Collecting Coins in Difficult Economic Times

If you are like most people, the last few months have been tough on your pocketbook let alone your psyche. We are, at least for the immediate future, in tough economic times. For some people, there are difficult decisions that have to be made: which bills get taken care of, can the mortgage be paid, do we eat dinner or fill the tank with gas. Fortunately most coin collectors are faced with decisions that are much less dramatic. When people are feeling wealthy, spending discretionary income on something like coins is a no-brainer. You see something you like and you buy it. In a Recession, such purchases become far less impulsive. But I don’t think the coin market is going to come to a screaming halt. Prices may come down (in some cases they may actually raise) but I sense that there will be activity. Simply put, there are just too many people who enjoy numismatics and there is just too much money (in the United States and world-wide) for established hobbies like numismatics to crash. And, if we enter an inflationary period as many experts believe, there could easily be a rush into tangible assets.

That said, I think people’s buying habits will change quite a bit in the next few years. The Irrational Exuberance we saw in the middle part of the decade could be over forever. As someone who has survived a number of lean Numismatic Cycles, I’d like to share some observations on how you can still add coins to your collection, even in tough times.


1. Buy Smart. I can’t begin to tell you the number of purchases I saw in the last few years that were just plain dumb. Collectors battling to the death at auction over coins that weren’t really that nice or rare. Dealers falling all over themselves to buy old holder coins in one grade and paying a price that assured them they would possibly break even if the coin upgraded three points...sheesh!

Being a smart coin buyer means being informed, confident and well-connected. In my opinion, this means taking the time to carefully research the coins that you are contemplating buying, fully understanding the buying and selling process(es) and having a good relationship with a small group of dealers.

I am a huge believer in first impressions being correct. In numismatics, this means having a good feeling about a coin’s appearance, a coin’s price and the person who is selling it. If you have to convince yourself that you like a coin, don’t buy it. If you have to make irrational justifications about a coin’s price, pass. If the person who is selling the coin makes your skin crawl, have a trusted dealer make the transaction for you—or shop somewhere else.

2. Look for Value. I think value is going to be a real buzzword in the coming coin market. You the collector are going to be bombarded with this word but do you really understand it? And, if so, how does it apply to what you collect?

Here’s an example of how I form opinions in regard to value. I have spent quite a bit of time in the last few days doing pricing for the 2010 edition of the Redbook. As I was going through the various sections, one thing that really grabbed my attention was the pricing structure of Extremely Fine Charlotte and Dahlonega half eagles. As an example, virtually every C+D half eagle in EF40 is priced at basically the same amount. Sure, there are a few exceptions but we are talking about issues with a wide range of rarity and availability being priced exactly the same. For instance, the 2010 Redbook prices for an 1854-C and an 1858-C half eagle in EF40 are both $2,500. That’s great except for the fact that the 1854-C is a considerably scarcer coin in this grade (and in all grades higher than EF as well). As a value conscious buyer, I’m going to be looking for the 1854-C half eagles of the numismatic world.

When money is tight and you don’t have as much to spend on your hobby as in the past, make your purchases as value-conscious as possible.

3. Think Long Term. There are many collectors who have never known a slow coin market and they’ve been spoiled. In the past few years, they’ve been able to bail themselves out of trouble when they’ve bought “bad” coins by throwing them into auctions and letting the next buyer come along. In some cases, they’ve been able to turn handsome profits on coins that they had no business buying, let alone selling, for a profit. In a slow market, these “unburials” are going to happen with less and less frequency.

There’s a pretty basic solution to this problem. Buy the “right” coins and buy for the long term. You don’t have to become a numismatic “black hole” who never sells any coins (in fact, I urge you to sell from time to time so that you better understand how this part of the market works). But buy every coin as if you were going to hold it for a reasonably long period of time.

4. Eye Appeal, Eye Appeal, Eye Appeal. If the coin market were to tank in the next few years, the coins that are going to maintain their value better than anything else are the ones that are aesthetically appealing. This is particularly true if you collect a series in which the coins aren’t really rare from the standpoint of total number known. Let’s say you collect Proof Seated Liberty Quarters. If you have a set of coins that are all bright white and which show average quality contrast, the chances are good that these coins will devolve into semi-widget status (unless they are in very high grades). The same set with all beautifully toned original coins or with a mix of toned coins and superb black and white cameo pieces is probably likely to retain more of its value and interest levels even in a poor market.

Coins do not have to be expensive to be pretty. And they don’t have to be in ultra high grades to be considered great eye appeal pieces either. Savvy, sophisticated buyers are often more content to purchase a nice EF45 example of a rare date than a marginal quality AU55. The only time you should allow yourself to buy a coin with marginal eye appeal is if essentially every known example of the type or issue is crudely made. But even in the case of an issue like this (an example would be the 1856-D quarter eagle) there are still pieces that despite a crude or “ungainly” appearance have a certain charm to them that make them clearly desirable.

5. Be Patient. I’m a strong believer of being patient even in a bull market. In a slower market, patience is, I believe, imperative. Back in the day, collectors looked at their collections as long-term endeavors. The collector who was assembling a set of Carson City gold looked at his challenge as something that would take many years, not just a few months. I blame the short attention spans of many new collectors on the internet mentality that says “I want it, I must have it NOW!!” Sure, it is possible to complete a set of Carson City gold in a few months. But the collector who rushes his way through a set is certain to make some potentially big mistakes and he is missing out on the fun of the big, long-term picture.

One thing I’ve learned over the years is that many so-called “rare” coins are not rare at all. Unless you collect a series that is replete with truly rare coins (Liberty Head eagles would be an example of a series that contains dates that ARE truly rare, in my opinion) don’t sweat it if you missed out on a certain coin on a dealer’s website or at auction. You’ll probably find another one in a few months.

6. Buy Special Coins. Whether you collect Roosevelt Dimes or Proof Liberty Head double eagles there are clearly coins which exist that are “special.” In other words, there is something about them that make the viewer stop and look twice. As an example, when I view lots at an auction, I tend to plow through the coins and after a while they literally all begin to look the same. But then some lot will pop up that make me stop, take a deep breath and exclaim, “man, is that cool/pretty/neat.”

For the Roosevelt Dime collector, this “special coin” might be a piece with monster toning or one that is fully prooflike and very unusual as such. For the Proof Liberty Head double eagle collector, his special coin might be a piece with a Bass, Eliasberg or Norweb pedigree or one with splendid natural hazy orange-gold color.

Special coins can also be pieces that have a great story to tell. I have always liked coins that are one-year types or first-year-of-issue pieces because they can be appreciated by someone who knows nothing about the specific series. Even if you could care less about Dahlonega gold or three dollar gold pieces, the chances are good that you’ll still think an 1854-D three dollar is a pretty interesting coin.

One last thought. In tough economic times, the natural instinct for many people is to panic. Your sense of fear may be played on by some of the numismatic newsletters or ads that you read. Don’t buy into this shameless marketing. If you like collecting coins and you can afford to keep buying them, do so. If you think the world’s economy is going to hell in a hand basket, putting 10% or so of your net worth into a nice coin collection probably isn’t the worst thing you can do. Coin collecting is a great hobby and I hope that you’ll call on me to help you with your purchases whether the Dow is 12,000 or 3,000.

