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To Order Call
1-585-589-1803 |
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Gold
Denominations, History & Investment Point of View |
Throughout
history gold has motivated empires; it has been the downfall
and rise to power for Kings, Emperor’s and Dictators
as long as man has walked the earth. It has a magical
lure within its surfaces that captivates humans and draws
them into another world, a world of power and beauty.
The first coins ever to be recorded on earth were gold
and silver denominational coinage minted by the Lydian’s
around 600 BC. The Lydian coin pictured below, called
a third stater (or trite) but perhaps the largest denomination
of its type and without question the most common. This
coin was minted around 600 BC in Lydia, Asia Minor (current-day
Turkey), a country in close proximity to both the civilizations
of Mesopotamia, from which ideas about money and much
else originated, and the Greek colonies in Asia Minor,
through which ideas about coinage and much else spread.
The techniques were quickly copied and further refined
by the Greek, Persian, Macedonian, and later the Roman
empires. Unlike Chinese coins which depended on base metals,
these new coins were made from precious metals such as
silver, bronze, and gold, which had more inherent value.
World's
First Coin: |
The
Lydian Lion |
|
The above coin is smaller
in diameter than U.S. half dime but is thick as a pebble
and weighs almost as much as a U.S. quarter. It's made
of electrum, an alloy of gold and silver called "white
gold" in ancient times (50-60 percent gold with these
coins). At the time of its minting, it may have been worth
about a month's subsistence, a sizeable chunk of change.
The above coin is a more refined and more attractively
rendered variety of the same type minted a decade earlier.
One of the many fascinating aspects of this coin is the
mysterious sunburst above the lion's eye.
The Lydian’s invented
a way to verify if gold was pure or not, they used a black
stone that was like jasper and later became known as the
touchstone. The goldsmiths would rub the gold object against
a set of 24 needles containing varying amounts of the
3 metals: gold, silver, and copper. The 24th needle of
course was pure gold, thus creating the system to show
that 24 carats is pure gold, (carat is a word derived
from the Greek word Keration.)
In modern
times now coins have become their own world, a world of
collecting, investing and obsession. With the instability
of the stock market which has proven so throughout history,
people are finding that rare certified coins are the place
to diversify into, a place that is stable and proven so
due to the consistency of high prices being paid and the
amount of people that actually purchase coins: That fact
alone shows the demand for consumers is solid, and the
amount of people buying coins out number the amount of
rare coins that truly exist. People who collect original
art paintings, early Americana antiques, and just historic
objects all around are finding Rare American Gold certified
coins are as beautiful, scarce and valuable as all mentioned
above.
To think of the skill it took to hand engrave the design
on those little planchets is mind blowing.
The mint
says at least 140 million Americans collect coins, which
are up 125 million from only 2 years ago, that shows you
were this is all going! Up, up and up….
In 2003
we sold for a record price the 1804 $10 Plain 4 Proof
specimen in PF64 Cameo for $998,475.00. This was a coin
I’ve had a few people tell me wasn’t worth
seven digits. Only 2 years later, I sold this for $2+
million dollars because I believed in the coin and I knew
its story and beauty. We had it on display at the Smithsonian
Institution Castle in Washington D.C. and that night we
were offered a $1 million dollar profit that we turned
down for our client, a month later I was offered a $2
million dollar profit in which we turned down for our
client. The reason being is our client loves this coin
and bought it strictly for his personal museum and money
will not persuade him in any way to sell it, also this
coin is worth more than the 1804 Silver Dollar and I’ll
tell you why: The story is the same and even more mysterious,
the appearance is way more beautiful, and the rarity is
by far greater being only 4 minted, and I’ve viewed
3 of them with this being the best of the best, it also
upgraded to a PF65 Ultra Cameo Star designation. Another
great rarity we sold was the 1838 $10 Proof Eagle in PR65,
the King Farouk specimen. We sold that for a record at
over $700k and two years later selling it for nearly $2
million dollars. Another treasure we just sold which is
not a proof coin, but a definite rarity museum piece was
a 1799 $10 Capped Bust Eagle MS64 NGC, a coin with proof
like surfaces giving me the sure impression it was the
first off the dies. This coin was sold at $104k, a price
that to me seems super cheap for this example; this is
a coin that will definitely be worth over $200k in the
next couple years. Examples like these don’t come
around often but when they do it seems they come off the
market even faster.
