In the five years since I wrote the second edition of my book on Dahlonega gold coinage, a number of important coins have been sold and some significant changes are going to be have to be made when I release my third edition (which, if I had to guess, will be out in another year or so). I think it would be interesting to look at the ten rarest Dahlonega gold coins and see what important things have changed about them since 2003.

For each of these issues, I am going to focus on the following aspects:

-Changes (if any) in high grade rarity
-Changes (if any) in Condition Census
-New Finest Known coins or important new discoveries
-New price records at auction or via private treaty

Before we begin, I think a quick overview of the Dahlonega market is in order. If I had to summarize it in a paragraph I would say that the market is currently strong. The supply of Dahlonega coins—even schlocky ones—really seems to have dried up in the last two or three years. It was always hard to find choice, original Dahlonega coins; even in low grades. Now it seems hard to find even mediocre quality pieces. And the very rare Dahlonega issues—the coins which we will focus on in this article—have become exceptionally hard to locate. The last really important specialized collection to come on the market was the Duke’s Creek gold dollars and quarter eagles that Heritage auctioned in April 2006.

1855-D Gold Dollar: This remains the rarest Dahlonega gold dollar in high grades and it is the second rarest overall with fewer than 100 known. The rarity of this issue with a full date seems to have been exaggerated by me in the first two editions of my book. I would revise the number of 1855-D gold dollars with a full date upwards from “less than a dozen” to around double this amount.

While no new discoveries of note have been recorded, no less than three record prices were recorded between 2006 and 2007. In February 2007, the Goldberg: 2097 example, graded MS64 by NGC, sold for an incredible $149,500; it had sold earlier as Heritage 1/06: 3396 where it brought $109,250. The finest known 1855-D was purchased by a prominent Alabama collector in the Heritage April 2006 sale where it realized $132,250. This coin had previously been graded MS64 by NGC; now it is in a PCGS 64 holder. The only other Uncirculated 1855-D gold dollars, graded MS62 and MS61 by PCGS, sold for $56,350 and $46,000 respectively in the Heritage 2/04 auction. Remarkably, the four finest 1855-D gold dollars all sold at auction between 2004 and 2007(!)

1856-D Gold Dollar: In the second edition of my Dahlonega book, I estimated that 80-90 examples of the 1856-D gold dollar exist. I still believe that this is accurate. I also estimated that only four to five Uncirculated examples are known. By the magic of gradeflation, I think this number has climbed to around half dozen.

A world record price was set by the Heritage 1/04: 1009 coin (ex: Green Pond) that sold for $47,150 and another impressive price realized was the Heritage 4/06: 1488 coin (ex: Duke’s Creek) that brought $40,250. One of these two coins was upgraded to MS63 by NGC and it now is the highest graded 1856-D gold dollar. Two other high grade 1856-D gold dollars that have traded since the second edition of my book was published are a new PCGS MS62 that I sold via private treaty in 2007 to the Wexford Collection and the ANR 9/03: 425 coin that sold for $41,400, the second highest price ever realized by this date.

1861-D Gold Dollar: The 1861-D gold dollar has, arguably, become the most popular coin of any denomination produced at the Dahlonega mint. I can’t attribute this soaring degree of popularity to anything other than a high “coolness” factor and a multi-tiered level of demand that is not seen by other Dahlonega issues.

My estimate of 55-65 known may be a bit on the low side and I would probably raise this to 65-75 including a dozen or so in Uncirculated. A record price was set in January 2008 when the Heritage 1/08: 3050 example brought $149,500 (this is an exact tie with an MS64 1855-D for the highest price ever realized by any gold dollar from Dahlonega). This same coin had brought $138,000 in April 2006. The finest known 1861-D remains the Pierce/Ullmer coin, graded MS64 by PCGS, in a prominent Alabama collection. In my opinion, the second finest is the Green Pond coin, graded MS63 by PCGS, which sold for $86,250 in January 2004.

1840-D Quarter Eagle: Of the ten coins discussed in this article, I think the 1840-D is the least well-known. It is the third rarest Dahlonega quarter eagle and I now regard it as the second rarest in high grades after the 1856-D. I believe this date is unique in properly graded Uncirculated and the finest known example, known to collectors as the Bareford/Duke’s Creek coin, sold for a record $74,750 when it was auctioned by Heritage in April 2006. (This coin, by the way, still appears in the PCGS population figures as an MS61. The only Uncirculated 1840-D quarter graded Uncirculated by NGC (an MS61) is owned by a Kansas collector and it is ex: Superior 8/07: 659 ($31,050), Heritage 1/04: 1016 ($27,600). I still think that even in properly graded AU50, the 1840-D is genuinely rare and there are fewer than a dozen true AU’s known.

1855-D Quarter Eagle: The true rarity of the 1855-D quarter eagle has been distorted by the fact that virtually all of the higher grade examples that have appeared for sale are overgraded. This includes at least two coins in MS60 holders that have been recolored and another with damage on the surfaces. The all-time price record for the 1855-D was set in April 2006 when Heritage sold an NGC MS61 for $54,625.

I have previously stated that the 1855-D is the rarest Dahlonega quarter eagle in high grades and overall. I now believe it to be the second rarest, after the 1856-D. I still have never seen an encapsulated 1855-D quarter eagle that I believed to fully Uncirculated. There is an example in the Smithsonian’s collection that noted expert Jeff Garrett grades MS62.

