Posted by Scott Schechter, NGC Vice President

Scott Schechter reviews new discoveries and new issues of modern US coinage in 2011.

2011 has been a very significant year for modern US coinage. A handful of new discoveries and new issues make that statement easy to prove. Here we’ll briefly discuss these coins and consider how they will rank relative to the coins included in the book 100 Greatest Modern U.S. Coins, which was released early in 2011.

One of the stated goals of 100 Greatest U.S. Modern Coins, the book that I co-authored with Jeff Garrett, was to stimulate discussion and interest in recently released US coinage issues, 1964 to date. We believe that the coins included in the book are of seminal importance to the area of modern coin collecting, yet new information changes our understanding of the coins that constitute the 100 Greatest. The lists looks different at the end of 2011 than it did at the beginning.

Proof 1975 No S Dime

Throughout the years, a handful of proof coins have been struck at San Francisco with the S mintmark omitted in error. All of them appear on the list of 100 Greatest U.S. Modern Coins, with the 1968 No S Roosevelt Dime garnering the number 3 spot. The 1975 dime, although first discovered and reported in 1977, had fallen back into the realm of “unconfirmed” by the time the 100 Greatest was published. Only two examples had been reported and neither had surfaced publicly since 1978, well over 30 years ago. We did mention this coin in the book, of course, during the discussion of the 1970 No S Roosevelt Dime (number 54): “If it does exist, the 1975 No-S dime is one of the great rarities of the 20th century and will assume a vaunted position on the list of 100 Greatest Modern U.S. Coins—likely the number one spot. But until it’s confirmed, it remains off the list.”

Well, in 2011, these two coins re-surfaced and we learned their full history. Both coins were discovered in the late 1970s by a single collector in California. After his discovery was confirmed, he sold both examples to dealer Fred Vollmer in separate transactions. Vollmer then placed them with two collectors in 1980. For 31 years, both coins, the only examples to ever come to light, have remained in their respective collections.

When an example at last sold at public auction in Stack’s-Bowers’ sale on August 18, 2011, it realized $349,600. As previously stated, it certainly deserves a lofty spot on the list of 100 Greatest U.S. Modern Coins.

2007 Frosted Freedom Proof Platinum Eagles

Each year the Mint changes the reverse design of the proof Platinum Eagles. In 2007, the design featured an eagle with outstretched wings behind a shield. Draped across the top of the shield is a banner inscribed with the word FREEDOM. On normal issue pieces, the word appears in mirror-finish, contrasting sharply with the frosted banner. In early 2011, a small number of preproduction strikes were made showing the entire design frosted including the word FREEDOM, thus giving this variety its name.

Mint officials said they had chosen to modify the coin’s design to make the word more readable. A small number of these prototype coins were inadvertently released to collectors. The total number of coins said to be available is as follows: $100 (1 ounce), 12 coins; $50 (1/2 ounce), 21 coins; $25 (1/4 ounce), 21 coins; $10 (1/10 ounce), none produced.

Because Platinum Eagles don’t enjoy the same popularity as some other series of modern coins, like Silver Eagles, and because the variety is a small variation on a one-year design type, this coin will likely never earn the high ranking that its rarity suggests it deserves. Based on those numbers alone, it should be a top 10 coin, but likely it will settle someplace higher. There is one coin that does appear on the list that is similar to these coins: the Cheerios Sacagawea Dollar (number 14). This is also technically a prototype coin that was released publicly.

2010-P Light Finish Grand Canyon 5-Ounce Silver Quarter

The legislation that authorized the America the Beautiful Quarters, the current circulating quarter dollars, included an unusual provision. Three inch versions of each coin, struck in five ounces of pure silver, were also to be produced. The complexity of creating this very novel coin meant that their production was much delayed. The forth issue made for collectors, the 2010 Grand Canyon issue, was actually released in July 2011.

