First Quarter 2012: A Quick Recap

My take on the first quarter of 2012 was if you ask ten different coin dealers how their business was, you'd get ten different answers. "Isn't this always the case," you ask? "Not really," I'd answer, explaining that depending on the business model of the dealer in question, the response you'd get might be vastly different. Confused? Let me explain. As I have written many times in the past, the coin market has become highly bifurcated in the last decade. But just as the market has changed, so has the way(s) of doing business. Ten years ago, you were a "coin dealer." Today, you can be an "online" dealer or a "brick and mortar" dealer; a "classic coin" dealer or a "modern coin" dealer; a "bullion-oriented" dealer or a "rarities-oriented" dealer...the variations are seemingly endless. And with these endless variations comes potential conflicting answers to the "how was your first quarter" question.

To simplify things, if you are a dealer who sells mostly moderns or generic or bullion-related products, your Q1 of 2012 was not very good. Metals prices were mostly trending downwards during this period and prices were weak as a result. If you are an Old School coin dealer with a good following, a good website and a good supply of interesting coins, you probably had a quarter that ranged from very good to excellent. My own experience for the quarter was excellent.

Here are a few observations that I have about the current state of the market.

1. Rarity Is En Vogue: I noticed a subtle change in the rare gold market around two or three years ago. Coins that I formerly couldn't give away were suddenly in demand; not necessarily in overwhelming demand but at least they could be sold. During Q1 of 2012, it was all about rarity.

Let me give you an example. An 1863-S half eagle in nice EF40 has always seemed like a pretty neat coin to me. It certainly has alot going for it: Civil War date of issue, low original mintage figure (17,000), low survival rate (probably no more than 60 or so known), proven rarity in high grades and overall affordability. But until recently, this is a coin that I might have liked conceptually but the reality was that it was a hard sell. Plain and simple.

This has clearly changed. The rare gold market has become more about rarity than at any time I can remember and suddenly a coin doesn't have to have a C or a D on the reverse (or, in some cases, the obverse!) to be popular. Formerly hard-to-sell coins like San Francisco half eagles and eagles from the 1850's and 1860's and Philadelphia issues of the same era aren't necessarily flying off the shelves but they are newly-popular and certainly enough so that I am embracing them and offering them on my website as often as possible.

2. The Littlejohn Effect. If you collect dated gold, you know about the not-so-secret sale of the Littlejohn Estate that was held in San Francisco in February. It contained oodles of interesting, seldom-seen dated gold issues and it was interesting from a number of standpoints. I've already written about this sale and don't want to beat a dead horse but what I think this sale did was convert some former non-believer coin dealers. It's hard to say if they'll be in the rare gold market after they sell their Littlejohn purchases (especially if they don't get the grades they expected or if they learn they paid too much...)

3. Pricing Hits a Wall. I've expressed my dismay before about current pricing guides and how inaccurate they have become. For me, guides like CDN and Coin World Trends have gone from being essential parts of my business to virtual afterthoughts.

Something happened to me at the recent Baltimore show that illustrates my dismay with pricing guides and made me have a "this is crazy, I need to do something about this" moment. I was able to buy a lovely 1864-S eagle in PCGS VF30. If you are not familiar with this issue, it is a major rarity; the second rarest date in the Liberty Head eagle series after the 1875. I paid over $30,000 for it and was thrilled to do so. I based this on the sale of a much inferior VF30 example in the Littlejohn auction for $34,500 as well as some other transactions (auction and private treaty) that have occurred within the last five years.

And yet...when I went to check Trends on the coin, just for grins really as I had already written a check for it, I saw that this date was "valued" at $5,500 in VF20 and $12,500. In a word: stupid! Yes, I understand that the Littlejohn price record was too fresh to have made it into Trends. But I would have paid more than Trends for this date twenty frickin' years ago, let alone today. Grrr.....

4. The Low Hanging Fruit Theory of Coin Dealing: As gold and silver raced up and up the last few years and people fell all over themselves to buy modern coins, I had this thought on more than one occasion: am I an idiot for stubbornly remaining a dealer in "real" coins? I have coin dealer friends making Monopoly money selling modern junque, why not me?

Well, I'm just fine with my no-moderns policy. But many coin firms who formerly sold large numbers of scarce and semi-scarce gold coins remain modern coin or semi-numismatic dealers. What this has done, in turn, is to evaporate the premiums on many coins, especially in areas like MS63 and MS64 St. Gaudens double eagles. This trend was never more clear than it was during Q1 of 2012. And I would expect it to remain so in Q2 and Q3 if not beyond. The larger coin firms will continue to sell the easy-to-understand moderns and semi-numismatic items as long as they can ride this horse.

5. Good Coins Remain Hard to Find: In spite of a few fresh rare gold deals hitting the market during Q1, it remained hard to locate good coins. And for every neat coin like the aforementioned 1864-S eagle that I was able to buy, I could have sold more. Many more, in the case of the 1864-S.

The market is collector-based right now and that's clearly good. But what's not so good is that collectors tend to hold on to their best coins and this means that once something like an 1864-S eagle is sold, you won't see this coin again for years. So we have a classic "be careful what you wish for scenario." The market is strong, coins are being sold to informed buyers and the overall fundamentals are solid. The one glitch in the equation right now is there is an inadequate supply to meet the increased demand. Its something that I have always said would happen.

What do I expect for Q2? If metals prices remain weak, I don't think the market will be all that robust. However, the economy is clearly rebounding and there is more discretionary income available for things like gold coins. I'm not certain that my own business will be quite as good in Q2 as it was during the first quarter but I think the immediate future of the rare date gold market is very good and it is likely to stay good for a while.

Coins That I Never See With Good Eye Appeal, Part Three: Three Dollar Gold

In the third installment of this multi-part article, I'm going to delve into a series that has its share of issues that are not often seen with good eye appeal: three dollar gold. As a series, there are not many individual issues that are rare from an absolute sense. But I can think of a number of issues that are hard to find with a good overall appearance. I. 1854-O and 1854-D: These two issues are inexorably linked due to their status as the only three dollar gold pieces made at southern branch mints. The first is a common coin in nearly all circulated grades with a relatively high mintage figure of 24,000. The latter is regarded as among the rarest issues in the series with only 1,120 produced.

The 1854-O has a reputation among collectors as a condition rarity. There are hundreds and hundreds of pieces known in the VF-EF range and even a decent quantity in the lower AU grades. It becomes rare in properly graded AU55 to AU58 and it remains a very rare issue in Uncirculated with probably no more than five or six known.

But of the hundreds and hundreds of examples known, very few have good eye appeal. This is for a number of reasons. The first has to do with the fact that most 1854-O threes are struck from a late state of the dies that show lapping and re-polishing. This has removed some detail and made the reverse appear to be weakly struck, even on higher grade coins. In addition, the vast majority of 1854-O threes have been cleaned or dipped. It is possible to find a reasonably nice, original EF40 to EF45 example but choice, natural AU coins are quite scarce.

The 1854-D is another issue that is not well made. While this might add to the charm of the issue, it also makes it frustrating for collectors who seek well-detailed, "fresh" appearing coins. This is compounded by the fact that the vast majority of surviving 1854-D threes have been cleaned or dipped and many have been repaired or subtly altered as well. My best estimate is that out of the 125 or so examples that exist, less than 10% are "original" in the strict sense of the word. These coins should command a significant premium versus the typical quality for the issue. In my opinion, a choice, original 1854-D three dollar gold piece with good color and choice surfaces should command at least a 20% premium.