1856-D Quarter Eagle: My respect for this issue has increased over time and I now regard it as not only the rarest Dahlonega quarter eagle but the rarest single issue of any denomination from this mint. Only 874 were struck and there are probably no more than 45-55 known.

Due to its crude strike, this is an extremely hard issue to grade and I’m not really sure exactly how many Uncirculated pieces exist. PCGS has only graded a single example in Uncirculated (Heritage 1/04: 1034, ex: Green Pond that sold for $69,000) while NGC shows one in MS60 and four in MS61 with none better. The only Uncirculated NGC coin that I have personally handled is Heritage 4/06: 1513 (MS61) that I paid a record price of $71,875. There is a PCGS AU58 that is owned by a prominent Alabama collector that I think is outstanding for the issue and I have handled two other PCGS AU58’s that I feel are accurately graded.

1854-D Three Dollar: This is the only one of the ten issues in this article that I believe is overrated by most non-specialists. However, as I have mentioned innumerable times, its status as a one-year issue make it exceedingly popular with a wide range of collectors. A nice 1854-D Three Dollar has become the “High Relief of Branch Mint Gold” (i.e., an expensive but extremely popular issue with exceptional liquidity).

An all-time record for this date was set in April 2006 when I purchased an NGC MS62 from the Duke’s Creek collection sale. This easily eclipsed the previous auction high of $92,000 that was set by the Green Pond: 1037 coin back in January 2004. The two finest 1854-D Threes remain the fantastic Bass coin (see www.hbrf.org to view an image of this special piece) and the PCGS MS62 in the Great Lakes collection.

As of July 2008, PCGS had graded four examples in Uncirculated: MS62-(2) MS61 and MS60 while NGC had graded nine: MS62-(5) MS61 and (3) MS60. I believe the actual number of Uncirculated 1854-D Threes is around four or five.

1838-D Half Eagle: The 1838-D is by far the most available issue in this group of ten coins and the major reason I decided to include it (and exclude much rarer coins such as the 1860-D gold dollar and 1841-D, 1842-D and 1854-D quarter eagles) is that it is extremely popular. I would have to rank it as one of the three or four most popular issues from this mint.

As I mentioned before, the 1838-D half eagle is a relatively common issue and I believe that there are somewhere north of 300 known including as many as eight to ten in Uncirculated. But what I find interesting about this issue is that the supply has really shriveled in the last few years, particularly in higher grades. The only really nice Uncirculated 1838-D that I have seen in the last few years is Heritage 2007 ANA: 1919 (PCGS MS62 @$37,375). An NGC MS63 (ex: Ashland City collection) bounced around from sale to sale in 2003-2006 and I have never particularly cared for it. I believe that if a really choice, fresh PCGS MS62 or better 1838-D half eagle were to appear on the market, it would command a record price as there seem to be many collectors waiting around for such a coin.

1842-D Large Date Half Eagle: Despite its status as the rarest Dahlonega half eagle in higher grades, this is another issue that is somewhat off the radar to nearly everyone except specialists. In terms of its overall rarity, I believe this variety is a bit more available than I claimed in the second edition of my book. In high grades, it remains a major rarity with just a single Uncirculated graded by PCGS (the Green Pond coin which is in an MS61 holder) and two in MS61 at NGC.

The all-time auction record for the 1842-D half eagle was set in January 2004 by Green Pond: 1043 which realized $41,400. The Duke’s Creek/Eliasberg coin, which was formerly in a PCGS AU58 holder, is now (deservedly) in an NGC MS61 holder. An exceptional new PCGS AU58 was sold by me around a year ago to the Wexford Collection. I am especially interested to see the newly discovered NGC MS61 that was found as part of the S.S. New York treasure in Louisiana. This coin will be sold at auction by Stack’s just prior to the 2008 ANA.

1861-D Half Eagle: Like its gold dollar counterpart, the 1861-D half eagle has become an issue whose demand transcends specialists. As a result, prices for both 1861-D issues have soared in recent years. Despite the fact that even low grade 1861-D half eagles are now commanding prices upwards of $10,000, few have come to market since the second edition of my book was released.

However, there has been quite a bit of activity in the upper end of the 1861-D half eagle market. The finest known example, graded MS63 by PCGS, sold for a record $207,000 in Heritage’s 2008 FUN auction. This was, as far as I know, the most money that any single Dahlonega coin has ever brought. The second finest known example, pedigreed to the Duke’s Creek and Eliasberg collection, was upgraded from MS63 at PCGS to MS64 at NGC. And another MS63 was “made” at PCGS when the Duke’s Creek coin (ex: Heritage 1/04: 1065 @ $74,750 as PCGS MS62) upgraded a point.

The current certified population figures for this date are clearly inflated. PCGS shows three coins in MS63 but there are only two. They also show four in MS62 but I believe that the correct number is also two. The NGC population figure of three in MS62 seems inflated as well.

As I mentioned at the beginning of this article, I plan to begin work soon on the revised third edition of my Dahlonega book and will incorporate all of the changes mentioned in this article. If you have pertinent new information about Dahlonega coins that you feel should be in the book, please email me at dwn@ont.com and I will make certain it is included.

