The 1838 Eagle

One of my absolute favorite United States gold coins is the 1838 eagle. Here are some impressions I’d like to share about this fascinating issue. The ten dollar gold denomination was abolished in 1805, along with the silver dollar denomination. I’ve read in various coin books that the reason for this was “extensive melting by bullion dealers.” I’m a bit skeptical about this as a reason and would personally think that for Eagles, the reason had to do more with a lack of demand and/or available gold bullion.

After a thirty-four year hiatus, the eagle denomination was resurrected in 1838 and the task of designing the new coin fell to Christian Gobrecht. The new design featured a bust of Liberty facing left on the obverse and an eagle on the reverse. Liberty’s neck on the 1838 eagles is distinctly curved and the back of the neck ends in a curious, abrupt triangle. Another identifying factor is strands of hair over the ear which are swept-back in appearance and which cover much of the ear. The portrait is positioned quite a bit differently than on other Liberty head eagles. On the 1838 (and some of the 1839), the tip of the coronet is placed below the outside of the sixth star while the back of the neck is below the outside of the thirteenth star. On the later issues, the tip of the coronet is placed between the fifth and sixth stars while the back of the neck is located past the inside of the thirteenth star.

In 1838, only 7,200 eagles were struck. I estimate that 50-75 are known today and break these down as follows:

Very Fine and below................15-25

Extremely Fine.....................23-31

About Uncirculated.................10-15

Uncirculated........................2-4

Most examples of this date grade VF30 to EF40 and show clear evidence of considerable circulation. The surfaces are generally very heavily abraded with clusters of marks seen most often in the left obverse field. This issue has better luster than one might expect and higher grade pieces are sometimes quite reflective. Most show enough wear, however, that the luster is considerably impaired. The natural coloration tends to be a medium to deep greenish-gold hue. I have not seen many examples that have original color as most have been dipped or cleaned at one time. The strike tends to be reasonably sharp with good overall detail at the centers; some examples have weakness on the radial lines of the stars.

The 1838 eagle is scarce in all grades and it becomes truly rare in properly graded AU50 or better. Most AU examples are in the low end of this range and a solid AU55 to AU58 is very rare and extremely desirable. I have personally seen only a handful of nice examples in the last few years, the best of which is a PCGS MS63 that sold for $63,250 in the April 2002 Heritage auction.

There are also three Proofs known. One is in the Smithsonian and it grades PR63, one is in a private collection (ex: Cardinal Spellman) and is graded PR65 by PCGS and the final example is also graded PR65 by PCGS and is ex: Pittman. This coin last sold for $550,000 in 1998 and it would sell for considerably more than this if made available.

Pricing for the 1838 eagle is currently very inaccurate. Coin World Trends shows values for this date at $2,900 in EF40, $4,025 in EF-45, $6,250 in AU50 and $11,000 in AU55. If you can purchase a problem-free 1838 eagle in these grades for prices anywhere near these levels, you’ve found yourself an incredible bargain. I’ve noticed that in the last few years, lower and medium grade examples that have been offered for sale at auction have brought levels far, far greater than Trends.

So what is it exactly about this issue that I found so intriguing? I can think of a number of reasons. It is a first-year-of-issue coin and the first Eagle to be struck after the denomination was resurrected after a three-and-a-half decade hiatus. It is a low mintage coin that is scarce in all grades and very rare in higher grades. It is a unique and very different design that was used on this denomination for just two years. And last but not least, it is exceptionally undervalued at current price levels.

State of the Market: Carson City Gold Coins

For our next State of the Market Report, we’re going to take a look at Carson City gold coinage. How have the half eagles, eagles and double eagles from this ultra-popular western branch mint fared in the past few years? I. Overview

The number of serious Carson City gold coin collectors appears to have increased in the last few years. At the same time, at least three major collections have been sold (Old West, “Morgan” and the Washington D.C. collection that I sold privately in 2006). This has meant that some fantastic quality individual coins have been available with some record prices having been achieved. This has been slightly tempered by the fact that a group of significantly overgraded Carson City half eagles (and eagles) have been offered for sale at a number of auctions beginning in 2005. Until the bulk of these are removed from the market, Carson City gold in general will remain highly bifurcated and marked by huge value differences in similarly graded issues. This is truly a market where one AU55 1876-CC half eagle can be worth $17,500 while another can be worth $12,500.

II. Half Eagles

Of the three Carson City gold denominations, I would say that half eagles are probably the least popular right now. Prices for many Carson City half eagles have stayed fairly flat—or even dropped—in the last few years. There are certainly exceptions: choice, high grade examples of nearly any pre-1890 date are strong and even lower grade examples of the key issues (such as the 1870-CC, 1873-CC and 1878-CC) are in great demand in the VG to VF range. With coins that are priced at $20,000 and up, collectors are very fussy and will not generally purchase a coin which they or their trusted advisor(s) do not feel lives up to its stated grade.

I think that the market for Carson City half eagles will remain spotty over the next few years. My gut feeling is that exceptional coins will continue to do quite well and that many of the key issues from the 1870’s will see across the board demand. In my opinion, the most underrated Carson City half eagles right now are the 1877-CC, 1878-CC and the 1881-CC.