Each of these coins was issued in a bullion version, without mintmark, and a specimen version for collectors was also made with P mintmark for Philadelphia. For each coin in the series, 27,000 pieces were produced. The specimen versions of these coins have a heavy matte or granular finish created by a relatively enigmatic mint process called vapor blasting. Variations in the blasting media or the blasting equipment settings caused the finishes of these coins to vary. In contrast to possessing a heavy granular surface, some examples could be seen with a soft satin finish, dubbed LIGHT FINISH.

It is estimated that a quarter of the mintage exhibits this light finish, around 7,000 pieces — so it’s a scarce item. Since the initial discovery, light finish examples of earlier issues have also been found. As the most widely available piece, the Grand Canyon coin is most apt to be collected in both formats, and likely will garner a spot on the top 100 list. There are no real comparables, as this is the first oversize coinage issues released by the US. Also, the finish variation makes this a rather atypical variety as well. We expect it to rank in the bottom quartile of a future compilation of the 100 Greatest U.S. Modern Coins.

Interestingly, the Mint quickly acknowledged these finish variations as a shortcoming of its equipment. They announced in late July 2011 that new equipment was being installed to ensure greater consistency in these coin’s finishes. Indeed, less variation was seen in the surface finish of the Mount Hood coin released a month after the Grand Canyon issue.

25th Anniversary Silver Eagles

These coins were coveted from the start. The set of five Silver Eagles went on sale at noon on October 27, 2011. Before 5:00 pm they were sold out. What makes the set truly special is that it contains two exclusive pieces, both with mintages limited to 100,000 pieces.

First, is a reverse proof Silver Eagle minted in Philadelphia, similar to the 2006 reverse proof struck to commemorate the 20th anniversary of the series. Reverse proofs have a “backwards” finish with mirrored design elements and frosted fields. Since this is seldom used on US coins, it is an unusual feature that makes these coins very popular with collectors. The 2006 issue is ranked number 11 on the list of 100 Greatest U.S. Modern Coins but it has a mintage of 250,000 pieces, much larger than the 2011 issue. Over time, the 2011-P Reverse Proof Silver Eagle will likely be seen as a more desirable coin and displace the 2006 issue.

Second, is the 2011-S Silver Eagle. It is the first and only uncirculated finish Silver Eagle to bear the “S” mintmark for San Francisco. While bullion issue Silver Eagles have been produced in San Francisco in the past, these were always issued without mintmark. So this coin is the only one of its type and it is limited to just 100,000 pieces.

The 2011-S Silver Eagle is similar in some respects to the Proof 1995-W Silver Eagle, struck to commemorate the 10th anniversary of the Silver Eagle. The 1995-W’s mintage is very limited at just 30,125 pieces, earning it the rank of number 4 on the list. Another similar coin is the Uncirculated 2006-W Silver Eagle. It was the first uncirculated finish Silver Eagle issued with a mintmark and only 466,573 were produced; it’s number 64 on the list. This coin will certainly fall somewhere between the two on a future list of 100 Greatest U.S. Modern Coins.

These are just a few of the discoveries and issues that shaped the year in modern coins. While new developments were inevitable, the significance and number of these events could not have been predicted. Jeff Garrett and I are pleased to contribute to this ongoing dialogue surrounding modern coinage. We hope that the 100 Greatest U.S. Modern Coins assists in providing context to future chapters of this ever unfolding story.

Images courtesy Stack’s Bowers Galleries and Collectors Society.

by Louis Golino for CoinWeek

This is the first of what will be a yearly column in two parts. The first will review the key developments in coins for the previous year and will discuss how I see the coin market developing in the coming year.

The second will provide the same year-end review and outlook for the coming year on precious metals.

I think the coming year may prove to be a strong one for numismatic coins, especially if the economy continues to recover.

Bullion Crowds Out Numismatics

Bullion has dominated the coin market to such an extent in the past year that it has been crowding out the collectible coin market apart from the very high end sector of extremely rare coins.