For more information on Dahlonega or other United States gold coinage, please contact Douglas Winter at dwn@ont.com.

1. 1808 $2 1/2 MS61 NGC - $163,875.00

The rarity of the 1808 quarter eagle is well known even to those who do not necessarily collect gold type coins. Struck in just this one year, only 2,710 pieces were minted and of that number it has been estimated that fewer than 2% exist today in all grades, with 35-40 pieces being a reasonable estimate of the surviving specimens. Breen speculates that the low survival rate may be due to the weak borders on all known coins which exposed them to undue wear. Every 1808 quarter eagle we have seen has had rim problems of some sort, probably due to the lack of raised detail evident around the margins. Also, all known examples show a die crack that extends from the cap through all six stars at the right.

Breen also points out that the date and letter punches used on the 1808 quarter eagle were reused on 1809 dimes. However, the bust and device punches were never reused. Typical for all of John Reich’s designs, the 13th star is notched, a “signature” of the short-lived German immigrant-engraver.

2. 1794 $1 VF30 PCGS - $161,000.00

When David Rittenhouse took over the responsibility as the Mint’s first Director, he had a twofold task to accomplish. The first was to begin production of silver coins, especially silver dollars, that would compare favorably in weight to the widely circulated Spanish (Carolus) dollars. Second, the coins had to present well. The dollars from 1794 all show varying degrees of weakness and misalignment because they were struck on a press meant for smaller coins. This weakness was noticed at the time of issue, but attributed to shallow engraving. But the experimentation had just begun with silver dollars, and in the next year the 1795 dollars show much coarser hair and heavier design elements on the reverse.

Even though all 1794 dollars were struck from misaligned dies, obvious attention was paid to the manufacture of these coins. Of the 125+ pieces known, there are five die states. This is a Die State III piece and is characterized by light relapping of the obverse die to lessen the clash marks that apparently occurred just after the first coins were struck. This is the most frequently seen die state and Martin Logies identified 84 different specimens from this state.

3. 1891-O 25C Specimen MS65 NGC - $161,000.00

The special nature of this coin has been recognized since at least 1941 when it appeared in Mehl’s Dunham Sale. It has passed from one specialist to another since then, always remaining in strong hands and rarely offered to the numismatic market. The obvious reason for striking this piece, as well as the other known branch mint proof, was “resumption of coinage of this denomination at New Orleans (interrupted 1860),” as stated in Breen (1977).

It is always interesting to compare and contrast branch mint proofs with those produced in Philadelphia. It appears that employees in the branch mints were not familiar with the day-to-day striking of proofs. Rather, when called upon to strike such coins, they produced pieces that they thought resembled the proofs that were regularly turned out of the mother mint in Philadelphia. And in most cases, they did an admirable job of emulating Philadelphia proofs.

4. 1833 25C PR65 PCGS - $149,500.00

An outstanding specimen of this formidable rarity. The portrait and eagle have a needle-sharp strike, as is the case for the right-side stars. The lower left stars and the drapery fold near the bust tip show incompleteness, which suggests the dies were slightly misaligned. The fields are fully mirrored, and the devices are frosty.

Likely eligible for a Cameo designation, but encapsulated in a first generation holder, before Cameo was bestowed on most proof series.In past decades, prooflike Capped Bust quarters were often described as proofs, and sometimes even as one-sided proofs. The definition of what constitutes a proof has tightened since PCGS began operations in 1986. Only a few proof 1833 quarters have been certified by NGC and PCGS.

5. 1899 $10 PR68 Ultra Cameo NGC - $149,500.00

There is and should be no doubt that this piece is the finest existing 1899 proof eagle. In addition to this piece, the only PR68 example that either service has certified, NGC has certified two PR67 Ultra Cameo examples, and likewise, PCGS has certified two PR67 Deep Cameo coins. The 1899 proof mintage was just 86 coins, with a current estimated population of about 25 different coins, including two in the Smithsonian Institution.

This amazing Superb Gem is fully brilliant with light yellow-gold surfaces. The fields are fully and deeply mirrored with the watery appearance of pristine proofs. All of the devices, including the central motifs, the peripheral stars, letters, and numerals, and the borders are fully and completely lustrous with exceptional mint frost. Careful examination with a 10x magnifier fails to reveal any visible pedigree markers.

6. 1907 $10 Wire Rim MS67 NGC - $149,500.00

Judd-1901, formerly Judd-1774. The Periods variants of the 1907 Saint-Gaudens eagle hold an interesting place in American numismatics. Their status as patterns or regular issues is debatable; while the pieces were never officially released for circulation, their large mintage and inherent beauty have made them popular with series enthusiasts, and for years, the Judd-1901, listed as “1907, Wire Rim, Periods” with a mintage of 500 pieces, has been a fixture in the Guide Book. A number of features distinguish the design of the Judd-1901 from the version that was used to strike the first circulating pieces. The overall relief is substantially greater than for the circulating varieties, though the difference between the Judd-1901 and the regular issue is not so great as the change from the High Relief Saint-Gaudens double eagle to its regular-issue counterpart.

