“These historic, Southern California large and small-size notes have been off the market for decades in his collection. There are several unique and serial number one examples,” said Larry Goldberg, partner with his cousin, Ira, in the auction firm.

Photo Caption: The First National Bank of Santa Ana, 1902 $10 Red Seal, PCGS Currency VG10, unique, the only known Red Seal from Orange County California, is one of the highlights of the William Pannier Collection to be offered in an auction by Ira & Larry Goldberg Coins & Collectibles, January 31 – February 2, 2011. Photo credit: Lyle Engelson for Ira & Larry Goldberg Coins & Collectibles

Pannier, who died in August at the age of 66, was the long-time owner of Fullerton Coin & Stamp Company, the oldest coin and stamp store in Orange County California. Well-known collector and real estate developer Dwight Manley worked at the shop on weekends as a teenager, and considers Pannier a beloved numismatic mentor.

Pannier began collecting silver certificate notes in the late 1960s and then became interested in Orange County currency, according to his brother David.
“We were second generation Orange County residents. Orange County was in our roots. Some of the notes were displayed at the store, but he kept the more pricey things at home. He always tried to upgrade the notes or get a lower serial number for his collection,” David Pannier recalled.

Highlights of the Orange County California bank notes in the Goldberg’s auction include:

• The First National Bank of Fullerton, 1882 $10 Value Back, graded PCGS Currency VF30, the finest of only three known Value Backs from the entire county;

• The Farmers & Merchants National Bank of Santa Ana, 1902 $20 Date Back, PCGS Currency VF20PPQ, one of only four known from the bank;

• The First National Bank of La Habra, 1902 $10 Plain Back, PCGS Currency VG10, one of only two known from the town;

• The National Bank of Orange, 1902 $10 Date Back, PCGS Currency Very Choice New 64, the finest known large size note from this bank;

• The Placentia National Bank of Placentia, 1902 $10 Plain Back, PCGS Currency VF25, one of only seven notes known from the town;

• First National Trust & Savings Bank of Fullerton, 1902 $10 Plain Back, PCGS Currency F12, one of only four known large size notes from this bank;

• The First National Bank of Santa Ana, 1902 $10 Red Seal, PCGS Currency VG10, unique, the only known Red Seal from Orange County California;

• The First National Bank of Garden Grove, 1902 $5 Plain Back, PCGS Currency F15, one of only 10 large size notes known from the town;

• The First National Bank of Santa Ana, 1929 $10 Type 1, PCGS Currency VF20, the only known serial number 1 on a Santa Ana note;

• The First National Bank of Tustin, 1929 $10 Type I, PCGS Currency VF20;

• The First National Bank of Olive, 1929 $10 Type 1, PCGS Currency VF30PPQ, one of the two finest of nine small-sized notes known from the town;

• Oilfields National Bank of Brea, 1929 $5 Type 2, PCGS Currency Choice About New 58PPQ;

• and an uncut, six-subject, serial number 1 sheet of Anaheim First National Bank 1929 $20 Type 1 notes, PCGS Currency About New 58 PPQ.

David Pannier remembers his thoughts the first time he saw the huge gold nugget that his brother purchased about eight years ago: “My God! You can’t put that in a necklace!” The impressive nugget was displayed at the coin store for years, but when Willie Pannier became ill early in 2010 he took it home and used it as a paper weight, according to his brother. “He liked to look at it and admire it.”

Photo Caption: Nicknamed “The Fullerton Boulder,” this 34.705 ounce gold nugget (photographed next to a quarter-dollar for size perspective) is one of the highlights of the William Pannier Collection to be offered in an auction by Ira & Larry Goldberg Coins & Collectibles, January 31 – February 2, 2011. Photo credit: Lyle Engelson for Ira & Larry Goldberg Coins & Collectibles

“This is the largest gold nugget we’ve ever offered for sale in our 50 years in numismatics. It weighs 34.705 ounces,” said Larry Goldberg.

The Fullerton Coin & Stamp Co. opened in 1961 and will mark its 50th year in 2011. William Pannier bought the store in 1976. After he died of cancer in August, Manley acquired the store and reopened it.

“There was only one Willie. He was a very special, one-of-a-kind person who transcended from another era. I brought him to the American Numismatic Association for the first time in 2003 to attend the renaming of the library in my honor. He was an important part of many people’s lives including mine and my children’s. We will always love him,” said Manley.

Lot viewing for the auction will be conducted January 24 – February 2, 2011 at the Beverly Hills, California offices of Ira & Larry Goldberg Coins & Collectibles, 350 South Beverly Dr., Suite 350. The auction will be conducted at the Crowne Plaza Beverly Hills Hotel, 1150 South Beverly Dr., January 31 – February 2.

For additional information about the collection and other coin and bank note items in the auction, contact Ira & Larry Goldberg Coins & Collectibles by phone at (800) 978-2646, by email at info@GoldbergCoins.com or visit online at www.GoldbergCoins.com.

Related posts:

1. Historic Ed Price Collection of Early Dimes & Quarter Eagles to be offered by Heritage
2. Man uncovers 1837 bank notes
3. Outstanding Results For Auction Launching New Bank of Scotland Notes

A Weekly Column by Greg Reynolds

For decades, the Long Beach (CA) Coin, Stamp and Collectible Expo has been a major event for coin collectors. The third Long Beach Expo of 2010 will start on Sept. 23 and end on Sep. 25. As usual, Heritage will conduct the official auction. Earlier, in Los Angles County, the firms of Bonhams and of the Goldbergs will also conduct auctions. The Goldbergs will offer a very wide variety of coins on Sept. 19th, 20th and 21st at the Beverly Hills Crowne Plaza.