Many coin buyers had to curtail their purchases because of financial problems during the three years since the 2008 financial crisis. That has resulted in some good buying opportunities to acquire coins that others were forced to liquidate.

I suspect that trend will abate in the coming year, depending on overall economic conditions.

I think many dealers and collectors are ready for a break from the almost constant focus on precious metals. They want to get back to numismatic coins like classic commemoratives and type coins, and this shift, if it occurs, should help drive prices higher.

The January 5-8 FUN show in Florida always sets the tone for the market’s first couple months. Heritage Auctions will hold a major event, which should help spur interest in rare coins. The high-grade collection of St. Gaudens double eagles owned by Dr. Steve Duckor is expected to generate a lot of interest and million-dollar price tags.

2011 U.S. Mint products

In 2011 the Mint released collectible coins at a frenzied pace and gold rose about 15% for the year, which strained collector budgets to the limit.

The 2010 bullion versions of the five-ounce America the Beautiful (ATB) coins and the five-coin 25th anniversary American silver eagle sets generated the most interest.

A number of other 2011 releases have strong potential to increase because of low mintages, and I will discuss these in another article.

The 2010 ATB coins were released in much smaller numbers than expected, and the coins were difficult to obtain during the first couple of months of the year, which drove prices to absurd levels that quickly crashed.

This type of development occurs frequently with modern coins. The high, early prices almost always come down once more coins come to market. It is generally advisable to wait for the market to settle down, as supply and demand factors converge to set a lower price.

It is easy to get caught up in the frenzy of modern issues with low mintages, though there are time when it is best to act sooner rather than later. But the key is to identify those issues that have the best chance of generating sustained interest.

A good example would the 25th anniversary silver eagle sets. Many collectors plan to hold their sets for a long time, and as newer collectors learn about this special set, they will want to add it to their collection, which will help drive demand and prices higher.

2012 U.S. Mint highlights

Highlights of the Mint’s 2012 product offerings, at least based on what is currently known, include silver and gold commemoratives for the Star Spangled Banner and a silver dollar for infantry soldiers; the five 2012 America the Beautiful five-ounce coins, which have very eye-catching designs that may help spur renewed interest in this series; the year’s First Spouse gold coins, which are likely to include more unusually low mintage issues; and the proof Buffalo coin.

The Mint at one point planned to release the first U.S. palladium coin next year, an American palladium eagle with an obverse based on the Mercury dime and a reverse based on a medal designed by Adolph Weinmann. The Mint is apparently still in the process of determining whether there is sufficient demand to produce such a coin.

The Mint will probably continue issuing burnished silver eagles, and it may also issue one ounce burnished American gold eagles, as it did in 2011.

The Mint plans to implement a new ordering system during the second half of the year that will be designed to better handle high-volume ordering periods. It will be interesting to see if this results in even faster sell-outs of high demand, limited edition issues, as the playing field becomes more level.

Native American dollars, which have reverses that change each year will feature a male Indian profile and a horse. Presidential dollars will only be issued for collectors.

Classic coins

There were three major trends in the classic segment of the numismatic market in 2011.

First, premiums on generic, PCGS and NGC-graded pre-1933 gold coins remain very low by historic standards. When gold hit a new all-time high of $1906 on August 22, premiums briefly rose to more normal levels, but they have since retreated and continue to represent good value.

Second, the same trend emerged for generic, common-date slabbed Morgan and Peace dollars in MS63-MS66. When silver approached $50, demand for these coins and retail prices reached levels not seen since the late 1980′s, but they have since retreated to just a little above the levels they were at before silver rose.

Third, as has been the case for some time, it became harder to find decent quality, good eye appeal 19th century coins that have not been graded, especially those with original surfaces.

Astute collectors can still spend a few hours at a major coin show and find coins that fit this bill, but I do not recommend purchasing them from a mail order dealer unless they are a very high end company like Legend or Stack’s, or a company that you trust from experience.