2. 1855-S and 1860-S:

With the exception of the 1856-S, none of the San Francisco three dollar gold pieces are frequently encountered with good eye appeal. This is due to a number of factors. The first is that none of these issues had especially high original mintage figures and the survival rate is low. Secondly, these issues were used in commerce in Gold Rush era San Francisco and as a result were not handled with care. A lack of collector interest meant, of course, that there was no one around to save coins and even the usual "save a few for souvenirs" scenario doesn't apply to them.

The 1855-S is comparable to the 1854-D from the standpoint of overall rarity. It is extremely scarce in properly graded AU55 to AU58 and extremely rare in Uncirculated. I think that no more than three or four Uncirculated examples are known. The finest appears to be the PCGS MS62 in the Great Lakes collection; the second is the ex Pittman 2: 1889 coin, graded MS61, in the South Texas collection. Despite the rarity of this date with good eye appeal, it is surprisingly affordable. I have sold two nice EF examples this year for around $3,000.

The 1860-S is an interesting issue for a number of reasons. It is the last obtainable three dollar gold pieces from this mint and it is rarer than the original mintage figure of 7,000 suggests; it is believed that as many as 2,592 were found to be underweight and later melted. I believe that only 100-125 are known today and examples with original color and surfaces are really hard to find.

The 1860-S is actually a tiny bit more available than the 1855-S in Uncirculated with as many as five or six known. The best of these include Eliasberg: 285, Bass II: 672 (graded MS62 by PCGS) and the Great Lakes coin which is in a PCGS MS61 holder. Most of the AU coins that I have seen are bright, heavily abraded and not appealing. The few Choice AU's that have sold in recent years have not realized significant premiums over typical examples and the savvy collector should consider this the next time he sees a pleasing 1860-S three dollar gold piece.

1865 and 1877:

One of the things about collecting this denomination is that the Philadelphia issues tend to be well made and they are generally available in relatively high grades. But there are clearly a few issues that are not only rare from the standpoint of total known but which are seldom seen with good eye appeal. In my experience, the two that stand out are the 1865 and the 1877.

The 1865 has a tiny mintage of 1,140 and it is likely that not more than 75-100 are known. This date tends to come two ways: really nice or really not nice. The finest known is a superb NGC MS67* from the Jewell Collection that sold for $57,500 in May 2005. Two PCGS MS66's exist as well. The five or six Gem 1865 three dollar gold pieces have great color, luster and eye appeal and are among the nicest Civil War era gold coins of any denomination. But these are locked away in tightly-held collections and the typical example is apt to grade EF45 to AU55 with very abraded semi-prooflike surfaces and clear signs of recent cleanings and/or processing.

The 1877 also has a small mintage; just 1,468 in this case. It is a bit more available than the 1865 in terms of overall rarity but it is harder to find in high grades. The finest known is a PCGS MS64 in the Great Lakes collection that is ex Heritage 6/11: 4602 at $80,500; it was earlier ex Bass II: 696 where it went reasonably in 1999 for $32,000. This is the only really choice 1877 three dollar gold piece known. There are an additional five or six coins in the MS60 to MS62 range This date is generally seen with prooflike surfaces that are very abraded and frequently show hairlines from mishandling.

There are other dates that I certainly could have added to this list. The 1858, 1867 and 1869 are three issues that are seldom found with good eye appeal. And the 1873 Closed 3 is an extremely hard date to find in any grade, let alone with natural color and surfaces.

For more information on three dollar gold pieces that are seldom seen with good eye appeal, please feel free to contact me at dwn@ont.com.

An Interesting Collecting Idea

As I was getting ready to post a coin that will be for sale in today's DWN E-Special (an 1846-D/D half eagle in PCGS VG8), it dawned on me that this piece could be the impetus for an interesting specialized collection: a grading set of Dahlonega half eagles. This set would consist of one Dahlonega half eagle of each grade between AG3 and AU58. In total, this is seventeen different coins. Figuring an average cost of around $2500 per coin, you'd be looking at something like $42,500 for a set.

The coins in the set would encompass the following circulated grades:

About Good 3 Good 4, Good 6 Very Good 8, Very Good 10 Fine 12, Fine 15 Very Fine 20, Very Fine 25, Very Fine 30, Very Fine 35 Extremely Fine 40, Extremely Fine 45 About Uncirculated 50, About Uncirculated 53, About Uncirculated 55, About Uncirculated 58

In theory, this set could be expanded by another few coins, if coins with plus or star grade modifiers were available. I would leave this up to the discretion of the collector.

Why would this be a good set for a collector? Would it be hard to assemble and how long would it take to complete? What are some of the pitfalls that the collector might encounter in working on this set? And what are a few bells and whistles that could be added to make it even more interesting?

Some readers of this blog are going to think that a grading set of Dahlonega half eagles is a hokey idea and would wonder why any collector would waste time or money on it. I disagree.

I like this set for a number of reasons. The first and most important is that it will teach a collecor how to grade circulated half eagles. I am often asked the question "how can I learn to grade coins" and the best answer I can give a collector is that you learn from what you buy. Being able to tell the difference between an EF45 and an AU53 half eagle is an important skill for the collector.

Having third-party graded coins available is, of course, going to make it easier to do this kind of set. In the pre-third party grading days, it would have been nearly impossible to assemble a set that had all the various circulated grades as there would have been so little agreement on the grades among collectors (and dealers).

Would this set be hard to assemble and how long would it take? One of the fun things about choosing an interesting collection is that by its very nature its impossible to race through. This is especially true if the collector is picky and wants coins that are not only accurately graded but which are choice and original with good color and eye appeal. My guess is that a set of seventeen different graded Dahlonega half eagles could take a few years to assemble. It will teach a collector patience and it will teach them how to search for the "right" and "wrong" coin.

Ironically, the higher grade coins in the set are probably easier to find than the lower graded ones. Dahlonega half eagles didn't typically see that much ciruclation and undamaged, naturally worn coins that grade below VF35 or so are not easy to find. Coins that grade AG3, G4, G6 and VG8 are likely to be be very hard to find, especially if eye appeal is an important factor.

My guess is that the collector will encounter some anomalies as he works on the set. As an example, a coin in a VF20 holder might actually be nicer in appearance than a coin graded VF25 or even VF30. Some funny situations might occur when a collector buys, say, a VF25 1845-D half eagle which is nice but a bit overgraded and attempts to downgrade it to a VF20 in order to get it into the set(!)

To make the set even more of a challenge, it might be fun to have all the coins graded by one service (either PCGS or NGC). And finding them all nice enough that they will eventually be approved by CAC would make the set even harder.

Would it be possible to do this set with one specific date of Dahlonega half eagle? I guess this is possible but it might not be realistic. I haven't checked the PCGS or NGC population reports but I'm sure some dates don't have any coins slabbed in the lower grades and many have just one or two in AG3 or G4, making the search for these sort of the proverbial needle in a haystack.

