Dahlonega Gold Quiz

I'm busy updating my Dahlonega gold book (I hope to be finished with the manuscript in 45 days or so) and in honor of My Dahlonega Obsession, I thought it would be fun, or at least moderately amusing, to share some of my recent findings in the form of a Dahlonega Quiz. Here's how I would interpret your score on the quiz, should you decide to play along:

10 of 10: You are A Dahlonega Guru. Consider becoming a full-time specialist in this area; if you aren't already.

7/8/9 of 10: You are pretty good. Maybe not a Guru but you know your coins.

6 of 10 or below: You are a Dahlona-newb. You need to buy the upcoming third edition of my book, read it carefully, and then read it some more.

OK, are you totally excited and ready to take the quiz? Here we go!

1. What is the most common Dahlonega gold coin in terms of the total number known?

a) 1849-D gold dollar b) 1852-D quarter eagle c) 1854-D half eagle d) 1861-D eagle

2. What Dahlonega gold coin has the most known individual coins in Gem condition (i.e., MS65 and above?)

a) 1858-D gold dollar b) 1847-D quarter eagle c) 1855-D quarter eagle d) 1854-D half eagle

3. Which Dahlonega quarter eagle has an odd grade distribution where more survivors are high grade (AU55 and above) than low grade (EF40 and below)?

a) 1839-D b) 1843-D c) 1857-D d) All the above

4. What Dahlonega coin has the lowest mintage? (And you get extra credit if you know the mintage figure?)

a) 1854-D three dollar b) 1856-D quarter eagle c) 1854-D quarter eagle d) 1841-D quarter dollar

5. What is the rarest Dahlonega coin in terms of overall rarity (i.e., fewest known in all grades combined?

a) 1861-D gold dollar b) 1854-D three dollar c) 1840-D quarter eagle d) 1856-D quarter eagle

6. What is the rarest Dahlonega coin in Uncirculated? (Not the number graded by the services but the number of coins that specialists agree are really, truly "new?")

a) 1859-D gold dollar b) 1840-D quarter eagle c) 1856-D half eagle d) 1842-D Large Date half eagle

7. Which of the following is not a recognized Dahlonega variety?

a) 1842-D Small Date half eagle b) 1843-D Small Mintmark quarter eagle c) 1859/8-D gold dollar d) 1846-D/D quarter eagle

8. Which Dahlonega coin is known to have been produced exclusively by the Confederacy?

a) 1860-D half eagle b) 1861-D gold dollar c) 1861-D half eagle d) 1861-D three dollar

9. What coin holds the all-time auction record for a Dahlonega mint product? (Extra credit if you can name the sale and amount. A lot of extra credit, in fact....)

a) 1838-D half eagle b) 1861-D gold dollar c) 1861-D half eagle d) 1854-D three dollar

10. What collection of Dahlonega gold coinage, sold by Heritage in April 2006, contained many finest-knowns and set many price records?

a) Black and Gold b) Green Pond c) Ashland City d) Duke's Creek

11. Extra Credit: Name every one-year type of Dahlonega coin

So, did that frazzle you or did you find it fun? Here are the answers to the Dahlonega Quiz.

1= A. The 1849-D dollar is easily the most common coin made at the Dahlonega mint. There are as many as 750-1000 known and it is readily available in all grades.

2= A and B. Both of these are acceptable as correct answers. There are at least three Gem 1858-D gold dollars known. There are two or possibly three 1847-D quarter eagles known in Gem.

3= C. There is speculation that a hoard of 1857-D quarter eagles may have existed at one time. This date is almost never seen in lower grades but tends to be available in the AU50 to MS61 range.

4= B. The 1856-D has a mintage of just 874, which is the lowest of any issue from this mint and the only D mint coin with fewer than 1,000 made.

5= D. Again, the correct answer is the 1856-D.

6= D. This is a tough one but most specialists agree that the 1842-D Large Date half eagle is unknown in strict Uncirculated. The same could be said for the 1856-D quarter eagle but I'm tired of giving props to this date...

7= C. There is no such thing as an overdated Dahlonega coin. Of any date. Or denomination.

8= B. If you chose "D" and thought it was the 1861-D Three Dollar, you immediately fail this quiz and aren't allowed to buy any Dahlonega coins until you study my book!

9= C. Heritage 1/08: 3198, graded MS63 by PCGS, sold for a record-braking $207,000. When I sold the coin a number of years earlier, it was the first Dahloenga coin to have ever cracked the $100,000 mark.

10= D. The Duke's Creek collection of gold dollars and quarter eagles was sold in April 2006. The half eagles have yet to hit the market.

11= The one year types are 1855-D gold dollar, 1839-D quarter eagle, 1854-D three dollar, 1838-D half eagle and 1839-D half eagle.

So how did you do on the quiz? You can email me your result and comments at dwn@ont.com

The Two Varieties of 1840-C Half Eagle

Two newly discovered high grade 1840-C half eagles in the Heritage 2011 Platinum Night session of the FUN auction give interesting insight to the emission sequence and striking characteristics of the rare and popular 1840-C half eagle. Prior to the discovery of these two coins, which were graded MS63 and MS64+ by PCGS, there were an estimated three to five known in Uncirculated. The previous finest known, pedigreed to the Pittman sale, is graded MS64. Ironically, that coin was in the sale also (and how thrilled was the consignor of the Pittman coin when he opened the catalog?) and this gave students of Charlotte half eagles an unprecedented opportunity to study the three finest known examples of the 1840-C in one fell swoop.