Beyond the relief, the most substantial difference is in the eponymous periods; most frequently mentioned are the periods or pellets that bookend the words E PLURIBUS UNUM, while Walter Breen also noted the periods around TEN DOLLARS and UNITED STATES OF AMERICA. Less frequently mentioned in numismatic literature is the period on the headband, after LIBERTY.

7. 1796 50C 15 Stars, O-101, R.5 AU55 NGC - $149,500.00

The Draped Bust Small Eagle half dollar, bearing the dates 1796 or 1797, ranks among the lowest mintage of U.S. type coins (3,918 pieces). Only the one-year-type Capped Bust No Stars and Capped Draped Bust quarter eagles (1796 and 1808, respectively) and the Gobrecht dollar (1836-1839) record lower mintages. On the other hand, the 1796-1797 half ranks highest in value among U.S. type coins on a grade by grade basis.

The Bank of the United States might well be considered the “parent” of the 1796-1797 half dollar. Mint records show that these coins were produced from silver ingots deposited by the Bank, that in turn received the following deliveries: 60 half dollars on February 28, 1797 per warrant 81, 874 pieces on March 21, 1797 under warrant 84, and 2,984 coins on May 26, 1797 per warrant 90. Had the Bank not made silver bullion deposits during this time, or had not requested that it receive half dollars in return, it is quite likely that there would have been no coinage of Draped Bust Small Eagle halves!

8. 1846 $1 PR65 PCGS - $149,500.00

The proof-only blundered date variety, which Breen describes as “date first entered much too low and oblique, then largely effaced and corrected; parts of upper halves of 846 show in lower halves of final position of date.” The reverse displays the lumps on the central right border of the third A in AMERICA, diagnostic for the die used to strike most restrike proof No Motto Seated dollars.

Fully struck, gorgeously preserved, and originally patinated in deep shades of sea-green, golden-brown, and canary-gold. An exceptional Gem exceeded in third-party grade only by the Kaufman specimen from our recent Central States Signature. The standards for what is considered a proof striking have tightened since the advent of PCGS and NGC.

9. 1796 1/2 C With Pole AU55 PCGS - $138,000.00

The 1796 half cent is the classic rarity of the denomination from a mintage of just 1,390 coins. Perhaps 10% of those coins still exist today, nearly all in very low grades. We estimate the existence of about 25 No Pole coins and perhaps 120 With Pole coins.
Certain issues, such as the 1796 half cent and the 1901-S quarter, are known in high grade and low grade, but virtually unknown between these extremes. Nearly all known 1796 half cents, of both varieties, exist in Mint State and also below Fine. Those that grade VF, XF, and AU, such as this piece, are extremely rare.

Walter Breen described two subvarieties for the With Pole pieces, struck on rolled copper planchets or on spoiled cents. His spoiled cent subvariety, like the thick planchet 1795 coins, should weigh at least 100 grains, compared to the 84 grain standard for the issue. To date, we are only aware of a single thick planchet piece, discussed in Breen’s Half Cent Encyclopedia.

10. 1820 25C PR64 NGC - $97,750.00

A spectacular coin which combines beauty and rarity. Both the obverse and reverse show unbelievable sunset iridescent toning which becomes deeper towards the borders. The strike is remarkably sharp with the rims much higher than usual and almost convex in appearance. Every fine detail is bold on Liberty’s hair and the wings. The surfaces show complete mirror-like reflectiveness, even within the lines of the shield. The few other known proofs of this date are quite controversial.

Must certainly rank as the finest known example, sure to excite the specialist. The first and only coin graded by either service as a proof, and we deem it the finest known. … This gem may be the specimen from the F.C.C. Boyd Collection sold by Kosoff in January 1945 as lot 69.”
The proof 1820 quarter is extremely rare.

The incremental cost of quality hobby supplies and tools for the proper storage and handling of one’s collection is marginal compared to the value of the coins in the collection. While there are countless products on the market that claim to offer the best protection for your coins, we have identified what we believe to be the 10 best coin protection products available today.

10. Flat Clinch Stapler

– One big category of coin damage we see is from staple scratches. Much of this damage comes from staples that are not completely clinched. Normal staplers leave a curl of the staple rising above the surface. This piece of staple can easily scratch adjacent coins as the coin shifts in a box or is removed or inserted from the box. Flat clinch staplers fully compress the staple into the surface of the holder leaving nothing behind to damage other coins. We like the Max HD-50DF because it is full size and uses regular staples. Max also makes half strip and palm size versions for collectors that prefer a smaller stapler. All three staplers completely clinch the staple as part of the stapling process.

9. Gloves

– A second big category of damage type we see on coins is fingerprints. The oils and acids present on one’s hands can damage coins if left on the surface of the coin for an extended time. Initially, they can cause a fingerprint pattern toned area that is unattractive and lowers the value and grade of the coin. Left unattended, these oils and acids can eventually etch the surface of the coin making the fingerprint permanent. Even handling coins by their rims still allows the dangerous compounds onto the rims of the coins. Using a pair of soft cotton gloves when handling raw coins helps protect all three surfaces of the coins. Make sure you get a pair of thin gloves so that you can still feel the coin. Bulky “work gloves” make it harder to handle small items and increases the risk of dropping the coin.