I have a few "bells and whistles" suggestions for collectors thinking about this set. First, choose a "look" you like for your coins and try to remain as consistent as possible throughout the course of buying. Remember that some Dahlonega half eagles come with reddish-gold or orange-gold hues while others come with green-gold color. Remember, as well, that some dates are virtually impossible to find in lower grades. As an example, the half eagles from 1855 through 1861 didn't tend to circulate as extensively as the coins from the early to mid-1840's. It is highly unlikely that you will find an 1858-D in VG10, so focus on dates that are more realistic. As you reach the end of the set, don't get silly trying to fill holes. Just because you need a very low grade coin, as an example, don't pay a big "low ball" premium for an AG3 or a G4.

I have a great idea for a collector who wants to work on this set and who is internet savvy. Buy the domain name www.gradingdahlonegahalfeagles.com and put together a website that shows examples of each coin in each grade and which explains how Dahlonega half eagles are graded. A bit nerdy, yes, but it sounds kind of fun to me.

In my opinion, this collection is best looked at as a secondary pursuit. It might work great for someone who collects something like early half eagles by date and who is at the point in his collection when he is lucky to find one or two coins a year. It is a fun collection that is not absurdly challenging, not too expensive and really educational.

For more suggestions on how to assemble a Dahlonega half eagle grading set or other collections in general, please feel free to contact me at dwn@ont.com

The Great RYK/DWN Mashup Redux: Two Numismatists, Nine Questions, Eighteen Answers

One of the most popular blogs that has appeared on this website was entitled "The Great RYK/DWN Mashup" and it appeared around two years ago. In it, I volleyed back and forth with collector Robert "RYK" Kanterman and discussed gold coins, the coin market and more. After much pleading from our respective fan clubs (OK, actually from me pleading with him to help me come up with another popular blog...) we've decided to agree to disagree, 2012 style. And away we go!

Note: For each answer, "RYK" represents Robert Kantertman while "DWN" represents Douglas Winter Numismatics.

1. If you could own any shipwreck gold coin, which would it be?

RYK: I have a strong preference for the SS Central America coins. In my opinion, they were the best preserved and best conserved. Even though I am a "dirty gold" guy, I would choose the nicest 57-S $20 I could afford, and these are available in a range of price points. I would be tempted to find one of the branch mint gold specimens, a territorial piece, or even a 55-S or 56-S $20, if I wanted to get a little more exotic.

DW: Agreed. I've become a fan of nice, natural-appearing 1857-S SSCA double eagles in the MS64 and MS65 grades. But, and this is a big but, I caution buyers to be highly selective and stick with PCGS coins in original gold foil holders that haven't changed. The coins were conserved; some very successfully and some not so successfully. Take a look at any Heritage sale and you'll see coins caked with white gunk from conservation gone awry. Yuck....

2. Should established US gold coin collectors consider territorial gold?

RYK: I would say a resounding "Yes!" A nice Bechtler piece or set complements a southern gold collection nicely, and some of the California private mint or assay gold pieces go well with any set that includes early San Francisco gold. The Colorado, Oregon, and Utah gold pieces are also a good fit for 19th century gold enthusiasts. One drawback is that they are generally fairly expensive, and might burn coin money required for the big hole in the set.

DW: I like Territorials but am not sure that I share RYK's enthusiasm for them in a rare date gold set. Now, if you are collecting Charlotte gold dollars than a C. Bechtler and A. Bechlter dollar makes sense. Or, if you collect Liberty Head double eagles from the No Motto era a Moffat double eagle makes sense. But I'm not sure how an Oregon or a Mormon piece fits into a regular issue set. And as RYK said, the big bucks that such a coin costs might take away needed funds from a regular issue that is more integral to your set.

3. What is your favorite Dahlonega coin for someone wanting just one for their collection?

RYK: In the sub-$2500, an original, choice VF or XF quarter eagle or half eagle from the mid-1840's would be my choice. They are generally well-produced, nearly 170 years old, and made from gold mined in the southeast.

At the next price level, there are two choices that I see: going up in grade from my lower price point selection or choosing a more interesting coin. I would do the latter, like an 1839-D $2.50, 1838-D $5 or 1839-D $5 in original XF-45.

If money is unlimited, I would wait for on of the super high-grade pieces that come on the market once a year or so. The most recent was the 1855-D quarter eagle in 63.

Overall, unless I was a half dime or trime collector, I would avoid the gold dollars as a consideration.

DW: For a first purchase in the $1,750-3,000 range its hard to argue with a nice EF half eagle. Look for an original coin with nice surfaces and color. They still only command a 15% premium over the junky coins I see daily.

For a "tier two" coin, I like Robert's idea of buying something snazzy like a one-year type or a first-year issue. Coins like this have become very popular and the value isn't quite as good as it used to be but the liquidity of, say, a nice EF45 1838-D half eagle is better than ever.

If you are lucky enough to have the budget for a five figure "exotic" issue, I'd look for a high grade example of something really rare, not a high grade example of a common date. I like coins like 1856-D quarter eagles, 1854-D threes, 1842-D Large Date half eagles, etc because they are so seldom seen in high grades.

I disagree with RYK about gold dollars. Don't hate on the little guys, RYK. Gold Dollars are a great series to collect and the 1849-D is a wonderful first coin for the collector. Plus its hard to not like rare dates such as the 1855-D, 1856-D, 1860-D and, most of all, the coveted 1861-D.

4. Is New Orleans gold more popular than Charlotte gold?

RYK: Ten years ago, I would have said that Charlotte gold is more popular, but today, I would say the opposite. One thing that favors New Orleans gold over Charlotte including is that more denominations are available, including the immensely popular $20 Liberty gold and the increasingly popular $10 Liberty gold. I think that the desirability of the New Orleans quarter and half eagles has increased and the scarcity of some of these issues is now more widely appreciated. In Charlotte, there is just not much new, and there appears to be a relatively steady march of coins on the market.

DW: RYK, you ignorant slut...Oh wait....

I'm afraid Robert is correct. As someone who has really helped to "create" the New Orleans market, I'm wowed at how popular these coins have become and much they have appreciated price-wise since, say, the late 1990's. And how Charlotte hasn't.

Charlotte gold is somewhat in the dregs although collector-quality coins are strong. I put an 1841-C half eagle in nice PCGS EF45 on my website the other day and got seven orders for it in less than a five or six hours. But, that's the exception and not the rule. There are alot of good Charlotte coins available right now and if a few heavy hitters decided to get serious, they could put together great sets over the course of a few years.

5. What gold coin or coins is/are currently in greatest demand from rare date gold collectors?

RYK: I think that the single coin that is in greatest demand among rare date gold coin collectors is the 1861-D $5. I recently told Doug that if he had a dozen XF-45s, he could quickly sell them all and for strong money. Honorable mention would go to the 1861-D $1, better date $5's and $10's from the 1860's, 1870-CC $10, and the 1861-O and 1879-O $20's.

DW: Ah, Grasshopper, you have learned well. Oh and where are those dozen 1861-D half eagles?

The market is very rarity-oriented right now and people are looking to buy sexy, low mintage coins with alot of "oomph." Other coins I would add to RYK's list include the 1855-D dollar, 1854-S quarter eagle, 1864 quarter eagle, nearly any pre-1800 half eagle, 1864-S half eagle, 1875 half eagle and eagle, 1841-O eagle, 1883-O eagle, etc.

6. Is collecting San Francisco gold on the rise/falling/stable?

RYK: San Francisco gold is, in my opinion, gaining in popularity. The market demand for the better date coins was evident in th e recent Littlejohn sale, and there was a very interesting San Francisco gold collection in the Heritage FUN sale that did very well, too. It would be great if a rare date gold specialist (ahem) or Western gold specialist would publish a book on SF gold (1854-1880) as I think that this could give these coins some much-needed publicity among potential collectors.