The Ten Rarest Liberty Head Quarter Eagles

The response to the article that I wrote last month on the ten rarest Liberty Head eagles was so overwhelmingly positive that I’ve decided to extend this format to other denominations of Liberty Head gold. This month’s topic: quarter eagles. The Liberty Head quarter eagle series was produced from 1840 through 1907. Unlike the larger denomination issues of this type, quarter eagles were never produced at the Carson City or Denver mints. Thus, these coins were produced at five facilities: Philadelphia, San Francisco, New Orleans, Charlotte and Dahlonega.

There are numerous ways in which to collect Liberty Head quarter eagles. Most specialists focus on the issues from a specific mint. The most popular individual mint is Dahlonega, followed by Charlotte and New Orleans.

A small but dedicated cadre of collectors attempts to put together a complete set of Liberty Head quarter eagles. Such a set can be completed although at least two or three issues are very rare and quite expensive. This set is impossible to complete in Uncirculated due to the unavailability of at least one issue (the 1854-S) in Mint State. Every other issue, however, is known in Uncirculated although a number of these are extremely rare.

Some of the collectors who are attempting to assemble a complete set of Liberty Head quarter eagles also include significant varieties. These are generally limited to the ones that are recognized by PCGS and/or NGC.

One interesting way to collect this series would be to focus on the major rarities or key issues. But in the case of the Liberty Head quarter eagles, the most famous coins are not necessarily the rarest. Most readers of this article will be surprised that I have not included the famous 1848 CAL in the list of the ten rarest issues of this type. Even though this is clearly one of the ten most popular (and most desirable) issues, it is less scarce than generally acknowledged and it does not make the Top Ten list.

Without further ado, here are the ten rarest Liberty Head quarter eagles along with pertinent information about each issue:

1. 1854-S

2. 1841

3. 1863

4. 1864

5. 1865

6. 1856-D

7. 1855-D

8. 1875

9. 1866

10. 1842

1. 1854-S: The 1854-S is the rarest Liberty Head quarter eagle by a fairly large margin. There are around a dozen examples known from the original mintage of just 246 coins. Something that I have always found interesting about this date is the fact that most of the survivors are extremely well worn. At least five or six of the dozen known either grade VF20 or less or show damage. In fact, I am aware of just two examples that grade EF (by my standards) and a single coin that grades AU. For many years, the 1854-S was overlooked and, in comparison to other great U.S. gold rarities, it was greatly undervalued. The first example of this date to sell for a six-figure price was Bass II: 472 (now graded AU53 by NGC) that brought $135,700 in October 1999. In September 2005, I purchased an NGC EF45 example that was previously unknown to the collecting community out of an ANR auction for $253,000. This record was broken in February 2007 when a PCGS EF45 brought $345,000 in a Heritage sale. My best guess is that prices will continue to rise for this issue and the next comparatively choice example that is made available to collectors will set another price record.

2. 1841: This is probably the most famous date in this series and, for many years, it was the issue that traditionally sold for the highest price when it appeared at auction. Known as “The Little Princess,” it has been stated that “20 pieces” were struck. For many years, numismatic tradition has stated that these were produced only as Proofs. It is my opinion that some (if not most) were also struck in a business strike format. It is also my opinion that the reported mintage is too low and that as many as 50 or so were made. To the best of my knowledge, the current auction record for this issue is $253,000 which was set in June 2004 when Heritage sold an NGC PR65; this broke the previous record set by Bass III: 105 (graded PR64 by PCGS) back in 2000. I believe that a Gem 1841 quarter eagle, if available today, would sell for considerably more than this.

Note: For more information on this issue, please click here.

3. 1864: Placing this date as #3 on my Top Ten list may be a surprise to many collectors who probably expected the 1863 to make the #3 spot. But I feel the 1864 is clearly rarer than the 1863 and that it is one of the most overlooked and undervalued 19th century American issues. Only 2,824 were struck but, as with most gold coins from this era, the survival rate was very low due to significant meltings. I believe that around 15-20 examples are known. This includes an amazing NGC MS67 (ex: Byron Reed collection) that sold for $132,000 back in 1996 as well as two other Uncirculated coins, an NGC MS61 and a PCGS MS61, that are owned by two different collectors in Kansas. There are another six or seven that grade AU and the rest are in the VF-XF range. Despite this coin’s rarity, it is still affordable (especially in comparison to #1, #2 and #4 on this list).

Note: For more information on this issue please click here.

4. 1863: The 1863 is the single Proof-only quarter eagle of this type (although the 1841 has traditionally assumed to be as well; see above for my refutation of this belief). There were a total of 50 pieces struck of which I would estimate that around 20 or so exist. I place this coin as #4 on my Top Ten list based on the fact that I have seen far more 1863 quarter eagles available for sale in the last ten years than 1864 quarter eagles. Nonetheless, this is a very rare coin and it has always been a stopper for date collectors of this denomination. As recently as the middle of this decade, prices for this issue were relatively modest, considering this date’s rarity and significance. Nice PR63 to PR64 examples were selling for $35,000-50,000+ until a few years ago when prices began to jump; as they did for all Classic Rarities. The all-time auction record for this issue was set in January 2007 when Heritage sold an NGC PR66 Deep Cameo for $149,500. I have handled three examples of this date in the last four years. The 1863 quarter eagle is generally found with light hairlines but excellent contrast and very deep mirrors. It is a date whose importance is only now being fully realized and I believe that it is an issue whose price levels will continue to soar as this series becomes more popular.

5. 1865: Due to the fact that it has a mintage of just 1,520, some people have assumed that the 1865 is a rarer date than the 1864. This is not the case as the 1865 appears to have a slightly higher survival rate. My best estimate is that there are 25-35 examples known. According to the PCGS Population Report, there is an example graded MS63. I am not aware of this piece but assuming that it exists, it is by far the finest known and it is the only Uncirculated 1865 quarter eagle that exists. Both PCGS and NGC show an abnormally high number of coins graded AU58 and this is as a result of multiple resubmissions. I believe that there are around six or seven properly graded AU’s known as well as another ten or so in EF. When available, this date tends to have below average eye appeal due to very scuffy surfaces. I haven’t seen more than a handful of 1865 quarter eagles that were totally original and choice. At current price levels, I think this coin is excellent value as it is a major rarity that can be purchased in a Condition Census-level grade for less than $20,000.

6. 1856-D: There may actually be one or two quarter eagles that I placed lower on this list that are scarcer than the 1856-D. But these don’t have the little “D” mintmark placed on the reverse; a feature that makes this coin so endearing to specialists. Oh—and they don’t have an original mintage of just 874 coins either. The 1856-D is the rarest Dahlonega gold coin of any denomination with an estimated 45-55 pieces known. It is generally seen in EF grades with many advanced collectors holding out for a nice AU coin for their collection. As I have mentioned in past writings, this is probably the single hardest United States gold coin to properly grade due to the fact that it was poorly struck from improperly prepared dies and many examples have the luster and surfaces of one grade but the detail of another, far lower grade. The current auction record for an 1856-D was set by yours truly when I purchased the Heritage 4/06: 1513 coin for $71,875. This piece graded MS61 by NGC and it is certainly among the finest known.

Note: For more information on this issue please click here.