I. Eliasberg 1893-S $5 Gold Coin

At the ANA Convention in Boston, I was fortunate to have the opportunity to closely examine some of the coins in the upcoming Goldbergs auction. One of my favorites is an 1893-S Half Eagle ($5 gold coin) that was formerly in the Louis Eliasberg collection, which is the greatest collection of U.S. coins that was ever formed.

Many gold coins with an Eliasberg pedigree are of tremendous quality, and this 1893-S is one of them. It is PCGS graded MS-66, and was certified at some point in the mid 1990s. I grade it as 66+. Furthermore, it has a sticker of approval from the CAC, which indicates that experts at the CAC determined that its grade is at least in the middle of the 66 range.

This 1893-S Half Eagle has great luster and an excellent strike. It is wonderfully brilliant. This coin has almost no contact marks or hairlines. The inner fields exhibit some pleasant, natural light green toning.

The 1893-S Half Eagle is somewhat common in grades up to MS-62, in which range it is valued only slightly higher than the most common Liberty Head ‘With Motto’ Half Eagles. In MS-63 and MS-64 grades, an 1893-S Half Eagle commands a substantial premium. In MS-65 and higher grades, it is an extreme condition rarity. At most, one half dozen true gems exist, and probably not even that many. This Eliasberg 1893-S is the only 1893-S that is graded MS-66 by the PCGS or the NGC, and none have been certified as grading higher than MS-66. There is certainly a good chance that it is the finest known.

In MS-66 grade, the PCGS price guide values this 1893-S at $22,500 and very common dates at $7500. A rival price guide at Numismedia.com values a MS-66 grade 1893-S, which must be this one, at $20,150. An old green PCGS label, an Eliasberg pedigree, and a CAC sticker all have the potential to bring about a price that is higher than would otherwise be realized. This coin, though, speaks for itself. It is exceptionally attractive and a delight to view.

II. Carter 1797 ’small eagle’ $10 Gold Coin

In the upcoming Goldbergs auction, the re-appearance of the NGC graded MS-63 1797 ‘Small Eagle’ Eagle is newsworthy. Gold coins were first struck at the U.S. Mint in 1795. The major varieties of the first type of Eagles that are collected as if they were distinct dates are: the 1795 with thirteen leaves on the branch, the 1795 with nine leaves on the branch, the 1796, and the 1797 ’small eagle’. This first type has a bust of Miss Liberty on the obverse (front) and a relatively small eagle on the reverse (back). The second type of Eagles, which date from 1797 to 1804, have the same general obverse (front) design along with a much different reverse (back) design. The new reverse features a large or heraldic eagle. It is not just the size of the eagle that is different; the style of the eagle and other reverse design devices are also different.

There are fewer than twenty-five known of the 1795 ‘Nine Leaves’ variety. The 1797 ’small eagle’ issue is extremely rare as well. I believe the estimate in the BD book that there exist fifty-five to sixty-five coins of this issue is incorrect. I theorize that fewer than fifty 1797 ’small eagle’ Eagles are known.

In May 2007, I wrote about the 1797 ’small eagle’ Eagle issue and I discussed this exact same coin. (Please click here to see that article.) Through research, I then identified it as the very same 1797 ’small eagle’ Eagle that was in the famous Amon Carter collection, which Stack’s auctioned in Jan. 1984.

Both Amon Carter, Sr. and his son, also named Amon, were dedicated collectors. The Carter collection contained an excellent array of U.S. gold coins, especially early issues, and one of the all-time best assemblages of U.S. silver dollars and Trade Dollars. The 1794 silver dollar that is PCGS certified Specimen-66 was part of the Amon Carter collection and was sold in the Jan. 1984 auction event.

The Carter 1797 ’small eagle’ Eagle in the upcoming Goldbergs auction is the highest graded coin of this issue. The NGC has graded three as MS-62 and two of these are definitely different coins, the coin that ANR auctioned in August 2006 and the 1797 ’small eagle’ Eagle that Heritage auctioned in January 2004. In 1996, Superior auctioned an NGC graded MS-62 1797 ’small eagle’ Eagle. I have not viewed a copy of that catalogue. I wonder if the 1797 Eagle that Superior auctioned in 1996 and the NGC graded MS-62 coin that Heritage sold in 2004 are the same.

One of two Bass 1797 ’small eagle’ Eagles has had three different certified grades in each of its three recent auction appearances. In 1999, it was PCGS graded “AU-58,” in 2003, NGC graded MS-61. Before ANR auctioned it in Aug. 2006, the NGC upgraded it to MS-62! The other Bass 1797 ’small eagle’ Eagle is not certified and remains in the Harry Bass Core Collection. It is believed that it would grade MS-61 or MS-62, if it was submitted to the PCGS or the NGC. I have never seen it.