There is just too much polished, cleaned, unattractive material of this kind, especially at mail order companies.

All in all, 2012 promises to be an interesting year for numismatists and coin investors. If bullion resumes its bull run, collectors will have tough decisions to make about which coins they can afford to acquire, and they will worry about losing money if bullion crashes.

Stay tuned to this column, and I will do my best to keep you informed about important developments and significant opportunities in U.S. and world coins and precious metals.

Happy Holidays to all CoinWeek readers

Louis Golino is a coin collector and numismatic writer, whose articles on coins have appeared in Coin World, Numismatic News, and a number of different coin web sites. His column for CoinWeek, “The Coin Analyst,” covers U.S. and world coins and precious metals. He collects U.S. and European coins and is a member of the ANA, PCGS, NGC, and CAC. He has also worked for the U.S. Library of Congress and has been a syndicated columnist and news analyst on international affairs for a wide variety of newspapers and web sites.

IOLA, Wis. (Dec. 19, 2011) – Krause Publications, a leading publisher of coin and paper money books, magazines, and other reference products, has announced the winners of its 2012 Coin of the Year Awards.

Ninety-five coins issued in 2010 by mints worldwide were nominated for the 2012 Coin of the Year Awards, honoring coins displaying the highest achievement in theme, design and marketing from mints and central banks across the globe. Judges picked winners in 10 categories. From these, they will select an overall Coin of the Year winner.

The public will join in the process by selecting a People’s Choice Award winner from a field comprised primarily of the category winners. Visit www.numismaticnews.com to vote.

Topping the first round of COTY voting was the Austrian Mint, with two winners. Its 10 euro Erzberg in Styria piece won in the Best Silver category, while the silver Philharmonic bullion coin beat out the competition to win the Most Popular Coin designation.

The German Federal Ministry of Finance won the Best Contemporary Event Coin for the silver 10 euro celebrating German Unity.

The Royal Canadian Mint won the Most Historically Significant Coin honors with a $100 gold coin commemorating the 400th Anniversary of the Hudson Bay Company.

The Best Gold Coin award went to the Royal Mint for its gold 100 pound London Olympics coin. The Andorra Mint’s 5 dinar silver Brown Bear piece was named Best Crown by the judges.

Taking the title of Most Artistic Coin is the 2 new sheqalim silver coin of the Israel Coins and Medals Corporation for a piece featuring the biblical story of Jonah and the Whale.

San Marino’s first 2 euro circulating coin struck and issued when it joined the euro zone won the Best Trade Coin category.

Winner of Most Innovative Coin honors went to Coin Invest Trust of Lichtenstein for its coin minted on behalf of the Ivory Coast. It is a 1,500 francs CFA silver piece featuring a Mecca Qibla Compass, which stands in relief off the surface of the coin.

Named Most Inspirational Coin is a 20 euro silver piece from the Mint of Finland celebrating children and creativity. This coin is notable because it was the first theme for a Finnish coin selected by public vote, and it was also designed by Roope Määttä, an art student at the Kajaani Upper Secondary School, who describes his design as a reminder to always remember one’s roots.

Judges are set to wrap up their voting in late December while participants voting for the People’s Choice Award will have until early January to cast their online vote. The 2012 COTY Awards will be given February 4, 2012, at the World Money Fair in Berlin, Germany.

The Coin of the Year program is sponsored by Krause Publications’ World Coin News.

About Krause Publications
Krause Publications, based in Iola, Wis., is the world’s largest publisher of leisure-time periodicals and books on collectibles, firearms and knives, automobiles, hunting and construction. Chet Krause, a long-time collector of coins, published the first issue of Numismatic News on Oct. 13, 1952, with nearly 1,000 readers. Today, Krause Publications, owned by F+W Media, offers more than 40 periodicals, 10 hobby shows including the Chicago International Coin Fair and Chicago Paper Money Expo, 750 reference and how-to books, and web properties such as NumisMaster.com, the online coin price database.

by Adrian Ash
BullionVault
Tuesday, 20 December 2011

Cheer up! This permanent state of emergency is doing a wonderful nothing to unwind the bubble…

SO 2012 will mark the fifth anniversary of the global financial crisis. There’s little reason to think it’s reached its end yet. Merry Christmas.