7. 1855-D: The 1855-D is the second rarest Dahlonega quarter eagle. For a number of years, I believed that it was the rarest but this is mistaken as the 1856-D (see above) is clearly rarer. Only 1,123 1855-D quarter eagles were struck and an estimated 50-60 are believed to exist. This issue tends to be a bit better struck than the 1856-D but it is another issue that the eye appeal tends to be negative. Any 1855-D that is well struck and which shows original color is very rare and worth a significant premium over the typical example. Most are seen in the VF to EF range and properly graded AU’s are very rare. I have only seen one or two that I regard as Uncirculated. The finest known is the example in the Smithsonian that is said to grade MS62 or thereabouts. The all-time auction record is Heritage 4/06: 1512 (graded MS61 by NGC) that realized $54,625.

Note: For more information on this issue please click here.

8. 1875:If this article had been written a few decades ago, it is likely that the 1875 would have ranked much higher up the list. With an original mintage of just 400 business strikes, it is easy to see why this date was once believed to be an extreme rarity. It appears that the 1875 is actually a bit more available than one would assume (this is also the case with the ultra-low mintage gold dollar of this year) with as many as 50-60+ pieces known. That said, the 1875 quarter eagle is still extremely popular and I love the fact that the collector of average means can still purchase a decent EF example, given the fact that these still trade in the $4,000-5,000 range. The 1875 becomes rare in properly graded AU55 and it is very rare in Uncirculated with four to six known. The finest I have seen is Goldberg 5/99: 666 (graded MS64 by PCGS; it sold for $25,300) while the second best is probably the Bass II: 587 coin (graded MS62 by PCGS; it brought $17,250 back in 1999). The 1875 quarter eagle is nearly always found with fully prooflike surfaces but it is easy to distinguish from a Proof due to an entirely different date position.

9. 1866: As you can tell from this list, the Philadelphia quarter eagles from 1863 to 1866 include many of the rarest individual issues in this entire series. The 1866 is not quite in the same league as the 1864 or 1865 but it is another rarity with an original mintage of just 3,080. There are around 55-65 known with most in the EF40 to AU50 range. The 1866 is extremely scarce in the middle AU grades and rare in properly graded AU58. There are around five or six known in Uncirculated. Interestingly, this date was unknown in Uncirculated at the time Akers wrote his seminal guide to quarter eagles. I am aware of at least two Gems and another coin that grades MS64. The all-time auction record is held by Heritage 5/07: 2239 (graded MS65 by PCGS; it sold for $40,250). All 1866 quarter eagles have satiny luster and surfaces that show pronounced horizontal die striations.

10. 1842: This is probably the least well-known date in my Top Ten list and, honestly, I think I am slighting it by ranking it as “only” #10. The 1842 quarter eagle is very scarce in all grades and around 50-60 are known from the original mintage of just 2,823. Unlike the 1866 and 1875, this issue is generally seen in very low grades and it becomes extremely rare in AU. I doubt if more than five to seven properly graded AU’s exist and in Mint State the 1842 is unique. I sold a PCGS MS62 a number of years ago to a Kansas collector who owns the finest set of Liberty Head quarter eagles ever assembled. I had earlier bought the coin from the Superior 9/99 auction where, as Lot 1863, it sold for $31,050. Despite this issue’s unassailable rarity, it is still very reasonably priced. I have seen examples in EF grades bring between $3,000 and $5,000 at auction which seems downright cheap for a coin that is many times rarer than its better-known (and more expensive) branch mint counterparts from this era.

There are a number of other Liberty Head quarter eagles that I think are worthy of Honorable Mention status. These include the 1844, 1845-O (if the Top Ten list featured bonus points for popularity, I would have certainly included this date instead of the far less popular 1866 or the more obscure 1842), 1862/1, 1863-S, 1867 (possibly the most underrated date in the entire series) and the 1872.

The Ten Rarest Ten Libs

This article is about the ten rarest Liberty Head eagles. Notice that I didn’t say “the ten most popular” or “the ten most expensive.” Readers may be surprised that this top ten list does not include any Carson City issues (although I was tempted to include the 1870-CC) and just one from New Orleans. In looking over the list you will note that six of the ten coins are from Philadelphia and at least one or two are probably not all that familiar to even the most advanced collector of Liberty Head gold. Most of these dates have very low original mintage figures (one, the 1875, has a mintage of just 100 business strikes!) and nearly all have remarkably low survival rates. To qualify for this list, an issue requires a total population of under 50-60 coins.

In order of their rarity, here is my list of the ten rarest Liberty Head eagles. After this list, I am going to devote a paragraph or two to each issue, covering topics such as the total number known, rarity in high grades, the finest known, Condition Census information, etc.

1. 1875

2. 1864-S

3. 1873 Closed 3

4. 1863

5. 1865-S Normal Date

6. 1860-S

7. 1883-O

8. 1844

9. 1839 Head of 1840

10. The Coveted Last Spot on the List

1. 1875: The Philadelphia gold coinage of 1875 includes a number of issues with exceedingly low mintages. Only 400 examples of both the gold dollar and quarter eagle were produced but the survival rate is higher than expected. The three dollar is a Proof-only issue that has sold for over $100,000 since the 1970’s while the half eagle is a major rarity with probably no more than 10-12 known from the original mintage of 200. I believe that the 1875 eagle, however, is the rarest of all these impressive Philadelphia issues. I have seen it stated that as many as 12-15 are known but I believe that this figure is on the high side and that the actual number is more likely seven to nine. I have personally seen two or three that I would grade AU including Superior 6/97: 1541 and B&M 3/98: 2207 that were graded AU53 and AU50, respectively, by PCGS. The all-time auction record is $74,750 for an NGC AU55 sold as Lot 2102 in DLRC’s Richmond I auction in 2004.

Every business strike 1875 eagle (and I haven’t seen once since Heritage offered a PCGS VF35 in January 2006) is characterized by excessively abraded surfaces and inferior eye appeal. Some of the coins that have been certified as business strikes by both services are actually Impaired Proofs. Proof 1875 eagles have a different date position than business strikes and use a different reverse with the top of the second vertical stripe in the shield incomplete.

I believe that this is an extremely undervalued issue and if it were part of a more popular series it would be a $100,000++ coin.

2. 1864-S: The 1864-S is the rarest eagle from the San Francisco mint. Only 2,500 were produced and my best estimate is that around 25-30 are known. Unlike its cousin, the very rare 1864-S half eagle, the 1864-S eagle is unknown in Uncirculated and I have personally seen only two that I regard as AU - The Bass III: 658 (graded AU55 by PCGS; it sold for a remarkably cheap $36,800 back in May 2000) and a coin owned by a West Coast specialist. The all-time auction record is $50,600 set in the July 2006 B&M sale by a PCGS EF45.

This is a generally well-produced issue although most have weakness on the radial lines in the stars. I have only viewed a small handful of 1864-S eagles that had any mint luster and most are heavily bagmarked. This was an issue that saw considerable circulation and the majority of survivors are very well worn.

It is my suspicion that someone is hoarding lower grade 1864-S eagles. There has only been one example sold at auction in the last five years or so, despite a combined population of twenty-three coins at PCGS/NGC. Even assuming that this number is inflated by resubmissions, my instinct tells me that some savvy collector is sitting on a group of five to ten 1864-S eagles and torturing those of us who would love to buy an example.

3. 1873 Closed 3: All 1873 eagles (business strikes and Proofs) are found with a Closed 3 in the date. All other Philadelphia gold coins from this year are found with both an Open 3 and a Closed 3 variety. A total of 800 business strikes were produced along with 25 Proofs. There are an estimated 25-35 examples known. Unlike the 1875 and the 1864-S, most of the surviving 1873 eagles are not extremely well worn. In fact, the majority of the survivors grade in the AU range, suggesting that this issue saw little actual circulation. Most of the pieces I have seen are well struck and display satiny, slightly reflective luster. I have never viewed one that didn’t have heavy to very heavy abrasions and my guess is that most 1873 eagles were thrown into a bag and transported somewhere before being released into their brief period(s) of circulation.