Though its grade is not in the upper reach of the 63 range, this Carter 1797 ’small eagle’ makes the MS-63 grade, in my view. The lines on the obverse are adjustment marks that were made at the U.S. Mint before striking. Blanks that were overweight were filed down. It is common for early gold and silver coins, especially those dating before 1807, to have adjustment marks. These do not bother me much. Even if a grader found the adjustment marks to be very bothersome, this coin would still merit a grade of at least a high end MS-62, assuming that it has not changed since I examined it in 2007. Given all the imperfections that pre-1800 coins tend to have, this coin’s relative lack of problems is particularly important.

Many early Eagles appear washed-out, have many noticeable contact marks, and/or are characterized by numerous hairlines. This coin does not have such negative characteristics. Indeed, as I remember, there are just a few minor contact marks and no significant scratches. It has decent color. This 1797 ’small eagle’ Eagle is an appealing coin.

III. Davy Collection of Half Cent Errors

The Goldbergs auction events will be highlighted by the “Davy” collection of half cent errors and the Dan Holmes collection of large cent errors. Please read my discussion of the Dan Holmes collection of early date large cents, which were auctioned about a year ago, and click here to read my June 9th column that covered some of Holmes’ Middle Date large cents.  As I have written so much about large cents over the last three years, I will focus upon half cent errors here.

A collector in the Midwest, who prefers to remain anonymous, formed the “Davy” collection of half cent errors. My strong impression is that it is the best collection of half cent errors to ever be publicly sold. Plus, I am not aware of a finer collection ever having been sold privately.

Half cents and large cents were minted from 1793 to 1857, though not in every year in between. Large cents (pennies) are similar in size to quarters, and half cents are a little greater in diameter than five cent nickel coins are now. (Five cent nickels were first minted in 1866; Three Cent Nickels were first minted a year earlier.)

The Davy and Holmes collections each contain literally hundreds of errors. There are several kinds of errors. Often, coins were struck off-center. Sometimes, when a coin was struck off-center, it was struck again, or even a third time, to ‘correct’ the initial error. There are numerous coins that were each struck multiple times. In other cases, the edge lettering is blundered. Coins that are too light in weight, or too heavy, are also errors. Coins that were struck on planchets (prepared blanks) that had various kinds of sharply noticeable imperfections, too, fall into the category of errors.

I find brockages to be most significant of early error coins. These are more interesting, in my view, than the coins that are struck off-center, or even struck off-center two or three times. For an explanation of a brockage, please see the appendix below. In some ways, a brockage has two obverses or two reverses. Usually on a brockage, one side is a regular obverse (front) or reverse (back) and the other is an incuse (sunken) backwards image of an obverse or a reverse design.

“Brockages have always been fascinating to most all collectors of early U.S. coins,” remarks Greg Hannigan. “They are a lot rarer than some of the other categories of errors.”

An 1803 half cent error, which will be sold as lot #125, is an obverse brockage and it is struck five per cent off-center. So, this piece is characterized by two major kinds of errors. The cataloguers grade it as Fine-15. “Sharpness VF-20.” they say, “and the eye appeal is excellent, but there are a few dull contact marks on the incuse [sunken devices] brockage side.” It was formerly in the collection of Richard Picker and it is estimated, by the cataloguers, to bring at least $4000, maybe much more. There are many items in the “Davy” collection that have low estimates below $500, though it is plausible that some items will bring multiples of their low estimates.

An obverse brockage of an 1804 half cent will be sold as lot #145. It is of the famous spiked chin obverse variety. An 1806 half cent reverse brockage, which has no visible date, will be sold as lot #213. I find this piece to be entertaining. Seeing reverse designs on both sides of the same early U.S. Mint item, including one with sunken devices, is curiously cool.

U.S. Mint personnel often thought of brockages of early copper coins as failed strikes and sent them through the system again, as if they were bare planchets (prepared blanks). So, a coin, with a proper obverse and reverse, may be ’struck over’ a brockage. These are sometimes particularly noteworthy.

A 1795 half cent ’struck over’ a reverse brockage large cent, lot #31, caught my attention. It is estimated to bring $300 or more. A similar error will be sold as lot #114. It is an 1802/0 half cent that was “struck over a cut-down spoiled large cent with an obverse brockage,” explains the cataloguer. “The obverse of the half cent is struck over the incuse off-center brockage side of the large cent. Incuse [sunken] letters from the undertype cent show along the throat and jaw.” It is said to be one of the most valuable half cent errors in this collection.

Jim McGuigan finds ’struck over’ brockages to be among the most desirable of all early copper errors. McGuigan is a specialist in pre-1840 U.S. coins of all metals. Jim personally collects half cents and much of his collection is listed in the PCGS registry. He reveals that he “started collecting half cents in 1957.”

McGuigan declares that the “Davy collection is the best ever of half cent errors, both in quality and quantity.” Greg Hannigan “would agree that it is best collection of all time of half cent errors.” Hannigan is a leading dealer in large cents, and handles several other types of early U.S. coins. Hannigan particularly likes “double struck and triple struck errors.” Interestingly, Hannigan finds that “early copper errors did not get any respect until the last twenty years.”

The consignor is not named “Davy.” He has been collecting errors, and many other coins, for decades. McGuigan “is not aware of anyone else ever having more than a hundred half cent errors.” The “Davy” collection contains more than three hundred.