The two varieties are designated as Variety 1 and Variety 2. The varieties share a common obverse and one that is characterized by a rather amazing mispunched date with one appears to be the tops of a 1 and an 8 coming up from the denticles. The reverse of Variety 1 has a large mintmark placed closed to the stem that is slightly tilted to the right. On the second variety, the mintmark is tilted more towards the left.

Here's a photo of Lot 5108 which is a Variety 1 coin in PCGS MS63. There are a couple of interesting things to note about this coin. The first is the poor overall quality of strike. Look at the weakness on the stars, the hair around the ear of Liberty, the neck feathers and the horizontal lines in the shield. Note as well the roughness at the peripheries. This is a characteristic of this variety: considerable roughness at the borders which is, of course, mint-made.

Even more interesting on the reverse are the extensive die cracks that can be seen at 4:00 and 9:00. This is a very late die state and, clearly, there were very few more coins produced before the reverse literally fell apart and was discarded.

Now let's take a look at Variety 2.

This Variety 2 coin is graded MS64+ by PCGS and it is easily the finest known. In fact, the coin is really "as struck" but probably didn't grade MS65 because of the roughness at the obverse center, as made.

The first thing you will probably gauge is how sharp the strike is in comparison to Variety 1. The stars have full radial lines, the denticles are complete and separated and the roughness seen at the inner border on the previous coin is lacking. Note, as well, how sharp the details are on the eagle in comparison to the previous coin.

But the most intruguing thing about this coin is the lack of reverse die cracks, except for a small one at the eagle's right wingtip.

Perhaps the most interesting thing about the two coins is, in some ways, one of the most subtle. You probably won't be able to tell from these photos but on the earlier use of this obverse (lot 5110) there are small die lines that run in from the border. On the second coin (lot 5108) these lines do not exist and they have been removed by the mint (this process is known as "lapping.")

What does this prove? That the sequence of these coins, as proposed by me, is incorrect and Variety 2 was actually made first. The reason that Variety 1 coins look so worn and weak is that they were made later in the production run, probably after the obverse die was lapped.

Ironically, neither of the two newly discovered 1840-C half eagles sold at the auction. This wasn't the result of a lack of bidder interest (I would have been thrilled to buy both coins) but because the reserves placed on both lots by the consignor were too high.

I can't imagine there will be many other times that collectors will be able to see such fresh, high grade Charlotte half eagles in one place and that each coin will not only be a different die variety but will have an entirely different "look" as a result.

Thanks to Heritage Auctions for allowing me to use the images of the two 1840-C half eagles above.

Overall Rarity Versus Grade Rarity

Even the most available pre-1933 United States gold coin has some degree of "rarity." A coin like a 1924 or 1927 St. Gaudens double eagle might have a total population in the 10,000's and this certainly does not mean it is rare but in comparison to, say, a modern coin, it does have a degree of scarcity. But when we are discussing the sort of coins that DWN buys and sells, we are generally talking about true numismatic rarity. There are a number of different degrees of rarity. The Sheldon Rarity scale, as an example, attempts to distinguish the rarity of copper coins (specifically early Large Cents) from "common" (R-1 or more than 1500 known) to R-8 (two or three known).

I think there are two interesting and important fundamental concepts of rarity that the gold coin collector needs to understand. These are overall rarity (or what I sometimes refer to as "fundamental" rarity) and grade rarity. Let's take a look at both concepts with some specific examples that help to explain them.

In my opinion, a coin that is fundamentally rare is superior to a grade rarity. An example of a fundamental rarity is an 1864 quarter eagle. Only 2,824 business strikes were made and probably no more than three dozen pieces are known in all grades. This means that, even in low grades, the 1864 quarter eagle is a rare coin. By the same token, a very high grade example of this date is rare as well. Thus, a fundamentally rare coin in a high grade is especially desirable.

An example of a grade rarity would be an 1854 Three Dollar gold piece in MS67. This is a very common issue in all grades up to an including MS65 and it is rare in MS67 solely as a result of its grade. While I think a coin like this is very interesting (and it is certainly desirable to a type collector specializing in great, high grade coins) as a collector I would rather own a coin that is rare and desirable in all grades; just not in "super-grades."

A few coins are very unusual in that they combine overall and grade rarity simultaneously. Getting back to the 1864 quarter eagle I mentioned above, a perfect example of this is the Byron Reed 1864 quarter eagle graded MS67 by NGC. Not only is this among the finest pre-1890 business strike quarter eagles of any date that I've seen, its also one of the rarest collectible dates. There aren't many coins that combine these two elements in one neat package but those that do are amongst the creme de la creme of American numismatics.

Is one type of rarity "better" than the other? That's hard to say and, of course, it depends who you talk to. If you listen to a dealer that specializes in Gem coins, he'll tell you to steer clear of "lowly" coins like an 1847-C quarter eagle in Extremely Fine. Other dealers will tell you to avoid the same date in a super-grade for that issue (in this case, an MS64).