The finest known is the ex: Warren Miller coin, graded MS60 by PCGS, which sold for $34,100 all the way back in October 1995. Prior to this, the coin had been sold as Stack’s 3/90: 1222. Bass III: 705 ($21,850; as PCGS AU58) is probably the second best. In all, I would estimate that there around a dozen or so in AU with most in tightly-held collections.

I recently sold a nice PCGS AU50 example to a prominent collector and this was the first 1873 eagle that I had owned in close to a decade.

4. 1863: All of the Civil War era Liberty Head eagles are scarce (with the exception of the 1861) but the 1863 is the key rarity in this subset. In fact, I regard it as among the very rarest 19th century Philadelphia gold coins. Only 1,248 business strikes were issued of which an estimated 30-40 are known. The finest is the superb Bass IV: 683 ex: MARCA 8/91: 755 that brought $52,900 in its last appearance (an amazing bargain) after Harry Bass had paid $104,500 for it back in 1991. The second finest known is an NGC MS62 from the S.S. Republic that is owned by a prominent Western collector. NGC has also graded an example in MS60.

Almost every example that I have seen grades EF45 or below and is characterized by excessively abraded surfaces. The luster is either soft and frosty or, less often, semi-prooflike and the strike tends to be bold with the exception of the curl directly above Liberty’s ear.

It has been a number of years since I have handled an 1863 eagle and the last example that I can recall having seen was an NGC AU58 that was sold at auction by Heritage back in 2005.

5. 1865-S Normal Date: Two varieties are known for this year. The better known is the spectacular 1865-S Over Inverted 186. The less visually impressive Normal Date is, ironically, the rarer of the two. I regard this as the second rarest eagle from San Francisco. I estimate that around 30-40 are known and nearly all grade EF40 or below. In fact, this is one of the rarest Liberty Head eagles from the standpoint of condition. I have never seen or heard of an Uncirculated example (although NGC has graded a coin in MS60) and I know of just three that I would call real AU’s (none better than AU50 to AU53).

The quality of strike is very distinctive with soft radial lines in the stars and a slightly concave appearance on the obverse. The reverse is better struck although many examples show weakness on the neck feathers. I have never seen an 1865-S Normal Date eagle that did not have heavily abraded surfaces and most have enough wear to lack any significant luster.

The record price at auction for this issue is $21,850 set by Heritage in January 2007 for a coin graded AU58 by NGC. I believe that a nice, original AU55 to AU58 could sell for considerably more in today’s market if it became available (or even exists).

6. 1860-S: Unless you know this series, you are probably not aware of the true rarity of the 1860-S. This is a very rare coin in all grades and one that is even harder to locate than its small original mintage of 5,000 would suggest. I believe that 35-45 are known including five or six properly graded AU’s and two in Mint State. This date was unknown in Uncirculated until two were found in the S.S. Republic treasure. The finer of the two, graded MS62 by NGC, is owned by a West Coast collector. The other, graded MS61 by NGC, sold for $37,375 in the Superior May 2008; an all-time auction record for this date.

The typical 1860-S is very well worn with VF to EF detail and shows signs of having been mishandled. The strike is typically soft with weakness on the stars and incomplete definition in the centers.

7. 1883-O: The 1883-O is the rarest eagle produced at the New Orleans mint. In my book “Gold Coins of the New Orleans Mint 1839-1909” I suggested that 35-45 examples are known from the original mintage of just 800 coins. I still agree with this estimate. Since my book was published in 2006, very few 1883-O eagles have become available and the demand for this issue seems to have greatly increased.

Virtually every example that I have seen grades in the EF40 to AU50 range and is characterized by heavily abraded surfaces. Most are Prooflike and have had their luster disturbed by rough handling and/or numismatic abuse.

The finest known example, an NGC MS61PL (earlier graded MS60 by NGC), surfaced in a bid sale conducted by a dealer at the 2008 FUN show. It was purchased by a consortium of dealers and then sold to a private collector for a record price. With the exception of this coin, very few 1883-O eagles have been seen by me in the last three or so years.

8. 1844: I mentioned in the beginning of this article that there were a few coins on this list that were not well-known outside of the core collecting community of Liberty Head eagles. I would have to rank the 1844 as the number one sleeper in this group and it is a coin whose true rarity even surprised me as I was researching this group.

There were only 6,361 eagles struck in 1844 and my estimate is that 40-50+ are known. When you do find an 1844 eagle, it tends to be very well worn with VF and EF examples most often seen. I believe that there are fewer than ten properly graded AU examples known with most in the AU50-53 range. NGC has graded one in MS63 (I have not seen it) which may possibly be the Bell coin from 1944; they have also graded an MS61 example that Heritage sold in their January 2002 auction for a reasonable $10,063. The best example I have personally seen is an AU55 and I cannot recall having seen a nice 1844 eagle in over five years.

Every 1844 has two prominent die characteristics on the obverse. There is a horizontal die line below the first star and a series of vertical die scratches from the denticles out into the field near star three.

9. 1839 Type of 1840: I’m not totally certain that this variety belongs at the #9 spot on the list but I have always loved the 1839 Type of 1840 and it’s my list, so I’m going to put it into this slot, deserving or not.

This issue was created after the Eagle design was remodeled in 1839 and it is appreciably different from the Type of 1838 that was produced earlier in the year. It is rare in all grades with an estimated 50-60 known from the original mintage of 12,447. This issue is usually seen in very low grades with VF20 to EF40 examples being typical. It becomes rare in AU with around ten or so properly graded pieces known. In Uncirculated it is slightly more available than some of the other issues on this list. I would estimate that there are three or four known. The finest (and one of my single favorite American coins) is Pittman: 1912, ex: Farouk, Woodin. This coin sold for $143,000 back in May 1998 and it is now graded MS64 by NGC.

10. The Coveted Last Spot on the List: There were a number of other dates that offered strong claims for the #10 spot but there was so little separation between them in terms of overall rarity that I did not think it was fair to include one and exclude the others. These dates include the 1858, 1859-S, 1864, 1866-S With Motto, 1876 and 1877. If I had to choose one that was most deserving, I would probably pick the 1859-S, based on the fact that I have handled fewer examples of this than of the others in the last few years. But I could easily see collectors coming to the support of the 1876 or 1877 and the 1858 is certainly the best known date in this small group.

I personally find the Liberty Head eagle series to be among the most interesting in all of American numismatics. It is extremely challenging but, unlike many other hard series, it is not impossible to complete.

The Ten Rarest Dahlonega Gold Coins Revisted

In the five years since I wrote the second edition of my book on Dahlonega gold coinage, a number of important coins have been sold and some significant changes are going to be have to be made when I release my third edition (which, if I had to guess, will be out in another year or so). I think it would be interesting to look at the ten rarest Dahlonega gold coins and see what important things have changed about them since 2003. For each of these issues, I am going to focus on the following aspects:

-Changes (if any) in high grade rarity

-Changes (if any) in Condition Census

-New Finest Known coins or important new discoveries

-New price records at auction or via private treaty

Before we begin, I think a quick overview of the Dahlonega market is in order. If I had to summarize it in a paragraph I would say that the market is currently strong. The supply of Dahlonega coins—even schlocky ones—really seems to have dried up in the last two or three years. It was always hard to find choice, original Dahlonega coins; even in low grades. Now it seems hard to find even mediocre quality pieces. And the very rare Dahlonega issues—the coins which we will focus on in this article—have become exceptionally hard to locate. The last really important specialized collection to come on the market was the Duke’s Creek gold dollars and quarter eagles that Heritage auctioned in April 2006.

