Rare Gold Coins Are Solid Investments Any Time
Investors looking for stability in their portfolios are turning more and more to rare gold coins to round things out. At AGT American Silver & Gold , we offer a variety of rare coins of collector and investment value. Two of our most unique rare gold coins are the $2 ½ Indian Gold and the $2 ½ Liberty Gold.
A Look Into The Past Of Rare Gold Coins
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While it is often said the $20 gold piece, or the Saint-Gaudens double eagle, is the most striking coin ever minted in America, other enthusiasts point to two smaller rare gold coins from the same period. These coins are more innovative and even have a bit of controversy attached to their history. These two rare gold coins are the Indian Head Quarter and the Half Eagle, or the $2.50 and $5 gold pieces.
The four gold coins created by the American government at the beginning of the 20th century had been minted, without change, for more than 60 years. Three of these rare gold coins, in fact, had the exact same design of Lady Liberty wearing a coronet. In 1901, the rise of Theodore Roosevelt to the presidency laid the groundwork for a change of design.
Roosevelt saw himself as an agent of change and wanted to put his personal imprint on national life, including the minting of rare gold coins. To this end, he arranged for the acclaimed sculptor Augustus Saint-Gaudens to redesign both the Double Eagle and Eagle (or $10 gold piece). Both coins made their debut in 1907 to rave reviews. The next year, Roosevelt gave the green light to redesign the other two gold coins. |
This redesign of the other two rare gold coins gave rise to two designs that are completely different from other rare gold coins. The resulting Indian Head Quarter Eagle and the larger Half Eagle were created with an incuse relief. This means that instead of being raised above the surface and protected by a rim like most other coins, these two have their designs and lettering sunken into a plan that is flat and uniform.
Roosevelt’s friend William Sturgis Bigelow gets the credit for coming up with the concept behind these two rare gold coins. The Boston physician and art lover is said to have been influenced by the Egyptian reliefs in the Boston Museum of Fine Arts. While there was no modern coins quite like these, Bigelow and Roosevelt both like the idea and thought it had merit.
Sculptor Bela Lyon Pratt, another Bostonian, was given the task of creating the designs for these two rare gold coins. While Saint-Gaudens crafted different designs for the Double Eagle and Eagle, Pratt produced identical portraits for both of the smaller coins.
The obverse on Pratt’s design depicts an Indian brave in a war bonnet. It has the date, 13 stars and the word liberty that forms a circle around the central device. On the reverse, there is an eagle in repose. The inscriptions on this side are United States of America, In God We Trust, E Pluribus Unum and the value statement.
While these are considered some of the most sought after rare gold coins today, they debuted to mixed reviews. Many appreciated the design merits, some found fault. Critics said neither the eagle or Indian were well represented and others complained about the coin’s inability to stack properly. The unusual design elements also drew fire. Samuel H. Chapman, a noted Philadelphia coin dealer, warned Roosevelt that the sunken design might lead to problems, including the spread of germs and counterfeiting. Roosevelt, however, remained unflappable in his support for these rare gold coins. In fact, the Indian Head Quarter Eagles were issued from 1908 to 1915.
Production ceased for a decade, but resume from 1925 to 1929. With the market crash and the depression in full swing, gold that came into the Mint was reserved for Double Eagles. The Great Recall of 1934 ended the Quarter Eagle for good.
Boasting only 15 different date-and-mint combinations (12 from the Philadelphia Mint and three from Denver), the series is considered one of the smallest in U.S. coinage. This means a complete set of these rare gold coins is attainable for many collectors. Only one coin, the 1911-D is considered scarce. At 55,680, it's the only coin with a mintage of less than 240,000.
While the Indian Head Quarter Eagle might not be considered as magnificent as Saint-Gaudens’ work, it has its share of supporters and so does the $2 ½ Liberty Gold.
A Look At The $2 1/2 Liberty Gold
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This design took time to evolve and rank among the rare gold coins that collectors now seek. In 1834, the U.S. Mint started searching for a design that could become an enduring symbol of American coinage. Although William Kneass, an engraver, created a head of Liberty for Quarter Eagles and Half Eagles, known as the classic design, this did not last. In 1838, Christian Gobrecht's Coronet design for the eagle gained prominence and a version of this was used on the quarter eagle starting in 1840.
