By Greg Reynolds for CoinLink

An 1839 ‘Head of 1838′ Eagle ($10 gold coin) is ‘in the news’ as Heritage just sold one that is graded “MS-62” by the Numismatic Guaranty Corp. (NGC). On March 27, it realized $33,350 in an Internet Auction.

An 1839 ‘Head of 1838′ in Very Fine grade would retail for between $1000 and $2000. A specific price would partly depend upon surface characteristics, eye appeal and pedigree.

The finest known 1839 ‘Head of 1838′ Eagle gathered a lot of attention when it sold for $402,500 at a Heritage auction in January 2005, in Fort Lauderdale. It was part of a fantastic gold type set, awkwardly called the “Gold Rush Collection.” This set was assembled by an unnamed collector under the guidance of Al Adams.

Someone who browses through price guides, reference books, and auction catalogues might wonder if a half-dozen varieties of 1839 Eagles exist. It may come as a surprise to learn that ‘Head of 1838,’ ‘Old-style head,’ 1839/8, and ‘Large Letters’ all refer to the same 1839 Eagles. Likewise, ‘Head of 1840,’ ‘New-style head’ and ‘Small Letters’ are all labels used to refer to the same 1839 Eagles, of the second category, ‘Head of 1840.’ The focus here is on 1839 Eagles in the first category, ‘Head of 1838.’

In late 1839, the design of Eagles was changed. In 1988, the eminent researcher Walter Breen said that there were three dates of 1839 Eagles. One has the ‘Head of 1840′, and two feature the ‘Head of 1838,’ an 1839/8 overdate and an 1839 with ‘normal date.’

Most experts now believe that there is just one 1839 ‘Head of 1838′ date. Some call it an overdate, and others do not. There is a consensus that all such coins were struck with one pair of dies.

The Professional Coin Grading Service certifies all genuine 1839 ‘Head of 1838′ Eagles as “1839/8.” In another words, the officials at PCGS regard all 1839 ‘Head of 1838′ Eagles as overdates. If it is an overdate, an obverse die that was used, or was intended for use, in 1838 was used in 1839, and a ‘9′ was punched over the ‘8.’

The NGC does not list such an overdate and thus refers to all 1839 ‘Head of 1838′ Eagles as having normal dates, or as normal enough not to require an additional designation. Furthermore, Numismatic News’ Coin Market does not refer to the existence of such an overdate, nor do most other price guides. It is likely, however, that the claimed 1839/8 and all other 1839 Eagles in the first category are of the same ‘date.’

The Richmond Collection had a NGC graded EF-45 1839 ‘Head of 1838.’ In 2004, it was cataloged by Ron Guth, who is currently the President of PCGS. Guth did not mention that it is or might be an overdate. In 2005, Guth co-authored a book on type coins with Jeff Garrett. They implied therein that all 1839 ‘Head of 1838′ Eagles are overdates.

In the Pittman II sale, May 1998, David Akers cataloged an 1839, ‘Head of 1838,’ EF grade, without any mention of an overdate. In 1992, Stack’s auctioned the Floyd Starr 1839 ‘Head of 1838′, AU grade. The Stack’s cataloger said that the issue was “incorrectly” called an overdate by Breen.

In 1984, Stack’s auctioned the Amon Carter 1839 ‘Head of 1838,’ graded then as “Uncirculated,” probably higher than MS-60 today. The cataloger then, who was likely to have been Norman Stack, said that the recutting of the die resulted in “the illusion of an overdate.”

In Nov. 2000, B&M auctioned the fourth part of the Harry Bass collection. An 1839, ‘Head of 1838, PCGS AU-55, was sold. The B&M catalogers said that “all” 1839 ‘Head of 1838′ Eagles are overdates, but the eight is not visible because “lapping and die wear” have eradicated what was left of the numeral 8.

It seems more likely that the nine digit was repunched in the die, because the initial punching was unsatisfactory, and/or a craftsman at the Mint used tools to ‘enhance’ the nine digit in the die before any coins were struck. Even if there was originally an eight digit punched into the die, its remnants are faint and ambiguous.