DW: Hey, thanks RYK. Make me do another book, huh?

Actually I have thought about doing a book on SF gold for many years and if I could get a partner to assist me I would (ahem, potential partner, you know who you are...). I think this would help the market for these coins. For years and years, this was a dead area. The popularity of SF double eagles, brought on by the shipwreck discoveries of the last two decades, has spurred demand for smaller denomination coins as well.

I think you have to look at SF coins as two distinct markets: the 1854-1879 coins and the post-1880 cons. The first group is suddenly doing pretty well and I personally am selling alot more interesting SF coinage today than I was two or three years ago. The second group seems dead but I can see the potential for coins like an 1888-S eagle in MS63 (to pick a random date in a random grade) with premiums so low over generic issues.

7. Should coin collectors bother with coin shows?

RYK: Absolutely! Aside from seeing lots of coins, the ability to view auction lots in person, view exhibits at the bigger shows, meet other collectors, and network with dealers makes any coin show worthwhile. I have often said that even if I were broke and had no coins to sell, I could have a great time at a coin show.

DW: To me, coins shows are somewhat of a necessary evil. With the exception of FUN and Summer ANA, most coin shows are too long and aren't always productive. But I'm jaded and have been going to 15-20 shows a year for nearly three decades.

For the collector, shows are great. You can't beat the ability to look at coins, to view auction lots, to look at exhibits, etc. I'd say you have to fine-tune your BS detector as you are going to hear alot of Newspeak.

8. Are auctions good venues to buy in?

RYK: Yes, with an asterisk. It depends a lot on factors including specifically which auction venues, have you viewed the coins, are you using an agent, are you bidding live or by proxy, etc. If you are playing sight-unseen with proxy bids over the internet, you are going to get burned a lot. If you are bidding in person or with a specialty dealer, there may be some opportunities.

I would add is that some coins that are purchased at auctions could be bought outside the auction venue for less money, less risk, and less hassle. If you are considering a 1901-S $10 in 64 in an auction, it makes no sense to bid sight-unseen and compete with others for the coin. If it is lovely and undergraded, someone smarter who has seen the coin will know that and outbid you. If the coin is a pig, you will win it. It's a classic "heads-I-win-tails-you-lose" situation.

DWN: The whole auction market has changed so much in the last five years. The simple way to put this is that they have transitioned from wholesale environments to retail environments.

Many new collectors feel safe buying at auction as they figure that "if there was an underbidder, I'm safe having paid just 5 or 10% more." This is wrong on many levels. And it is even more wrong when you consider that most collectors are bidding at auction on a sight-unseen basis and relying on images.

It's just a matter of time before buyer's premiums at sales rise to 17.5% or even 20% and at that point, I'd say that auctions might not be the best venue to buy in. You have to take this with a grain of salt coming from a dealer who is essentially competing against the auction firms both for product and for buyers but I know that I am now much less reliant on auctions both as a buyer and and a seller than I was a few years ago.

9. What makes a coin desirable?

RYK: This is a very personal thing, and if you ask ten collectors, you will get eleven different answers (because at least one collector will change his mind). The factors that go into desirability include, but are not limited to, design, condition, value, metallic composition, age, scarcity, history, provenance, originality, and market demand. I tend to rank scarcity, numismatic history potential for price appreciation and originality in the more important category, and design, condition, and value in the less important group.

DWN: As a dealer, my answer is bound to be different from RYK's. I am looking for coins that I think will sell well and that I will be excited about handling again and again down the road.

To me, the factors that make a coin desirable include: its level of value (is it a good deal or a bad deal?), its degree of absolute rarity (is its price predicated solely on its grade?), its degree of originality (has it been cleaned, processed or dipped in recent years?), its eye appeal (is it pretty?) and its level of liquidlity (if the market pulled another 2008 contraction, could I sell this coin in 30 days or less?).

Robert and I will be taking our show on the road and expect to see us at a Holiday Inn near your town sometime soon.

Do you more questions that you would like to see answered by the RYK/DWN mashup team? If I can persuade RYK to take some time away from his busy Fantasy Baseball schedule, perhaps we can have a Round Three of the Great Debate sometime soon. Email your questions to me at dwn@ont.com

Current Availability of Rare Date Gold

If you are a collector of rare date gold, you have probably noticed that there are distinct patterns of availability. In other words, certain coins may go from very unavailable to available over the course of time due to a number of reasons. How available are certain types of coins right now? Knowing the availability of a specific series is important when making a decision to collect it. If the coins aren't there, you can't buy them. Let's take a look at each denomination and conclude if now is a good time to start (or not to start) a collection.

Gold Dollars: This is a good time to start a collection of gold dollars. In the past year or two, I have noticed a number of choice, interesting examples of all three types for sale in grades ranging from Extremely Fine to Gem Uncirculated.

The demand for Type One gold dollars has increased in the last few years but there still seem to be some interesting coins on the market. Philadelphia examples are plentiful in all grades. Charlotte and Dahlonega issues are less available and a few dates (1850-C and 1850-D, 1854-D) remain extremely hard to locate above AU55.

Type Two dollars seem to be in abundant supply but this is misleading as most of the available coins are Philadelphia issues from 1854 and 1855. I find that high grade branch mint Type Two dollars are less available than in the past but not enough so to dissuade a collector for starting to collect them.

Type Three dollars also seem plentiful right now with some very interesting coins having been available (or coming available). But a few of the tougher issues are hard to find right now; most notably the 1861-D which is more popular than I can ever remember. I've also noticed a real shortage of San Francisco Type Three dollars in MS63 and above. Again, this shortage would not be enough to dissuade my from recommending a Type Three set right now.

Quarter Eagles: The availability of this denomination depends on what you are looking for.

Early quarter eagles have always been hard to find but I can't remember a time when the supply has been more dry than it is now in the Winter of 2012. As someone who is a major buyer in this area, I can tell you that the coins just aren't there right. I still love early quarter eagles but the lack of availability is a little frustrating for me and the collectors who I supply.

A few years ago, you could find semi-available early quarter eagles easily; coins like an 1830 in AU55. Now, these seem to be extremely hard to find. I don't attribute this to them being many times more popular than they were a few years. Where are these coins? I'm not certain that I know the answer.

If a deep pocketed collector wished to have begun a Finest Known or Condition Census collection of Liberty Head quarter eagles, he could have purchased some great coins in the past year. I have personally purchased at least ten finest known or close-to-finest examples in the last year and know of other coins that have been offered privately that would make great additions to great collections.

But this series has been well represented in collector grades as well. There are a few better dates that have not been available of late but I'd still say that it remains an excellent time to be a collector of Liberty Head quarter eagles.

Three Dollars: If you were thinking of collecting this series, your timing is great. There are some wonderful Threes on the market right now and many are at price levels that haven't been seen since the early 2000's.

There are still some dates in this series that haven't been readily available. Some of the ones that come to mind are the 1855-S, 1857-S, 1860-S and 1865. And the rare Proof-only 1875 actually seems a bit less available right now than it was a few years ago.

Bottom line: if you like high quality Threes, this is a good time to begin a set.