IV. Appendix: What is a Brockage?

Many coin enthusiasts, including myself, find brockages to be among the coolest kinds of errors. For a brockage to come about, first, a coin must be, for one reason or another, not ejected or otherwise removed from a mechanical coining press. Accidentally, it remains on one of the dies. (Please see my column of Sept. 1 for a definition of a die.) Secondly, when the next planchet (prepared blank) is fed into the coining press, it will, during striking, become sandwiched between an already struck coin and one of the two dies. Third, if the design devices on one side of the already struck coin become imparted onto one side of a fed planchet (prepared blank) and the other side of this planchet is struck by a die (as it should be), then a brockage comes into existence.

Yes, this process may sound confusing and it would be even more confusing to explain the variations of brockages. For simplicity, I will explain only the type of brockage that is most often seen, an obverse (Front) brockage that comes about after a struck coin is left in the press on top of the bottom die that is the reverse (tail) die. When the next planchet (prepared blank) is fed into this press, it falls on top of the coin that was not ejected, and then the ‘hammer’ die comes smashing down on top of this planchet (prepared blank), which is thus sandwiched between a coin and an obverse die. So, the obverse die imparts (as it should) an obverse design to the obverse of the planchet. The leftover coin, however, is ‘in between’ the reverse die and the obverse die. So, a reverse design is not imparted. Instead, the obverse of the leftover coin is impressed into the underside (reverse) of the planchet. Therefore, an incuse (sunken) and ‘backwards’ transformation of the obverse design is imparted into the underside (‘reverse’) and the newly created error has a normal obverse and an incuse and backwards version of the obverse design as its ‘reverse’!

Yes, in some cases, the hammer die is the reverse die, but this is beside the point. I am using the most typical scenario of the making of a brockage to illustrate the concept. In other situations, a brockage, which features reverse designs, may come about when a planchet is sandwiched in between the bottom (anvil) die and a struck coin that clings to the hammer die, sometimes by forming a ‘cup’ shape. It not necessary to understand all the variations in order to understand how most brockages are created.

©2010 Greg Reynolds

Related posts:

1. Coin Rarities & Related Topics: Southern California Auctions and Market Realities
2. Coin Rarities & Related Topics: 1794 Silver Dollar sells for $1,207,500, and More Auction News
3. Coin Rarities & Related Topics: Stack’s auction of the W. L. Carson Collection of Proof Coins

Born about 85 BC, Brutus was thrust into the political realm and early became a follower of Cato, a staunch Republican. Later, Brutus built a fortune by lending money at usurious rates and eventually became a Roman senator. What did Brutus really want? Like Edward G. Robinson in Key Largo, “More”?

There grew a great friendship between Caesar and Brutus, but during the Civil War it was clear that Caesar would never return to the former Republican government. Instead, Caesar was swayed by his many victories and public adulation, ultimately accepting the title “dictator for life.”

Caesar’s portrait graced many coin issues, and his likeness was the first of a living person to be depicted upon the specie we now revere. It is ironic to also find the portrayal of Brutus on Coinage.

Marcus Junius Brutus, d. 42 BC. Gold Aureus (8.07 g), struck at a traveling mint in Macedonia or Western Asia Minor, summer/autumn 42 BC. With moneyer, P. Servilius Casca Longus. Bare head right of Brutus with short beard, BRVTVS IMP on either side, all within laurel wreath.

Reverse: Combined military and naval trophies, with prows and shields at base; a small L to left of trophy; CASCA LONGVS on either side. Fr-24 (this coin); Craw 507/1b; BMCRR 62; Syd. 1297; Vagi 94; Kent-Hirmer 99. Faint double striking at back of head, otherwise a splendid likeness, in high relief. Lustrous and sharp! One of the most historic of Roman issues, gold or silver!

Excessively rare. Probably the finest of only 8 recorded specimens. NGC graded Choice About Uncirculated.

The ensuing struggle, the loss of life and of ideals, and the change of government are witnessed and related on this wonderful coin. Shakespeare (perhaps one in the same with Francis Bacon) gave us the perfect glimpse into the stage as life; Joseph Mankiewiez and John Houseman created a magnificent vision in their 1953 film Julius Caesar. With Marlon Brando, James Mason, John Gielgud, Greer Garson, Deborah Kerr and other stellar actors, it is a movie to view and view again. The next time you see it, ponder this aureus .

Estimated Value $400,000 – 500,000. Realized $525,000
Ex John Whitney Walter Collection, Stack’s-Berk Auction (11-29-90), lot 7; ex NFA Auction XXII (06-01-89), lot 23; ex Leu Auction 22 (05-08-79), lot 184. Illustrated in Money of the World, coin 30. Ex Millennia, Lot 75.

Related posts:

1. “Brand New” Ancient Roman Gold Coins in Heritage January 2009 NYINC Auction
2. Ira and Larry Goldberg World and Ancient Coin Auction
3. Baldwin’s Ancient and World Coin Auction 67 & 68: The Official COINEX Auction

Here we would like to highlight 4 of the World Coin Highlights, coincidentally all from the previous Goldberg’s Millennia Sale. They are as follows:

Lot 3411 Russia. Peter I, 1682-1725. Novodel Ruble struck in Gold, 1705 (Moscow).

Fr-76 (62); Sev-12; Bitkin-532; Diakov-page 87, part 1. 44.22 grams. Laureate, cuirassed youthful bust right. Reverse: Crowned, double-headed eagle with scepter and orb. Plain edge. Sharply struck with all details bold, Peter’s hair curls in higher than normal relief. The surfaces are fully prooflike on both sides, with the devices softly lustrous to frosty matte and the fields reflective with an almost watery texture. Undoubtedly a high gift of state, the coin has been carefully preserved, with minimal marks or hairlines. The reverse die shows faint radiating cracks. This is one of the most important of all Russian coins!