The
1804 $10 Plain 4 Proof Cameo |
|
|
You
will see I have broken down each denomination for U.S. Gold
coinage and given facts and stats showing an investment
point of view for each...
In 1792
the world price per troy ounce for gold was $19.39 and most
all of the coins circulating within the United States were
foreign coinage, being mostly gold from Europe. 45 years
later in 1837 the price was set again for gold per troy
ounce at $20.67 and 12 years later in 1849 the Gold dollar
denomination was created by the Act of March 3, 1849. The
first type minted in 1849 lasted until 1854.
| Type
1 Liberty Head 1849-1854: |
| Total mintage for business
strikes: 12,565,543 |
| Total mintage for proofs:
0 |
| Type
2 Indian Princess small head 1854-1856: |
| Total mintage for business
strikes: 1,633,426 |
| Total mintage for proofs:
20 |
| Type
3 Indian Princess large head: 1856-1889 |
| Total mintage for business
strikes: 5,336,074 |
| Total mintage for proofs:
8,706 |
Investment
point of view for Gold dollars:
I would have
to say if I chose to invest or collect Gold dollar denominational
coins it would be the Proof coins. The reason is because
it just seems the smaller the coin the harder it is to sell
for profit, but with the Proof coins it is like night and
day when it comes to beauty, the mirrors and frostiness
of the coin make it very intriguing. Also some other good
facts to know are the total known certified by each company
for the Proof dates, PCGS has certified only 758 coins and
NGC 835 – Totaling between both 1,593 and this number
is considerably lower due to re submissions, and crack outs.
So in the big picture Proof Gold dollars are very scarce
and as long as new collectors/investors are being educated
and coming into the coin industry they will bring demand
for these tiny little treasures. On a scale of 1-10 with
10 being the highest recommendation from me for investing
into Proof Gold dollar I would give these a number 6.
Some
stand out Proof Gold Dollar dates we’ve bought and
sold:
1861 PF67 NGC - (pop 1/0 finest known) mintage of 349
1874 PR65 PCGS - (pop 1/0 finest known) mintage of only
20 coins!
1878 Type 3 PF65 Ultra Cameo NGC - (pop 1/3) mintage of
only 20 coins!
|
|
Quarter
eagles were authorized after the coin act of April 2, 1792.
The $2.5 Quarter eagle had 7 different designs the first
bearing the date 1796 having the unique looking Turban head,
(or Capped bust to right) and the last dated 1929 being
the Indian head design (1908-1929).
| Capped
Bust to right (Turban Head) 1796-1807 |
| Total mintage for business
strikes: 19,460 |
| Total mintage for proofs:
0 |
| Capped
Bust to left, 1808-1834 |
| Total mintage for business
strikes: 44,775 |
| Total mintage for proofs:
80 |
| Classic
head 1834-1839 |
| Total mintage for business
strikes: 968,228 |
| Total mintage for proofs:
50 |
| Coronet
type (Liberty) 1840-1907 |
| Total mintage for business
strikes: 11,905,771 |
| Total mintage for proofs:
4447 |
| Indian
Head 1908-1929 |
| Total mintage for business
strikes: 7,250,261 |
| Total mintage for proofs:
1,827 |
Investment
point of view for Quarter Eagles:
Quarter eagles are definitely
an interesting series of coins to study; the history goes
back all the way to 1700’s making it a true classic
coin. Investing in these coins is very well worth it when
you are able to find the early business strike coins (being
anything dated pre 1834, these are super rare in any grade.)
The early Proof specimens are terrific (if you can find
them.) For instance, PCGS has graded only 14 Proof coins
(from 1821-1834) and NGC 6 – That’s only 20
coins total – In MS64 and higher PCGS has graded only
63 coins and NGC 75 totaling only 138 coins designated MS64
and higher for 1796-1834, these are excellent investment
pieces with huge upside potential. So if I were to collect/invest
Quarter Eagles it would be 1796-1834 MS64 and higher business
strike coins, and or Poof specimens dated 1821-1839 for
the scarcity factor. The Liberty series are absolutely beautiful
coins in Proof and there are definitely some scarce dates
also – On the scale of 1-10 I would give Quarter Eagles
a 7 when buying the right pieces.