III. Eagles

Spectacular Carson City eagles have brought spectacular prices during the last few years. As an example, the finest known 1870-CC, graded AU55 by PCGS, sold for $115,000 in ANR’s August 2006 auction while a PCGS MS64 example of the more common 1890-CC was bid to $80,500 in Heritage June 2006 sale. But results for mediocre or low-end Carson City eagles have been quite soft in the past few years. This is mostly attributable to a group of overgraded, low-end coins (mostly valued in the $15,000-35,000 range) which an investor has had mixed success selling at auction during the last two years. I personally know of at least four or five collectors of high quality Carson City eagles and they are all looking for essentially the same type of coins right now: choice and original with good eye appeal.

I feel that once the last of the inferior quality Carson City eagles mentioned above are finally sold, the market for these coins will heat up. For collectors who enjoy a challenge (and who have an appropriate budget) this is a great series to collect. In my opinion, the most undervalued dates in this series are the 1870-CC, 1873-CC, 1877-CC and the 1883-CC.

IV. Double Eagles

If you had asked me a few years ago if Carson City double eagles were overvalued I would have probably said yes. If you ask me the same question today I would still probably say yes but with less reservation than in the past. When compared to half eagles and eagles from this mint, Carson City double eagles appear to be overvalued. But (and this is a big, big “but”) the double eagles from this mint have a sexiness factor that is greater than nearly any other series of United States coin. Let’s face it: even if you don’t really care about coins, it is pretty hard to resist the allure of a big, attractive gold piece that saw duty in the most romantic era in the history of this country. And because of this fact, Carson City double eagles will always be very, very popular.

My biggest complaint about this series is that while prices have shot up in the past few years, grading standards have decreased. I often see coins like 1871-CC double eagles in AU50 holders that a few years ago would have graded EF45; or even EF40. Given the fact the Trends for an AU50 1871-CC is now $40,000, I have a hard time spending this kind of money on an example for my inventory which has tons of bagmarks and/or a near-absence of luster. The same goes for dates like the 1872-CC, 1873-CC, 1878-CC and 1879-CC. These are now $10,000++ coins in AU50 and higher grades and if a new collector is going to be spending this kind of money on these dates, I would hope he is getting a nice quality coin.

That said, I think there is still some value to be had in this series. I will continue to buy nearly any attractive, original AU55 to MS61 Carson City double eagle I can find for under $5,000. I also like very choice and reasonably original examples of the key dates but, as I said above, I usually pass on examples that I think have inferior eye appeal.

Coin Buying "Tricks"

As a dealer who has spent over $100 million on rare coins, what are some of the “tricks” that I have learned that can help you when you are buying coins? Read on to see some of the ones that I think you will benefit most from. When I buy a coin I am looking to sell it immediately for a profit. This makes my needs as a buyer slightly different than yours as a collector. But your ultimate goal, I would hope, is to sell your coins for a profit. What are a few of the most obvious but most important parameters to consider each and every time you buy a coin?

1. Buy Coins That Are Pretty

Numismatics has always been a highly visual hobby. But the advent of the Internet has made the visual aspects of numismatics more significant than ever before. When I look at coins now one of the first questions I ask myself is: will it image well on my website? Coins that are pretty are very easy to sell.

The term “pretty” is somewhat semantic. I tend to like gold coins that are dark and dirty and find these to be aesthetically appealing. Not everyone agrees me. Some people like gold coins that have bright, dazzling luster while others prefer coins that two-tone contrast between the devices and the fields. But I think most people can agree that a certain percentage of coins are, for lack of a better term, “special.” This does not necessarily mean “expensive.” I have seen circulated $100 Bust dimes that I thought were really pretty. The bottom line is that you should try and have as many pretty coins as possible in your collection.

2. Buy Coins That Are Popular

There are many coins that no matter how many examples I have purchased over the years, I have never lost money on them. As an example, I have probably owned twenty 1838-D half eagles in the past decade, ranging in grade from VF25 to MS62. Every time I’ve owned one, it has sold quickly to a happy collector and I’ve made a decent amount of money on each transaction. It’s obvious to me why this date sells quickly: it’s a first-year-of-issue, it’s a one-year type, it has a neat design, it’s a Dahlonega coin and it is relatively affordable.

In the last few years, key date coins in virtually every series have shown dramatic increases in value. There is a good reason for this: they are very popular and this creates a constant level of demand for these issues. In some cases (like 1901-S quarters or 1907 High Reliefs) prices are now probably too high and these key issues are currently overvalued. But I would personally rather have a collection (or inventory) that was full of popular coins than ones that were too esoteric and hard to sell.

3. Buy Coins That Are Problem-Free

I’m pretty staggered at how unappealing most coins are that I see these days. As I look through other dealer’s inventories at coin shows or at auction lots, nearly every coin I pull out has some sort of problem. It has been dipped. It has funky color. It has hairlines from an old cleaning. That’s why when I see something that I really like, I try and aggressively pursue it.