8. Silica gel

– Metal and water do not go well together! Almost everyone intuitively knows to keep their coins from getting wet but many collectors do not realize that even the moisture present in the air (humidity) can be enough to cause damage. Silica gel absorbs moisture that makes its way inside your safe deposit box, safe or other storage area preventing it from reaching your coins and causing damage. Silica gel can be easily reactivated in the oven when it has absorbed as much moisture as it can hold. Before shopping for silica gel, measure the size of the area to be protected and then buy the appropriate size of silica gel for storage space.

7. Koinsolv

– Koinsolv is a neutral coin solvent that removes PVC, oil, tape residue, light fingerprints, and grease from the surfaces of the coins. It is the best solvent on the market, exceeding acetone (which can contain contaminants if not the 100% pure version), alcohol and other solvents in its ability to remove pesky foreign substances from your coins. Koinsolv does not affect the luster or natural toning on coins and won’t change a coin’s color (even on copper coins). It is not a dip or cleaner.

6. Supersafe Archival Coin and Currency Pages

– Supersafe’s archival grade pages are made from a polyester material that is free from the softeners and additives that can damage coins and currency. These hard, rigid holders provide maximum long term protection. Mix and match these pages (currently available in five sizes) with Supersafe’s Deluxe Archival 3-Ring Binder and Deluxe Archival Slip Case to make your own archival custom storage album.

5. Intercept Shield 2×2 Snaplock Holders

– Corrosion Intercept, the active ingredient in Intercept Shield, is a state-of-the-art corrosion preventing compound used for the storage and preservation of copper, nickel, silver and gold coins. The Intercept insert in these holders reacts with and neutralizes gases in the air that cause coins to spot, discolor and tarnish. Unlike vinyl holders, Intercept does not contain any volatile oils or additives that contaminate the coins it is used to protect. These 2×2 snap together holders are ideal for uncertified coins that collectors prefer not to place in albums. Also available are boxes designed to neatly hold these 2×2 holders and provide a second protective barrier.

4. Saflips

– Most collectors know to avoid PVC containing plastic coin storage products. However, many do not realize that even non-PVC vinyl flips and holders can also damage coins. The oils that bleed out of many soft plastic flips can cause coins to develop a cloudy appearance. Moreover, a PCGS study revealed that vinyl flips have tiny particles imbedded in them that can cause hairline scratches on coins as they are inserted and removed from the flips. Saflips not only avoid these problems but they are also manufactured in controlled conditions to assure the absence of sulfur containing paper and cardboard dust and other contaminants. They are then sealed in inert poly bags to assure they reach the final user free of foreign debris.

3. Intercept Shield Albums

– These albums are another fabulous innovation from the team at Intercept Shield in turning a popular storage and display item into a coin preservation tool. The album is made with only acid-free archival components so that coins will not be harmed or toned by the album components themselves. Oddly, many other manufacturers do not take these precautions. Intercept advanced the album even further by lining the inside covers with Intercept Shield providing a protective barrier to attract and absorb dangerous compounds before they reach the coins stored inside. Intercept further innovated by making a slipcase standard with all their albums. The slipcase improves appearance and stacking but more importantly it is also lined with Intercept Shield providing a second protective barrier for harmful compounds.

2. Kointains

– Kointains, manufactured by E&T Kointainer are so clear and small that they are virtually invisible providing protection with the least amount of distraction and intrusion of any coin holder. Kointains have withstood the test of time having been in use for over 60 years. The completely safe holder is manufactured from an impervious plastic and produced and packaged under strict conditions to prevent contamination of the holders by dust, oil and grease. Kointains are convex so that they only touch the coins on their edges. The combination of safety and near invisibility has made them the favorite choice of museums including the Smithsonian, the ANA Money Museum and many others.

1. Intercept Shield Double Protection Box

– Intercept Shield’s Double Protection Box is the first coin supply storage solution designed to protect (not just store) certified coins. The hobby’s more expensive collector and investment grade coins tend to be certified. So, the introduction of a storage option for these pricey pieces that also provided for protection from potential contaminants was particularly noteworthy. The double protection box was not just a remake of an existing product with Intercept added. The introduction of this box was a whole new certified coin storage concept. The box consists of ten inner boxes, each lined with a layer of Intercept Shield. An outer box neatly holds the ten inner boxes and is also lined with Intercept creating two layers of protection.

These strategies were composed upon considering the true case of two collectors, who in 1996, two collectors decided to assemble a million dollar collection of high grade United States coinage. Seven years later, both decided to sell. One now has a collection that is worth upwards of $2 million while the other individual’s coins are worth $600,000. What did collector #1 do that was so much smarter than the other? In the end, the difference was the way that they bought coins; there were a number of important purchasing strategies employed by the first collector that were ignored by the other.

Collector #1 did the following: he was patient, he chose his coins carefully, he was loyal, he was not a slave to published bid levels, he reached for the best available coins and he assembled a true collection as opposed to an accumulation. Collector #2 made rash, impulsive purchases, bought coins from a wide variety of sources (some reputable, some not), would never purchase a coin unless it was priced at a “bargain” level and wound-up with a strange, disconnected assemblage of coins rather than a true collection.

It is a good idea to look at some of these points more carefully to understand why one collector did so well while the other did not.

