News and Analysis regarding scarce coins, coin markets, and the coin collecting community #12

A Weekly Column by Greg Reynolds

After covering rarities in the upcoming Boston auctions for weeks, I saved the most awestriking collection for last. Dr. Steven Duckor’s collection of Barber Halves is the greatest of all time for this series. Please read the two part series that I wrote about the importance and depth of this set. Click here to see Part 1, which was published yesterday. Part 2 will be posted soon. As those articles deal with the collection as a whole, with discussion of only a few specific coins, I will mention some additional Barber Halves in the Duckor collection in my columns, including commentary on the 1893-O and 1895-S below.

Just recently, I noticed that one of the most interesting Liberty Head U.S. gold coins will be in the upcoming Stack’s auction, which will be held on Sunday, Aug. 8 at the Boston Park Plaza Hotel. It is an 1853-O Eagle that is NGC certified as ‘Specimen-61.’

I. Specially Struck 1853-O $10 Gold Coin

This 1853-O Eagle (U.S. $10 gold coin) is incredibly interesting. I very much enjoyed examining it. I have never seen another coin that very much resembles the texture and other characteristics of this 1853-O Eagle. I wish to thank Adam Crum of Monaco Rare Coins for enabling me to spend considerable time viewing this coin in 2008. It is one of five or so 19th century gold coins that has received a Specimen designation from the NGC, and the only Liberty Head Eagle to be so designated.

As far as I know, the only other Branch Mint gold coin that has received a Specimen designation by the NGC is the 1856-O Double Eagle that has been certified as SP-63 by both the PCGS and the NGC, and has a CAC sticker of approval. It sold privately for $1.8 million in March, as I reported in my inaugural column. It is important to point out, though, that 1856-O Double Eagles are Great Rarities overall, and any 1856-O Double Eagle is worth more than $150,000.

There is a unique Proof 1844-O Eagle, though that coin merits a separate discussion. Earlier this year, I wrote an article about the Proof 1907-D Double Eagle.

The late researcher Breen strongly believed that this 1853-O Eagle is a ‘Branch Mint Proof.’ Breen is probably the foremost U.S. coin expert of all time. In my view, however, it is not a Proof, but is fairly termed a “Specimen” striking.

Breen declared that this 1853-O Eagle is a Proof in two different books, which appeared more than ten years apart. In 1977, is encyclopedia of Proof coins was published, and, in 1988, a giant book was published that covered Proofs and business strikes, and other strikings, of all U.S. coins plus many colonial and territorial issues. Many of the coins that are listed as Proofs in 1977 are not listed as such in 1988. Breen never saw a good number of the coins that he listed as Proofs in 1977. Later, he changed his view of the status of some of these when he actually saw them or when he heard more about them from reliable sources. Moreover, between 1977 and 1988, he may have changed his mind about the Proof status of some coins that he had seen before 1977. Breen certainly did not change his mind about this 1853-O Eagle. He was certain that it is a Proof.

It is true that most experts now have come to believe that some of the coins that Breen labeled as Proofs in 1977 are really just Prooflike. Coins that are clearly not Proofs yet have mirrored surfaces are often termed ‘Prooflike,’ especially if such coins are well struck and/or have extra-smooth fields.

Prooflike coins are usually early business strikes from new dies or later business strikes that were struck from worn dies after they were extensively polished. Even though this 1853-O Eagle clearly has reflective surfaces, Prooflike would not be a correct attribution for it. The dies employed to strike it were not just polished; they were prepared much differently from the ways in which dies were prepared for routine strikings.

This 1853-O is very sharply struck. Quite a few other New Orleans Mint Eagles of the period are sharply struck as well. The characteristics of the design elements of this 1853-O, however, go beyond being sharply struck. Many of the design elements are in relatively higher relief than the corresponding design elements on business strikes. (more…)

News and Analysis regarding scarce coins, markets, and the collecting community #11

A Weekly Column by Greg Reynolds

After discussing the Proof 1804 Eagle that has repeatedly sold privately for startling sums, I will discuss a few famous rarities that will be offered in Boston. Indeed, I have discussed other coins in these auctions in a few past columns. There are, though, a startling array of rarities in the upcoming auctions, and I have not yet covered the offerings of a “Proof-60” Kellogg $50 gold coin, two gold-plated Half Unions, and the worst known (though still attractive) 1854-S Quarter Eagle.

I. Proof 1804 $10 Gold Coin

As I have been writing extensively about famous rarities for years, I could hardly resist writing about the Proof 1804 Eagle ($10 gold coin) that was just sold by Laura Sperber to Bob Simpson, who is the leading collector of patterns and has landmark collections in other areas as well. Although the sale price has not been disclosed, it may be fair to assume that the price is between $2.5 million and $7.5 million.

There probably exist four Proof 1804 Eagles, and this one is NGC certified ‘Proof-65 Ultra Cameo.’ Further, this coin has been approved by the CAC. John Albanese, the founder of the CAC, and earlier of the NGC, was involved in enabling Simpson to acquire this coin. In 2007, a coin firm in upstate New York arranged for one of their clients to sell this coin to another one of their clients, for a reported price of “$5 million.” Coincidentally, the owner of this firm is also named Albanese, though he is not related to John.

This same upstate New York Albanese coin firm sold this same exact Proof 1804 Eagle earlier, in 2005, for a price that they reported to be “$2,274,000.” A famous collector, who refers to himself as “TradeDollarNut,” has publicly stated that he was offered this same coin, in 2001, for “$587,500.”

