During 1848-52, the chance discovery of large goldmines in California led the American Government mandate the issue of its first $20 gold coins. Earlier, the highest denomination was $10 and the coins were named ‘Eagle.’ Drawing upon the logic, the $20 coins came to be known as ‘Double Eagle.’ Engraver James B. Longacre conceptualized the pioneering design for the Double Eagles ‘Liberty Head.' The Liberty Heads were released from 1849 to 1907. In the year 1849, only two proofs were molded and its mass production officially began in 1850.
The obverse design of the coins features the head of Lady Liberty, aligned sideways. Along the circumference, thirteen stars are present that seem to surround her head. The year is engraved in an arch alignment right below her head. The reverse is a more complex design portraying the bald eagle in the center with its wings spread. One of its claws holds some arrows and the other holds an olive branch. An ornate shield appears to cover most of the frontal portion of the eagle. Encircled by thirteen stars, the ‘motto’ appears (1866-1907) above its head.
From the collectors’ point of view, there are three main categories of the coin. Unlike the later two variants, the Type I (1850 through 1866) Liberty Heads did not carry the motto ‘In God We Trust.’ The Type II (1866 through 1876) had the words engraved and the denomination was mentioned as ‘Twenty D.’ The Type III (1877 through 1907) carried the motto and was primarily different from the previous two issues in that the denomination was expressed as ‘Twenty Dollars.’ Additionally, it had some design modification, like the repositioned head of Liberty and her acutely diagonal neckline.
Type III Liberty Heads were minted in the largest numbers, partially owning to its 21-year stint. Most of them went into the national treasuries of the investing countries, rather than going into mass circulation. This exported variety is a highly valued one, as is the Type 1A (1861), designed by Anthony C. Paquet. However, all the three series are available in various grades, including VF (Very Fine), from VF-20 to VF-35. These coins contain light to moderate wear & tear. The buyers should avoid the coins ‘cleaned’ for enhancing the eye appeal.
For valuation purpose, the obverse is more significant than the reverse. One must closely examine the areas behind the ears, along the cheeks, hair, and forehead on the frontal side. On the reverse, the possible spots of aberration are the eagle’s neck, the contours of its wings, and the breast feathers, apart from the upper edge of the shield. Fingerprints, handling marks, hairline cracks, and minting defects reduce the worth of the coins. Traditionally, the VF grades have traded at spot price as well as premium. Presently, they usually trade at the spot rate, adding to its appeal.
Friday, May 28, 2010
Thursday, May 27, 2010
Rare Date Gold Coins
With the official opening of the first Mint in the US, in 1795, the Government began issuing gold coins for common circulation. Until President Roosevelt’s gold confiscation order of 1933, the new gold coins were produced and used in commerce. The U.S. gold coinage kept evolving and several different series were introduced during 1795-1933. Some of these came to be treated as rare for various reasons and became more significant for the numismatic purposes. As a rule, the rare date coins command higher valuation than their other counterparts do. But for the experts’ advice, it is not possible for a common investor to assess the rarity and the resulting valuation of the mintage. The key professional grading organizations are Numismatic Guaranty Corporation (NGC), Professional Coin Grading Service (PCGS), American Numismatic Association Certification Service (ANACS), and Independent Coin Graders (ICG).
The slack supply of the rare coins can be attributed to smaller production and destruction in the due course. Destruction, in turn, was the result of accidental damage, wearing due to circulation, export, or melting by the Government. The turbulent economic times like these have always provided impetus to gold as an effective hedging instrument. The same effect is translated into the rare coins market, but in a magnified form. Over the past decade, these pieces have offered much better returns than the other forms of investments, including gold bullion. The supply of such pieces has remained static since 1933, and any surge in demand puts an upward pressure on their prices.
After World War II, as an indirect implication of the Marshall Law, the European nations converted their US Dollar holdings into old gold coins. Therefore, presently, these countries hold their large reserves. As the nations, worldwide, continue to hold on to gold as an insurance against volatile currencies, the old coins are not likely to enter the markets in large numbers. Most of the Eagles and Double Eagles minted from 1929-1933, are considered rare as the mintage rate was very low in these years. Almost all of the St. Gaudens Double Eagles molded in 1933 were melted down and only eleven pieces (hoarded or stolen) have been recovered, making it among the rarest dates. The proof coins and business strikes for the ultra high relief St. Gaudens $20 of 1907 are treated as extremely rare as this variant was discontinued. Another example is Liberty Head Double Eagle Type IA (designed by Anthony C. Paquet), released only in the year 1861. The proofs for the Three-dollar piece dated prior to 1859 are extremely difficult to find. Similarly, various dates for different denominations and the year of coins are regarded rare for different reasons.
The slack supply of the rare coins can be attributed to smaller production and destruction in the due course. Destruction, in turn, was the result of accidental damage, wearing due to circulation, export, or melting by the Government. The turbulent economic times like these have always provided impetus to gold as an effective hedging instrument. The same effect is translated into the rare coins market, but in a magnified form. Over the past decade, these pieces have offered much better returns than the other forms of investments, including gold bullion. The supply of such pieces has remained static since 1933, and any surge in demand puts an upward pressure on their prices.