Half Eagles: The current availability of early half eagles is very odd. There is a real lack of coins in the VF-EF range and the reason i obvious: they are scarce to begin with and the few nice coins tend to be bought by collectors who will own them long-term. The AU graded early half eagles that used to be plentiful (I could count on buying three or four a month) now seem very hard to find, especially if they are CAC-quality. In Uncirculated, early half eagles remain relatively available but the quality is spotty. Non-CAC coins in the MS60 to MS63 range tend to be available at auction but nice, original examples that are realistically priced sell quickly and are hard to find right now.

The availabilty of Liberty Head half eagles has been helped by the fresh Helem and Littlejohn deals that entered the market in February. I doubt if many of the better coins will hit the secondary market and collectors remain starved for nice examples of rare issues from Philadelphia and San Francisco.

The market for Charlotte and Dahlonega half eagles is good with the latter clearly being stronger than the former. Are good coins available? If you are searching for nice pieces in the collector grade range, I'd say "yes." If you are are looking for finest known or high quality Uncirculated pieces I'd say "not often" for Dahlonega and "from time to time" for Charlotte. I'd certainly recommend beginning a collection now of either mint's half eagles given the current availability.

New Orleans half eagles are another story. Condition Census examples have become exceptionally hard to find and it would be very frustrating beginning a high grade collection right now. Dates like the 1846-O, 1851-O, 1855-O and 1856-O have become extremely hard to find in nice AU grades, let alone in Uncirculated.

Eagles: Of the seven denominations of gold coins struck by the U.S. mint (not including Stellas) the ten dollar gold piece or eagle is probably the most challenging to collect. It's never been easy to put together a set of Liberty Head eagles. Right now, it's tougher than I can ever remember with prices for the rarer issues shooting upwards.

I felt like a dinosaur at the recent Littlejohn sale as I sat through lot after lot of rare ten dollar gold pieces and was blown away by the prices. This isn't all that much different from a decade+ ago when double eagles increased in price dramatically in what seemed like a short period of time. I see the same thing happening with eagles right now.

The issues that appear to have increased the most are the ones that appear for sale the least. This seems obvious but formerly hard-to-sell coins like Philadelphia eagles from the 1860-1877 era and nearly any pre-1880 San Francisco eagle suddenly appear to have gained some popularity as long as they are high end for the grade.

Would I suggest that a DWN client begin a set of Liberty Head eagles right now? I would but it would be with hesitation. I'm not certain if the next EF-45+ 1873 eagle that becomes available will be worth over $40,000 and I wouldn't feel comfortable suggesting to a client of mine that one is worth anywhere near this. But there are still good values in this denomination. The collector of eagles will have to be more careful now than before to make certain he is getting good value.

Double Eagles: Despite a strong collector base, the availability of good Type One double eagles has been excellent in the last year or so. This holds true for both the relatively common dates and the rarities. In fact, other than the 1854-O, I have handled every rare Type One issue multiple times during the last year and have seen at least three or four 1856-O double eagles sell in the last year or two. The issues that still do not turn up that often in higher grades include the 1854-S (with non-seawater surfaces), 1859-O, 1860-S and 1866-S No Motto.

The Type Two market seems to have picked up in the last year and I think that part of the reason for this is the availability of good coins. I've been pretty surprised at how many 1870-CC double eagles have been available since, say, 2010. I can think of at least five or six that have been available and the finest known was discovered (and then stolen) within the last year.

If a collector wanted to begin a collection of Type Three double eagles, I believe he would find good examples of many better dates. But the Big Five Philadelphia issues (1881, 1882, 1885, 1886 and 1891) remain very hard to locate with good eye appeal and surfaces.

If you have any more questions about the availability of what you want to collect, please feel free to contact me via email at dwn@ont.com

How Do You Price Really Special Coins?

In the recent Schuyler Rumsey coin auction, there were a number of coins that I would define as "really special." After the sale was over, I thought about the prices they brought and was initially pretty stunned. Upon further reflection, I still think that these coins brought strong prices but the numbers now make a little more sense . Let's take a look at some of these specific coins and then ask (and answer) a bigger question: how do you price a really special coin? This was not a condition-related sale and there were only a few coins that brought a tremendous amount of money because they were high grade for the issue. Examples of such coins include the 1852-O eagle in PCGS AU55 (Lot 982) that brought $18,400 and the 1870-CC eagle in PCGS EF45 (Lot 1030) that sold for $97,750. In both cases these coins sold to savvy dealers who clearly believed that the coins would upgrade significantly. If they don't upgrade, both coins will prove to be bad deals for their buyers.

But the coins that were of real interest to me in the sale were the still-slightly-under-the-radar rarities like the 1864-S eagle, the 1873 eagle and the 1876 eagle. These aren't coins that condition is solely relevant. They are what I call "fundamental rarities" or coins that are rare in all grades.

In the Liberty Head eagle series, the 1864-S, 1873 and 1876 are three of the rarest collectable issues. In fact, the only eagle that is rarer is the 1875 which is, for all intents and purposes, nearly impossible to find.

The 1864-S eagle in the Rumsey sale (Lot 1017) was graded VF30 by PCGS. It was a coin that I thought was accurately graded and, in spite of a scratch on the reverse, it was evenly worn and rather handsome for the grade. This coin sold for $34,500; by far a record price for the date in this grade. I know the buyer of this coin; he is a very sophisticated collector. The underbidder was a knowledgeable dealer. Were these two individuals crazy or were they savvy?

Before we can accurately answer that question, some background information about the 1864-S is in order. And after this, we need to look at ways in which really special coins (which any 1864-S eagle is) are priced.

The 1864-S is the second rarest Liberty Head eagle after the 1875. There are probably no more than 20-25 known to exist. In my experience, the opportunity to purchase one occurs maybe once every three to five years. This is verified by the fact that only one piece (Bowers and Merena 7/06: 1640, PCGS EF45 at $50,600) had sold in the last five years. To find a piece that was comparable to Rumsey:1017 you had to go all the way back to the Richmond I: 2074 example (graded EF40 by NGC and selling for $10,350 but a coin which, as I recall, was really no better than the PCGS VF30 being offered).

Using comparable auction prices to help determine the price of a rare coin has become commonplace in the last few years. In the case of the 1864-S, this was not a good method for at least two of the following reasons:

The number of auction records for VF30 1864-S eagles is virtually nonexistent. The last coin sold at auction as "VF30" was a raw, cleaned example in July 1997 that brought $8.050. Clearly, this is of no help.

Since the Richmond I: 2074 coin was sold back in 2004, the market for this issue has totally changed. This is proven by the $50,600 that an EF45 brought just two years later. But that was six years ago and, if anything, the number of collectors who want an 1864-S eagle in any grade has at least doubled--if not tripled.

Since we can safely state that using auction comparables to price an 1864-S eagle isn't going to work, then how about checking a published price guide like Coin World Trends? According to the most recent edition, values for the 1864-S eagle are $5,500 in VF20 and $12,500. These were probably accurate in 1992 but in 2012 they are clearly completely and utterly irrelevant in 2012 (but that's another story...)

Before I render my verdict on whether the 1864-S in the Rumsey sale was a good deal or a bad deal, I think there are two other points to touch on.

The first is opportunity cost. If you are a deep-pocketed collector and you are particpating in a challenging series with a number of really special issues included (Liberty Head eagles are a poster child for this) you always have to determine how often will you have the chance to buy an acceptable example. In the case of the 1864-S, it's been pretty well established that its going to be once every three to five years if you are lucky. So the chance to buy a decent one represents an exceptionally important opportunity for the serious collector.