The correct answer often depends on the state of the market. When coins are doing very well, something like an 1854 Three Dollar gold piece in MS67 may show exceptional performance and may even double in price in a short period of time. But this is also the exact sort of coin that traditionally drops like a stone in water when the market gets cold. Coins that are fundamentally rare, like the 1864 quarter eagle I mentioned above, seem to show more consistent valuation. If the market for rare gold were to crash tomorrow, I'm sure that this issue would drop in value but it would remain far more liquid than something like a 1903 quarter eagle in MS68.

Most 19th century U.S. gold coins show a progression of rarity. Take, for instance, a typical Dahlonega half eagle. Let's say that the original mintage figure is 50,000 pieces. Given the typical survival rate for this denomination, we can assume that maybe 300-400 exist in all grades. This makes our hypothetical half eagle at least marginally scarce in all grades. Of the 300-400 that exist, at least three quarters of them grade Extremely Fine or lower. There may be as many as 50 or 60 that grade About Uncirculated but most are in the AU50 to AU53 range. So, we can see that this date is relatively scarce in the lower AU grades and probably rare in the upper range; especially with original color and surfaces. In Uncirculated, there are probably around ten or so known. Our D mint half eagle, thus is very rare in Uncirculated. And this progression continues through Mint State with the "cut off" point for extreme rarity tending to be around MS62 to MS63.

What this ultimately means is that this date progresses from being scarce in EF40 to rare in AU55, to very rare in MS62 to excessively rare (or even unknown) in MS64. The only factor that might change this progression, of course, is the discovery of a hoard of high grade pieces that skews the distribution.

Many collectors ask me for advice when it comes to purchasing rare gold coins. One thing that I really stress is avoiding common coins in uncommon grades. Let me give you an example of this. An 1881 eagle is a common coin in grades up to and including MS63. In this grade, PCGS has recorded 235 examples of of 2/11 and we're looking at $1,600-1,800 for a presentable example. In MS64, this date becomes scarcer with a current PCGS population of fourteen. This coin would cost you around $3,000; probably not a bad value although not a coin that I'd jump on. In MS65, there is but one PCGS MS65. If this coin became available, it would likely sell in excess of $12,500.

Here's why I think this coin is not great value for most collectors. This coin is readily available in MS63 and there are not enough specialists in this series demanding the highest possible grade. The MS64 might make some sense to these collectors but unless there are two "must have the best graded at PCGS" collectors competing at the same time, this coin seems to me to be the sort of coin that I think "cool piece but what exactly am I going to do with it?" if and when it is offered for sale to me.

I'd like to hear your comments on rarity. Please either add to the comments section below or email me directly at dwn@ont.com

Eight Tips on Buying United States Gold Coins

As a specialist in the area of United States gold coins, I often find myself giving "tips" to buyers. Some of these seem pretty obvious to me while others are kind of clever and maybe not so obvious. Here are some of these tips along with a bot of pertinent commentary. 1. If you are a gold coin specialist who is worried about potential hoard coins hurting the value of pieces in your collection, there are a few things you can do as a safeguard. First, stick with coins struck prior to 1890. Most of the gold coins expatriated from overseas appear to be dated from 1890 onwards. Coins struck earlier, especially those before 1878, seem a lot "safer." Second, limit your exposure by not buying very high grade coins. The collectors who owned high grade 1857-S double eagles before the S.S. Central America was discovered got killed afterwards. But if you owned a nice AU example, your downside was limited. Third, you could stick with lower denomination coins. Hoards of gold dollars, quarter eagles and half eagles seem less frequent and dramatic than those with eagles and double eagles. But to those collectors who live in fear of hoards, I'd tell them to get over this and just buy what appeals to you.

2. By the grade before the big price jump. What I mean by this, if you have a choice between an MS64 double eagle priced at $3,500 and an MS65 priced at $25,000 I would always buy the lower priced example, especially if the population is high in the lower grades. As an example, if there are seventy five examples of the $3,500 MS64 with just five better doesn't it seem like that at least a few of the high end 64's could gradeflate to MS65?

3. Nearly every collector who works on a series builds it the wrong way. It seems to me that all collections should have the keys be the best coins in the series while the common dates should be nice but not overblown. Instead, most collections skimp on the keys but overdo it on the commons. Let me give you an example. If you are working on a set of Dahlonega quarter eagles the coins you should "overdo" are the legitimate rarities like the 1854-D, 1855-D and 1856-D. I would stretch on all three and buy the nicest ones I could find. On the other hand, I would be content to purchase nice, original AU55 or AU58 examples of the common dates like the 1843-D, 1844-D and 1847-D and sink maybe $5,000 per coin into these three issues.

4. Always use a 5x glass when you are making a buying decision. Just recently, I bought a Charlotte half eagle at a coin show. It was in an old green label PCGS holder and it looked great to the naked eye. I made an accepted offer and never used a glass to look at it. When I got home and was ready to break the coin out to regrade it I put a glass on the obverse and noticed a deep, detracting scratch that had naturally blended into the surfaces. Yes, you may have great vision and you may be a really macho guy but use a glass whenever possible.