1855-D Gold Dollar: This remains the rarest Dahlonega gold dollar in high grades and it is the second rarest overall with fewer than 100 known. The rarity of this issue with a full date seems to have been exaggerated by me in the first two editions of my book. I would revise the number of 1855-D gold dollars with a full date upwards from “less than a dozen” to around double this amount.

While no new discoveries of note have been recorded, no less than three record prices were recorded between 2006 and 2007. In February 2007, the Goldberg: 2097 example, graded MS64 by NGC, sold for an incredible $149,500; it had sold earlier as Heritage 1/06: 3396 where it brought $109,250. The finest known 1855-D was purchased by a prominent Alabama collector in the Heritage April 2006 sale where it realized $132,250. This coin had previously been graded MS64 by NGC; now it is in a PCGS 64 holder. The only other Uncirculated 1855-D gold dollars, graded MS62 and MS61 by PCGS, sold for $56,350 and $46,000 respectively in the Heritage 2/04 auction. Remarkably, the four finest 1855-D gold dollars all sold at auction between 2004 and 2007(!)

1856-D Gold Dollar: In the second edition of my Dahlonega book, I estimated that 80-90 examples of the 1856-D gold dollar exist. I still believe that this is accurate. I also estimated that only four to five Uncirculated examples are known. By the magic of gradeflation, I think this number has climbed to around half dozen.

A world record price was set by the Heritage 1/04: 1009 coin (ex: Green Pond) that sold for $47,150 and another impressive price realized was the Heritage 4/06: 1488 coin (ex: Duke’s Creek) that brought $40,250. One of these two coins was upgraded to MS63 by NGC and it now is the highest graded 1856-D gold dollar. Two other high grade 1856-D gold dollars that have traded since the second edition of my book was published are a new PCGS MS62 that I sold via private treaty in 2007 to the Wexford Collection and the ANR 9/03: 425 coin that sold for $41,400, the second highest price ever realized by this date.

1861-D Gold Dollar: The 1861-D gold dollar has, arguably, become the most popular coin of any denomination produced at the Dahlonega mint. I can’t attribute this soaring degree of popularity to anything other than a high “coolness” factor and a multi-tiered level of demand that is not seen by other Dahlonega issues.

My estimate of 55-65 known may be a bit on the low side and I would probably raise this to 65-75 including a dozen or so in Uncirculated. A record price was set in January 2008 when the Heritage 1/08: 3050 example brought $149,500 (this is an exact tie with an MS64 1855-D for the highest price ever realized by any gold dollar from Dahlonega). This same coin had brought $138,000 in April 2006. The finest known 1861-D remains the Pierce/Ullmer coin, graded MS64 by PCGS, in a prominent Alabama collection. In my opinion, the second finest is the Green Pond coin, graded MS63 by PCGS, which sold for $86,250 in January 2004.

1840-D Quarter Eagle: Of the ten coins discussed in this article, I think the 1840-D is the least well-known. It is the third rarest Dahlonega quarter eagle and I now regard it as the second rarest in high grades after the 1856-D. I believe this date is unique in properly graded Uncirculated and the finest known example, known to collectors as the Bareford/Duke’s Creek coin, sold for a record $74,750 when it was auctioned by Heritage in April 2006. (This coin, by the way, still appears in the PCGS population figures as an MS61. The only Uncirculated 1840-D quarter graded Uncirculated by NGC (an MS61) is owned by a Kansas collector and it is ex: Superior 8/07: 659 ($31,050), Heritage 1/04: 1016 ($27,600). I still think that even in properly graded AU50, the 1840-D is genuinely rare and there are fewer than a dozen true AU’s known.

1855-D Quarter Eagle: The true rarity of the 1855-D quarter eagle has been distorted by the fact that virtually all of the higher grade examples that have appeared for sale are overgraded. This includes at least two coins in MS60 holders that have been recolored and another with damage on the surfaces. The all-time price record for the 1855-D was set in April 2006 when Heritage sold an NGC MS61 for $54,625.

I have previously stated that the 1855-D is the rarest Dahlonega quarter eagle in high grades and overall. I now believe it to be the second rarest, after the 1856-D. I still have never seen an encapsulated 1855-D quarter eagle that I believed to fully Uncirculated. There is an example in the Smithsonian’s collection that noted expert Jeff Garrett grades MS62.

1856-D Quarter Eagle: My respect for this issue has increased over time and I now regard it as not only the rarest Dahlonega quarter eagle but the rarest single issue of any denomination from this mint. Only 874 were struck and there are probably no more than 45-55 known.

Due to its crude strike, this is an extremely hard issue to grade and I’m not really sure exactly how many Uncirculated pieces exist. PCGS has only graded a single example in Uncirculated (Heritage 1/04: 1034, ex: Green Pond that sold for $69,000) while NGC shows one in MS60 and four in MS61 with none better. The only Uncirculated NGC coin that I have personally handled is Heritage 4/06: 1513 (MS61) that I paid a record price of $71,875. There is a PCGS AU58 that is owned by a prominent Alabama collector that I think is outstanding for the issue and I have handled two other PCGS AU58’s that I feel are accurately graded.

1854-D Three Dollar: This is the only one of the ten issues in this article that I believe is overrated by most non-specialists. However, as I have mentioned innumerable times, its status as a one-year issue make it exceedingly popular with a wide range of collectors. A nice 1854-D Three Dollar has become the “High Relief of Branch Mint Gold” (i.e., an expensive but extremely popular issue with exceptional liquidity).

An all-time record for this date was set in April 2006 when I purchased an NGC MS62 from the Duke’s Creek collection sale. This easily eclipsed the previous auction high of $92,000 that was set by the Green Pond: 1037 coin back in January 2004. The two finest 1854-D Threes remain the fantastic Bass coin (see www.hbrf.org to view an image of this special piece) and the PCGS MS62 in the Great Lakes collection.

As of July 2008, PCGS had graded four examples in Uncirculated: MS62-(2) MS61 and MS60 while NGC had graded nine: MS62-(5) MS61 and (3) MS60. I believe the actual number of Uncirculated 1854-D Threes is around four or five.

1838-D Half Eagle: The 1838-D is by far the most available issue in this group of ten coins and the major reason I decided to include it (and exclude much rarer coins such as the 1860-D gold dollar and 1841-D, 1842-D and 1854-D quarter eagles) is that it is extremely popular. I would have to rank it as one of the three or four most popular issues from this mint.

As I mentioned before, the 1838-D half eagle is a relatively common issue and I believe that there are somewhere north of 300 known including as many as eight to ten in Uncirculated. But what I find interesting about this issue is that the supply has really shriveled in the last few years, particularly in higher grades. The only really nice Uncirculated 1838-D that I have seen in the last few years is Heritage 2007 ANA: 1919 (PCGS MS62 @$37,375). An NGC MS63 (ex: Ashland City collection) bounced around from sale to sale in 2003-2006 and I have never particularly cared for it. I believe that if a really choice, fresh PCGS MS62 or better 1838-D half eagle were to appear on the market, it would command a record price as there seem to be many collectors waiting around for such a coin.

