in AU-50 to AU-55 holders are unattractive and considerably overgraded. The 1840-O is still an issue that has not really received its due in Uncirculated. A small group of 1843-O Small Letters (four pieces) was discovered in the late 1990's and these increased the number of high-grade examples known. The 1845-O, 1846-O and 1851-O are very rare in Uncirculated and very scarce in the higher AU grades. The 1854-O has become somewhat more available in high grades and I have seen at least six or seven different Mint State pieces over the last decade. The 1855-O, 1856-O and 1857-O are all very rare in Uncirculated and extremely scarce in the higher AU grades. The only readily obtainable No Motto issue is the 1844-O.

The three With Motto New Orleans half eagles have gained in popularity (and price) since my book was published. The 1892-O is far and away the scarcest of this trio and is still considerably undervalued in Mint State. The 1893-O and 1894-O have become far more available in the lower Uncirculated grades but are unquestionably rare in Mint State-63 and essentially unavailable any finer.

5. Eagles: With the exception of the 1847-O, every New Orleans eagle from the 1840's remains very scarce in the higher About Uncirculated grades and very rare in Uncirculated. There are still no Mint State examples of the 1841-O known while the 1849-O appears to be unique. The 1846-O is extremely rare in high grades with just two or three known in Mint State. Even issues such as the 1842-O, 1844-O and 1845-O, which are relatively easily to locate in lower grades, are very rare in properly graded AU-58 and extremely rare in Mint State.

A number of the issues from the 1850's have proven to be extremely rare in high grades. The 1859-O is a bit more available in lower grades than formerly believed but it is unknown above AU-55. The 1852-O, 1855-O, 1856-O and 1857-O are all very rare in the higher AU grades and all except for the 1855-O appear to be unknown in full Mint State.

The 1879-O eagle seems to be a bit less rare than its original mintage of 1,500 would suggest but the supply of higher grade (AU-50 and better) pieces has dried up in the past few years. Only a single Uncirculated example is known.

The 1883-O remains the rarest of the post-Civil War issues. It is rare in all grades and examples in AU-55 or higher are extremely rare. No strictly Uncirculated piece is known to me although one or two might exist. The 1880-O and 1881-O remain rare and underrated in Uncirculated grades while the 1882-O is slightly more available in higher grades than once believed.

The New Orleans eagles from the 1890's are far more available in the lower Uncirculated grades than they were a decade ago. This is due to a number of sizable hoards having been uncovered in the mid-1990's. However, all of these dates remain rare in Mint State-63 and very rare in Mint State-64 or above.

The eagles from the 1900's are among the most available gold issues from this mint in higher grade. They are very good value in the lower Uncirculated grades.

6. Double Eagles: As this article is being written (April 2003), double eagles have become the most popular issues from New Orleans. There is currently an unprecedented level of demand for these issues and the two classic rarities, the 1854-O and 1856-O, have seen incredible price increases in the past decade. The 1850-O was formerly a sleeper issue in high grades and was very undervalued. High-grade AU's now sell for $15,000-20,000. The 1851-O and 1852-O are a bit less rare in Uncirculated than formerly believed. Nice AU's are only moderately scarce but they have become hard to locate as a result of strong demand. The 1855-O, 1859-O and 1860-O remain very rare in AU-55, extremely rare in AU-58 and unobtainable in Uncirculated. The 1857-O and 1858-O are more available in the lower to middle AU grades than they were a decade ago. But both remain extremely rare in Uncirculated. The 1861-O has gained in popularity and it is now, along with the 1879-O, a coin that appears on more want lists than nearly any other gold coin from this mint.

In the decade since the release of "New Orleans Mint Gold Coins, 1839-1909", these issues have become far more popular with collectors. While still not as actively collected as the branch mint issues from Charlotte and Dahlonega they have developed an active collector base. Prices have risen considerably, particularly on the major rarities, stand alone issues (such as the 1855-O gold dollar and the 1854-O Three Dollar) and finest known and Condition Census issues. The release of a number of hoards in the mid-1990's and the sale of the Pittman and Bass collections in the late 1990's brought a number of important new coins on to the market that were not known to me a decade before. When my next book on New Orleans gold is released, there will be numerous changes, both in the Condition Census listings and in the rarity estimates.