Banking and household leverage in the rich West has barely ticked lower from the credit bubble’s historic peak of 2007. Financial leverage has only been reduced by a fraction, while governments have been stuffed like a French goose with that new debt spurned by the private sector since 2008.

So why this slow, seemingly permanent pain? Because interest rates are still set at zero, with no uptick in sight – an emergency measure that’s now etched in stone. “There is a lot of financial stress out there,” the UK insolvency specialist Begbies Traynor moaned last week. “[But] if it wasn’t for low interest rates the number of insolvencies would have been twice what they are.” Twice as many debtors would have enjoyed a write-down, in short. But do you really think their creditors sleep any better knowing what’s keeping debtors in debt?

The gambit of low rates – first played in mid-2007 and now stuck – comes from studying the Great Depression of 80 years ago. If only the US Federal Reserve had slashed rates to zero, then today’s central bankers could have avoided the deflation of their grandparents. Low teaser rates under Alan Greenspan have thus become permanently low revolving rates under Ben Bernanke. Which is where the mechanics of this depression stands apart from the downturn of, say, 30 years ago.

Back then, central bankers imposed deflation by hiking short-term interest rates towards 20% per year. Today the credit crunch is priced into the weakest balance-sheets only, and in the interbank lending market, where liquidity has vanished again in 2011. Contrast with the early 1980s’ depression, when bond yields badly lagged policy in forcing through the deflation. Ten-year US Treasury yields, for instance, broke into double digits 10 months after the Federal Reserve’s overnight target rate breached that level. It wasn’t until 1983 that the curve reverted to normal, with 10-year bonds offering a higher rate of return than overnight credit held at the Fed.

The impact of this policy-driven deflation? A rise in the Dollar so strong – both in real purchasing and forex conversion terms – that it unwound all of gold’s plunge for non-Dollar investors.

That we’re living through deflation again today is plain, no matter how far the Fed and other central banks string it out. A deflation in credit, asset prices and economic activity. A deflation that doesn’t need shop prices to fall; it’s still “a deterioration of the monetary standard”, this one characterized by volatility as much as deleveraging, but also squeezing debtors every time the Dollar rises.

That in turn is squeezing creditors, of course, now terrified of default and writedowns but so far spared the actual pain. The worst of all possible worlds results. No new investment, because lenders won’t lend and debtors won’t borrow. No write-down or write-off of existing debt, lugging a permanent drag onto economic activity. And meantime the Dollar remains money the world over, proving last decade’s Cassandras early, wrong or just stupid.

Call me all three if you like; the last thing the world wanted pre-2007 or today is a rising Dollar. Not the US, China, Europe or anyone else. So just to screw the most people the most, that’s what we keep getting. But only in fits and starts. Which like the wonderful nothing achieved by zero interest rates, might just be the very worst we could ask.

Plenty of chart analysts and media hacks will tell you today that the price of gold just broke below its 200-day moving average. The smarter ones will add that it fell through the uptrend starting with the great deflation of Lehman’s collapse, too. But only in US Dollar terms, we note here at BullionVault.

Look at gold ex-the Dollar – as our bright orange line does above. The Dollar devaluation, forced through by Ben Bernanke cutting in line and slashing rates faster than anyone else in 2007-2008, worked such magic that non-Dollar investors are now – to date – wearing a much shallower top-and-drop pattern in gold so far.

This might matter. Because gold has outperformed all other assets (and very nearly all mutual and hedge funds too) since the eve of this crisis. Most people thank the inflationary response of central banks everywhere. A handful think gold’s rise might instead be due to bullion offering the perfect deflation escape – a route to extricating yourself from the debtor/creditor relationship underpinning the vast bulk of alternative homes for your savings.