Struck in gold to the weight of 13 Ducats, 44.22 grams, and created from the dies of the novodel ruble of 1705 (Sev-185), this is the plate coin shown in Bitkin and Diakov which appeared in both the 1977 Soderman and the 1991 Goodman auctions and is the only specimen appearing at public auction in over 25 years. Severin mentions this particular specimen (his number 12) as well as another weighing 40.4 grams, making this one of only two known examples. He also mentions a gold 1707 rouble (no. 18) and a 1723 in 12-ducat weight, each presumably unique. NGC graded MS-63.

Among Peter’s numerous reforms, he caused his country’s coinage system to change from being the most old-fashioned in Europe to being the most up to date. His was the first coinage to employ the decimal system (dividing the Ruble into one hundred smaller units, of copper Kopecks). Part of his reform involved devaluation, which made, for the first time, the Russian Ruble equivalent in its buying power to the Polish, Saxony and Silesian thalers which had seen such free circulation within the country before. It is said that, when the first Ruble coins bearing Western-style Arabic dates were struck in 1707, it was Peter himself operating the coin press!
Estimated Value $275,000 – 325,000.

Ex Dr. Robert D. Hesselgesser Collection (5/30 – 6/1/05), lot 1751; Goodman Collection (Superior, Feb. 1991), lot 4; and Soderman Collection (Swiss Bank, Feb. 1977); Illustrated in Money of The World, coin 115. Ex Millennia, Lot 802 where it Realized $340,000

Lot 3158 Guatemala – Central American Republic. 8 Escudos, 1824-NG-M (Nueva Guatemala). Fr-26; KM-8. 26.96 grams.

Radiant sun face over row of volcanoes. Reverse: Tree on foliate ground, value on either side. Exceptional detailed strike, with only slight adjustment marks remaining. Minor faint random hairlines at centers, otherwise glittering to proof-like luster overall. Probably the finest known example of this rarity. NGC graded MS-63 Prooflike.

The Central Americam Republic was centered in Guatemala. It was totally ineffectual and dissolved betwwen 1838 and 1840 after each state opted for independence. At this time, an illiterate highwayman named Rafael Carrera pledged a vendetta against the Guatemalan president of the Central American Republic, Francisco Morazon. Carrera was backed by the conservatives in Guatemala as well as the powerful Catholic Church. He succeeeded in dominating Guatemalan politics and was named president for life. He actually did a relatively good job as president given the chaotic times. Despite his humble background, he is known as the founder of modern Guatemala (El Fundador).
Estimated Value $125,000 – 150,000.

Ex Superior ANA Sale (August 19-23, 1975), lot 2585, where it realized a hammer price of $20,000 against a $5,000 estimate (this one of the highest prices paid for a foreign coin in that sale). Ex F.C.C. Boyd Collection, acquired by Charles Wormser & John Ford, a.k.a. New Netherlands Coin Company; thence personally consigned to the ANA Sale by Wormser; Illustrated in Money of the World, coin 166. Ex Millennia, Lot 1058 where it Realized $145,000

Lot 3942 Mexico. 8 Reales, No Date-M (Mexico City, c. 1535-6). Excessively Rare — one of only 3 specimens known.

Of the highest significance for the history of New World coinage. Emphasizing the experimental nature of this issue, one can discern that this coin is a test strike. Apparent in the fields are flattened designs, indicating that the present piece was overstruck on itself at least once, if not two or more times! NGC graded EF-40.

Carlos and Joanna, or Johanna, issued the first coins from Europe for the New World. Johanna was the daughter of Ferdinand and Isabella, and heir to the Spanish throne. She married Philip the Handsome, and they had a son named Charles. Both Johanna’s mother, Isabella, and her husband, Philip, died young. By all reports this made Johanna mentally unbalanced. Her son claimed co-regency with Johanna, and had her imprisoned in the castle of Tordesilla. He then ruled in name with her, but effectively he ruled alone. So much for filial love.

Only 3 pieces were found in a shipwreck. One is held by a collector who wants one million dollars for his example. Another brought $373,750 at a Heritage sale last year at New York. The salvage group that found the shipwreck, and who at one time had all three coins in their possession, consigned it. The winning bidder, a well-known Latin-American collector, was prepared to pay much more for this coin. At the time of the sale, there were rumors of many more known examples; thus, many major buyers did not attend the sale or bid on this important coin.

Mr. Daniel Sedwick, who represented the salvage group at the sale, stated that this was the last piece from the shipwreck. Since the auction, it is now confirmed that only three of these coins are known. The discovery specimen is being offered here.
Estimated Value $250,000 – 300,000.

Illustrated in Money of the World, coin 144. Ex Millennia, Lot 1073 where it Realized $270,000

Lot 3981 Peru. 8 Reales, No Date

(c. 1568-1571), P-R (Lima). WR-1; KM-13; Sellschopp 1; Calbeto 243; Guttag 3993; Dasi 126. (Francisco del Rincon, assayer). 26.70 grams. Philip II, of Spain, 1554-1598.