In certain 18th and 19th century series, it is likely that 90-95% of all the coins currently on the market have some sort of problem. If you can patiently and carefully assemble a collection that focuses on the remaining 5-10% of the coins that are what I would call high end and choice, you will have a truly significant coin collection.

4. Buy Coins That Pre-Sell Themselves Every time I’ve made a big mistake purchasing a coin for inventory, it’s been a coin that I had to give myself a hard sell on. I’ve found that my first impression regarding a coin is inevitably correct. If I see a coin and it makes me gasp because it’s so pretty or it’s so above-average an issue that usually comes with bad eye appeal, I’m inevitably going to buy this coin no matter what. If my first reaction is “I don’t really like this” or “It’s OK except that spot in the right obverse field sort of bothers me” that doesn’t strike me as the sort of coin that is going to go flying out of my inventory when it is imaged and described on my website. As a rule, if you don’t like a coin the first time you see it, don’t buy it.

5. Buy Coins That Have Been Pre-Screened

Never, never, never buy expensive coins sight-unseen or based solely on a mediocre quality image with no return privilege. It’s one thing if someone is trying to sell you a generic MS63 St. Gaudens double eagle sight-unseen; even if the coin is low-end it is essentially a commodity and what it looks like is not especially important. But I can’t tell you how many times I’ve had clients send me expensive coins that they have purchased sight-unseen out of an auction and how many times I’ve had to politely tell them that it is very low-end. If your dealer insists you buy coins sight-unseen, find another dealer. If you think you can buy nice coins sight-unseen out of auctions, swallow your pride and hire a trusted representative to view the coins in person for you.

Comparing PCGS & NGC Population Statistics

As a dealer, I hear a lot of comments about how PCGS and NGC grade rare gold coins. I thought it would be interesting to compare the population statistics for two commonly traded series, Charlotte half eagles and Dahlonega half eagles, using recent published population figures from the PCGS and NGC databases. Before I get into the numbers themselves, I think a few background tidbits are necessary. I chose Charlotte and Dahlonega half eagles because these are two branch mint series that do not have a lot of problematical issues that are extremely hard to grade (unlike, say, Dahlonega quarter eagles which are especially hard to grade). Also, the market accords relatively similar value levels to Charlotte and Dahlonega half eagles in either services’ holder (unlike, say, high quality Mercury Dimes which are clearly more valuable in PCGS holders). Finally, I chose these two series because they have comparatively high numbers of coins that have been graded, which makes the population sample we are looking at more relevant than more esoteric series that have had few coins graded.

A few more quick points. The Charlotte half eagle series consists of twenty-four coins, including the 1842-C Small Date and Large Date. For both services, I included only these twenty-four issues. For NGC coins only, I also included 1850-C and 1854-C which were designated by that service as “Weak C.” PCGS does not make this differentiation. The Dahlonega half eagle series consists of twenty-six coins, including both varieties of 1842-D, the 1846-D/D and the 1848-D/D. I also included coins designated by NGC as “Weak D.”

I. Charlotte Half Eagles

As of June 2007 PCGS had graded a grand total of 2,626 Charlotte half eagles in all grades. A breakdown of these is as follows:

Very Fine and lower, 636 (24.21% of the total graded)

Extremely Fine, 889 (33.85% of the total graded)

About Uncirculated, 930 (35.41% of the total graded)

Uncirculated, 165 (6.28% of the total graded)

As of June 2007 NGC had graded a grand total of 2,877 Charlotte half eagles in all grades. A breakdown of these is as follows:

Very Fine and lower, 288 (10.21% of the total graded)

Extremely Fine, 750 (26.06% of the total graded)

About Uncirculated, 1506 (52.34% of the total graded)

Uncirculated, 321 (11.15% of the total graded)

Before I analyze these numbers, I think there are a few very important points to make. Both PCGS and NGC have an inherent flaw with their population figures: these numbers are inflated (often severely) by resubmissions. PCGS does a recently good job of clearing the deadwood off their report and they offer submitters a “bounty” for each used coin insert that ensures that a decent number of labels will be returned. NGC, unfortunately, does not offer a bounty and this discourages certain large submitters from returning their old inserts. When I look at the NGC population figures for Charlotte half eagles, what strikes me is the large number of coins graded AU55 and higher. I think these numbers are greatly inflated due to resubmissions.

So, what do I deduct from these numbers? First of all, I am struck by the nearly equal number of total coins graded by PCGS and NGC; 2,626 for the former and 2,877 for the latter. I would have predicted that the total number would have been much higher for NGC and much lower for PCGS. Secondly, I find it very interesting that PCGS has graded around 42% of all the Charlotte half eagles submitted to them in AU and higher grades while NGC has graded slightly over 63% in AU and higher. I find it very hard to believe that over six in ten of all Charlotte half eagles grade AU50 and better, even factoring in gradeflation. One final statistic that I think is very interesting is that NGC has graded nearly twice as many Charlotte half eagles in Uncirculated than PCGS. Even factoring in the inflated population figures at NGC due to submitters not returning duplicate tags, I am still intrigued by this disparity.