Either way, a Dollar rally is rarely good for the gold price. And no one, least of all the Bernanke Fed, wants to allow a persistent Dollar rally on their watch either.

Adrian Ash
BullionVault

Formerly City correspondent for The Daily Reckoning in London and head of editorial at the UK’s leading financial advisory for private investors, Adrian Ash is head of research at BullionVault – winner of the Queen’s Award for Enterprise Innovation, 2009 and now backed by the World Gold Council market-development and research body – where you can buy gold today vaulted in Zurich on $3 spreads and 0.8% dealing fees.

(c) BullionVault 2011

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

By Doug Winter – RareGoldCoins.com
CoinWeek Content Partner

To my way of thinking, early gold coins (i.e., those struck prior to 1834) and among the most collectible and interesting areas in all of American numismatics.

No, these coins aren’t cheap and they are, in reality, somewhat overvalued when you compare them to many mid-19th century Liberty Head issues. But there is a pride-of-ownership factor associated with owning a 200 year old gold coin that you get from nothing else.

1. An Overview

When we refer to “early gold,” this typically includes quarter eagles, half eagles and eagles produced at the Philadelphia mint from 1795 through 1834. I’d also like to include the Classic Head coinage of 1834-1838 as these pieces are more affordable and this article will then be of greater relevance as it will cover a more broad scope of collecting budgets.

The various types of early gold are as follows:

Quarter Eagle: No Stars on Obverse, 1796 only
Quarter Eagle: Capped Bust Right, 1796-1807
Quarter Eagle: Capped Bust Left, 1808 only
Quarter Eagle: Capped Head Left Large Size: 1821-1827
Quarter Eagle: Capped Head Left Reduced Size: 1829-1834
Quarter Eagle: Classic Head, 1834-1838

Half Eagle: Capped Bust Right, Small Eagle, 1795-1798
Half Eagle: Capped Bust Right, Heraldic Eagle, 1795-1807
Half Eagle: Capped Bust Left, 1807-1812
Half Eagle: Capped Head Left Large Size, 1813-1829
Half Eagle: Capped Head Left Reduced Size, 1829-1834
Half Eagle: Classic Head, 1834-1838

Eagle: Capped Bust Right, Small Eagle, 1795-1797
Eagle: Capped Bust Right, Heraldic Eagle, 1797-1804

The total number of types that most collectors pursue are fourteen. This includes six each of the quarter eagle and half eagle, and two eagles.

The rarest and most expensive of the individual types are the 1796 No Stars and 1808 quarter eagles, and the 1829-1834 Capped Head Left, Reduced Size half eagle.

For each of these three types, “entry level” coins will approach six figures and choice, significant pieces can run into the mid-six figures.

2. What to Buy to Get Started

Before you begin an early gold collection, I think its a good idea to spend $500-1,000 putting together a library of reference works.

The best book for new collectors is the Bass/Dannreuther reference that is published by Whitman. While it is oriented more towards die varieties than general collecting, it is still an extremely useful book.

I have written some good general articles on collecting early gold and these can be found in both the “articles” and “market reports” section of my website.

There are not many other books that deal specifically with early gold. The Akers books on United States gold coins are out-of-date but still of use. And the Harry Bass Research Foundation website (hbrf.org) has wonderful images of extremely choice gold coins in all three denominations, including extremely rare Proofs and specimen strikes.

One of the best sources of information for collectors of early gold are auction catalogs. Some of the sales held during the last few decades that had very strong holdings of early gold include Eliasberg (1982), Norweb, Bass, Keston, the “Apostrophe” sales, Archdiocese of Buffalo, Ed Price and many of the Heritage FUN and ANA Platinum night sessions. Do a search on the web for coin book dealers (there are a number of good ones) and ask for their help in putting together a nice group of 15-20 catalogs that are essential additions to any early gold library.