Some
stand out Quarter Eagle dates we’ve bought and sold:
1796 “stars” AU58 NGC – Mintage of 1,368
1833 PR66 PCGS – Mintage of only 10 (POP 1/0 which
is the only one certified by PCGS and there is only 1 graded
by NGC also)
1837 PR66DCAM PCGS – Mintage of only 10 (the only
one certified by PCGS or NGC)
1848 PR64 PCGS – Mintage of only 5 – Only two
exist with one in the Smithsonian
1877 PF67 Cameo NGC – Mintage of 120 (POP 2/0 only
11 certified between both PCGS and NGC)
1882 PF68 Ultra Cameo NGC – Mintage of 67 (pop 2/0)
1891 PR65 PCGS – Mintage of 80 (POP 8/1)
1899 PF67 Ultra Cameo NGC – Mintage of 150 (POP 9/6)
1899 PR68 PCGS – Mintage of 105 (POP 1/0)
1913 Matte PF67 NGC – Mintage of 165 (9/2)
|
On February 21, 1853 the Act
was authorized to start the minting of the Three dollar
gold pieces. This coin never was very famous among the public
after the first coin was struck in 1854. The $3 gold piece
was sometimes called the “rich mans three-cent piece”.
It was originally used to purchase sheets of 100 postage
stamps at a time. From 1854 through 1889 (when postage rates
rose) the $3 Gold piece was struck.
| Three
Dollar Indian Princess 1854-1889 |
| Total mintage for
business strikes: 539,882 |
| Total mintage for
proofs: 2,058 |
Investment
point of view for Three Dollar Gold:
A wonderful
and wise series to accumulate for investing, a very tough
area to find also and complete, so just to own a few gorgeous
examples is all you really need when doing a Gold collection
proof or unc. The average price you can expect to pay for
a Gem (MS65) business strike piece is between $30k - $45k,
under MS65 in UNC condition you can look to pay between
$8,000 and $15,000 depending on eye appeal and grading service.
For Proofs, you will be paying quite a bit more in gem condition
you won’t touch a nice example under $40k. This is
a series of certain upward potential, and one of my favorites
for its uniqueness. We handled the greatest Proof $3 date
there is which is 1875 in 2003, this was a PF64 Cameo example
where we sold it for $92,500, this past year we resold it
for $135k, and I see in the American Numismatic Rarities,
LLC “New York Connoisseur’s Collection March
14-15 2006 the same example brought over $200,000.00. Investors
might think to themselves, “Has the market peaked”?
My answer is, no it has not. The reason is because there
are more and more investors coming into this everyday and
the amount of “rare coins” out there does not
match the number of buyers which is way more so in return
the prices are going to sky rocket I see over the next couple
years before it flattens out at all. On the scale I give
$3 gold the big number 8!
Some stand out
Three Dollar gold dates we’ve bought and sold:
1874 PR65 PCGS – Mintage of only 20 PCGS pop of 4/0
1875 PF64 Cameo NGC Mintage of only 20 also Proof only date
– NGC pop 3/1
1879 PR65 PCGS – Mintage of 30 pop 1/0
1881 PF67 Ultra Cameo NGC – POP 1/0 Mintage of 60?
1884 PR67 DCAM PCGS - Mintage of 106 pop 2/0
1889 PR66 PCGS - Mintage of 129 pop 3/0
|
John
A. Kasson who was America’s minister to Austria at
the time was the man who proposed the idea to start the
minting of the $4 gold denominations with the main reasoning
for European’s to use which would be so much easier
because of the Metric system. As it turned out Congress
became interested and so Chief Engraver (at the time) Charles
E. Barber started the preparations for the obverse and reverse
of what would be the “Flowing Hair design” Stella
pattern piece. The coiled hair design was created by George
Morgan, and altogether there were 4 four varieties made,
1879 Coiled (being the rarest and most valued with a mintage
of only 10) and Flowing hair (Flowing hair being the most
common of the 4 being between 300-400 known survivors),
1880 Coiled (also scarce with only a mintage of 10) and
the Flowing with a mintage of only 15.
| Four
Dollar Stella 1879-1880 |
| Total mintage for
business strikes: 0 |
| Total mintage for
proofs: 460 |
Investment
point of view for Four Dollar Gold:
It seems these
are always a good buy if you can find them. The 1879 Flowing
Hair seems to be on the open market quite a bit and any
given time, but also that has an upside with little risk
if any. Being Patterns they are collected / invested with
the respect of regular issues. Their beauty is truly unmatched
(for smaller denominations) when gazing upon an ultra cameo,
the star on the reverse (which is why it was named Stella)
gives it the uniqueness that is above all others I feel.