I am not aware of enough evidence to conclude that it is an overdate. I admit, however, that I have not carefully examined the digits on these coins under high magnification. During auction lot viewing sessions, magnifying glasses of 5X or 3X power are typically used. I have never seen someone bring a microscope to a lot viewing session.

The 1839 ‘Head of 1838′ and the 1839 ‘Head of 1840′ are the only two dates of 1839 Eagles. The primary difference between the two 1839 dates is the difference in the design of Miss Liberty’s Head. In 1838 and early 1839, a Liberty Head was portrayed on Eagles that looks considerably different from the Liberty Head that appeared on Eagles from Autumn 1839 onward. There are other differences, such as the above-mentioned reverse letters, though these are not pronounced.

The ‘Gold Rush Collection’ 1839 ‘Head of 1838′ is, by far, the finest known of this date. It is PCGS graded MS-66. The obverse, front of the coin, is very brilliant, and the reverse, back of the coin, even more so. The coin glistens, and its original mint luster is alive and well. Plus, it is very sharply struck.

Why does it not grade MS-67 or higher? There are a few very light hairline scratches and contact marks, especially in the fields near Miss Liberty’s jaw and neck, and below her neck. The reverse, by itself, probably grades MS-67.

The finest known examples of other Liberty Head, ‘No Motto’ Eagles are not worth anywhere near $402,500! Why is this one?

The motto, “In God We Trust,” was added to the reverse (back) of eagles in 1866. It is true that there are very few ‘No Motto’ eagles, of all dates, which grade MS-66. An MS-66 grade 1861, however, is said by PCGS to be worth $130,000, less than one third the price of the MS-66 1839 ‘Head of 1838.’

The PCGS price guide values an MS-64 grade, 1839 ‘Head of 1838′ Eagle at $135,000. Yet, in MS-64 grade, the 1842, 1847, 1848, 1848-O, 1849, 1851-O, 1854, and other dates, are all valued at between $30,000 and $42,000, less than one-third as much as an 1839 ‘Head of 1838.’

Consider the 1848-O. The PCGS guide values it at $42,000 in MS-65 grade, and $150,000 in MS-66. So, it is worth one-third to two-fifths as much as an 1839 ‘Head of 1838,’ even though the certification statistics of the PCGS and the NGC suggest it is equally rare?

In general, the 1839 ‘Head of 1838′ is worth much more than most other ‘No Motto’ Liberty Head Eagles, including those that are of similar rarity. The reason stems from the fact that many collectors consider the 1838 and 1839 ‘Head of 1838′ to be the only two dates of a distinct design type.

Alternatively, these two dates are deemed by some to be just a subtype, or, in a demeaning manner, to be just varieties of Liberty Head ‘No Motto’ Eagles. The PCGS refers to these two dates as a separate design type, while the NGC does not.

In the PCGS Population Report, these first two dates are listed as comprising the Liberty Head, Cov[ered] Ear type! In the PCGS registry, overall type sets and relevant gold type sets require an 1838 or 1839 ‘Type of 1838′ Eagle. In the NGC registry, overall type sets and classic gold type sets do not require such an Eagle, and there is no separate NGC category, in any regard, for this two-year issue.

The Krause-Mishler framework and Breen’s encyclopedia (1988) regard these first two dates, 1838 and 1839 ‘Head of 1838,’ as a subtype rather than as a separate design type. A majority of coin periodicals do not refer to them as being a separate type, nor even a subtype! Guth & Garrett, however, in their book on type coins (Whitman, 2005), assert that the differences are “sufficient” for these two dates to be a “separate type.”

David Akers is often regarded as the foremost specialist in U.S. gold coins. In the Pittman II auction catalogue, he is definitely employing the word “type” to describe to an 1839 ‘Head of 1838′ coin. In the description of the following lot, he refers to an 1839, ‘Head of 1840′ as the “Type of 1840.” Furthermore, Akers explains that the 1839 ‘Type of 1840′ “is far rarer than the 1839 Type of 1838 or even the 1838 which have traditionally been more highly prized due to their type coin status”! Traditionally and logically, as the two ‘Head of 1838′ dates are of a markedly different design, they constitute their own type.