II. Dahlonega Half Eagles

As of June 2007 PCGS had graded a grand total of 3,355 Dahlonega half eagles in all grades. A breakdown of these is as follows:

Very Fine and lower, 749 (22.32% of the total graded)

Extremely Fine, 990 (29.50% of the total graded)

About Uncirculated, 1329 (39.61% of the total graded)

Uncirculated, 261 (7.77% of the total graded)

As of June 2007 NGC had graded a grand total of 3,266 Dahlonega half eagles in all grades. A breakdown of these is as follows:

Very Fine and lower, 313 (9.58% of the total graded)

Extremely Fine, 781 (23.91% of the total graded)

About Uncirculated, 1824 (55.84% of the total graded)

Uncirculated, 338 (10.34% of the total graded)

In looking at these two sets of numbers, there are two areas where great disparity can be quickly noted: with coins graded VF and lower and with coins graded AU. What accounts for this?

In regards to the lower graded coins, my guess is that there are two major reasons. The first is that PCGS tends to be a bit more generous than NGC in terms of what they will or will not encapsulate in this grade range. PCGS will often net grade a lower quality Dahlonega half eagle while NGC will tend to either not grade such a coin or place it in an NCS holder. The second reason is that these lower grade coins tend to appeal more towards pure collectors than investors or speculators and these individuals often prefer to have their coins in PCGS holders.

How can the great disparity between NGC and PCGS for AU grade Dahlonega half eagles be explained? I think there are two important things to consider. The first is that the NGC populations for Dahlonega half eagles graded AU55 and (especially) AU58 are hugely inflated by resubmissions. If NGC were to clean-up their populations figures, I think the number of AU coins would be reduced by at least 200-300+. The second reason is probably due to the fact that the NGC grading line for AU Dahlonega half eagles is a bit looser than PCGS’. In my opinion, a number of AU50 Dahlonega half eagles graded by NGC would not qualify as such at PCGS.

The most important thing to remember about these numbers is that they are subject to any number of interpretations. If you are pro-NGC, you will form your own conclusions while if you are pro-PCGS you will, no doubt, reach another conclusion.

Where Have All The Nice Coins Gone?

If you talk to nearly any dealer or read nearly any numismatic newsletter you’ve no doubt heard a similar complaint for many years: it has become incredibly hard to buy “nice coins.” Clearly, this is true. But the reason(s) why nice coins have become so hard to buy are somewhat less obvious. I have a few theories as to where all the nice coins have gone and why it is so hard in today’s market to find others. The first reason has to do with the increased size and scope of the rare coin market. There are far more deep-pocketed collectors than ever before and certainly far more than most people realize. There are many reasons for this: the increased appeal of numismatics as a result of the Internet, the explosion of wealth in this country and around the world and the lack of good investment alternatives as in years past. Simply put, tens of thousands of very high quality coins have left the market as a result of new collectors.

The second reason is a little less obvious. It is my opinion that more formerly-nice coins have been ruined by cleaning and processing than we realize. Let’s take a typical common date Dahlonega half eagle as an example. Let’s say that there are 200-300 examples known of this date in all grades. Even before the mania for cleaning coins began, at least 75% of these coins had either been harshly cleaned, damaged or very heavily worn. This leaves us a pool of approximately 25-50 original or semi-original “nice coins.” Now let’s say that this number has been reduced another 50% in the last decade as dealers have given into the temptation of taking a crusty EF coin and turning it into an ugly AU coin. Now we are talking about maybe as many as 15-25 nice original examples of this supposedly common date. This number is further diluted by the fact that most of the choice examples of scarce, popular collector coins are off the market in tightly-held collections. At the end of the day, we are talking about a tiny pool of nice, original coins available for the new collector.

Here’s another theory of mine which we’ll call reason #3. Veteran observers of the rare coin market (like me) became jaded by the proliferation of great collections which came to the market in the 1980’s and the 1990’s. Eliasberg, Bass, Pittman, Norweb...the list goes on and on. We were spoiled by these great old collections and now that hardly any other great old collections await us, our reaction is that “there are no more nice coins left.” I find it interesting that the coin market of the 2000’s has become more democratized than the market(s) of the past. Instead of one person owning huge numbers of great coins (i.e., Harry Bass), there are now many collectors who own smaller numbers of the good stuff. Old School dealers like me are just going to have to get used to the fact that the auctions we will be attending in the future are not likely to be Eliasberg-esque.

One final reason comes to mind. The rare coin market has become watered-down by modern coins. As recently as a decade ago, no one collected coins made during their lifetime; let alone paid huge premiums for coins struck a year or two ago. A number of dealers (and collectors) who used to be active in the market for “nice coins” jumped ship and are now focusing on modern issues. Moderns also get a lot of publicity these days while the day-to-day trading of attractive classic issues is done with less fanfare. Ironically, there’s a whole new generation of collectors who are a lot more excited by a PR70 American Silver Eagle from 1999 than by a superbly toned PR67 Barber Quarter from 1899. As always, what is “nice” is a matter of perspective...