The design that was finally adopted boasted a large Liberty head facing left. She wears a wide coronet that is inscribed with the word liberty. Lady Liberty’s hair is pulled back into a bun, held in place by a string of pearls. In the periphery there are 13 stars to represent the original colonies. The date is below. On the reverse is an eagle that is basically the same one that had been on quarter eagles since 1808. The eagle’s wings are spread with the Union shield covering its breast. The eagle holds an olive branch in its right claw and three arrows in its left. The words United States of America surrounded the eagle and the denomination is behind the bird.
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These rare gold coins were minted between 1840 and 1907. All told, 11,921,171 Coronet quarter eagles were struck at five mints: Philadelphia (no mintmark), Charlotte (C), Dahlonega (D), New Orleans (O), and San Francisco (S). The mintmarks are found on the lower reverse beneath the eagle. It is estimated that 4,232 proofs were also coined. The early (pre-1860) proofs are very rare, with only two or three pieces surviving. Proofs often have frosted white devices that contrast sharply against deeply mirrored fields. Called cameo proofs, they are very popular as type pieces. Many of the post-1901 proofs have an all-brilliant finish with no field to device contrast. This striking finish continued until the series ended in 1907 with the debut of Bela Pratt’s Indian Head design. At this time, the matte proofing process was adopted.
This series of rare gold coins contains many individual rarities and a large number of scarce issues. Due to its exceptional length, remaining unchanged for 68 years, it is a difficult series to complete. While many collectors seek a single high grade example for type sets, others try to include coin from each mint. This is even challenging. For example, of these rare gold coins, the Charlotte and Dahlonega quarter eagles are particularly rare and expensive in mint condition. San Francisco and New Orleans issues are also quite hard to find in AU and mint state, but generally undervalued compared to other mintmarked gold coins with similar mintages and survival rates.
The Philadelphia issues from 1851 through 1853, 1861, 1873, 1878 and after 1886 are the most commonly found Coronets found in mint condition. Be this as it may, Philadelphia does have its rarities. Civil War issues and the dates from 1874 through 1877, when specie payments were still suspended, are quite elusive. Some low mintage dates like the 1881 and 1885 exist today in larger numbers than their mintage would suggest. This is due to the fact that many of these rare gold coins were recovered from European hoards.
While the series has many important coins, none are more significant than the 1848 CAL. quarter eagle. These rare gold coins were made from some 230 ounces of native California ore shipped eastward in 1848. A total of 1,389 quarter eagles were made from this and are distinguished by the abbreviation CAL. stamped into the die above the eagle's head. Each authentic coin has a square period after CAL. Collectors often consider the CAL. quarter eagles to be the first commemorative coins struck in the U.S. These rare gold coins predate the Columbian half dollar by 44 years.
The Philadelphia Mint is also responsible for two other dates that have attained legendary status - 1841 and 1875. The 1841 is also known as "The Little Princess." Approximately 15 examples are known and these extraordinarily rare gold coins have only been found in the finest and most comprehensive collections. The 1875 Philadelphia only had 400 pieces struck. Roughly 25 samples exist today. The San Francisco Mint’s 1854-S is one of the standout rarities in all of U.S. numismatics, with 9-15 specimens believed to exist today in all grades. During its first year of production in San Francisco, only 246 quarter eagles were struck. This is because the San Francisco Mint lacked parting acids.
When grading these rare gold coins, it is important to note that friction begins to first show on the tip of the coronet and above the eye on the obverse. It is also found on the wing tips and claws of the eagle on the reverse. Striking quality is usually quite good and should not present difficulties for most post-1878 issues. Earlier mint coins, however, are especially prone to weakness on the hair curls around Liberty's face and on the left leg of the eagle. It is not out of the question to run into counterfeits, but the most frequently seen dates for bogus pieces are the common dates between 1900 and 1907. Altered mintmarks exist on certain key dates such as 1841 and 1875, but the diagnostics for the dies used to strike genuine coins are widely known. It is recommended that authentication take place when buying these rare gold coins.
This is especially so because of the unprecedented length of time these coins were minted and that counterfeits are not unheard of, especially with more common dates.
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