5. Buy coins with good eye appeal. Unless we are talking about an amazingly rare issue like an 1854-S quarter eagle, there is no reason to buy an ugly coin. And I would include damaged coins when I am talking about coins that lack eye appeal. As time goes by, I am noticing that fewer and fewer 18th and 19th century United States gold coins have good eye appeal. By "eye appeal" I mean a coin that is pretty; one that makes you stop in your tracks, look at it carefully and maybe even take a deep sigh. I can pretty much assure you that when you go to sell your coins, the ones with good to great eye appeal are going to be the ones that cause the greatest commotion.

6. First impressions are usually correct. If you get a coin shipped to you by a dealer and your first reaction is "yuck" or "um...I don't really like that" you should pass. Nearly every major mistake that I have ever made as a buyer has been convincing myself that I "liked" a coin when, in fact, I really did not.

7. Price buyers wind up with mediocre collections. Really nice coins with good eye appeal are really hard to buy right now for a number of reasons. If you are a buyer whose is driven by price alone I'm guessing you either buy modern coins or you haven't had much luck lately buying. And if you are a cheap buyer who puts in low bids at auction, I'm guessing the only coins you are buying are the dark, ugly, low-end pieces that those of us who like nice coins wouldn't buy no matter how cheap they are. You aren't going to have fun when you go to sell your coins. But don't take it from me; as an experiment post a few of your "good deals" on a message board to try to sell them to the local dealer....

8. If you are buying coins as an investment and expect to turn them over quickly to make a profit, there are a few things you should know. Rare coins have a fairly sizable entry/exit fee. If you are buying from a typical retailer, you are probably paying at least a 15-20% markup. And when you go to sell your coins, whether it be to a dealer or through auction, you are probably paying in the area of 10-20%. So even if you are buying and selling through good sources, you are talking about values having to go up 25-40% just to break even. That's why I don't personally tout coins as an investment and when someone does ask me about coins in this regard, I stress that they really need to be held at least a full market cycle (or five to eight+ years).

Like these buying tips? Want to read another blog with more tips? Leave a comment at the end of this blog or drop me an email at dwn@ont.com

How to Price AU58 Gold Coins

As a buyer of rare gold coins, nothing makes me happier than seeing choice AU58 pieces with original color and surfaces. I love "Gem Sliders" as these coins tend to have better eye appeal than most MS60 to MS63's and are typically priced at a much lower level. They can be among the best values for savvy collectors but the question that often comes up with these coins is "how much of a premium do they command?" Not all AU58's are similar in quality. In fact, I think there is a huge range of quality and appearance within this grade. There are AU58's that are bright and have clearly been scrubbed. Other AU58's are more original but they are excessively abraded or a bit lackluster. The coins that I call Gem Sliders are ones that probably saw little--if any--circulation and acquired what little wear (or friction) they possess either from collector handling over the years or being transported from location to location. Out of all coins that are graded AU58, I'd say that fewer than 10% are true "sliders" and even fewer of these are what I'd regard as "Gems" for the grade.

The focus of this article is on how to price these Gem Sliders. In some series, such coins are seen from time to time but in most, especially those struck prior to 1880, they are rare enough that pricing can prove to be a challenge.

As I see it, pricing these coins falls into three categories: coins that merit a small premium, coins that merit a moderate premium, and coins that merit a substantial (or even a very substantial) premium.

A Gem Slider 1897-O eagle is a coin that merits a small premium over a less appealing AU58 example. This is so for a variety of reasons. First of all, the 1897-O is not a scarce coin in AU58 nor is it rare in the lower Uncirculated grades. Secondly, of the numerous examples graded AU58, a decent number are original and attractive. Thirdly, there is not a big price jump between AU58's, MS60's, and MS61's for this date. This means that an average quality AU58 might be worth around $800-900 while a truly superb AU58 might only be worth an extra $50 or so.

Gem Sliders that can be acquired for a moderate premium are generally priced at 15-30% over a less choice piece. An example of a coin that might sell for a premium in this range would be an 1851-C gold dollar. The 1851-C is not a rare coin by the standards of Charlotte gold dollars but it is certainly many times more scarce than the 1897-O eagle mentioned above. It is also an issue with a higher overall level demand since it is popular both with date collectors and with type collectors. The premium accorded a Gem Slider is not as great as one might expect for a number of reasons.

The 1851-C is relatively available in the lower Uncirculated grades and MS61 to MS62's sell for a reasonably moderate level in comparison to AU58's. This means that a collector on a limited budget has some options, unlike on an issue where the premium between an AU58 and an MS62 might be too great for him to consider the latter grade. Another thing to consider is the size of the 1851-C gold dollar. On small coins, the "gemminess" of Gem Sliders are not as apparent as on larger coins. This means that the premium tends to be lower.

It should be noted that not all small coins have their premiums held in check by size. An issue like an 1855-D dollar or an 1861-D could command a very strong premium in AU58 because of its rarity, its popularity and its prohibitively high value in Uncirculated grades.

The AU58 Gem Sliders that deserve to sell for a very significant premium are coins that have a number of factors working in their favor. They are typically large-sized coins (although not always; see below), coins that are extremely rare or expensive in Uncirculated and/or coins that are very popular.