I think the bottom line is this: in 2007 we are seeing a lot more collectors competing for a lot fewer nice coins. It was never easy to buy nice coins. In some ways, I’d love to turn back the clock to 1987 but when I really stop and think about the market twenty years ago, nice coins weren’t growing on trees back then and when you did have them, they were a lot harder to sell.

State of the Market: Three Dollar Gold Pieces

In the fourth installment of my series of State of the Market articles, I take a look at the popular Three Dollar Gold piece series. How has this cult favorite fared in the past few years and what does the future look like for this denomination? After years of neglect, interest in the Three Dollar series spiked dramatically in 2004 and 2005. This can be directly attributed to two reasons: the publication of the first book on Three Dollar gold pieces (written by myself and the legendary Q. David Bowers) and expert marketing and promotion of the series by a few firms which introduced many new collectors to this interesting series.

For a variety of reasons, the promoters who focused on Threes moved on to other series in the middle of 2006 and the last year or so has seen a fairly dramatic drop in prices in the series. I would estimate that high grade common dates Three Dollar gold pieces have dropped between 30 and 50% while rare dates have seen price drops more in the range of 10-30%.

Perhaps the most dramatic price decreases in the entire series have been for common dates in MS64. These can now be bought for $6,000-7,000 but they were priced at $12,000-14,000 around two years ago. MS63 common dates are now $5,000 to $6,000; they used to be $9,000 to $11,000. MS62 common dates now sell for $3,500 to $4,500 and were priced at $6,000 to $7,000 at the height of their popularity.

In my opinion, common date Three Dollar gold pieces are a great value right now if they can be bought at around $6,000. These coins are generally very nice and if you can find a high end example with good color and luster as well as minimal marks at the low end of the current value range, I think this is an excellent coin to put away for a while. I find it a little strange that an MS64 common date is selling for just a $2,000 premium over a common date in MS62. My gut feeling is that an MS62 is not a great deal at this level.

The rarer date mintmark issues in this series are, for the most part, doing rather well. There is strong collector demand for issues such as the 1855-S and the 1857-S and the 1860-S seems to have become extremely hard to locate in grades above AU55.

One issue that is especially interesting to follow is the 1854-D. I have always thought of this as being a coin that, while technically a Three Dollar gold piece, is totally different from the other issues in this series. The reason for this is obvious: its primary source of demand is from Dahlonega collectors, most of who will never aspire to own another Three Dollar gold piece besides this date. Nice AU examples seem to have formed up considerably in the last six months and I would say they are worth between 5 - 15% more than when they hit a comparatively low level last summer.

Another interesting issue is the 1854-O. This date has become the most two-tiered Three Dollar gold piece in terms of value. It is clear to me that NGC tends to be considerably more liberal when it comes to the 1854-O in AU, especially in the upper ranges of this grade. A nice PCGS AU55 or AU58 1854-O is really quite a rare coin and it now commands a strong premium over the typical NGC graded AU55 or AU58. I have also noticed that 1854-O Threes with original color and surfaces and good strikes are commanding strong premiums over bright-n-shiny, processed examples.

So what lies ahead for this denomination?

I think Threes are far too interesting and far too collectible to stay inactive for long. My prediction is that you will see some of the marketing companies that dropped out of the series a few years ago get back in. It’s hard not to like a Three Dollar gold piece that was priced at $10,000 as recently as a few years ago when it is now priced at $7,000.

My guess is that you will see the greatest new interest in the series occur with the most interesting coins. These include the following:

1854-D, all grades

All San Francisco issues (except for the 1856-S) in AU50 and above

Civil War issues, all grades

Rare low mintage dates such as the 1858, 1865 and 1877 in all grades

Issues with mintages of less than 1,000, AU50 and above

When you take a hard look at this series, it’s easy to see what happened in 2005 and 2006. Prices went up too quickly, too many coins came on the market and the speculators who were driving the market bailed. My best guess is that, starting soon, the Three Dollar gold series will go back to being mostly collector-driven and it will regain its spot as a popular, oddball gold denomination that has long been in demand.

Starting a Charlotte Half Eagle Collection

For a collector who is new to branch mint gold coins, assembling a set of Charlotte half eagles is an excellent place to begin. New collectors tend to like half eagles more than the other denominations produced at this mint. These coins are larger in size than their gold dollar and quarter eagle counterparts and they tend to be more available in higher grades. Due to the fact that Charlotte half eagles are currently somewhat out of favor with collectors, many nice half eagles from this mint are currently available. In other words, this is a good time to start a Charlotte half eagle collection due to the fact that a new collector will have less competition than usual and will find a greater assortment of desirable pieces available.

In my opinion, there are basically three tiers of collections that the Charlotte half eagle collector can tackle. For the sake of classification, we can identify these as follows: beginner level, intermediate and advanced.

A beginner level set consists of 24 coins, generally in the EF40 to AU50 grade range. (NOTE: On all three of these sets, if the collector chooses not to include the 1842-C Small Date, the number of pieces he needs to purchase decreases by one). The five key issues in the beginner set are the 1842-C Small Date, 1840-C, 1844-C, 1846-C and 1838-C. With the exception of the 1842-C Small Date, all of the other key issues can be found in nice Extremely Fine for under $5,000.

