A one-of-a-kind Lincoln penny, mistakenly struck in 1943 at the Denver Mint in bronze rather than the zinc-coated steel used that year to conserve copper for World War II, has been sold by Legend Numismatics of Lincroft, New Jersey for $1.7 million to an unnamed Southwestern business executive.  The coin’s anonymous former owner made arrangements for the entire sale proceeds to go to a charitable organization.

The only known 1943-dated Lincoln cent mistakenly struck at the Denver Mint on a bronze planchet has been sold for a record $1.7 million by Legend Numismatics of Lincroft, New Jersey. The unique coin, not publicly known to exist until 1979, is graded PCGS MS64BN.

The new owner is a Southwestern United States business executive who wants to remain anonymous, but who plans to exhibit this coin and others in January at the Florida United Numismatists convention.

He also purchased in the same transaction through Legend a 1944 Philadelphia Mint cent struck on a zinc planchet, graded PCGS MS64, for $250,000, and an experimental 1942 Philadelphia cent mostly composed of tin for $50,000. The unnamed new owner plans to exhibit these coins and others at the Florida United Numismatists convention in January.

(Photo credit: Legend Numismatics.)

“The 1943-D bronze cent is the most valuable cent in the world, and it took four years of aggressive negotiations with the coin’s owner until he agreed to sell it.”

“The new owner is proudly now the only collector to ever own the all-time finest and complete sets of Philadelphia, Denver and San Francisco 1943 bronze cents and 1944 steel cents,” said Laura Sperber, President of Legend Numismatics.

“The new owner is a prominent Southwestern business executive who’s been collecting since he was a teenager, searching through pocket change looking for rare coins. As a youngster he thought he’d actually found a 1943 copper cent in circulation but it was not authentic. He still has that in his desk drawer, but now he’s the only person to ever assemble a complete set of genuine 1943 bronze cents, one each from the Philadelphia, Denver and San Francisco Mints. He will display that set at FUN along with his 1944 Philadelphia, Denver and San Francisco zinc cents,” said Sperber.

The anonymous collector who formerly owned the coin “donated it to a charitable organization so they could sell it with all of the proceeds going to the charity,” according to Andy Skrabalak of Angel Dee’s Coins and Collectibles in Woodbridge, Virginia who acted as agent on behalf of the former owner.

“As a specialist in small cents, this transaction is the ultimate accomplishment for me and I’m privileged to be part of it. I don’t think it will ever be duplicated in my lifetime,” said Skrabalak.

Zinc-coated steel was used for producing cents in 1943 to conserve copper for other uses during World War II, but a small number of coins were mistakenly struck on bronze planchets left over from 1942.

“We estimate that less than 20 Lincoln cents were erroneously struck in bronze at the Philadelphia and San Francisco Mints in 1943, but this is the only known example from the Denver Mint,” explained Don Willis, President of Professional Coin Grading Service.

Sperber said the collector’s historic, mis-made World War II era cents will be displayed during the first three days of the FUN convention in Tampa, Florida, January 6 – 8, 2011. (more…)

News and Analysis on scarce coins, coin markets, and the coin community #18

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. (more…)

Heritage’s upcoming 2010 April-May Milwaukee, WI CSNS US Coin Auction #1139 features a bizarre example of territorial coin production, a Clark Gruber Twenty Dollar Overstruck on a U.S. 1850 Ten Dollar, graded MS63 PCGS. Lot 2388

Although numerous die trials or fantasy pieces are known for the 1861 Clark, Gruber coinage, this is the first such example we have seen of this particular combination, and as such it is probably unique.

Heritage handled a similar coin, an 1861 Clark, Gruber struck over an 1853 U.S. Assay Office twenty in 2002. About that lot and Clark, Gruber overstrikes in general, guest cataloger Donald Kagin wrote:

” We now know of five overstruck Clark Gruber & Co. twenties… Originally we believed that these specimens were overstruck in Philadelphia by the firm who designed the dies–the jewelers Bailey & Company. After further research and discussions with other numismatists, including John Dannreuther of the Professional Coin Grading Service, we now believe that these were struck in Colorado by Clark, Gruber & Co. to check the force of the striking and the spacing of the dies. This would account for the variance of the pressure and sharpness of the impressions.

These set-up pieces are not unlike other similar types such as those seen for Morgan dollars, Kennedy half dollars, and others. Before striking the regular gold blanks, which would have been considered quite precious even then, these test or trial strikings allowed the dies to first be properly aligned and avoid errors. They are recognizable because their central area is well to fully struck, while the periphery is weak or missing. Evidently the coiners would take whatever gold coins they had on hand to test the new dies.”

Since the planchet for the gold eagle is considerably smaller than the Clark, Gruber twenty dollar die, portions of the design are off of the flan — but the date 1861 is quite legible for the Clark, Gruber, with the 1850 date from the eagle slightly up the margin to the right. PIKES PEAK is visible at Liberty’s coronet; the LIBERTY from the 1850 coin lies across the Clark Gruber Liberty’s cheek. The obverse Clark, Gruber design is doubled, clearly struck twice with die rotation between strikes, as is the reverse. On the reverse, ARK GRUBER & CO DEN is clear but jumbled near the rim, with TEN D . UNITED STATES OF AMER seen underneath. The doubled shield design of the Clark Gruber overstrikes can be clearly seen — again, all intermixed with the design details of the federal eagle in the center. This piece is brilliant orange-gold and has original luster throughout, clearly a “keeper” piece that never saw circulation.

Whatever its reason for existence, it is a fascinating and possibly unique piece of Americana, one that should spur fierce auction bidding from aficionados of unusual coinage as well as Territorial gold.