The value of many gold rarities has multiplied since 2001; a five to ten times increase in value is not unprecedented. Consider, as examples, the post-2005 values of many gold rarities that were included in the auctions, in 1999 and 2000, of the Harry Bass collection. It is not unusual for a Bass rarity to be worth multiples now of the price it then realized.

It is also true that this same 1804 Eagle was NGC certified ‘Proof-64 Cameo’ in 2001, or earlier, and remained so certified in 2003 and maybe later than 2003. At some point, it was PCGS graded “Proof-64.” Certainly by 2007, the NGC upgraded it to “Proof-65” with an “Ultra Cameo” designation.

How rare are Proof 1804 Eagles? It seems that there exist four, though it has been argued that there are only three. The Bass-Dannreuther book (Whitman, 2006) states “3 known,” but also indicates that the issue is “R-7+,” which means an estimate of four to six in existence. The “3” may have been a typographical error. The tenth edition of the Judd book (Whitman, 2009), which is the leading text on patterns and related pieces, lists this issue as Rarity-“8,” which means two or three or thought to exist. This same section, however, lists an auction result for a Proof 1804 Eagle that is incorrect. Oddly, the Judd book values a gold Proof 1804 Eagle at “$1,500,000.”

If there are just three, it would have impossible, in 2009 or 2010, for someone to purchase one for $1,500,000. The Eliasberg-Bass Proof 1804 Eagle is impounded in the Harry Bass Core Collection, for at least a long time, maybe forever. The ‘King of Siam’ 1804 Eagle remains in the ‘King of Siam’ Set, as far as I know. If the current owner were to dismantle the set, then the current owner would ask millions for the ‘King of Siam’ Proof 1804 Eagle.

As I just became aware of Legend’s sale of a Proof 1804 Eagle on Tuesday morning, I have not had time to research this issue before this column was posted. I am almost certain, however, that the Baldenhofer Proof 1804 Eagle exists and is different from the Eliasberg-Bass coin.
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News and Analysis regarding scarce coins, coin markets, and the coin collecting community #10

A Weekly Column by Greg Reynolds

After writing about two collections in the Boston ANA auction to be held in August, I will address the topic of ‘overpricing.’ A vocal U.S. Congressman has called for government regulation of rare coin and bullion businesses. He has attacked one prominent seller of bullion and modern coins as having overpriced some of their coins and he seems to imply that the Federal Government should combat overpricing, presumably with price controls. In my view, while such overpricing of bullion coins and of other common coins occurs, his approach is flawed and counter-productive. Moreover, government regulation of prices would make trading less efficient and would not substantially lessen the extent to which careless, or mentally incompetent, coin buyers are harmed. Please see my discussion below.

I. The Collection of Dr. Davis

Please read last week’s column for general remarks regarding upcoming events in Boston and prior columns for discussions of very rare coins that will be auctioned. Furthermore, I will soon write about Dr. Duckor’s collection of Barber Halves, which is, indisputably, the all-time best collection of this series. Duckor’s halves will be auctioned during Heritage’s Platinum Night event on Wed. August 11, as will many coins from the collection of Dr. and Mrs. Claude Davis. In my column of July 7th, I discussed a few of the coins in the Davis collection. There are many more in the ANA auction.

Todd Imhof, Executive Vice President of Heritage, relates that Dr. Davis “started collecting coins in the 1930’s!” Further, Imhof remarks that Dr. Davis “is perhaps best known for putting together the famous Foxfire Type Collection that sold intact a number of years ago.” My (this writer’s) impression is that the Foxfire type set consisted mainly of coins that were (and mostly still are) NGC graded from MS-65 to MS-67. Indeed, some or all of these were placed by the NGC in holders with the name ‘Foxfire’ on the respective inserts. I have seen only copper and silver coins that are pedigreed to the ‘Foxfire’ collection. I remember the “Foxfire” NGC graded MS-66 1818 quarter, for example, that Heritage auctioned in Feb. 2008 and, again, in May 2009.

Dr. Davis has consigned a much more extensive type set and other coins to the upcoming Boston ANA auction. Imhof reveals that “Dr. Davis, after completing and selling the Foxfire collection, went back into collecting Type coins in a more moderate grade range. He loves high-end AU specimens and felt that grade often represented super value.”

There are many coins in the Davis collection that are graded AU-55 or -58 by the PCGS or the NGC. One example that imaged well is an 1829 half dime that is PCGS graded AU-58 and has a sticker of approval from the CAC. Likewise, the Davis 1815 quarter is PCGS graded AU-58 and CAC approved. The online images of this quarter look marvelous. It is necessary, though, to view a coin in actuality, or have an expert do so for you, to draw firm conclusions about its physical characteristics.

One of the most important coins in the Davis collection and in this ANA auction overall is the Atwater-Hawn 1797 half dollar. The Draped Bust obverse (front), Small Eagle (reverse) halves of 1796 and 1797 are the rarest silver type coins. The William Atwater collection, which B. Max Mehl sold in the mid 1940s, is one of the twenty greatest U.S. coin collections of all time.

The eminent collector Reed Hawn assembled landmark collections of several series, especially quarters and halves. The 1913 Liberty Nickel that was auctioned in January was previously owned by Reed Hawn. (Please click here to read my article about it.) Hawn’s halves were auctioned by Stack’s in 1973. Like the two Davis collection coins just mentioned above, this 1797 half is PCGS graded AU-58 and has a CAC sticker.

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