1842-D Large Date Half Eagle: Despite its status as the rarest Dahlonega half eagle in higher grades, this is another issue that is somewhat off the radar to nearly everyone except specialists. In terms of its overall rarity, I believe this variety is a bit more available than I claimed in the second edition of my book. In high grades, it remains a major rarity with just a single Uncirculated graded by PCGS (the Green Pond coin which is in an MS61 holder) and two in MS61 at NGC.

The all-time auction record for the 1842-D half eagle was set in January 2004 by Green Pond: 1043 which realized $41,400. The Duke’s Creek/Eliasberg coin, which was formerly in a PCGS AU58 holder, is now (deservedly) in an NGC MS61 holder. An exceptional new PCGS AU58 was sold by me around a year ago to the Wexford Collection. I am especially interested to see the newly discovered NGC MS61 that was found as part of the S.S. New York treasure in Louisiana. This coin will be sold at auction by Stack’s just prior to the 2008 ANA.

1861-D Half Eagle: Like its gold dollar counterpart, the 1861-D half eagle has become an issue whose demand transcends specialists. As a result, prices for both 1861-D issues have soared in recent years. Despite the fact that even low grade 1861-D half eagles are now commanding prices upwards of $10,000, few have come to market since the second edition of my book was released.

However, there has been quite a bit of activity in the upper end of the 1861-D half eagle market. The finest known example, graded MS63 by PCGS, sold for a record $207,000 in Heritage’s 2008 FUN auction. This was, as far as I know, the most money that any single Dahlonega coin has ever brought. The second finest known example, pedigreed to the Duke’s Creek and Eliasberg collection, was upgraded from MS63 at PCGS to MS64 at NGC. And another MS63 was “made” at PCGS when the Duke’s Creek coin (ex: Heritage 1/04: 1065 @ $74,750 as PCGS MS62) upgraded a point.

The current certified population figures for this date are clearly inflated. PCGS shows three coins in MS63 but there are only two. They also show four in MS62 but I believe that the correct number is also two. The NGC population figure of three in MS62 seems inflated as well.

As I mentioned at the beginning of this article, I plan to begin work soon on the revised third edition of my Dahlonega book and will incorporate all of the changes mentioned in this article. If you have pertinent new information about Dahlonega coins that you feel should be in the book, please email me at dwn@ont.com and I will make certain it is included.

How To Collect Charlotte Gold Coins

There are many ways to collect Charlotte gold. Some people have only a mild interest in these coins and may buy just one or two pieces. Other people are more serious and they have a large number of Charlotte issues in their collection. A small number of Charlotte collectors are obsessives who focus exclusively on these pieces and do not collect anything else. I would like to make some suggestions on how to collect Charlotte gold. In my experience, all of these ideas have merit and none is “better” than the other. It depends on the tastes and budget of an individual collector to determine which one(s) is right for him. I. THE INTRODUCTIORY THREE COIN SET

The most basic way to collect Charlotte gold is to purchase a single example of the gold dollar, quarter eagle and half eagle denominations. This is a very good way to collect for the individual who has a limited budget or who is not certain how deep his interest lies in Charlotte gold.

A basic three coin set of Charlotte gold should consist of nice, problem-free pieces. It would make sense to focus on the more common dates although some collectors might prefer to include some scarcer issues. The grade range for these coins is likely to fall in the Extremely Fine-40 to About Uncirculated-58 range.

The 1851-C is the most logical choice for the gold dollar in this set as it is the most common and affordable date. A pleasing Extremely Fine can be obtained for $1,500 or so. About Uncirculated pieces range from $1,750 to $3,500 depending on quality.

The optimum quarter eagle for this set is the 1847-C as it is the most common date of this denomination from Charlotte by a large margin. A nice Extremely Fine example costs around $2,000 while About Uncirculated coins range from $2,500 to $4,000. It is possible to upgrade to a much scarcer date without paying a substantial premium. As an example, the 1843-C Large Date sells for around the same price in Extremely Fine as does the 1847-C but it is much harder to locate.

In About Uncirculated, the 1847-C used to be much less expensive than all other Charlotte quarter eagles but the price spread has diminished in the last few years. This, in my opinion, makes dates such as the 1843-C Large Date, 1848-C and 1858-C very interesting alternatives, especially in the lower range of the About Uncirculated grades.

There are many dates in the half eagle series that would work well in this type set. These include the 1849-C, 1852-C, 1853-C and 1858-C. Any of these can be purchased in nice Extremely Fine for around $2,500 while About Uncirculated coins are priced in the $3,000-6,000 range.

An alternative to the standard three coin set would be to purchase the same date for all three denominations. This is feasible for issues dated 1849-C, 1850-C, 1851-C and 1852-C. A set from 1855 could also be assembled but the gold dollar and the quarter eagle from this year are quite expensive in higher grades.

II. THE BASIC AND EXPANDED TYPE SETS

A type set of Charlotte gold coins includes one example of each major type struck at this mint. Such a set includes the following:

• Type One gold dollar (1849-1853)
• Type Two gold dollar (1855 only)
• Type Three gold dollar (1857 and 1859)
• Classic Head quarter eagle (1838-39)
• Liberty Head quarter eagle (1840-1860)
• Classic Head half eagle (1838 only)
• Liberty Head, obverse mintmark half eagle (1839 only)
• Liberty Head, reverse mintmark half eagle (1840-1861)

A total of eight types were struck at the Charlotte mint. This includes three that were struck only in one year. A complete eight piece type set is an excellent display item. The various designs used in striking these coins provide a graphic illustration of the artistic and historic record of the Charlotte mint.

Most collectors who assemble an eight piece Charlotte type set do so in grades ranging from Extremely Fine-40 to About Uncirculated-58. This set could be completed in Uncirculated but it would be very difficult to do given the rarity of the 1838-C Classic Head half eagle in Mint State.

The coins that are included in a Charlotte type set are generally the more common dates. Some collectors use better dates in order to make their sets more interesting and potentially more valuable. I would strongly recommend that the collector include at least a few better dates.

A nicely matched Extremely Fine set should cost approximately $25,000-30,000. The most expensive coins in the set are the 1838-C half eagle, the 1839-C half eagle and the 1855-C gold dollar.

A set that consists of all eight coins in About Uncirculated-50 to About Uncirculated-58 can be assembled for approximately $50,000-100,000+. The cost could be significantly reduced if the Type Two gold dollar and the 1838-C and 1839-C half eagles were nice Extremely Fine coins as opposed to About Uncirculated-50 or better.

III. COLLECTING BY DENOMINATION

Each of the three denominations struck at the Charlotte mint are popular with collectors. For various reasons, some of which will be discussed below, some collectors feel an affinity towards a specific denomination.

Collectors generally love or hate the gold dollar. The small size of this coin (13 or 15mm. depending on the type) sharply divides the collecting community. Some collectors find it hard to fathom paying thousands or even tens of thousands of dollars to pay for a coin that is the size of an average adult’s thumbnail. Another negative factor about Charlotte gold dollars is the crudeness with which they were struck. If you are not a specialist it may be tough to “get” a coin that is this crude.

The reasons that cause some people to dislike gold dollars are the same reasons that other people like them. Their crudeness has an odd allure and their small size gives them a distinct charm.