Second is the fact that any really special coin is part of what I refer to as a transaction-driven market. What I mean by this is that when you buy an 1864-S eagle in PCGS VF30 for $34,500 you have essentially created a new market. Yes, this market is considerably higher than it was the last time that one traded. But the reality of the market is that since a VF30 just traded for $34,000 in a public transaction, all the geniuises that live by comparable auction prices realized are now going to see this $34,000 trade. Even if Trends ignores this transaction and keeps their estimated value at 1992 levels, the bar has still been raised.

Let's take a less involved look at the other two really rare date eagles that I mentioned above.

The 1873 eagle in the sale (Lot 1040) was graded EF45 by PCGS. It sold for $43,125.

While not as rare as the 1864-S, the 1873 eagle is still a seriously rare issue with an estimated three dozen or so known from an original mintage of just 800. I have handled two or three in the last five years and actually had a reasonably hard time selling them as I found this to be an issue that lacked the rarity recognition that other issues in the series have.

The last EF45 to sell at auction (an NGC EF45 coin) brought $11,212 in Superior's 9/08 auction. The last transaction of any sort was an NGC AU58 sold by Heritage in June 2010 that realized $27,600. Based on these two transaction and on my knowledge of the series, I figured that the 1873 in the Rumsey sale would bring somewhere in the $15,000-20,000 range.

Why did it sell for so much this time? I think there are a few reasons. First of all, at least two people really wanted this coin. Even though the opening bid was a very strong $24,000, these two bidders slugged it out until the final bell rang at $37,500. Strong price? Yes! Crazy price? Maybe not...

As I thought about the 1873, I had the following realization. For years, this was an absurdly undervalued date. The NGC AU58 that sold for 28 grand in 2010? Even though it wasn't a cosmetically appealing coin, even then I knew it was really cheap. And here's why. For years, the quartet of very rare business strike Type Three Philadelphia double eagles traded in the $5,000-10,000 range for decent EF examples. But after they suddenly got hot, prices rose to $20,000, then to $30,000, then even higher. An 1873 eagle is just as rare as any of the Big Five Philly Type Threes. Why should it sell at such a discount? Especially now that Liberty Head eagles have some strong collector support?

The 1876 eagle in the Rumsey sale (Lot 1047) was graded AU53 by PCGS and it also sold for $43,125. To me, this was a very surprising price.

I find the 1876 to be less rare than the 1873, despite a lower mintage of 687 coins. There are around forty to fifty known and I can recall having owned at least three in the last two to three years. Like the 1873, they were not an easy sell even with the fact that the mintage figure is the second lowest in the whole series after the 1875.

Heritage 10/10: 4892, graded AU53 by PCGS, was a good comparable to the Rumsey coin and it sold for $14,950. I figured the Rumsey coin might bring as much as $20,000 and it opened at just $13,000. Again, two bidders slugged it out and this time, the match lasted longer.

Good deal or bad deal? I liked the coin better than the 1873 (I thought it migt upgrade to AU55 if resubmitted) but I didn't think that the 1876 carried as much opportunity cost. In other words, I would have told a collector that if this one doesn't work out, it's possible that another decent coin will turn up in a year or so; maybe even less. So, on this one, I'm going to have to vote more towards the "not a bad deal but probably not a good deal" camp.

As is so often the case in my writing (and my thinking!) I've gotten a bit off track and still don't feel that I've totally answered the original question in this blog: "how do you price really special coins?"

I've mentioned above that published price information is not a good indicator for really rare coins. And while sometimes helpful, auction price data has to be very subtly interpreted to be truly helpful.

Ultimately, the price of a really special coin boils down to what your gut feels that it is worth. If you are willing to pay $25,000 for a decent 1864-S eagle and you've been waiting four years for the chance to buy one, shouldn't you be willing to pull the trigger at $30,000 or even $35,000?

What I find most helpful is knowing the series in question very well. As I mentioned above, the Liberty Head eagle series has become more popular in the last two or three years than at any time I can remember. So pre-2010 auction prices often have to be taken with a grain of salt. And it helps to know that certain other rare issues, like the 1883-O, have a number of recent auction trades and private sales in the $40,000-70,000 range. The 1883-O is more popular than the 1873 and the 1876 but it is of comparable rarity. If an AU50 example of this date is worth $50,000-60,000 then shouldn't an 1876 in AU53 be worth at least half this?

These are the sort of questions that make numismaics such an enjoyable pasttime to me. Do you have questions or comments regarding the values of really special rare coins? If so, please feel free to email me at dwn@ont.com

The San Francisco Surprise

Around four or five months ago, I got wind of a soon-to-be-conducted rare gold coin auction in San Francisco that sounded interesting, to say the least. I heard that it contained long date runs of Liberty Head gold and it featured such rarities as an 1854-S quarter eagle and an 1856-O double eagle. I live for "secret deals" like this. I'd fly to Fog City, spend in the high six figures, make a ton of money on my new purchases and have fun in the process. It was going to be SO easy... Except for one big thing. There are no "secret auction deals" anymore. The internet has made all information so accessible that deals like this tend to attract just enough of the big players in a specialized field like rare gold that they are extremely competitive. No, the San Francisco Surprise was going to be a bloodbath.

There were a number of factors that made this auction unusual. For one, it was being conducted by a stamp company (Schuyler Rumsey) and it would be interesting to see how they handled their foray into a new field.

So how did the sale do? And what does this sale tell me about the market and the rare coin auction market? The answers are interesting; far more so, in my opinion, than merely going over some auction highlights.

I thought prices for the sale ranged from sort of weak (for the very common pieces and the generics which probably would have been better sold outside of the auction venue) to exceptionally strong (for the very rare date $10 Libs). The few six figure coins in the sale were a touch on the weak side (they probably would have brought 10% more in a Heritage auction) while coins that appeared to have potential for upgrading or "improving" were strong to exceptional.

Did the heirs to this collection make a mistake choosing a stamp company and not going with an experienced coin firm like Heritage or Stacks Bowers? Typically I would have said a resounding "yes" but I thought Schuyler Rumsey did an outstanding job in nearly all respects. Their catalog was a bit amateurish but in the end this made no difference. Its hard to say for certain but I think many of the coins in this sale actually did better in this little, obscure auction than they would have at a major auction. Heritage may have 400,000+ registered members in their community and unparalleled technology but Rumsey reminded me of a few important facts about the auction business in general.

First, as I said above, if you get the right five to ten dealers in the room (or on the phone), the number of registered bidders or the number of hits on your website mean nothing. At least 50% of the value of the sale went to these five or ten dealers. The best way to make money in this sale would have been to lock these guys in their hotel rooms.

Secondly, Rumsey's technology was far, far better than I would have expected. It was easy to bid on their website and, to be honest, it seemed to be faster and every bit as efficient as Heritage's. It might not have had all the bells and whistles that Heritage's system has but let's not forget that Rumsey is located in San Francisco and with Silicon Valley technology available to the firm they clearly have figured out how to effectively run an IT system.

Thirdly, in the words of Mr. Costner, if you build it, they will come. The sale contained some really rare coins (issues like 1863-1865 half eagles, 1861-D gold dollars and half eagles, Civil War date eagles plus an 1873 and 1876 eagle). Avid collectors know how rare these coins are and either they or their advisers found them. Many of these rarities sold to phone bidders and, in the case of at least a few bidders, they were sold sight unseen.