A few pieces of advice for the collector who decides to work on a beginner level set of Charlotte half eagles:

Take your time. This set can be completed in a few months but a rushed set will include many low end coins. A set that is assembled over the course of a few years will be more fun and it will include nicer coins.

Whenever possible, throw in a few higher grade coins. Right now it is possible to buy nice AU53 to AU55 examples of common dates for just $1,000 or so more than an EF40. While this might slow up completion of your set, in the long run a collection with some higher grade coins will be a better investment than one with just EF40’s.

Try and learn what choice, original coins look like and then become fixated on buying only coins with the “right” look. Whenever possible, avoid bright-n-shiny, processed pieces.

An intermediate level set consists of all AU coins. Most collectors will probably look for the key issues in the AU50 to AU53 range and the more common dates in AU55 to AU58. This is clearly more difficult to assemble than a beginner set, not to mention (obviously) a more expensive one. The dates that will prove to be the most difficult to locate in this grade range include the 1838-C, 1842-C Small Date, 1840-C, 1844-C and 1846-C.

A few pieces of advice for the collector who decides to work on an intermediate set of Charlotte half eagles:

You are going to be confronted with a seemingly endless array of AU Charlotte half eagles in auctions and dealer’s inventories. Try to make your first decision the right one and don’t buy a coin that you will regret purchasing a few years later.

Many dates that have seemingly high population figures in the PCGS and NGC population reports are actually quite scarce with original color and surfaces. If you see a nice, original example of a date like an 1838-C or an 1861-C, do whatever it takes to buy it, even if this means your budget is decimated for six months or more.

In my opinion, it makes more sense to stretch and splurge on the rarer dates in the series than it does on the common ones. While the Charlotte market is in its current slump, this is a great time to be looking for the scarce issues and not worrying about common dates.

An advanced set of Charlotte half eagles consists of coins that grade MS60 and above. If the 1842-C Small Date is not included in this set, every issue is obtainable in Uncirculated; some in grades as high as MS63 to MS64. This is a set that requires a formidable amount of patience and deep pockets to complete. It would take at least $500,000 to form a set of Uncirculated Charlotte half eagles and a truly world-class set could run closer to $1 million.

A few pieces of advice for the collector who decides to work on an advanced set of Charlotte half eagles:

Whenever possible, buy coins with good pedigrees. High quality Charlotte half eagles from collections formed by such men as Harry Bass, Stanley Elrod, Paul Dingler, Louis Eliasberg, Ed Milas and others are generally characterized by choice, original surfaces and are regarded with high esteem by knowledgeable collectors and dealers.

Buy the right coin the first time. If you already own a very nice MS63 1852-C half eagle, it usually does not make sense to upgrade this to an MS64. The only time such an upgrade would make sense is if you can sell your existing coin for a good price and the new coin is considerable nicer in appearance when you put the two coins side-by-side.

Carefully research the price history of expensive Charlotte half eagles. If you are going to spend $20,000++ on a coin, make certain you have a good idea how much other comparable coins have sold for at auction and via private treaty. Avoid dealers who do not help you readily access such information.

As I mentioned above, this is a great time to start a collection of Charlotte half eagles. After the new third edition of my book on Charlotte coinage is released (hopefully by the end of 2007 or early in 2008) I would expect to see renewed interest in this area of the market. This will make it harder to buy nice coins, especially at the currently favorable market levels.

State of the Market Report: San Francisco Gold

In the third part of my State of the Market, I kick it West Coast style and take a look at what’s happening with the gold coins from the San Francisco mint. Are these coins still as dead as the proverbial doorknob or has some breath been jumpstarted into this long-overlooked part of the market? Looking at the market for San Francisco gold coins from a macro perspective, I’d have to say that the overall health of these coins is pretty weak. However, this blanket statement most certainly can not be applied across the board. There are segments of this market that are unquestionably strong and that will, I feel, continue to show strong growth in popularity.

The strongest area in the San Francisco market is rarities and essential one-year type coins. As an example, price levels on 1854-S quarter eagles have increased dramatically over the past few years. In 1999, the finest known example from the Bass Collection sold for just a shade over $135,000. In an auction earlier this year, Heritage sold an example that was clearly not as nice as the Bass coin to a knowledgeable dealer for $345,000. Two other key dates that have seen strong price appreciation in the past few years are the 1864-S half eagles and eagles.

One San Francisco coin that, were it to become available, would almost certainly become one of the most expensive coins ever sold would be the 1854-S half eagle. Only two or three examples are known and just a single piece is in private hands. If this coin were to come up for sale while the market for ultra-rarities remains strong, it could bring as much as $4-6 million.

There are a few other segments in the San Francisco gold coin market that I see strength in. One of these is gold dollars. In the past few years, every time I’ve owned an affordable, nice quality example of a date like the 1857-S or 1858-S, it has sold very quickly. Collectors looking for San Francisco gold dollars tend to be interested in coins in the AU50 to MS61 grades and priced in the $1,750-5,000 range. In my experience, higher grade San Francisco gold dollars are not as easy to sell.