Collectors also like gold dollars because of their low mintage figures. With the exception of the 1851-C, each issue from Charlotte has an original mintage figure of 14,000 or less. Four of the eight have mintages lower than 10,000.

On a coin by coin basis the Charlotte gold dollar series is relatively affordable. A set of eight coins in Extremely Fine should be completable for approximately $20,000. Every Charlotte gold dollar can be found in About Uncirculated grades without great difficulty. The only obstacles to completing a set in this range are available funds and the level of fussiness that a collector brings to the set. Figure on spending $35,000-40,000+ for a mid-range About Uncirculated set and double this amount for a very high end About Uncirculated set.

A complete set in Uncirculated could be assembled but it would be difficult due to the rarity of the 1855-C and 1857-C. Assuming that these two issues are available, a complete set in Mint State-60 to Mint State-63 could be assembled for $100,000-150,000+.

The Charlotte quarter eagles are the most challenging of the three denominations. Assembling a set of these requires patience and dedication. Many are very rare in higher grades. Others have peculiarities of strike that make it hard to find pieces with good eye appeal. The rarest Charlotte quarter eagles are the 1842-C, 1843-C Small Date, 1846-C and 1855-C. These are hard to find in all grades and rare in properly graded About Uncirculated.

There are a total of twenty issues in the Charlotte quarter eagle set. This includes two varieties from 1843: the Small Date and the Large Date. No quarter eagles were produced at this mint in 1845, 1853, 1857 and 1859.

It is a realistic goal to complete this set in Extremely Fine grades. The cost of such a set would be in the area of $55,000-65,000. In About Uncirculated this set is still realistically completable but assembling an attractive, well-matched set requires time and patience. It is not unrealistic to set aside a budget of as much as $250,000 for a world-class About Uncirculated set for choice, high end coins with original surfaces. Completing a set of Charlotte quarter eagles in Uncirculated is possible but exceptionally difficult. There are a number of issues such as the 1839-C, 1842-C, 1848-C, 1849-C and 1856-C that have extremely few truly Mint State pieces known to exist.

A complete set of Charlotte half eagles consists of twenty-four coins. This includes two varieties struck in 1842 (the Small Date and the Large Date) and none in 1845.

The half eagles are the most popular denomination from this mint. One of the reasons for this has to do with the relatively large size of these coins. Another has to do with the fact that every issue except for one (the rare 1842-C Small Date) is reasonably easy to obtain in the higher circulated grades.

A set of nice Extremely Fine Charlotte half eagles should cost in the neighborhood of $100,000-125,000 with a good chunk of this set aside for the 1842-C Small Date. A complete set in About Uncirculated is challenging but less difficult than for the quarter eagles. A set of well-matched, original Charlotte half eagles in About Uncirculated would require a budget of approximately $200,000-250,000+. Completing a set in Uncirculated is very difficult but not impossible. The stoppers in this set include the 1838-C, 1840-C, 1842-C Small Date, 1846-C and 1854-C.

IV. ASSEMBLING A COMPLETE SET OF CHARLOTTE GOLD

Some collectors get hooked on Charlotte gold and decide to assemble a complete set. A complete set of Charlotte gold is generally understood to contain the following:

• Gold Dollars: A total of nine issues struck between 1849 and 1859. One of these, the 1849-C Open Wreath, is excessively rare with just four or five known to exist. Because of its rarity, it is not included in most sets but it is still regarded as an important member of the Charlotte series.
• Quarter Eagles: A total of twenty issues produced between 1838 and 1860.
• Half Eagles: A total of twenty-four issues struck between 1838 and 1861.

The final cost of assembling a complete set of Charlotte coinage (minus the excessively rare 1849-C Open Wreath gold dollar) is within the reach of many collectors. A set that focuses on nice Extremely Fine coins would cost approximately $200,000. A set that consists of nice About Uncirculated coins would cost anywhere from $600,000 up to $800,000+.

Due to new discoveries and relaxed grading standards it is now possible for a collector to assemble a complete set of Charlotte coins in Uncirculated grades.

To the best of my knowledge, no collector has assembled a totally complete set of Charlotte gold in Uncirculated. I know of at least two or three collectors who have assembled the complete set (including the extremely rare 1849-C Open Wreath gold dollar) but none of these have contained Uncirculated examples of this variety.

The finest collections ever assembled of Charlotte coins include the Stanley Elrod collection (sold privately in 1994 and now, unfortunately, split into numerous parts), the Paul Dingler collection (which included the only known complete set of Mint State Charlotte quarter eagles and half eagles; it was purchased by Heritage Coin Galleries and myself a few years ago) and the William Miller collection (sold by Heritage at auction in 1999).

2008 Crystal Ball Survey - Part Two

In the second part of this series, I reveal my answers to the final question from the Rosen 2007-2008 Crystal Ball survey. There are some very interesting questions asked here and some controversial answers so read on for my insights into the current State of the Market. For the following six (6) questions I ask you for your Best Buy selections in a number of series. Please detail why you made your picks and the potential you see for them.

10. Your Best Buys for U.S. Type Coins.

a. Seated Dimes, Quarters and Half Dollars in Mint State-64 to Mint State-66. I think you will see significant appreciation in this area in the coming year or two. b. Barber Dimes, Quarter and Half Dollars in MS64 to MS66 and PR64 to PR66. They aren’t the most attractive coins in the world from the standpoint of design but they are very cheap right now. You can buy a pleasing MS65 Barber Dime for less than $500. c. Gem Trade Dollars. I just never seem to see true MS65 Trade Dollars. Current Bluesheet bid for MS65’s is something like $7,000. They are great deals at double to triple this price. d. Large Size Bust Dimes and Quarters in just about any grade from VF and up. For every one of these you see, there are about ten Bust Halves. If I were going to start collecting coins I think I’d do a date set of Large Size Bust Dimes and maybe expand it to include all of the Redbook varieties. Most of the dates can be bought in nice VF and EF for less than a few thousand dollars.

11. Your Best Buys for Gold Coins.

a. Any Charlotte or Dahlonega gold coin that hasn’t been scrubbed in EF and AU grades. There are fewer of these remaining than people realize. b. Better date $5 Indians and $10 Indians. In the former I really like the S mint dates in MS64 and MS65. In the latter I like virtually any P mint not dated 1911, 1926 or 1932 as well as the tough mintmarked dates in MS64 and MS65. c. Affordable Proof gold. I find that whenever I have an interesting piece of Proof gold in stock for less than $20,000 it sells quickly. d. Gem Matte Proof gold that hasn’t been conserved. Does any exist outside of museums or old-time collections? e. MS66 $2.50 Libs. Seems like they should have a greater premium over MS65’s than they currently do. This is a reflection of the fact that today’s 66’s are not much nicer than most 65’s. If grading tightens on this series, I think the 66’s have real upside.

12. Your Best Buys for Silver Dollars.

a. Semi-Key Morgan Dollars in MS65. I like dates like the 1898-S,1899-S and 1900-S. b. Rare date Peace Dollars in accurately graded MS65. If someone would ever take the time to write a really good collector guide to this series and promote them half as well as Morgans have been, these coins would really take off. They are a great value.

13. Your Best Buys for U.S. Commemoratives.

I’m not enthusiastic about any Commems but if I had to pick any, I’d stick with the issues from the 1910’s and 1920’s in MS66 with attractive light to medium color.