Which leads me to the next point. Rumsey was smart enough to know that they weren't coin experts. So they got some good advice. Smart move: they sent most of the coins to PCGS so this gave bidders confidence. Smarter move: they advertised the sale in Coin World and gave out catalogs at the Long Beach show. Smartest move: they got at least one bidder to look at all the coins before the sale and give them bids on nearly all the lots. I feared that $10,000 coins would open at $2,000 and we'd sit through interminable slogs waiting for them to hit their true value. This didn't happen. Three weeks ago I attended a coin auction put on by a firm that has 30+ years of experience and it was so maddeningly slow that I left early in fear that I was going to have an anxiety attack. The Rumsey sale was smoothly run and almost hitch-free.

Another point: the fight against coin doctoring must not be going all that well because I saw people paying pretty confident prices for coins that needed "help." As an example, there was a cleaned 1861-D half eagle (Lot 661) that seemed to me to not only be a "no grade" but to be one that would have to be extensively resurfaced to ever get in a holder. It had the detail of an AU55 but I thought it was a risky purchase at much more than $20,000. It sold for $40,250. The person who bought this coin--and he is a smart, veteran dealer--obviously thinks this coin can be fixed, it can wind up in an AU55 or AU58 holder and it can be sold for more than $50,000. Caveat emptor....

Yet another point: this was a fresh deal and the market is STARVED for fresh coins. Note that I didn't say it was a nice fresh deal. I thought around 10% of the coins were really nice and another 20-30% were kind of nice. But many of the coins were downright ratty. These didn't seem to matter to buyers. Nor did the fact that many of the not-very-nice coins were hard to sell as is and would become even harder to sell when they were scrubbed (or re-scrubbed) and upgraded.

A few highlights and my comments:

Gold Dollars: The 1855-D in PCGS VF35 sold for $12,650. It was a decent coin but nothing great. I guess this means that "basal value" for any example of this date in a holder is now in the low five figures. The nice AU53 1861-D gold dollar sold for $51,750 to a phone bidder who, I'm told, never even saw the coin. It's an AU55 and you paid an awful lot for it...

Quarter Eagles: The 1842 in PCGS 45 was estimated at $750-1000. It sold for $5,175. If only it was even remotely attractive. The very nice 1848 CAL in PCGS 55 sold for $63,250. I liked the 1849-C in PCGS 55 (I graded it a solid 58) but someone liked it better and it brought a solid $12,650.

Half Eagles: The only early half eagle I liked was the 1814/3 in AU58 but I was not willing to grade it MS62 like the successful bidder did at $25,300. The C+D half eagles were decent and I bought the coins I liked the best; sometimes at considerably less than my maximum bid. The Civil War coins were pretty schlocky but they brought strong prices anyway; the 1862 in AU55 was bid up to $12,650.

Eagles: Uggghhh...did I get blown away. I thought there were some pretty nice coins in this part of the sale. So did everyone else. The great AU55 1852-O? It sold for $18,400 (!) The undergraded 1865-S Normal Date in EF45? (I thought it was an AU53). It brought $24,150. The lovely EF45 1870-CC that I graded AU53? How about $97,750? Many, many price records were set.

Double Eagles: It was back to reality as prices for this denomination were strong but not insane like the Eagles. The nice 1856-O in EF45 sold for $276,000 which seemed like the "right" number. The 1861-S Paquet in VF35 sold for $51,750 while the 1866-S No Motto in AU55 went very strong at $83,275. There were some very pleasing CC double eagles in the sale and they all brought strong prices.

The Numismatic Versus: Comparing Coin Collecting Methods

Cats versus dogs. Coke versus Pepsi. Good versus evil. You get my point: two camps competing for your heart, your affection or your soul. Its not that far-fetched to stretch this analogy out to some of the basic issues in coin collecting. No, its not the Satanic Verses; its the Numismatic Versus. OK, to be a bit more serious: there are basic issues in numismatics that split collectors down the middle. There is no real right or wrong when it comes to collecting and I am a big advocate of doing what "feels right" for the collector. That said, I think my 30+ years of experience as a dealer qualify me to render an opinion on some of these issues and that's what I'd like to do here.

1. Specialist Collecting versus Type Collecting

I have many customers who are specialists and many who are focused more in a "generalist" fashion. I respect both camps.

A specialist picks a small area of collecting and focuses on this. Dahlonega quarter eagles. New Orleans half eagles. First year and last year of issue coins. All of these are great choices for the specialist.

What I like about specialist collecting is that by having a more narrow focus, the collector can become knowledgeable more easily. As I have written before, if your collecting focus revolves around 25 half eagles from one mint, you are far more likely to learn this series as well as the typical dealer than if you are trying to learn about all the half eagles produced during the 19th century.

But there is something to be said for a more general approach. I love the concept of collecting by type. I love the fact that a type collector buys something different every time he pulls the trigger.

2. Condition Rarity versus Absolute Rarity

A coin that is a "condition rarity" is one whose primary value is based around its grade. An example of this would be an 1887-S eagle in MS65. Such a coin is extremely rare and it would sell for five-figures if available. But the same date in MS60 is extremely common and it sells for essentially no date premium.

A coin that is an "absolute rarity" is one that is rare in all grades and is desirable whether it is quite worn or superb. An example of this would be an 1862-S eagle. This is a low mintage issue with a very low survival rate to its Civil War date of issuance. This coin is desirable if it grades Very Fine or if it grades Uncirculated.

What a collector should always ask himself is "would the coin that I am buying have value if third party grading were to suddenly end?" A coin like an 1887-S eagle in MS65 might not carry a great premium if third-party grading ceased to exist. A coin like an 1862-S eagle in EF45 would still be considered desirable no matter what dictates the future of grading.

The best coins are the ones that combine absolute and grade rarity. If a coin like an 1862-S eagle in Mint State were to be discovered in Europe (I have never seen one close to Uncirculated) it would be very desirable as it combined both types of rarity in one neat package.

3. Business Strikes versus Proofs

Business strikes are coins that were made for circulation. Proofs are coins that were specially made for collectors and VIP's. The coin weenie in me likes business strikes more than Proofs because of the fact that these were coins that were used as coins are supposed to be used.

But the coin snob in me likes Proofs as well. There is no getting around the fact that a Gem Proof Liberty Head double eagle is incredibly impressive. And you have to like the Proof issues that were struck in such tiny quantities during the 1860's, 1870's and 1880's.

I tend to be a more selective buyer when it comes to proofs than business strikes. I vastly favor very rare Proofs (example: an 1878 gold dollar) than a not-so-rare Proof in a mega-grade (example: a 1904 quarter eagle in PR67 Cameo).

Can a collector buy business strikes and Proofs simultaneously? I don't see why not. In certain series, like Type Three Liberty Head double eagles, there are Proof-only issues that are collected side-by-side with business strikes. Like owning a dog and a cat at the same time, I say "yes!" to the collector who buys interesting Proofs and business strikes together.

4. Gold versus Silver versus Copper

You are reading this article on a website whose URL is raregoldcoins.com so you don't have to be a rocket scientist to figure which of these three coinage metals I favor.

But let me at least explain why I do.

Gold is a precious metal with strong demand around the world. Egyptian Pharaohs were buried with spectacular gold ornaments. The last time I checked, there were no silver or copper trinkets in the pyramids.