To pick a fairly random example of a coin that would sell for a big premium in Gem Slider, let's look at an 1853-O eagle. This is a coin that has a fairly high population in AU58 (especially at NGC) and a scrubby, commercial-quality AU58 might be available for under $4,000. But a very high end, looks-like-an-MS62 Gem Slider is quite rare and could command a price in the $6,000-8,000 range. This sounds like an excessive premium but its not when you consider that there are only two or three properly graded pieces known in Uncirculated and if one were available it might sell for $15,000 or more.

A series that I think deserves high premiums for premium sliders is the Type One double eagle. With very few exceptions, this is a series which becomes exponentially rarer in grades above AU58 and one in which eye appeal is both critical and often lacking.

Again, let's take a random example; this time an 1855 double eagle in AU58. This is an undervalued, under-appreciated date in higher grades but one that is finally becoming recognized for its scarcity. A low-end AU58 example is worth around $4,000. In MS61, this date is worth in the $12,000-15,000 range. So what does that make a gorgeous, mark-free, frosty Gem Slider worth? $6,000? $7,000? Maybe even $8,000?

I can think of many coins where a Gem Slider (or possibly an especially nice AU55) might sell for more than a low end MS61 or even an MS62. An example that comes to mind is a 1796 No Stars quarter eagle. I haven't seen many Gem Sliders of this issue in the last few years but I have seen a number of really unappealing MS61 to MS62's. As a collector, I'd rather spend $200,000+ on a superb AU58 than I would an over-graded, processed MS62. The same scenario holds true on a number of other early gold issues, like 1795 half eagles and eagles, 1808 quarter eagles, etc.

Since the entire concept of Gem Sliders is so rooted in eye appeal which is, in and of itself, a hard concept to get universal agreement on, it would be impossible to publish a Gem Slider Price Guide. One man's $6,000 AU58 Type One double eagle might be another man's $4,000 coin. The addition of the "+" and "*" grades at PCGS and NGC to reward good eye appeal is a beginning of quantification but it is still up to the market to determine what premiums are applied to Gem Sliders.

What Do Original United States Gold Coins Look Like?

Around a year ago, I wrote a blog that discussed original 19th century United States gold coins and used photos of specific coins to illustrate the points I was attempting to make. This was one of the most popular blogs to ever appear on www.raregoldcoins.com and I was pleased to get the positive feedback it generated. At the recent FUN show, I was shown two collections of coins. One consisted of around two dozen Charlotte and Dahlonega coins while the other had around 30 early gold coins. All were graded by PCGS or NGC and in both instances the owner prefaced his show-and-tell by informing me that all the coins were sold to him by dealers who stressed their "originality."

Out of the 50 or so coins I looked at, around five were what I would describe as being "original." This made me realize that most collectors do not understand the concept of originality and that it would be a good time to dust off the old "how to tell originality" blog.

1. 1807 Bust Left $5.00 Graded AU55+ by PCGS

To me, this coin is just about the most perfect piece of lightly circulated early gold that you are likely to find. I think its an AU58 instead of an AU55+ but that's just splitting hairs; what can not be denied is this coin's exceptional color and overall originality.

There are a numbers of factors that make me believe that this piece is original. First is the depth and evenness of its color. Note the "age" of the color and how well it blends. Artificial color looks "newer" and never blends as well as old, mellow natural color. Secondly, note how the underlying luster is still undisturbed and in a perfect cartwheel pattern. This is most clear at the obverse border where there is considerable mint luster at the stars. Thirdly, note the absence of hairlines or other imperfections that might have been caused by a prior cleaning.

2. 1852-C $5.00 Graded AU53 by PCGS

I almost decided not to use this coin as an example. Its sort of like going to the gym, choosing the biggest lunkhead you can find and then holding him up as an example of a fit guy to a bunch of scrawny non-lifters. Just not fair, right?

The first sign that this coin is very original is the depth of its coloration. Note the very deep and very even hues that can be seen on the obverse and reverse. Coin doctors are never able to reproduce this deep green-gold hue and most artificial toning on gold tends to be more of a bright orange or slightly off-kilter red hue. Another sign of this coin's originality is the fact that the few marks on the surfaces are not shiny or bright. On artificially toned or processed coins, the chemical agents used to color the coins tend to break down over time and there is often discoloration or brightness within the recesses of the marks on the surfaces.

3. 1856-O $10 Graded AU53 by NGC

This attractive coin has a few things that lead me to believe that it is original. The first is its deep, even green-gold color. Note that the hues are consistent on the obverse and reverse. The second is that there is no "filminess" atop the surfaces that might be caused by it having been puttied. The third is the presence of dirt deposits in the protected areas of the obverse and reverse. Note around a number of the stars and within the reverse lettering: there are raised black dirt "chunks" which would quickly dissolve if this coin were dipped in a chemical solution or even put into a soap and water bath to lighten it.

4. 1833 Large Date $5.00 Graded MS63 by PCGS

The common theme so far in with these coins have been their deep, dark original coloration. But what about coins that are lighter in hue and higher in grade? Can a coin that is not dark still be original? In the case of this 1833 half eagle, a coin that I bought and sold at the 2011 FUN show, it certainly can. One of the first things of note about this coin is the fact that it is an old green label PCGS holder. This, of course, doesn't mean it is a guaranteed original coin. But what it does mean is that it was graded at least 15 or so years ago and nothing was placed on the surfaces by a coin doctor as a chemical or substance would have broken-down by now and become visible.