Crowned arms of Castille and Leon; assayer’s initial at left. Reverse: Crowned pillars over waves, motto between; value below. Choice even strike, perfectly centered on very round flan. Very fine old collection toning. Of the highest rarity, and the utmost historical interest for New World numismatics. This is among the finest of little more than a handful of known examples.

It is thought that from 7 to 10 examples at most, in any grade, exist. The coin’s fame and desirability rests on the fact that it was the first crown-size coin of South America. Francisco del Rincon opened the first mint in the Americas in Mexico City in 1536. NGC graded AU-55.

Lima was founded by the conquistador, Francisco Pizarro in 1535. He named it the city of the kings. It became home to the Viceroyalty of Peru, and an important religious center as well. In fact, Lima was the second city of the New World behind Mexico City. Its mint was opened in 1568. The first 8 Reales coins struck there are great rarities. As stated by Wayte Raymond, “Of the greatest rarity and interest.”
Estimated Value $200,000 – 250,000.

Ex F.C.C. Boyd Collection. This coin is the Wayte Raymond plate coin (F.C.C. Boyd); and so too for Dasi (copied from the Coin Collector’s Journal, Jan.-Feb. 1947, page 13). This coin’s only auction appearance was in the Superior A.N.A Sale, August 1975, lot 2022, selling against a $2000 estimate for an astounding, at the time, $23,000. A similar but somewhat lesser example (lot 20) sold in 1988, at the Swiss Bank Coins of Peru Auction, October 1988, for an even more astounding $120,600! Illustrated in Money of the World, coin 145. Ex Millennia, Lot 1150 where it Realized $240,000

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2. Finest Known Russian Family 1-1/2 Rouble of 1836 Highlights Heritage’s World Coin Sessions at September Long Beach
3. Highlights of the upcoming Champion Hong Kong Auction April 1, 2009

The known history of this unique cent begins in 1986. A retired police officer named Leon Baller advertised in his local Walnut Creek, California newspaper that he would purchase rare and unusual coins. A local coin collector saw the ad and contacted Baller about an unusual 1959-D wheat reverse cent that he had found, and Baller soon arranged to meet with him and then purchased the coin for $1,500. Baller sent the coin to the United States Department of the Treasury for authentication in early 1987. Jim Brown, a forensic lab authenticator for the Department of the Treasury examined the coin and found no indication that it was counterfeit. The coin was returned to Baller on February 7, 1986 with a letter signed by Richard M. McDrew, Special Agent for the Department of the Treasury.

The letter states as follows:

“Enclosed is your United States 1¢ coin, dated 1959-D, with wheat reverse. This coin was microscopically examined by our Forensic Services Division in Washington, D.C. and it is their opinion the coin is genuine.”

Baller eventually sold the coin to Heritage Rare Coin Galleries in 1987. The cent was then sold to a private collector where it remained until recently.

The current owner of the coin is a business syndicate whose members’ names have not been disclosed, and their representative is Larry Choate, a Southern California collector. Choate took the bold move in 2002 to resubmit the coin to the Department of the Treasury and Secret Service for a more comprehensive review of the 1959-D wheat cents authenticity. Choate realized that if the coin was considered a counterfeit, it would be seized and destroyed. In addition, Choate took the risk that the coin was produced at the Denver Mint but illegally spirited out, and could be seized on those grounds as well.

Frankly, the Department of the Treasury has a checkered list of such seizures, and only a few coins have been seized over the years. It is important to note here that this coin will not be confiscated as the Treasury Department has returned the coin twice to the owner after reviewing the coin and returning it as genuine. It is also considered legal tender by the Treasury Department.

The most recent and very public seizure was the 1933 double eagle which the Government seized and wanted to destroy in a mindless bureaucratic fashion. Mercifully for collectors, the original owner of the 1933 double eagle was Egypt’s King Farouk, and he obtained an export license which allowed him to take the coin with him out of this country to Egypt.

After protracted litigation, the government and owner of the coin, British dealer Steve Fenton, agreed to have the coin sold and the proceeds would be divided. Thus, the Farouk 1933 double eagle would be the only currently “legal” specimen that could be obtained.

Rumors have long swirled that other 1933 double eagles exist in private collections, but the Government claims title to any that may be in private hands and they would be seized if found as Government officials have publicly stated. This unique rarity just sold for $7,590,020. at auction in July 2002.

In recent years a bonanza of mint “errors” have turned up in collectors hands. Some of these have included error commemorative gold coins which were so mistruck as to not fit into the government holders. Another example would be the recently released Sacagawea/Quarter mules, or even the 1964 Peace silver dollar. Rumors persist, and in some cases these coins would be seized if they appeared at public auction. Normally, years after the original production, the probability of seizure seems to drop, and the seizure cases normally involve coins that were illegally removed from the mint where the perpetrators can be rounded up and jailed after due process, as the coins were simply not just normal production errors which escaped into circulation.
These distinctions are important, because if a coin is seized, it is seldom returned and any value paid for the coin would be lost. Under such circumstances, the Government goes after the mint employees involved, and many have been arrested and prosecuted for these crimes.

Getting back to our 1959-D cent, Choate knew that he was taking a big risk by submitting this coin back to the United States Secret Service, as it could be seized if it was determined to be a counterfeit, or illegally taken from the Denver Mint. However, after extensive examination by the United States Secret Service Office of Investigations Counterfeit Division a report was issued dated May 17, 2002, under their case number Log: 119-726-FY2002-018.
This report, which of course accompanies this lot, states as follows:

“Exhibit Examined Q1 One 1959-D Lincoln cent, bearing the wheat reverse, described on the subject letter.”