After World War II, as an indirect implication of the Marshall Law, the European nations converted their US Dollar holdings into old gold coins. Therefore, presently, these countries hold their large reserves. As the nations, worldwide, continue to hold on to gold as an insurance against volatile currencies, the old coins are not likely to enter the markets in large numbers. Most of the Eagles and Double Eagles minted from 1929-1933, are considered rare as the mintage rate was very low in these years. Almost all of the St. Gaudens Double Eagles molded in 1933 were melted down and only eleven pieces (hoarded or stolen) have been recovered, making it among the rarest dates. The proof coins and business strikes for the ultra high relief St. Gaudens $20 of 1907 are treated as extremely rare as this variant was discontinued. Another example is Liberty Head Double Eagle Type IA (designed by Anthony C. Paquet), released only in the year 1861. The proofs for the Three-dollar piece dated prior to 1859 are extremely difficult to find. Similarly, various dates for different denominations and the year of coins are regarded rare for different reasons.
Tuesday, May 18, 2010
Saint Gaudens $20 Gold Coin: MS 64
In the year 1907, the then US President Theodore Roosevelt commissioned the adornment of the American coinage to his friend Augustus Saint Gaudens. The new series of coins created was named after its designer. Saint Gaudens $20 coins are known for their high aesthetic appeal. They were recognized as the best design pieces. This series was issued from 1907 through 1933. For the numismatics and investors, there are two main sub categories for Saint Gaudens – one without the motto ‘In God We Trust’ and the other with the motto. The coins minted throughout 1907 and partially in 1908, did not contain the words. As they could not gain wide public acceptance, a law was passed in 1908, mandating the engraving of the motto.
The obverse portrays a prominent figure of Lady Liberty holding the symbols of freedom and peace in her hands. Her right, outstretched hand holds the torch of freedom. The left arm is stretched sideways. It holds an olive branch in the middle. The backdrop signifies the backing of the religious ‘glory.’ The reverse features a large bald eagle flying over the image of sun, positioned at the bottom. Along the circumference on the frontal side, 46 stars (1907-1911 releases) or 48 stars (1912-1933 releases) are engraved. The number of stars corresponded with the number of federal states in the US. Mexico and Arizona were included in the year 1912. Therefore, these variants also represent two different types of the coin for the collectors.
Among the most valued Double Eagles are the ones from the rare series. During the last four years, 1929-33, much fewer coins were released, rendering them much sought-after. The eye appeal often drives the grading, demand, and value of the coins. This explains why the MCMVII mint of 1907 enjoys a very active market and is an expensive variety. Ironically, such high appeal coins are most prone to bumps, marks, and defects, all of which contribute towards lowering their value.
Various St. Gaudens are easily available in the mint state, which implies such coins never went into circulation and are present in the original condition. The mint state (MS) Double Eagles are available in grades between 60 and 70, with 70 representing the finest grade and truly flawless. MS-64 is a popular and easily accessible version that signifies no wear & tear and original mint shine. However, it may contain some bag marks, hairline, or molding defects. Its luster is original, but may be marred by some visible spotting of mellowing red copper contents. It is possible for a coin with noticeable deficiencies to slide into the lower bracket, MS-63. Nevertheless, some compensating factors like extra shine may help retain its grade.
The obverse portrays a prominent figure of Lady Liberty holding the symbols of freedom and peace in her hands. Her right, outstretched hand holds the torch of freedom. The left arm is stretched sideways. It holds an olive branch in the middle. The backdrop signifies the backing of the religious ‘glory.’ The reverse features a large bald eagle flying over the image of sun, positioned at the bottom. Along the circumference on the frontal side, 46 stars (1907-1911 releases) or 48 stars (1912-1933 releases) are engraved. The number of stars corresponded with the number of federal states in the US. Mexico and Arizona were included in the year 1912. Therefore, these variants also represent two different types of the coin for the collectors.
Among the most valued Double Eagles are the ones from the rare series. During the last four years, 1929-33, much fewer coins were released, rendering them much sought-after. The eye appeal often drives the grading, demand, and value of the coins. This explains why the MCMVII mint of 1907 enjoys a very active market and is an expensive variety. Ironically, such high appeal coins are most prone to bumps, marks, and defects, all of which contribute towards lowering their value.
Various St. Gaudens are easily available in the mint state, which implies such coins never went into circulation and are present in the original condition. The mint state (MS) Double Eagles are available in grades between 60 and 70, with 70 representing the finest grade and truly flawless. MS-64 is a popular and easily accessible version that signifies no wear & tear and original mint shine. However, it may contain some bag marks, hairline, or molding defects. Its luster is original, but may be marred by some visible spotting of mellowing red copper contents. It is possible for a coin with noticeable deficiencies to slide into the lower bracket, MS-63. Nevertheless, some compensating factors like extra shine may help retain its grade.
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