This coin is bright and vibrant but it isn't too bright or too vibrant. I'm not sure this makes sense to a new collector but long-term collectors will immediately realize the difference between a coin that is naturally bright and one that has been brightened. The luster on this coin is completely undisturbed and, as is typical for half eagles from this era, it has a sort of "pillowy" texture. Also, note that the color is a rich light yellow and green-gold. This is characteristic of original Fat Head eagles and this is something that is not seen much, anymore, on the surviving coins from this era.

5. 1814/3 $5.00 Graded MS62 by NGC

This is a tricky coin and one that would probably cause the greatest amount of dissent if I showed it to a number of experts. As you can see from the photos, it is very richly toned, in fiery reddish-gold hues. Red is often a color on early gold that has been applied. But in the case of this coin, the hue and intensity of the red is "right" and it has, to the best of my knowledge, never been duplicated by coin doctors. You can also see that the color lies nicely on the surfaces and is variegated with a number of different hues. Artificial color is more monochromatic and does not have the subtle gradations that a natural piece like this displays.

A few other facts about this coin are compelling. First, it is interesting to note that I have handled at least three 1814/3 half eagles in Uncirculated that have had reasonably similar intense reddish-based color. Having seen similar colors on other examples makes me even more certain that the color is genuine. And, the coin is housed in a very old NGC "fatty" holder which means that it was graded nearly two decades ago. If this color wasn't real, it wouldn't look so good after two decades in an NGC holder.

6. 1880 $20.00 Graded PR63 by NGC

Brilliant Proof Liberty Head gold coinage is almost never seen anymore. Most examples have been dipped and/or conserved in an attempt to generate higher grades from the third-party services and in order to receive Ultra Cameo designations.

In the 2011 FUN auction, Heritage sold a number of superb quality Proof gold coins from the Miller collection that were notable for having natural coloration. These coins were purchased in the 1970's and 1980's; back when collectors knew what original proof gold looked like and it was appreciated for what it was. This 1880 double eagle was from that sale and collection.

There are a few things that immediately show this coin is original. As simplistic as this sounds, the first is that it isn't blindingly brilliant. Note, instead, how there is rich copper-orange toning which deepens towards the borders. Also, there is a copper spot on the reverse between the two L's in DOLLARS. Proof gold that has been conserved doesn't have these spots. Finally, there is an even natural "haziness" atop the surfaces that exists on original Proof gold. Note that I did not say "filminess" as in "this coin has been puttied and is now filmy."

Hopefully, this blog has been helpful. There is, of course, no substitute for seeing original coins live and in person but in the absence of doing this, these images and descriptions should be a step in the right direction.

Why I Recommend Numismatic Specialization

When I first started out in the coin business, I assumed I was going to sell everything; Morgan Dollars, Barber Dimes, St. Gaudens double eagles and Charlotte gold, I'd handle it all. But I quickly learned that it would be difficult--and costly--to be an expert in so many areas of the market. I then decided that I'd become really good at just a few things and leave the rest to other people. Nearly three decades later, that's exactly what I've done: I've become a world-class expert in 18th and 19th century U.S. gold. I think my decision to become highly specialized was one of the best things that I've ever done from a career standpoint. And I believe that what I did has practical applications to new and advanced collectors alike.

Becoming a savvy numismatist isn't necessarily a difficult process. But it is an involved one and one that takes a lot of time. If you are like most people, time is one commodity that you do not have an excess of. Given the high value of time in this day and age, I'd suggest that you use the time you spend on numismatics wisely. This is where specialization makes a lot of sense.

I became a specialist in the area of U.S. gold coinage because, as I mentioned above, I realized that the most economically viable approach to numismatics as a career for me was going to be as a specialist. I'd like to share a few thoughts of mine regarding specialization. Its a lot easier to become a competent numismatist who makes good decisions if you are focusing on a narrow range as opposed to a broad range. But I think the concept of specialization is not totally understood. You can be a "broad specialist," a "narrow specialist" or an ultra specialist."

Which one you choose depends on a number of factors including--but not limited to--your budget, your range of interest, availability of coins and opportunity factors. A "broad specialist" is a collector who has a pre-determined focus but not necessarily a constrained one. Let's say, as an example, that you really like crusty original gold coins made prior to the Civil War and have a budget of up to $5,000 per coin. This means that you might purchase coins as diverse as an 1858-S gold dollar in AU58 or an 1846-D half eagle in VF35. Your focus isn't so much a specific series or type as it is a "look." In other words, your collection is focused on attractive, dirty coins. You might not know the relative rarity of an 1858-S gold dollar in AU58 but you know the "look."

A "narrow specialist" is more focused on coins from a specific mint or of a specific denomination. He might buy an 1858-S gold dollar because he is putting together a set of gold dollars or, even more specifically, a subset of San Francisco gold dollars.

I like this sort of specialization because it gives a collector a much more narrow focus or what I would call a "micro focus" as opposed to a "macro focus." If you are assembling a gold dollar set you have around 80 to 90 coins that you ultimately need to purchase and learn about. This is a lot easier than being an indiscriminate buyer of U.S. gold coins with a pool of hundreds--or even thousands--of issues to become familiar with.

A more narrow focus involving gold dollars would be the San Francisco set I mentioned above. There are only six coins to learn about and it wouldn't take much to be accomplished in this area. But I think most collectors aspire to more than being "Mr. San Francisco gold dollar."