As the finest known of this very rare date, the ‘Gold Rush’ 1839 ‘Head of 1838′ would probably be worth between $200,000 and $275,000. It sold for more than $400,000 because it is the finest known of a whole design type. While there are a fair number of people who collect Liberty Head Eagles ‘by date,’ there are a much larger number of people who collect gold coins (or all U.S. coins) ‘by type’! A ‘type collector’ only needs one example of each design type to complete a ‘type set.’

The PCGS has also certified an 1839, ‘Type of 1838,’ as MS-65. It may be the coin that Superior Galleries auctioned for a reported “$253,000” in 1998. It was in the James Swan Type Set, the second “All-time Finest” type set in the PCGS registry.

The Oliver Jung Type Set, auctioned in July 2004, contained several coins from the James Swan Set. It may be true that the Swan type set was sold privately months before the Jung Set was auctioned.

The PCGS registry gives the impression that Jung did not have an Eagle of this 1838-39 type. In fact, he had a PCGS graded MS-61, 1839 ‘Head of 1838′ Eagle. It sold to a floor bidder for $29,900. It was one of the weaker components in one of the greatest type sets of all time.

The ‘All-Time Finest’ Type Set in the PCGS Registry is the ‘High Desert Collection.’ Its contents, unfortunately, are kept secret from visitors to the PCGS website. Such cloaking should be prohibited as it reduces the educational value of the registry, dampens enthusiasm among collectors, and prevents browsers from forming their own opinions about the sets registered.

Where are the other supposedly choice uncirculated, MS-63 and higher, 1839 ‘Head of 1838′ Eagles listed in the PCGS and NGC reports? None are readily apparent in the sets in the PCGS and NGC registries. The ‘High Desert’ or another cloaked set could have one.

The Waccubuc Type Set has an 1839 ‘Head of 1838′ Eagle that is said to be from the epic Harry Bass Collection. It is PCGS graded MS-61. The Bass listing in the Registry, however, refers to one that has an “estimated” grade of “AU-58,” and that probably is the coin that remains in the Harry Bass Core Collection. As mentioned above, the 1839 ‘Head of 1838′ in the Bass IV sale is or was PCGS graded AU-55. Maybe it later upgraded to MS-61? Coins of this date in earlier Bass auctions were of lower grades.

The highly ranked “Gopher State” Type Set has an 1839, ‘Type of 1838,’ that is PCGS graded AU-58. Registrant Ellen ‘D’ has both the 1838 and 1839 ‘Head of 1838′ in AU-55 grade. The other competitors in the PCGS registry seem to have EF to AU examples, if any, of the ‘Head of 1838′ type.

Louis Eliasberg formed the greatest collection of U.S. coins of all time. He had a Proof 1839 ‘Head of 1838′ Eagle. Proofs of this type are extremely rare and the two that I have seen are extremely beautiful. They deserve an article of their own.

PCGS officials “estimate” that the 1839 ‘Head of 1838′ in the Smithsonian grades “MS-64.” As for the three that PCGS has graded MS-64 and the one that PCGS has graded MS-63, where are they? Most epic collections seem to have had Extremely Fine to Almost Uncirculated examples.

A PCGS graded MS-63 example was auctioned by Ira & Larry Goldberg in October 1999. Did it since upgrade to MS-64?

The 1839 ‘Head of 1838′ Eagle is rare in circulated grades as well. PCGS and NGC data include a lot of duplication and multiple submissions. Undoubtedly, there are fewer than 200 known, in all grades. Moreover, there could not be as many as 100 1838 Eagles around today. So, there are less than 300 survivors for the whole type, possibly much less. Arguably, 1838-39 Eagles are the third rarest gold type.

© 2007 Greg Reynolds

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