Try to explain to a wealthy Chinese collector why he should spend $100,000 on an Indian Cent. Not easy, right? But don't you think this same individual would more likely "get" the concept of an Uncirculated 1871-CC double eagle at $75,000?

Copper coins are great and I personally collect Liberty Seated silver coins and love them. However, as far as being a dealer goes, I'm pro-gold and more so now than ever.

5. 19th Century versus 20th Century

When I began specializing in United States gold coinage back in the early 1980's, I decided to focus on 19th century coins because they were more affordable and because they seemed like better value. Three decades later I still believe this.

Now don't get me wrong. I think 20th century coins are great. I think St. Gaudens double eagles and Indian Head eagles are the most beautiful regular issue coins that the U.S. Mint ever produced. And the incuse designs of the Indian quarter eagle and half eagle series really appeal to me. But 20th century gold tends to be the ultimate in condition rarity and, as I discussed in #2 above, I have always been more of an absolute rarity kinda guy.

I look at 20th century gold as the Contemporary Art of the numismatic world. Its fairly regularly available, its pretty macho to collect, the market is fluid due to collectors coming and going rapidly and the value levels don't always make sense.

I personally like 19th century gold better as I view it as a more cerebral area to collect. It's clearly not as pretty (there is no doubt that Gobrecht and Longacre couldn't hold a candle to St. Gaudens as far as artistic talent is concerned) and it more monotonous as it goes on and on (and on). But if you have a budget of, say, $5,000 to $10,000 per coin, you can be a big player in 19th century gold while still being pretty much a nobody in the 20th century arena.

What are your takes on the Numismatic Versus that I compared and contrasted above? Email me at dwn@ont.com and let me know what you think.

Greatest. D Mint Quarter Eagle. Ever.

Unlike their gold dollar and half eagle counterparts, high grade Dahlonega quarter eagles are very rare. This denomination is extremely hard to find in Uncirculated grades and there are a number of dates, especially the rarities, that are virtually non-existent. That's why a recent purchase of mine so excites me. Here's some information about the coin and my take on why it lays claim as the single most significant quarter eagle of any date from this mint. (Please note that this coin is not currently for sale and that this isn't an ad masquerading as a blog in order for me to sell this piece)

There are essentially six rarities within the Dahlonega quarter eagle series: 1840-D, 1841-D, 1842-D, 1854-D, 1855-D and 1856-D. Each of these dates has fewer than 100 known in all grades and most of them are High R-7 to R-8 in Uncirculated (meaning that around one to three properly graded Mint State pieces are known).

The two rarest Dahlonega quarter eagles from the standpoint of high grade rarity are the 1855-D and the 1856-D. These have the two lowest mintage figures for any quarter eagle from this mint. The total numbers struck are 1,123 for the 1855-D and 874 for the 1856-D, respectively.

Both of these dates are major rarities in Uncirculated. Before the recent discovery of the 1855-D in PCGS MS63 (more on this in a second), the 1855-D was more or less unknown in Uncirculated. I say "more or less" because while a few examples had been graded in the MS60 to MS61 at PCGS and NGC, none of these were coins that I think had unanimous approval as being truly Uncirculated. The same holds true for the 1856-D.

The story behind this newly discovered 1855-D is interesting. It was part of a collection of coins, with an emphasis on Charlotte and Dahlonega gold, put together by William and Beuelaress ("No, I can't pronounce this either...") Hemel from Orlando, Florida.

I know nothing about the Hemels from the standpoint of collecting. They flew well under the radar and from the look of their recently-sold collection, they appeared to be hole-fillers who primarily bought cheaper, more affordable C+D coins including many cleaned or damaged pieces. But they had a few great coins in their collection and the 1855-D quarter eagle was clearly the best piece that they owned.

From the scant pedigree information that the Goldberg sale contained, it seemed that the Hemels were most active with their coin buying in the 1970's. They bought a few coins out of auction but a quick perusal of Stack's and Paramount sales from this era shows no 1855-D quarter eagles that fit the description of the coin in the Hemel sale. We'll probably never know where this coin came from but perhaps it was from a local dealer that the Hemels had contact with or maybe even an accumulation of coins from a Southern family that had put the 1855-D away a century before.

I have handled virtually every higher grade 1855-D quarter eagle that is known and I have never seen a truly nice one. The strike of this issue is irregular, to say the least, and a significant number of the coins that I have seen in higher grades have planchet irregularities and/or have been processed in an attempt to hide these surface problems.

The coin in the Goldberg sale was truly special. It was extremely well made with a great quality planchet and it had, by far, the best luster that I have ever seen on this date. In fact, now that I think of it, I'm not sure that I've ever seen an 1855-D with enough luster remaining to really know for certain what the "right" texture for this issue actually is. The look of the coin was really exceptional as well with lovely natural yellow-gold color. It was clearly an original piece and, as I said above, this is unusual for a date that is nearly always found with "improved" surfaces.

When I was figuring what to pay for this coin, I thought that the best comparable was the 1854-D quarter eagle graded MS63 by PCGS that Heritage sold as Lot 4690 in their October 2011 sale. That coin brought $86,250. But, and this is a huge but, that coin had something "interesting" lurking in its past. The very same piece, as recently as 2004, had been graded MS62 by PCGS and had brought just $34,500 in the Heritage June Long Beach sale of that year. So, in my opinion, the 1855-D in the Goldberg sale was clearly a "better" coin.

I wound up purchasing the 1855-D for $86,250; a record price for the date but, I think, a very good value.

After the sale, I starting thinking: what are the greatest single Dahlonega quarter eagles? If I made a Top Ten list, which coins which I include on it? And after I made this list, where would the 1855-D place?

In chronological order, here is my Top Ten list of D Mint quarter eagles along with some comments:

1. 1839-D PCGS MS64, ex James Stack. Finest Known Classic Head D Mint.

2. 1840-D NGC MS62, ex Duke's Creek/Bareford. Unique in Mint State.

3. 1841-D PCGS MS63, ex Green Pond. Finest known of four in Mint State.

4. 1842-D NGC MS62, ex Duke's Creek/Norweb. Finest known of 2 or 3 in Uncirculated.

5. 1847-D NGC MS65, ex Duke's Creek. One of two known D Mint quarter eagles in Gem.

6. 1850-D NGC MS65, ex Duke's Creek/Eliasberg. The other Gem D mint quarter eagle.

7. 1854-D NGC MS64, ex Duke's Creek. Finest known.

8. 1854-D PCGS MS63, ex Heritage 10/11: 4690. Record price at auction for any D mint quarter eagle.

9. 1855-D PCGS MS63, ex Goldberg 1/12: 1209. Tied for record price and finest known of the date.

10. 1856-D NGC MS61, ex Duke's Creek. Finest known of the rarest D mint quarter eagle.

After thinking about the coins on this list, I think a few can be eliminated for being "common coins in uncommon grades" while others can be knocked off for "only" grading MS61 or MS62. I think the best candidates for the Best D Mint Quarter Eagle of All Time are the 1839-D in MS64 and the 1855-D in MS63. The 1855-D wins my vote for the better of the two given the relative availability of the 1839-D in MS60 to MS62 grades.

For more information on this 1855-D quarter eagle or on any other Dahlonega gold coinage, please feel free to contact me at dwn@ont.com.