Another way to specialize is to collect by die variety. This is a great collecting strategy for certain coins like bust half dollars or large cents but it doesn't apply all that well to U.S. gold.

In my opinion, the ideal way to collect is to have a #1 set and then a secondary set to keep you busy when you can't find coins for set #1. As an example, you could specialize in collecting early half eagles by date and have a secondary collection that is focused on Dahlonega half eagles in perfect, original EF grades.

Becoming a good numismatist is all about knowledge and by not biting off more than you can realistically chew. you stand a chance to be on equal footing with other collectors in your area of specialization. You might not aspire to write the standard reference book on San Francisco gold dollars but wouldn't it be nice to be able to make purchases in this area of the market knowing that you were clued-in about the rarity, price history, appearance and minting history of each issue?

A Quick 2011 FUN Sale Analysis

The 2011 Heritage FUN Sale contained some of the most interesting and freshest coins that have appeared at auction in the last few years. Yes, there were some retreads, some low-end "stuff" and some run-of-the-mill lots, but there were also some really exceptional coins; most of which could be found in Thursday night's Platinum Night session. I'd like to focus on a group of coins from this session that I found exceptional. 1. 1864 Quarter Eagle, NGC PR65 Cameo, CAC Gold Label. Lot 5033. I have seen some pretty incredible Proof quarter eagles over the years but the truly amazing ones, at least from the standpoint of grade, tend to be date 1890 and later. Pre-1880 Proof gold coinage tends to be far, far rarer and really superb pieces, regardless of denomination, are almost never seen.

This 1864 Proof quarter eagle was from the Henry Miller collection and it was easily the best Proof quarter eagle in the sale. I'd even go out on a limb here and say that it was one of the best--if not THE best--early date Proof of this denomination that I've seen. It was in an old PR65 holder but I graded it PR67 DCAM. The coin sold for $80,500 which is a record price for a Proof of this year.

Only 50 Proofs of this year were made and I doubt if more than fifteen or so exist. The best that I had ever seen before the Miller coin was Bass III: 210, graded PR66 by PCGS, that sold for a very reasonable $27,600 back in 2000.

This coin was purchased by an extremely savvy dealer and it will be interesting to see what grade it will be after it is resubmitted for grading. I'd love to think that PCGS or NGC would call it a PR67 DCAM without it having to be conserved.

2. 1823 Half Eagle, NGC MS65 CAC. Lot 5096.. This was a coin that you had to see in person to really appreciate. When I pulled it out of the box during lot showing at Heritage's office in Beverly Hills my reaction was pretty to the point and it rhymed with "moley bit." In a nutshell, this was among the prettiest early gold coins that I've ever seen.

I knew this coin would be one of the most actively bid on lots in the Heritage sale and my guess was that it would wind-up in the collection of a prominent father and son in Dallas who have the best set of early gold assembled in modern times. It was purchased by a Chicago-area dealer for $299,000 bidding as an agent for a collector.

The 1823 is a scarce date in all grades with an estimated 100 or so known. It is typically seen in AU50 to MS61 grades and it is rare in MS62 to MS63. There are a few nice MS64's (there were actually two PCGS examples available at the FUN show) but this is the only Gem. It is from the Bareford collection and it had the sort of unmessed-with appearance that you almost never see anymore on early gold coins.

My opinion is that this coin sold for a ton of money but it was a ton of coin. I'd have to assume it was bought as a type coin and if this is the case, the new owner is getting a Fat Head half eagle that he or she will never have to worry about upgrading.

3. 1838-D Half Eagle PCGS MS63. Lot 5105. This was another fresh coin but, unlike the Miller pieces listed above, it had never been on the market until the 2011 FUN auction. I spoke with the dealer who consigned this coin and he told me that it was part of a small group of coins that had been in a New Hampshire family for many generations and was recently "rediscovered" by the family.

I am a big fan of this issue. It is the first half eagle made at the Dahlonega mint and a popular one-year type that is in demand in all grades. It is scarce in Uncirculated with fewer than a dozen known but most of these grade MS60 to MS61 and are characterized by processed surfaces. The 1838-D in the FUN Sale was only the second coin ever graded MS63 by PCGS and it was one of the two best I'd ever seen. It had lovely natural coloration, choice surfaces and a wonderful overall look that just shouted "originality."

This coin sold to a collector bidding on the floor for $57,500. It broke the previous auction record for the date which was set by a PCGS MS62 that brought $40,250 in the 1999 FUN sale.

4. 1857-O Double Eagle NGC MS62 CAC. Lot 5251 This was my favorite lot in the sale. I knew it was going to be a hard coin to buy but, more than any other coin in the sale, it was a coin that I wanted to own. I spoke with a client of mine who is a seriously collector of New Orleans gold (and Type One double eagles) and he agreed to let my represent him. We decided to bid $125,000.

The coin opened at $100,000 and I found myself bidding against two other dealers. I was able to raise my hand at the $130,000 mark but was outbid by another dealer at $140,000 and then watched another dealer successfully buy it at $150,000. With the buyer's premium the coin brought $172,500.