When buying these coins in PR62-65 I feel you have the upside
to sleep good at night knowing you made a wise investment.
Buying higher grades in these coins (Flowing Hair) you will
have to hold onto longer unless you know of someone putting
together the finest known and high graded Proof Pattern
pieces. On the scale I give these treasures an 8 because
of the rarity, and beauty.
Some stand out Four dollar gold Stella dates we’ve
bought and sold:
1879 Coiled Hair PF67 Cameo NGC – Mintage of 10 4/0
|
This was the first gold denomination
to be minted and the year was 1795 starting with Turban
Head series with the reverse of a Plain Eagle (or small
Eagle) lasting only 3 years with a tiny mintage of 18,512
for all years combined which is smallest of all 9 verities.
Although the Turban Head small eagle was not supposed to
be used on the 1798 issues, some do exits because of being
struck with leftover dies from the previous types, these
are very rare. The man responsible for the design was Robert
Scot. Half Eagles were struck every year through 1929 except
1801 due to all the gold deposits delivered to the mint
being used for the minting of Eagles ($10).
| Turban
Head, Plain Eagle Rev. Half Eagle 1795-1798 |
| Total mintage for
business strikes: 18,512 |
| Total mintage for
proofs: 0 |
| Turban
Head, Heraldic Eagle Rev. Half Eagle 1795-1807 |
| Total mintage for
business strikes: 18,512 |
| Total mintage for
proofs: 0 |
| Capped
Bust, Lg. Head Half Eagle 1807-1812 |
| Total mintage for
business strikes: 399,013 |
| Total mintage for
proofs: 0 |
| Capped
Bust, Small Head Half Eagle 1813-1829 |
| Total mintage for
business strikes: 717,409 |
| Total mintage for
proofs: 5 |
| Capped
Bust, Small Head reduced diameter Half Eagle 1829-1834 |
| Total mintage for
business strikes: 668,203 |
| Total mintage for
proofs: 24 |
| Classic
Head Half Eagle 1834-1838 |
| Total mintage for
business strikes: 2,113,612 |
| Total mintage for
proofs: 50 |
| Liberty,
“no motto” Half Eagle 1839-1866 |
| Total mintage for
business strikes: 9,114,049 |
| Total mintage for
proofs: 408 |
| Liberty,
“motto” Half Eagle 1866-1908 |
| Total mintage for
business strikes: 51,503,654 |
| Total mintage for
proofs: 2,938 |
| Indian
Head Half Eagle 1908-1929 |
| Total mintage for
business strikes: 14,078,066 |
| Total mintage for
proofs: 1,077 |
Investment point
of view for Half Eagle Gold:
We’re getting to be bigger in size
and that always helps it seems! Half Eagles when buying
(if you can find one) in early dates can never be a bad
choice, there just are not a lot of them out there and they
are all good investments. In MS60-MS61 for dates between
1795-1807 you have to be ready to spend anywhere between
$20k-$100k – That should tell you enough. On the scale
I give early business strike Half Eagles an 8 – Proof
Gold Half Eagles I give an 8 also.