1. For the collector, patience is a virtue: One of the key reasons for the success of collector #1 was his patience. Instead of wildly charging out into the market and buying whatever looked interesting, he was highly selective. In fact, he typically purchased just a few coins each year. Collector #2 was extremely impulsive and purchased some coins that, in retrospect, made no sense. As an example, he bought at least three five-figure coins that he didn’t really like and which he knew, even at the time they were bought, that they would have to be upgraded. And he purchased some other coins that had absolutely no thematic tie-in to what he was collecting. These were quickly jettisoned at a significant loss.

2. Always buy the best coins you can afford: If you care about the financial returns provided by your coins (and if you are buying coins that are more than $1,000 each you should) then it is important to buy the best you can afford. A collection should be centered around quality instead of quantity. This means that you will have to tailor your collection around your budget.

3. Both collector #1 and collector #2 had the same budget but collector #2 wound-up buying dozens of coins while his counterpart only purchased a few. The result was that the first collector had a small collection of superb pieces with enough of a synergistic tie-in that it was more valuable as a whole than as a sum of its parts. The second collector had an assemblage of expensive coins that, because of the presence of a number of “dogs”, would have to be broken-up and sold piece-by-piece.

4. If you find one or two dealers you like, stay loyal to them: Yes, this is a self-serving comment, but nonetheless this is earnest advice and it works. If you establish a good relationship with a knowledgeable expert, you are more likely to get good deals from this person. That dealer will be genuinely concerned about the coins he sells you, especially if he knows that he will have a chance to resell them in the future. Because collector #1 was loyal (and because he established a good relationship during the time spent with a dealer pursuing coins) he purchased great coins at fair prices. Collector #2, while a very good person as well, never became a faithful customer and, as a result, dealers were less enthusiastic to sell him their very best coins.

5. Collector #2 made another mistake that ultimately cost him a lot of money. He gave out his want list to a number of dealers. In at least two instances, several dealers were competing against each other for a specific rare coin, all thinking that it was for their “own” customer. In reality, everyone was working for the same collector and this allowed the original owner of the coin to hold out for a higher price. When it comes to rare or expensive coins, it is highly advisable to keep your want list as private as possible.

6. Truly rare and choice coins are seldom offered at “bargain” prices: Truly good items, whether they be houses, paintings or coins, are not cheap. You don’t get a “deal” on a museum quality Van Gogh just like you don’t get to “rip” a problem-free high grade 1793 Chain Cent. Collector #1 understood this and was willing to pay well over Greysheet, Bluesheet or Trends prices when it came to rare, important coins.

7. Collector #2 was always looking for a deal and would never pay above published price levels, even for rare, early United States issues. He was told again and again that they were impossible to buy at these levels but never took this advise to heart. As a result, when he did buy a significant early type coin, it tended to be a problem piece that was priced cheaply or which savvy buyers had rejected due to quality considerations.

8. Novice collectors typically do not understand what these published prices represent. The Bluesheet lists low sight-unseen wholesale bids. In other words, if a dealer that we didn’t know called us up and offered a 1795 silver dollar in a PCGS AU-50 holder and explained that it was dark, poorly struck and enthusiastically graded, what would my offer be? While it is not impossible to buy nice coins at bluesheet bid levels, it should be understood that most attractive, desirable coins are generally priced at levels above “sheet.”

9. Collections are better than assemblages: Many dealers believe that a collection of coins is worth more collectively than the sum of its parts. This is not always true and it is important to consider the following caution. In the case of an expensive, high-powered collection it is likely that it will have to be broken-up when it is sold. But if the coins in the collection are properly connected than they can add value to each other. As an example, collector #1 had a small but outstanding group of early coins that were not only very choice but they were first year of issue pieces. It was a true collection that was worth more as a whole than as the sum of its parts, even if it were not realistic to think that it would sell intact.

10. Collector #2 also specialized in early coins but his grades ranged widely (from Extremely Fine to Mint State-65) and he typically chose “bargain dates” to represent a specific type (as an example he chose a 1795 half dollar instead of a 1794 because it was “cheaper.”) When it became time to sell, his coins seemed to be more of a random accumulation than a true collection.

For more information on developing good collecting strategies, please feel free to contact us at expectmore@pinnacle-rarities.com.

With the advent of independent third-party certification, many coin buyers and sellers thought all their grading worries were over.

No longer would they have to scrutinize each coin they bought and sold to determine its level of preservation. No longer would they need to concern themselves with grading pointers, grading tips, grading advice–these mattered now only to the experts at the leading certification services.

From now on, all Mint State-65 coins would be created equal, as long as they got those grades from the Professional Coin Grading Service (PCGS), the Numismatic Guaranty Corporation of America (NGC) or ANACS.

In short, buyers and sellers no longer would need to think for themselves and exercise their own common sense. This is not entirely true.

Certification services have made–and are continuing to make–tremendous contributions to standardizing and stabilizing coin-grading standards. In the process, they have dramatically reduced the risk that buyers might suffer significant financial loss because they purchased coins that were overgraded.

But certification services aren’t infallible. And though they strive mightily for consistency, they–like the coins they grade–inevitably fall short of total perfection. Some coins graded Mint State-65 by PCGS, NGC or ANACS are indeed better than others; some might even qualify as Mint State-66. Others, by contrast, might get a lower grade if broken out of their holders and resubmitted.

