By Richard Giedroyc – HCC Rare Coins

Once upon a time gold was worth a paltry amount compared to the lofty figures it commands per ounce today. Since gold didn’t have such an incredible value, nor did it fluctuate much in price, it was practical to be used as a coinage metal.

The United States is only one of many countries that over many centuries issued gold composition coins. As the United States expanded so did its need for circulating coinage. In 1848 gold was discovered at Sutter’s Mill in California. People dropped whatever they were doing, sometimes almost literally, and headed for the west coast of what today is the United States to seek their fortunes. Believe it or not even the gold mines in the Carolinas and Georgia in the Appalachian Mountains were abandoned as people perceived that it would be much easier to mine the golden metal in California than in the east.

Some found what they sought. Others would be disappointed. One thing, however, was certain. If the population explosion in California was to be sustained economically either barter would have to be greatly expanded or a lot more coins than had been available were going to be needed in commerce.

The United States recognized the need for a regionally located mint to fill this need. Prior to the establishment of the San Francisco Mint facility in 1854 private parties, primarily jewelers and assayers, produced their own coinage to fill the void. Since gold was readily available while silver was not the private coinage issuers in California used gold to produce what today are generally referred to as Pioneer or Private and Territorial Gold issues.

Although most collectors will remember the more famous issues struck in denominations of $5, $10, $20, and $50, these same private minters struck fractional denominations as well. These “quarters,” “half dollars,” and “dollars” were also struck in gold, since silver was not generally as available. These coins are tiny, many of them being less than 20 millimeters in diameter. (more…)