Another group of coins from San Francisco that maintain an active level of collector interest are Three Dollar gold pieces. This is interesting because of the fact that, viewed as a whole, this series is currently not in favor. Pleasing Extremely Fine and About Uncirculated examples of the 1855-S, 1857-S and 1860-S have remained very desirable and have not declined in price like the majority of the Philadelphia Three Dollar gold pieces from this era. The one San Francisco Three Dollar gold piece that has declined in popularity is the 1856-S. This is the result of a very large number being available for sale in the last year or two.

The market for San Francisco double eagles has shown some ups and downs in the past year. High grade examples of the scarcer Type One issues remain in demand and the 1861-S Paquet and 1866-S No Motto have experienced greater price increases in the past two or three years than nearly any Liberty Head gold coins. I have noticed some price resistance on average quality Type Two double eagles from San Francisco and the market for most Type Threes from this mint is down significantly from the high levels of a year or two ago.

There are at least two areas of the San Francisco gold coin market that remain very weak: the rare date half eagles and eagles from the 1850’s through the mid-1870’s and the semi-scarce issues from the 1880’s through the early 1900’s. The reason for the weakness in these two areas is the same: lack of collector interest.

The half eagles and eagles struck in San Francisco between 1854 and 1877 are, for the most part, very rare. But they have never had the collector support that characterizes the southern branch mints or Carson City. As I’ve mentioned before, the lack of a standard reference work on these coins has certainly not helped. But I think there is another factor that keeps collector level down.

A coin like an 1861-S half eagle in AU55 or an 1860-S eagle in AU53 is unquestionably rare. But both of these are already quite expensive; $10,000 or so in the case of the half eagle and $20,000 or so in the case of the eagle. This is a lot of money for a series with virtually no collector interest. If prices were adjusted downwards to reflect these coins as sleepers or potential rarities and not established rarities, perhaps more pioneers would enter the market.

Another factor that hurts these coins is that most are very ugly. There is a huge price spread between grades for coins like an 1860-S eagle. Because of this price spread, there is considerable temptation to take a nice original EF45, scrub it to death and get it upgraded to AU53. In theory, lots of value has been added but now you’ve got an already unpopular coin like this 1860-S eagle that is now bright-n-shiny and that has a very high Trends valuation to boot.

I’ve weighed in on semi-scarce San Francisco gold coins before. I don’t like coins like this very much as, to me, they represent the unglamorous segment of an unpopular area in the market. That said, if you had bought coins like an 1882-S eagle in MS62 a few years ago, you did pretty well, if only because of the rise in bullion prices.

One area of San Francisco gold that continues to shine is high quality 20th century rarities. In the past year, we have seen record prices for a number of Indian Head eagles and St. Gaudens double eagles from San Francisco. The fabulous PCGS MS67 Duckor 1920-S Indian Head eagle at $1,725,000 was a remarkable price for this coin but what was even more incredible was the fact that at least three or four bidders were actively pursuing this coin at the $1million level.

San Francisco gold has underperformed other areas of the rare date gold market but it is not the hopeless laggard it was as recently as two or three years ago. I think we will continue to see small pockets of popularity. Some currently moribund areas that I would keep an eye on include Civil War issues from this mint and Condition Census or Finest Known gold dollars, quarter eagles, half eagles and eagles struck prior to 1878. In addition, I think better date Indian Head half eagles and eagles from San Francisco will be a very strong area in the market in the near future.

State of the Market Report: Dahlonega Gold

In my second State of the Market report, I look at the always popular area of Dahlonega gold and see what’s up with these coins. Dahlonega gold coins clearly remain the most avidly collected of the three southern branch mints. But this market has become very two-tiered in the past few years. Because of this market bifurcation, prices have fluctuated recently and two coins of the same date in the same grade can have wildly divergent values.

1. GOLD DOLLARS

Dahlonega gold dollars are by far the most popular branch mint gold dollars. In fact, I have noticed a number of new collectors in this area of the market in the past two or three years including at least a few who are assembling high quality, complete sets of Dahlonega gold dollars.

The Type One issues have shown a considerable amount of strength in the past few years and I would suggest that these are probably the most popular gold dollars from this mint right now. I am always able to easily sell any Type One Dahlonega gold dollar I have which is priced in the $1,500-3,000 range. The more expensive coins are a bit harder to sell unless they are rarer issues (such as the 1850-D or the 1854-D) if they are choice for the grade with nice color and surfaces. Very high quality pieces are extremely elusive and the few Finest Known or Condition Census pieces which have come onto the market in the past few years have brought strong prices.

The one-year type 1855-D is still extremely popular. A few years ago, there were a decent number of these on the market. But in the last year or so, I don’t think I’ve seen more than three or four and most of these have been higher grade. I think I could sell a nice, relatively affordable EF 1855-D gold dollar multiple times but these appear to be put away in private collections and not currently available.