3. Deciding What to Collect

After you’ve decided to collect early gold, your next question is what direction is your collection going to take.

Basically, there are two paths that a new collector can take: collecting by type or specializing in a specific series and collecting by date. The path you take will depend on your budget.

Collecting early gold coins by date is ambitious (to say the least) due to the number of very rare coins in each of the three denomination. A date collection can be modified and made less expensive by deciding to collect only by date and not by variety. As an example, a collector working on early quarter eagles might opt to purchase only an 1804 with 14 stars on the reverse due to the fact that the 13 star variety is very rare and very expensive.

The decision to collect early gold is, of course, predicated on a collector’s budget. If the collector has a reasonably modest budget, my suggestion would be to focus on the half eagles struck between 1800 and 1812 in the Extremely Fine and About Uncirculated grade range. This is a great date run as there are no rare issues (except for varieties) and every coin will be available in the $7,500-12,500 range depending on grade.

If a collector has a healthy budget available, the possibilities are almost limitless. A high quality type set, featuring one example each of the fourteen issues listed above, would be challenging and numismatically significant.

Two sets that I have been able to work on for clients are date runs of quarter eagles from 1796 to 1834 and Capped Head Left half eagles from 1813 to 1829. These are both truly challenging. There is a tremendous amount of subtle strategizing inherent in both sets as they include many issues that might come up for sale once every three to five years. It can be hard to figure out what to pay for a very rare date whose last auction record was as much as a decade ago!

4. Where to Buy

As a collector you have two options on where to purchase your early gold coins: from a specialist dealer or at auction. As a dealer who specializes in early gold, I obviously would suggest that you buy from me, but the answer is not so cut and dry.

Early gold can be quite complex to collect. Many early gold coins have been cleaned or “doctored” and it takes an expert to determine which are nice for the grade and which are average. This is an area that a collector would be smart to deal with a specialist and he will need to do some research into who he should buy from, as there are only a handful of United States coin dealers who really know the intricacies of the early gold market.

Certain very rare early gold coins are almost never offered for sale except at auction, so the auction market is always going to be a factor for the collector. I suggest hiring a dealer and paying him a standard 5% fee for viewing and executing bids.

Be forewarned that you are never going to buy a good coin “cheaply” at auction. Auctions are best used to pursue very rare coins or very high grade coins. They may not be the best source for more run-of-the-mill pieces (and I am not saying this in a derogatory sense) which a specialist dealer will have access to at more reasonable prices.

Some auctions are great sources for early gold coins because they offer pieces with impressive pedigrees. I am an advocate of buying early gold with strong provenance when possible and, for better or worse, many such coins wind-up in auctions. I know of at least a few collectors who are as interested in early gold coins with pedigrees and they are in the coins themselves. They would consider buying a duplicate or even a triplicate of an issue they already own because it has a great pedigree.

5. CAC or non-CAC?

There are areas of the rare coin market that CAC has made strong inroads on and others where it has had little or no impact. In my opinion, early gold is an area where CAC has made a very strong impact. CAC typically rewards originality and as the vast majority of early gold coins aren’t original, CAC examples are often selling for premiums that range from 5% to 20%.

I think the early gold coins that are most impacted by CAC approval are common date pieces in higher grades. So many of the Capped Bust Right and Capped Bust Left half eagles that I see in MS63 to MS65 holders have been played-around with that I think a CAC stickered coin is an important purchase for the inexperienced collector.

I think CAC stickers are not as important on very rare early gold coins and more common issues in lower grades.

If you are looking at an early gold coin with a total population of a few dozen coins, you are not able to be as selective as with an issue which has hundreds of coins surviving. While I would never suggest buying a very rare early gold coin with problems (such as damage, signs of harsh cleaning, repairs, etc) I would (and will continue to) buy a coin like an 1804 14 star reverse quarter eagle or a half eagle from the mid-1820′s that was decent-looking but not nice enough to be approved by CAC.