Over a period of time, subtle shifts in standards or in their application can result in the existence of whole groups of coins that are undergraded or overgraded relative to the rest of the coins from a given grading service.

For example, in 1994, David Hall, founder and president of PCGS, admitted on my radio program–a weekly talk show called One-Hour Coin Expert–that during its early years, his company was reluctant to assign the grade of Mint State- or Proof-68. He candidly agreed that a number of the coins graded Mint State- or Proof-67 by PCGS during that early period might well receive a grade of 68 if submitted today. And that could increase their current market value by many thousands of dollars.

Just because a coin is in a holder and just because that holder carries a grade assigned by a certification service, there’s no reason why you–as a buyer or seller–can’t and shouldn’t resubmit that coin to your own personal grading service … your own common sense and your own store of knowledge … and render an expert judgment of your own.

Knowledge is more than power; in the case of rare coins, it also can mean enormous profit.

With that in mind, here’s my personal list of the top 10 coin-grading tips of all time:

(1) Check the high points for wear.

Even if a grading service certifies a coin as Mint State-63, that doesn’t mean it won’t come back with a lower grade–possibly even AU-58–if you resubmit it. A coin should stand on its own merits; you should buy it for itself and not for the plastic.

Look at the very highest points of the coin. If they’re lighter in color than the rest of the coin, or if you see friction, the coin may not be mint-state; it may be about uncirculated.

Telltale signs of wear are indicated by the color of the high points. On coins made of copper, the high points after friction are dark brown. On coins made of nickel, the high- point color after friction is dark gray. On coins made of silver, the color is dull gray. And on coins made of gold, the high-point color after friction is dull, dark gold.

(2) If it’s ugly, don’t buy it.

Use your common sense. Blotchy toning, obvious scratches and spots which penetrate the surface of a coin are unattractive. And if a coin appears unattractive to you, it probably will appear that way to other people, too. Therefore, you should stay away from it.

Even coins with very high grades–coins which have been certified as 67, 68 or 69 by a major certification service– are subject to personal taste, and you should always rely on yours. Rare-coin grading is subjective, and so is the beauty of coins.

Among the few characteristics which is universally attractive is concentric circle toning. If you observe this on a coin, you should view it as a highly positive feature.

(3) Examine grade-sensitive areas.

Some flaws are more obvious than others. On Morgan silver dollars, for example, a scratch on Miss Liberty’s cheek is immediately apparent because that part of the coin is so smooth and open. By contrast, a scratch in her hair wouldn’t be noticed as readily because it would be camouflaged by the intricate details in that portion of the design.

High, exposed areas such as Miss Liberty’s cheek are said to be “grade-sensitive,” and you should be more hesitant to purchase any coin with an imperfection there–even though that coin may carry a grade of Mint State-65 or Proof-65 or above from PCGS or NGC.

If you have a choice between one coin graded Mint State- 66 with a scratch on the cheek and another coin in the same grade without that scratch on the cheek, always opt for the latter. Everything else being equal, it’s always best to purchase coins whose flaws are in non-grade-sensitive areas.

Grade-sensitive areas for all the major U.S. coin series are identified and illustrated–with color grading maps–in an excellent book by James L. Halperin called How to Grade U.S. Coins. To underscore my enthusiasm for this book, I wrote its introduction.

(4) Look beneath the toning.

This is probably the most important point of all. It’s also the easiest way to determine whether a coin has artificial toning.

Toning can cover up a multitude of imperfections– scratches, hairlines, tooling, thumbing and chemical alteration, to cite just a few. Many times, coins with imperfections are artificially retoned to conceal these flaws. By examining these coins closely under a magnifying glass, you can detect not only the hidden imperfections but also the artificial toning.

(5) Examine every coin under a halogen lamp or a high- intensity pinpoint light source.

When looking beneath the toning of a coin or otherwise searching for imperfections, it’s essential that you use the right kind of lighting. I first pointed this out in an award- winning article published in COINage in 1979. I later elaborated on this in my best-selling book The Coin Collector’s Survival ManualTM.

A halogen lamp is especially beneficial when looking at proof coins. It will help you spot hairline scratches, which can detract considerably from a proof coin’s overall grade. A tensor light is adequate for mint-state business-strike coins.

Ordinary light sources such as floodlamps or bare filament lights–the kind commonly used in chandeliers–make coins appear more attractive than they actually are. For that reason, if you’re looking at coins at an auction-lot viewing session, you should always make sure there’s a halogen lamp or a tensor light source nearby.

(6) Resubmit upper-end coins–coins which are high- quality for the grade–and coins graded 67 by PCGS.

You stand a reasonably good chance of getting a higher grade if you resubmit such coins–especially if you acquired them in 1986 and 1987, when the grading services were extremely tough in assigning grades.

As I mentioned earlier, David Hall has publicly admitted that a number of PCGS coins graded 67 a few years ago might well come back today at a higher grade. The difference in price between a 67 and its 68 counterpart can be tens of thousands of dollars–so this could represent a $20,000 gift for you, just for taking the trouble to crack a coin out of its holder and resubmit it.

(7) “Read” every coin.