The market for Type Three Dahlonega gold dollars is a little bit harder to figure out. Clearly, the better dates in this series have been hurt by a number of vastly overgraded coins put into holders by the grading services. In addition, the population figures for dates like the 1858-D and 1859-D have been greatly inflated by multiple submissions. One date which has suddenly become impossible to find is the 1861-D. I don’t recall having seen a slabbed piece which did not have a problem in close to two years. I would have to think if a nice PCGS AU55 came on the market, it would bring well over Trends due to very strong current demand.

2. QUARTER EAGLES

If I were going to assemble a set of Dahlonega coins for my own collecting pleasure, I would probably choose this denomination. Quarter eagles are the hardest Dahlonega coins to consistently find with good eye appeal and there are a few specific dates which have almost disappeared from the market.

The 1839-D has gone from being moderately popular a few years ago to being very popular today. It has been quite a while since I’ve seen a nice Uncirculated piece or a nice, problem-free EF. Most of the pieces currently on the market are processed, overgraded AU’s.

In the Liberty Head series, most of the coins I see offered these days tend to be the more common issues such as the 1843-D, 1844-D, 1846-D, 1847-D and 1848-D. Nice EF examples of these dates have doubled in price in the last three or four years but I still think that a choice EF Dahlonega quarter eagle at $2,500 or so is pretty good value in the big picture. The rare dates from the 1840’s, such as the 1840-D, 1841-D and 1842-D, remain extremely hard to find in properly graded AU50 and better and most of the ones offered at auction these days are low end and unoriginal.

The scarce 1850’s Dahlonega quarter eagles are currently an enigmatic sub-series, in my opinion. I have seen a lot of low-end Uncirculated examples of dates such as the 1852-D, 1853-D, 1857-D and 1859-D in the last two or three years. These mostly tend to be the same group of overgraded coins which bounce from auction to auction and from dealer to dealer, seeming to never find a good home. Two dates that remain truly rare are the 1855-D and the 1856-D. It has been at least two years since I’ve seen a really nice 1856-D for sale and this date has proven to be the rarest Dahlonega quarter eagle, in my opinion, by a significant margin.

3. THREE DOLLAR GOLD

If any Dahlonega coin could be termed “volatile” it would be the popular 1854-D Three Dollar gold piece. This issue is always in demand due to its one year status. What many people have learned, though, is it is clearly not nearly as rare as its small mintage of 1,120 would suggest (a comment on this follows, see below).

A few years ago, the market seemed inundated with 1854-D Threes. I can remember owning no less than four AU58 examples at one time. Prices shot upwards but many collectors realized that $40,000+ for a decent quality example seemed like pretty marginal value when there were more interesting Dahlonega coins available at a fraction of the price. As with the market for Three Dollar gold pieces in general, values for the 1854-D declined in the past year or two. But they seemed to have firmed in the past six months and it appears clear to me that they aren’t going to get cheaper anytime soon.

A note on this issue’s rarity: clearly the 1854-D was saved at the time of issue and its survival rate is considerably greater than other Dahlonega coins of this era. But the number of pieces which appear for sale is misleading. I know of a few 1854-D Three Dollar gold pieces that have appeared in at least four or five consecutive auctions as well as on various dealers’ websites. Properly graded, original examples have never been easy to find and the ones that bounce around these days tend to be the ones which are, to put it nicely, not so “pretty.”

4. HALF EAGLES

For a number of years the half eagles have been the most popular denomination from this mint. Prices have risen for lower grade examples but I find the higher end of the half eagle market to be somewhat weak right now. The culprit for this, of course, is the abundance of overgraded coins. I know that the dealers who specialize in Dahlonega gold coins are happy to purchase all the high quality half eagles that they can find but their complaints are unanimous: the nice coins just aren’t readily available.

I would have to say that two of the most popular Dahlonega issues right now are the 1838-D and 1839-D half eagles. The former was once easy to find in nearly any circulated grade but it is now very hard to find an 1838-D even in EF grades. The 1839-D, after years of languishing in obscurity, has become the “coin du jour” in the half eagle series and auction prices for nice AU pieces have broken the $10,000 barrier in the past two years.

There are a few dates which I never seem to see in higher grades. These include the 1842-D Large Date, 1846-D Normal Mintmark, 1848-D, 1850-D and 1861-D. The other Dahlonega half eagles tend to be fairly readily available in most grades but, as I said above, finding attractive, original coins can be very challenging.

At some point in time, an enterprising dealer will publish a price guide for Dahlonega gold coins which has two sets of prices. The first will be for the run-of-the-mill pieces which are typically offered for sale. The second will be for the crusty, original pieces which are all but disappearing. The price differential right now is only 15% or so. I would not be surprised if in five years a crusty AU55 common date Dahlonega half eagle is worth 50-100% more than its processed counterpart.

One final comment before I end this report. The 1861-D is one date in the half eagle series that is just about impossible to find these days. I used to handle a nice 1861-D every two or three months. Now, it’s more like once every year or two. I believe the reason for this is that the 1861-D is a classic collector favorite and all the nice, middle grade pieces are owned by people who have no real interest in selling them.