“Background: From 1909 until 1958, the United States Mint cent bore a portrait of President Lincoln on the obverse and two curved stylized heads of wheat on reverse. In 1959, the design was changed to bear the Lincoln Memorial on the reverse.”

“Results of Examination Physical and microscopic examinations were conducted on the submitted Lincoln cent (Exhibit Q1; see figure 1). [photo of obverse and reverse].

“Optical and scanning electron microscopic examinations conducted on the submitted coin (Exhibit Q1) revealed that the coin’s obverse does not exhibit any indications of alterations to the date or surrounding field (see figure 2). [two scanning electron micrographs of the final 9 of the date are included, the first is enlarged 180 times, the next is enlarged 200 times].

Below these photos the report continues: “Enlargements show no indications of alterations–metal shows smooth transition from numbers to the field. An alteration at these magnifications would be evident by tool mark striations or seams with solder or glue. Alteration from within the coin (embossing) would result in less defined numerals and disturbances on the surface of the numerals.”

The report goes on:

“Further, the edge and rim of the submitted coin (Exhibit Q1) was examined for evidence of seams or alterations that would suggest that the submitted coin was a composite of a 1959-D obverse with a separate wheat reverse (see figure 3).” “Figure 3: Micrographs of the rims of the submitted coin (Exhibit Q1)” show the obverse rim near the W of WE, and the reverse rim near a wheat ear and are magnified 60 times. Below the micrographs the Report states: “Enlargements show no indications of alterations or seams. The metal shows smooth transition from the field to the rim and then to the edge. An alteration at these magnifications would be evident by tool mark striations or seams with solder or glue.”

“No evidence of manipulation or alteration to the edge of the submitted coin (Exhibit Q1) was observed (see figure 4).” “Figure 4: Optical micrograph of the edge of the submitted coin (Exhibit Q1)” which shows the edge of the coin and concludes: “Enlargements show no indications of alterations or seams in the edge. The metal appears undisturbed, as does the oxidation (toning). An alteration at these magnifications would be evident by tool mark striations or seams with solder or glue.”

The Report next examines the die polish lines as follows: “The submitted Lincoln/wheat cent (Exhibit Q1) displays prominent die polish (raised striations in the field, but absent in the raised devices) on the obverse and reverse (see figures 5 through 7). During the course of examination, the subject coin was compared to one 1959 cent and two 1959-D cents that had similar die polish on the obverse. No significant differences in the appearance of the polish were observed.” Two greatly enlarged micrographs of the field and ERTY follow: “Figure 5: Optical micrograph of the die polish on Exhibit Q1 and Figure 6: Optical micrograph of the die polish on Exhibit Q1.”

Figure 7: Optical micrograph of die polish on the reverse of submitted coin (Exhibit Q1)” with a very large micrograph of the central reverse which shows die polish lines in the field.

The Report continues: “Nondestructive physical examinations conducted on the submitted coin (Exhibit Q1) revealed that the coin is consistent in mass, diameter, and thickness of genuine 1958/1959 cent coins. Additionally, surface measurements by energy dispersive x-ray spectroscopy revealed that the coin is consistent in elemental composition with genuine 1958/1959 cent coins (see table 1).

“Table 1: Composition, diameter, thickness, and Mass of Exhibit Q1
Exhibit Cu(%) Zn & Sn (%) Diameter (mm) Thickness (mm) Mass (g)
Genuine* 95.0 5.0 19.05 1.58 3.11
Q1 ~95 – 97 ~3 – 5 19.1 – 19.2 1.5 – 1.6 3.09
*The numbers presented in this row are the Mint specifications for genuine 1947-1962.

Given this evidence, the Report goes on:

“CONCLUSIONS”

“Although the submitted 1959-D Lincoln Cent (Exhibit Q1) exhibits the wheat reverse, instead of the Mint specified memorial reverse, the submitted coin exhibits physical characteristics, such as device detail, metal flow, die polish, thickness, diameter, mass and composition, consistent with genuine 1958/59 Lincoln cents. Further, the submitted Lincoln/wheat cent does not exhibit any indications of alterations to the date or evidence of edge alteration, indicating that the submitted coin was a result of combining two genuine coins. Additionally, no characteristics associated with counterfeit coins, such as tool marks, file marks, raised metal or unusual oxidation (“toning”) were observed.”

“In the absence of any evidence that the submitted 1959-D Lincoln/wheat cent (Exhibit Q1) is not consistent with having been manufactured by the US Mint, the coin was determined to be a genuine mule cent.”

The page continues with remarks which discuss the way the coin was handled, and the fact that it was returned to the owner, and the Report was signed by Marc J. Surrency, Counterfeit Specialist and Approved by Anthony M. Chapa, Special Agent in Charge.