I also note less of a premium being given to less expensive early gold coins with CAC approval but I wouldn’t be surprised if this changes as buyers of these coins are becoming more sophisticated and want nicer quality pieces.

6. Value Plays/Best Value Grades

Every collector wants to buy coins that are good value. Collectors of early gold are no different. There are some issues that I think are very good values. (important note: I think that any properly graded, choice early gold coin with natural surfaces is a good value but the following list are coins that are the best values).

Virtually all pre-1834 quarter eagles are rare and until a few years ago, they were priced at levels similar to the far more available half eagles of this era. This isn’t the case anymore and a nice example of a reasonably available date of the Capped Right design (such as the 1802, 1805 or 1807) is now a $15,000-20,000 coin.

Early quarter eagles that I find to be undervalued include the 1798 (the only relatively affordable 18th century issue) and the 1806/4.

I like the Capped Head Left type of 1821-1827 and find this to be the most undervalued early quarter eagle type. Survival rates tend to be low and the five issues of this design are often overlooked. My two favorite dates of this type are the 1821 and the 1826/5.

There are so many early half eagles that I feel are undervalued that instead of listing them by date and discussing them, I’m going to focus on “best value grades” instead.

For circulated coins, I like AU55 and AU58 grades. An early half eagle graded AU55 to AU58 is going to show minimal wear and have a decent amount of remaining luster. There isn’t a huge price spread between an AU50 and an AU58 common date early half eagle (the spread right now is a few thousand dollars at most) and if you are collecting half eagles by type, it makes sense to me to go for an AU55 or AU58.

In the Uncircuated grades, I tend to shy away from MS60 and MS61 coins (which are often “rubby”) and stick with MS62′s which, for the most part, are actually “new.”

For type collectors with higher budgets, a nice MS64 early half eagle typically makes more sense to me than an MS65 at multiples of the price. The last few common date early half eagles that I have sold in MS64CAC have been nicer than some of the low-end MS65 non-CAC coins that I’ve seen offered at auction.

Since there are not many early eagles, there are few coins that I regard as undervalued. Among the common dates, I actually prefer the 1799 to the 1801 or the 1803 given its 18th century origin.

7. Let’s Not Forget Classic Heads….

I mentioned at the beginning of this article that I wasn’t going to overlook the Classic Head quarter eagles and half eagles. These designs were produced from 1834 to 1838 at the Philadelphia, Charlotte and Dahlonega and New Orleans mints. The branch mint issues include the 1838-C, 1839-C, 1839-D and 1839-O quarter eagles as well as the 1838-C and 1838-D half eagles.

The great thing about Classic Head gold is its affordability. As an example, I just sold an absolutely beautiful 1834 Classic Head half eagle graded AU55 by PCGS and approved by PCGS for just a touch over $2,000. Nice examples of most of the Philadelphia quarter eagles and half eagles of this type can be obtained for $2,000-4,000. Even Uncirculated examples, at least in MS60 to MS62, are not out of the price range of most early gold collectors.

I would suggest that if you are purchasing a Classic Head gold coin for type purposes that you be extremely selective. These coins are not rare and really nice examples can be found with patience. Pay a little extra for original coins with great color and, if possible, buy a slightly better date like an 1837 quarter eagle or an 1836 half eagle for just a small premium over the common 1834.

Classic Head gold can be collected in a number of different ways. You can buy just two coins and have a complete type set, or you can buy eleven coins and have complete year sets of both denominations. The addition of the branch mint issues will add some cost to a Classic Head collection, but these issues are still affordable in the EF40 to AU50 grade range.

8. Some Final Words

Its hard to convey in 2000~ words the ins and outs of collecting early gold coins, but hopefully this article will serve as motivation to become involved in an aspect of the hobby that I find fascinating. If you have any specific questions about early gold, please feel free to contact me via email at dwn@ont.com and I will do my best to answer them.