Some stand
out Half Eagle dates we’ve bought and sold:
1795 “small eagle” MS61 NGC – Mintage
of 8,707
1836 Classic Head PF67 NGC – 3 known
1863 Liberty "no motto" PR64 PCGS – Mintage
of 30
1863 Liberty “no motto” PR65DCAM PCGS –
Mintage of 30
1867 PF65 Ultra Cameo NGC – Mintage of 50 - POP 1/0
finest known
1874 PR65 PCGS – Mintage of 20 – POP 1/0 finest
known
1882 PR65 PCGS – Mintage of 48 – POP 2/0
1887 PR64 PCGS – Proof only date mintage of 87
1895 PF66 Cameo NGC – Mintage of 81 – POP 1/0
finest known
|
The
Eagle denomination was the primary piece for all gold to
standardize after, that is why they called it the Eagle
and making all other Gold denominations stem from that (Half
Eagle, Quarter Eagle, Double Eagle) – Congress actually
established the U.S. Coinage system on August 8, 1786 (9
years prior to the minting of the Eagle) and decided the
Eagle would be the largest denomination (holding 246.268
grains of pure gold). The idea dragged on along with the
minting of the Half Eagle and obviously no coins were minted
for 9 more years. Up until 1849 the Eagle was the largest
of the “gold” denominations to exist, where
at that time of course the Double Eagle ($20) appeared.
In 1795 they were issued and the first delivery of 400 coins
because of the story that was passed down of how George
Washington wanted the minting of Eagles to take place before
his term was over, hence the director of the mint Henry
DeSaussure was supposed to have handed President Washington
100 specimens with some being Proof Like showing they were
presentation pieces. Eagle’s first appearance was
actually short lived being minted from the years 1795-1804
whereas that time Silver Dollars and Gold Eagles were halted
until 1838.
| Turban
Head, Plain Eagle Rev. Eagle 1795-1797 |
| Total mintage for business
strikes: 13,344 |
| Total mintage for proofs:
0 |
| Turban
Head, Heraldic Eagle Rev. Half Eagle 1797-1804 |
| Total mintage for business
strikes: 119,248 |
| Total mintage for proofs:
4 |
| Liberty
Head, No motto large letters on reverse 1838-1839 |
| Total mintage for business
strikes: 33,001 |
| Total mintage for proofs:
10 |
| Liberty
Head, No motto small letters on reverse 1838-1866 |
| Total mintage for business
strikes: 5,259,498 |
| Total mintage for proofs:
369 |
| Liberty
Head, motto 1866-1907 |
| Total mintage for business
strikes: 37,391,767 |
| Total mintage for proofs:
2,327 |
| Indian
Head, Wire Edge 1907 |
| Total mintage for business
strikes: 470 |
| Total mintage for proofs:
0 |
Indian
Head, Rolled Edge 1907 |
| Total mintage for business
strikes: 50 |
| Total mintage for proofs:
Unknown |
| Indian
Head, No motto 1907-1908 |
| Total mintage for business
strikes: 483,448 |
| Total mintage for proofs:
0 |
| Indian
Head with motto 1908-1933 |
| Total mintage for business
strikes: 14,385,139 |
| Total mintage for proofs:
768 |
Investment
point of view for Eagle Gold:
You can’t go wrong going
into the coin hobby with the idea that Eagles are the best.
All $10 pieces as long as they are graded correctly and
have fabulous eye appeal are good buys, the early years
up through Liberty’s are definitely investment pieces,
Indians also are great investment pieces, but the crowd
buying those are a lot less broad. Proof Eagles are simply
blowing everyone’s mind with what prices are brining
now, and it should be that way considering the rarities
for these treasures. We’ve basically made the market
for Proof Gold single handed, and for Eagles, we’ve
set record prices and stabilized the market for confidence.
We have the collectors to prove so, there are more people
than you would think that are buying what they can when
it comes to Proof Eagle’s. Proof 64’s (cameo
and deep cameo) that were buyable between $60-70k are now
at the $90-100k+ mark – Higher grades and rarer dates
have jumped in just the last quarter over 60% - Why and
how? Easy, there are not enough to go around, you have to
view these as rare paintings and American historic art/antiquities.
For our creditably on Proof Eagles, we’ve handled
the best of the best 2 times – The 1804 plain four,
a coin I originally sold for $1,000,000 and sold again 3
years later for over $2 million – This coin is worth
a lot more then this now also considering the 1804 Silver
dollar (finest known) sold for over $4 million – A
coin that is not nearly as beautiful or as rare!
On the scale for Eagles, Proof and business strike (early
dated) I give these the big 10.
Some
stand out Eagle dates we’ve bought and sold:
1799 Capped Bust MS64
NGC – 760 known this was Proof like!