In another specialized reference work, The Authoritative Reference on Lincoln Cents by John Wexler and Kevin Flynn, the authors devote 3 pages to this coin. They note that in 1993 this coin was submitted to the ANA for authentication. Michael Fahey, the examiner at the ANA “could find no evidence of it being counterfeit. However, because there was no evidence the Mint could have produced it and it is hard to conceive how this could happen accidently. Since only one specimen has ever been found, the ANA returned the coin with a “no decision”. J.P. Martin, chief authenticator for the ANA, said that when he examined the coin he could not find any evidence that the coin is counterfeit, but also stated that his gut instinct is that the coin is not genuine.” J.P. Martin followed up with a letter which is quoted at in full in the Wexler Flynn reference, and we quote the relevant portion here “All in all, the attention given to the die as shown by the die polish is the most bothersome. I challenge any readers to match the shown die polish to the 1959-D obverse or the wheat reverse. Though this piece appears to be suspicious, no absolute technical condemnation can be made. Especially without a comparison example from the same dies. For this reason, the coin was given a “No Decision” by American Numismatic Association Authentication Bureau. This was circa 1993. Since that time, J. P. Martin has left the ANA to be one of the founding partners of the ICG grading service.

J.P. Martin here touches on what will likely resolve the questions swirling about this controversial coin. In 2002 when Larry Goldberg discussed the coin with Rick Montgomery, he said that if other Lincoln cents of the 1958-D reverse and 1959-D obverse dies were submitted, there is a better chance the mule coin could get graded. Given the obvious die lines on the present mule specimen, it should only be a matter of searching to locate matching dies to both the obverse and reverse! It is very unlikely that new dies were used just to coin this one specimen, and the dies were very likely normal production dies which happened to be available when the new reverse was being adapted by the mints.

Okay, let’s do some simple math. Walter Breen states in his Encyclopedia that die life for Lincoln cents produced during this period was around 700,000 coins per die (page 233). Mintage for 1958-D cents (it being reasonable to assume the reverse die would have been a 1958-D) was 800,953,000 divided by 700,000 coins per die equals approximately 1,145 dies. Now, let’s do the obverse die, 1959-D mintage was 1,279,760,000 divided by 700,000 equals 1,828 obverse dies. Well, while daunting, the task at hand is not insurmountable! Examining circulated coins will not work (I tried that), as the die lines quickly disappear after limited circulation. Thus, this endeavor will best be completed by purchasing bags and bags of 1958-D cents (about $5 per roll of 50 coins) and bags and even more bags of 1959-D cents (about $1 per roll) and quick examination of the coins will hopefully produce an exact match to the unique die lines seen as a signature on this coin. Matching the two dies from regular issue coins to this mule piece will prove that the coin was struck from genuine Denver Mint dies, and given the absolute assertion that the coin is genuine by the United States Secret Service Counterfeit Division it would be hard for anyone to refute the coins authenticity. Once the dies are matched up, we are confident the grading services will have to certify and grade the coin as a genuine Mint product.

How did this coin come about? It is very difficult to imagine that somehow just one slipped out and got into circulation, although anything is possible given the massive production of coins each year at the Mint (stranger things have happened). It was more likely made during a quiet moment at the Denver Mint, under similar circumstances to the one known 1943-D copper cent, a special striking as it were, not unlike dozens and dozens of other famous rarities produced during the last 209 years at the various United States mints.
Valuing this unique cent is virtually impossible. We feel confident that it will bring less than the similarly unique 1933 double eagle at $7,590,020. Perhaps it will bring a price similar to the unique 1943-D copper cent, which realized $82,500 way back in 1996 at a Superior Sale, or the more current example of the extremely rare 1943-S copper cent which was NGC MS-61 Brown which realized $115,000 in our February 2000 Sale.

For those out there in coinland who have the time and inclination, the dies could quite possibly be matched up just from the photos in the Wexler Flynn reference, or from the photos in this catalog, prior to the auction of this coin in September. If there isn’t time, it is likely the matching dies could be found and the coin resubmitted with the additional evidence and a copy of the Treasury Report.

In particular, please note the die lines which should be easy to match up when compared with other mint 1958-D and 1959-D cents, on the obverse look for the die line which connects the lower loop of the B in LIBERTY to the upper half left side of the upright of the E. The reverse is very easy to identify, there is a long die line from the middle serif of the F in OF up to the center of the upright of the E in CENT. Also, we note two or three parallel die lines extending down at an angle from the left wheat ear near the top. These are very clearly visible on the coin under magnification, and are also seen in excellent detail on page 335 of the Wexler Flynn reference book.

While controversial, this coin seems to be turning the tide in its favor with the Treasury Report, and with a little research, could soon be die linked to other existing 1958-D and 1959-D cents, which will likely lay the controversy to bed, and the coin can finally be accepted by the grading services and other experts in the Lincoln cent series.

As the controversy still swirls around this mule, the major grading services have chosen NOT to grade this coin as of yet. Nevertheless, we feel that if someone took the time to locate other examples of the obverse and reverse dies which were used for normal production coins, combined with the more thorough Secret Service Authenticity Report of 2002, there would be a better chance that the coin may get graded in the future.

The property is not guaranteed to be authentic, and is marketable as is, and can not be returned.
Estimated Value $40,000 – 50,000.
Ex: Goldberg Sale #17 Lot 159 Feb 2003 realized $48,300.

Related posts:

1. Heritage to offer the Single Finest PCGS 1925-D Lincoln Cent at Long Beach Auction
2. Unique Bronze 1943-D Lincoln Cent Sold for $1.7 Million by Legend
3. 1943-S Lincoln Cent Struck in Bronze sold by Heritage for $207K