This is a point on which I elaborate in the The Coin Collector’s Survival Manual™. Looking at a coin is similar to proofreading a letter. And individuals who possess book knowledge combined with practical experience at buying, selling and trading coins have learned how to look at a coin and size up its flaws rather quickly, just as expert editors have learned how to scan a manuscript for errors and typographical mistakes.

Often, a coin’s imperfections won’t be noticeable at a glance, or even after somewhat closer perusal by an unskilled observer. This may happen, for example, when a coin has one feature so overwhelmingly attractive that it causes you to lose sight of everything else. Let’s say you’re shown a Saint-Gaudens double eagle with blazing golden luster; the luster may be so intense that it causes you to overlook a bump or a ding on the rim, which in turn might cause the coin to be downgraded.

You should learn how to read all the key information on every coin you handle and properly identify all the imperfections. Don’t be dazzled by any one feature of a coin, no matter how attractive it may be, to the point where you miss important details in the “fine print.”

(8) Look for hairlines.

A proof coin with overwhelmingly beautiful toning can be powerfully appealing. And, to the naked eye, its surfaces may appear pristine and original. But even on gorgeous proofs such as this, and even on coins in very high grades, you may very well find hairline scratches–and the number of hairline scratches is a very important element in determining the grade of a proof coin.

Once again, I suggest that you consult The Coin Collector’s Survival Manual™. The book contains excellent photographs illustrating hairlines on a proof coin. These photos, which noted numismatic researcher and author Kenneth E. Bressett was kind enough to provide to me, are the best of their kind I’ve ever seen.

Spotting hairline scratches is easier on brilliant modern proofs–proof Mercury dimes, for example. It’s somewhat more difficult on older coins with heavier toning– say, Liberty Seated half dollars from the 1880s with concentric-circle toning. On coins such as these, the toning may cover the scratches.

(9) Beware of the rub.

Checking for wear on the high points of a coin is relatively easy–and that’s a good thing, since wear, after all, is the single most crucial factor in determining grade. Detecting rub on a coin is considerably more difficult, for rub is far more subtle. It’s also far more hazardous to the health of that coin.

As the term suggests, a “rub” is a small area on a coin –possibly no bigger than a thumbprint (and possibly caused by a thumbprint)–which bears evidence of friction, showing that the coin has been rubbed. The effect of such a rub can be devastating. Suppose you had a gem, pristine, magnificent coin, blazing with luster, and just one time a perspiration- soaked thumb rubbed ever so slightly across its surface. Even if the coin otherwise might have been graded 65, 66 or 67, that rub could knock it all the way down to AU-58.

To identify rub, you need a good, solid tensor or pinpoint-light source, and you have to tilt and rotate the coin under that lighting. You then need to envision a pencil- drawn circle fully formed. If the coin reflects light in a fully circular pattern, it’s probably mint-state. But if it reflects light in a generally circular pattern but the pattern is disturbed in any way, then the coin may have a rub. Using the same analogy, that pencil-drawn circle would have just a couple of segments erased. The Coin Collector’s Survival Manual™ illustrates this with excellent photographs.

(10) Remember that grading standards have changed since the early 1980s.

A lot of people still own coins which they purchased in the early 1980s and which were graded at that time by reputable dealers or by the ANA Certification Service. But many of these people tend to forget–or never even knew–that grading standards have tightened since then and become more consistent.

Even coins purchased from reputable dealers in 1981, 1982 and 1983 may not meet the rigorous, consistent, impartial standards established in the late 1980s and being observed today by NGC, PCGS and ANACS.

There you have them: my 10 top coin-grading tips. They may not make you rich, but they’ll go a long way toward helping you avoid losing your shirt!

COPYRIGHT © BY SCOTT A. TRAVERS
ALL RIGHTS RESERVED.

Republished with Permission of the Author

Gold reserves (or gold holdings) are held by central banks as a store of value. The top 10 Central Bank reserves total 26,014.4 tonnes, or in excess of 836,362,960 troy ounces, equal to about 836.4 Billion dollars.

As one metric tonne equals 1,000 kilograms (or 32,150 troy ounces), one tonne of gold equates to a value of US$32.15 million as of March 2008 ($1,000/troy ounces). In 2001, it was estimated that the total amount of gold ever mined equaled only 145,000 tonnes, with a total value at today’s prices of some US$4.66 trillion.

For comparison, the entire global market capitalization for all stock markets was US$43.6 trillion in March 2006.

Side Notes:

• If gold jewelry were taken into consideration and not just Bank Reserves, India would be the country with the most gold contained within it’s borders, estimated to be over 13,000 tonnes.

• Also, It is also not clear whether the International Monetary Fund gold reserve is the property of the IMF or of member countries.
• About one percent of all above-ground gold (370 metric tonnes) was mined in the first five years of the California Gold Rush (worth approximately US$11.9 billion at March 2008 prices).

1. United States 8,965.6 tonnes	6. Switzerland 1,285.6 tonnes
2. Germany 3,767.1 tonnes	7. Japan 743.5 tonnes
3. Int. Monetary Fund 3,546.1 tonnes	8. Netherlands 688.4 tonnes
4. France 2,890.6 tonnes	9. European Central Bank 666.5 tonnes
5. Italy 2,702.5 tonnes	10. People’s Republic of China 661.4 tonnes