I can't imagine a New Orleans double eagle with much more eye appeal than this 1857-O (I liked it more than the 1852-O graded MS65 in the sale!). It had superb color, great luster and a really wonderful look that you really had to see in person to appreciate. I graded it MS63+ and am really interested to see what it winds-up grading. I wouldn't be shocked if it was graded MS64.

There are just two choice examples of this date known. The first is a PCGS MS63 that brought $97,750 back in the Bass III sale (May 2000). That was a huge price for an 1857-O double eagle back then but the market has really soared for great Type One double eagle in the ensuing decade and the more I think about it, the more I wished I had bought this coin; even at a level above what it sold for in the FUN Sale.

It was hard to limit myself to just four coins in this auction as there were dozens of really great pieces with great stories to tell. Prices were exceptional for the coins that merited them and this sale offers pretty convincing evidence to me that great coins are back in demand. (But did they ever really ever fall out of favor?)

The Three Kings: The Proof-Only Double Eagles Dated 1883, 1884 and 1887

Continuing my fascination with Proof-only issues, I'd like to discuss the rare Proof-only double eagles dated 1883, 1884 and 1887. These issues are not all that well-known outside of Type Three Liberty Head collectors and I think they merit more than a passing mention. Beginning in 1881, production of double eagles at the Philadelphia mint became little more than an afterthought. And it would remain as such until 1888. In 1883, there were no business strikes produced. The Mint did strike 92 Proofs; ostensibly for the limited numbers of collectors who were interested in Proof double eagles at this point in time.

The Mint struck considerably more Proof 1883 double eagles than they were able to sell and it is believed that as many as half of the original mintage was melted later in the year. Of the four dozen or so that were distributed to collectors and dealers, around twenty at most are known today. This figure includes at least three that are impounded in museums and another two or three that are impaired.

The 1883 is the second rarest collectible Liberty Head double eagle, trailing only the 1884 (I consider the 1849 and the 1861 Paquet reverse non-obtainable and do not include them). Despite this coin's indisputable rarity, it is only fairly recently that the 1883 became known as a major rarity. Prices for this issue had remained fairly stagnant for many years, hovering in the $75,000-100,000 range. This only changed in 2004 when Heritage sold an example for $172,500. Today, a Gem is worth at least $200,000-225,000.

There are a small number of Gems that have been graded by the services and at least one has been slabbed as PR66 by NGC. I know of six or seven Gems and the two nicest that I have personally seen are Heritage 1/06: 3580 (graded PR65 Ultra Cameo by NGC) and Heritage 1/04: 3224 (graded PR65 Deep Cameo by PCGS and possibly also ex Dallas Bank collection).

There are a few diagnostic criteria that make this an easy issue to authenticate. All show roughness on the back of the eagle's neck and fragmentation of the fleur de lys beneath its beak. These die markers do not exist on any business strike reverses of this era.

The 1884 is the rarest of these three Proof-only issues. A total of 71 were struck and it is possible (although unconfirmed) that a few were melted as unsold, given the fact that so many Proofs dated 1883 suffered this fate. There are slightly fewer than twenty known. I wrote in 2000 that 15-17 exist and I think this number might be a tiny bit on the low side. A total of twelve have sold at auction since 2000 but this includes a number of coins that have sold more than once.

The current auction record is $264,500 which was set by ANR 8/06: 1644, a coin graded PR66 Cameo by NGC. It had sold two years earlier (as Heritage 1/04: 3225) for $149,500.

The 1884 is much rarer in Gem than the 1883. I do not believe that a full-blown Gem exists and most that I have seen are in the PR63 to PR64 range. For some reason, this date was not as well handled as the 1883 or 1887 and most show signs of having been cleaned.

There are some interesting die characteristics for this issue that make it very easy to identify. All known examples show an uneven pattern of frost on Liberty's face. It is thick on the right half of the neck and near the ear but it is quite light on the neck. This is why none have ever been designated as "deep cameo" or "ultra cameo" by PCGS or NGC. In addition, all 1884 double eagles have a noticeable diagonal die line just to the left of the Y in LIBERTY.

There is no question that, as a date, this is the rarest collectible Liberty Head double eagle. Given this fact, it seems fairly reasonably priced at current levels.

The last of the Three Kings is the 1887. This issue has a mintage of 121 struck. I believe that, as in 1883, a number went unsold and were later melted. My best guess is that around half were released to collectors and that there are 25-30 known today.

The 1887 tends to come better preserved than the 1883 and 1884 and it is more available in Gem than the other two Proof-only dates. There are around six to eight Gems known. The finest is an incredible NGC PR67+* Cameo that will be sold in the upcoming Heritage 2011 FUN auction. The current auction record for this issue is $161,000 that has been achieved twice (Goldberg 9/08: 1295 and Heritage 1/07: 3145) but this mark is certain to be broken by the aforementioned Heritage coin.

There are no major die characteristics seen on Proof 1887 double eagles. This tends to be a very well made issue and many of the examples that exist show excellent contrast between the frosted devices and the mirror fields.

The three Proof-only Liberty Head double eagles from the 1880's are among the more interesting and desirable United States issues from the 19th century. I believe that they are all highly undervalued, considering how few are known for each issue. As I have said in other recent blogs, if the Type Three series were to become more active among date collectors, these three issues would be considered true "stoppers" and would show dramatic increases in price.