14. Your Best Buys for 20th century collector series.

a. Peace Dollars in MS65, as mentioned above. b. Non Full Head Standing Liberty Quarters. I don’t know this series very well but the non-FH’s seem cheap compared to the FH coins. c. Any Proof Barber coins which are decent looking and priced under $1,000. Good value!!

15. Your Best Buys for any other area of your choice.

a. One year type coins or coins with a good story. In the area of dated gold this entails issues like 1861-D gold dollars and half eagles, 1838-C&D quarter eagles and half eagles, 1839-C&D quarter eagles and half eagles, 1838 eagles, etc. As people move more towards type collecting within the dated series, we are seeing a huge premium paid for significant one-year type, first-year-of-issues, etc. b. Pretty coins that don’t command stratospheric premiums. I look through thousands of coins at every show at auction and am amazed at how few are pretty. If you can buy, say, an MS66 Barber Quarter with lovely color for a 10-15% premium over a dipped-out, mediocre example I think this is great value. c. Some ultra-rare coins are still good deals. I think the 1876-CC Twenty Cent Piece has the potential to be a $750,000-1,000,000 coin in the not-so-distant future. d. Proof Bust coins are still fair value, especially in the PR64 and PR65 grades. But beware of examples in slabs that are not Proofs. As a smart dealer recently told me, “if it doesn’t look like a Proof...it ain’t!” e. Colonials and Early Americana. This is an area that shouldn’t be tackled without an expert’s help but how can you not love coins like New Jersey or Connecticut Coppers in attractive middle grades for less than $1,000 per coin? I wouldn’t necessarily look at this area as an “investment” but I think it is one place where a comparatively small collecting budget can still go a long, long way.

16. The sheer scope and market value of Modern Coins has grown greatly over the years such that Classic U.S. coins are facing increasingly strong competition for collector interest. A) What does this mean for the future of the Classic Coin market?

There are always going to be collectors who prefer classic coins but I would expect that a sizable number of the new collectors who enter the market in the coming years will focus on moderns. Many younger collectors just don’t “get” classic coins and they vastly prefer modern issues. I’ve personally learned to accept this as a fact, just like I’ve come to accept the fact that there are at least two generations who barely know what a vinyl record is and who get all their music via MP3’s and online downloads.

B) What does it mean for the potential of the Modern Coin marketplace?

I think there are great opportunities for marketers and dealers in the modern coin market. It’s going to be interesting to see if this market is structured like the classic coin market or if it gets an entirely new structure. My guess is that there is some young guy out there who is going to become the Sean Fanning of the modern coin market—he’s going to develop the “killer app” that makes him a fortune and which revolutionizes the way modern coins are collected and bought/sold. I think collectors should be encouraged to specialize in whatever turns them on and if happens to be modern coins then more power to them!

17. Do you think rare coins are priced too cheap in relation to other investment areas? Compare to art, antiques, stocks, real estate, you name it.

As someone who is extremely interested in art, I find coins to be absurdly cheap. To be a serious player right now in an area like Contemporary Art, you are looking at spending $1 million++ for something that’s good but not great. I personally love 15th and 16th century Italian art but no matter how rich I was, I couldn’t buy any great works—they are essentially all in museums. But in the coin market you can buy museum quality rarities for $20,000. You need to remember, though, that there is one critical difference between art and coins. When you buy art, you hang it on the wall and impress your friends with your taste and high degree of sophistication. You can’t hang a coin on the wall and even if you could it’s way too small to make you the envy of your town’s Swanky People. I wouldn’t compare coins to real estate or stocks as that’s way too “apples to oranges” in context.

18. A) What one series strikes you as particularly undervalued?

There are lots of series I like but two that come to mind are Liberty Seated half dollars and New Orleans eagles. Both are big, both are relatively attractive from a design standpoint and both offer collectors an area where $5,000-10,000 will buy you something really special.

B) What dates and grades in that series make the most sense for an investor to buy?

In Seated half dollars, I like the No Motto New Orleans coins in MS63 and better, especially those with attractive light to medium natural color. The survival rate of these issues is very low and most are very rare in Uncirculated, despite being priced at less than $7,500 per coin for the most part. In New Orleans Liberty Eagles I like the No Motto coins in original, unprocessed AU and above and I like the With Motto coins in MS63 and better.

What is their upside potential?

I think many of the Seated half dollars that I mentioned above that currently trade for $5,000-7,500 could double within the next five years, especially if more people start collecting Seated half dollars by date. The good quality New Orleans eagles are already bringing well over CDN Bid when they sell at auction but the price reporting for these issues is about a year or two behind the actual market.

19. What are your one, two, or three most favorite coins in all of numismatics that you would qualify as "sleepers," very undervalued?

a. Truly original, accurately graded C&D mint gold coins in About Uncirculated. I wouldn’t be surprised if coins like this start bringing huge premiums over their scrubby counterparts in the near future. b. Just about any No Motto Seated quarter or half dollar in MS64 or better. Forget the original mintage figures of these coins as they are very rare. You can also forget the current pricing guides as they typically bring multiples of Bid or Trends at auction when they are offered for sale. c. Pre-1834 quarter eagles in nearly any grade. With the exception of the 1796 No Stars and the 1808, these are much undervalued. In fact, they are far rarer than early half eagles or eagles of this era but still sell at a discount because of their reasonably small size. Coins with unadulterated original surfaces are really hard to find! d. Proof Bust coinage. There have been very few Proof bust coins that have traded since the market started shooting upwards five+ years ago but, in my opinion, the few Proof bust coins that have sold have not brought nearly enough of a premium relative to their pre-2001 price levels. You can still buy a pretty nice Proof bust half dollar for under $50,000. That’s just too cheap for a coin as rare as this. e. Proof half cents and large cents from the 1830’s, 1840’s and early 1850’s. Here’s another area where many prices have been flat for the past decade or so. I love coins like Proof half cents from the 1840’s in PR64 Brown or PR64 Red and Brown for under $7,500. While I am not necessarily touting them as an investment, I think they are a terrific value.

20. A) Where are the young coin dealers? We remember hot-shot young turks of the past whose brilliant minds and trading skills were the envy of veteran dealers.

I think there are actually more people working in the coin business who are in their 20’s than most of us Old Dudes realize but very few of them standout as being the next Jason Carter or Ryan Carroll (the two best young coin dealers from the 1990’s and 2000’s, respectively). I think it’s very hard being a dealer in this day and age given the cost of starting a business and maintaining an inventory. When I started my own firm in 1984 I had less than $50,000 in capital. This wouldn’t get a young kid very far today. That said, this is a great business for young entrepreneurs. The typical successful coin dealer is now in his 40’s or 50’s and doesn’t want to work as hard as 10 or 20 years ago. There are a lot of A-level dealers who are going to retire or semi-retire in the next decade and I wonder who is going to take their place. If I had a 16 year old kid, I would certainly encourage him to take over my business as I start to wind things down in the next few years.

B) What's the future of being a coin dealer?

I anticipate that the coin dealer of the future is going to be valued more as a conduit of information or as a broker than anything else. I would expect that margins will continue to decrease. I think the days of the brick and mortar coin shop is just about history but I do expect there to be a continued need for highly competent, specialized dealers. I think you will also see a few mega-dealers emerge who become dominant forces in the market; as Heritage is currently on course to becoming right now (if they haven’t already done so...) I’m happy I’m not a young, struggling kid just coming up in the business although I see a lot more opportunity for mentorship and guidance than when I was coming up in the early 1980’s and things were A LOT more cut-throat.