1801 Turban Head MS62 NGC – Mintage of 44,344
1804 PF65* Ultra Cameo NGC – Mintage of 4
1838 Liberty PR65 PCGS – Mintage of 4
1846 Liberty PF64 Cameo – Estimated at 5 minted
1863 Liberty PR64DCAM PCGS – Mintage of 30
1867 Liberty PR64DCAM PCGS – Mintage of 50
1880 Liberty PF66 Ultra Cameo NGC – Mintage of 36
1881 Liberty P66 Ultra Cameo NGC – Mintage of 40
1882 Liberty PR65CAM PCGS – Mintage of 40
1891 Liberty PR65DCAM PCGS – Mintage of 48
1897 Liberty PR64DCAM PCGS – Mintage of 69
1900 Liberty PR65 PCGS – Mintage of 120
|
Originally
in the mint act of 1792 $20 pieces (double eagles) were
not even considered due to the small amount of gold deposits
our Government had, and the fact that twenty dollars was
more than one weeks wage for most workers in America at
the time. All of that changed in 1848 when our nation found
the discovery of massive Gold deposits in California along
the American river in what was called the race of Sutter’s
mill because of that event we were able to convert almost
immediately all the gold into money. And so by the act of
Congress on March 3, 1849 the “double eagle”
was issued. A coin with a historic significance that would
stand the test of time showing beauty, holding stories of
mysteries and myth with lies of rarity bringing in Organized
Crime into the picture in the late 20th century. This is
a denomination of true uniqueness, true beauty and passion
for collectors of all breed. And to say a piece of Proof
Gold that is of the Liberty series is not beautiful is to
say a true lie, for it is the most breathtaking piece in
existence.
| Liberty,
No motto 1849-1866 |
| Total mintage for
business strikes: 23,526,677 |
| Total mintage for
proofs: 345 |
| Liberty,
motto 1866-1907 |
| Total mintage for
business strikes: 80,298,235 |
| Total mintage for
proofs: 2,761 |
| Saint-Gaudens,
High Relief 1907 |
| Total mintage for
business strikes: 12,867 |
| Total mintage for
proofs: between 40-50 for all (Ultra, and regular) |
| Saint-Gaudens,
Arabic numerals, no motto 1907-1908 |
| Total mintage for
business strikes: 5,296,968 |
| Total mintage for
proofs: 0 |
| Saint-Gaudens,
Arabic numerals, motto 1908-1933 |
| Total mintage for
business strikes: 64,981,428 |
| Total mintage for
proofs: 687 |
Investment
point of view for Double Eagle Gold:
To put together
a full date, or mintmark set of Double eagles is nearly
impossible due to the scarcity of certain dates. You can
collect these by variety over some time though, buying examples
of no motto Liberty’s, motto Liberty’s, a High
Relief, and no motto specimen, then a motto specimen. Coming
into this with an investors/collectors mentality, the way
to go is Proof Double Eagles, and the reason is simple “beauty,
and rarity!” There is by far no chance of getting
hurt when buying the correct piece of Proof Gold that is
a double eagle; as long as it is true to the grade given
and the eye appeal is spectacular you will be able to sleep
at night knowing you did well. Over the years we have handled
some truly amazing pieces, from an Ultra High Relief to
a handful of SUPER rare Liberty proofs. Anyone that has
come back to sell these we have no problems making profits
for the client, and on the scale I definitely give this
true American treasure a fat 10!
Some stand
out Double Eagle dates we’ve bought and sold:
1865 Liberty PF66 Cameo
NGC – Mintage of 25
1869 Liberty PR66 PCGS – Mintage of 25
1878 Liberty PF64 Ultra Cameo NGC – Mintage of 20
1878 Liberty PR64DCAM PCGS – Mintage of 20
1881 Liberty PF66 Ultra Cameo NGC – Mintage of 61
1882 Liberty PF64 Ultra Cameo NGC – Mintage of 59
1885 Liberty PF67 Cameo NGC – Mintage of 77
1897 Liberty PF65 Cameo NGC – Mintage of 86
1899 Liberty PF65 Cameo NGC – Mintage of 84
1901 PF66 Cameo NGC – Mintage of 96
1907 St. Gaudens Ultra High Relief PR68 PCGS – (8
known certified by PCGS)
|
| For
more information e-mail Dean Albanese |
|
|