By Doug Winter – RareGoldCoins.com

The presence of a number of important Type Three Proof Liberty Head double eagles in the upcoming 2011 FUN auction got me to thinking about . What are these coins, why are they important and do they deserve the market premiums they enjoy?

A Proof-only coin is an issue that exists only in a Proof-only format where business strikes could have been produced as well. These coins exist in a variety of denominations but for this blog, we’ll focus on the ones in various United States gold series.

Some of the most famous Proof-only gold coins are the double eagles from 1883, 1884 and 1887. The mintage figures for these dates are 92, 71 and 121 respectively. I believe that there are around twenty 1883 double eagles known, maybe fifteen 1884’s and as many as thirty to thirty five 1887’s.

There are two ways to look at these coins. The commonly accepted way is to consider them solely as a date. In other words, even though there are many Proof double eagles that are rarer than these three, there are no other Type Threes that compare to the 1883 and 1884 in terms of the total number known. If a date collector wants to buy an 1883 for his set of Type Three double eagle he has to buy a Proof. This is different than a rare date like the 1881 or the 1882 that exists in dual formats; i.e., as business strikes and Proofs, and thus presents the collector with two options.

Collectors who are new to double eagles might balk at having to pay $150,000-200,000 for a nice 1883 double eagle when they can purchase a Proof of comparable rarity from this era for half as much–or less. Why, they wonder, does a Proof-only issue get such a high premium?

The mistake that they are making is to compare the 1883 to, say, an 1880. They need to look at the rarity of the 1883 on an absolute level. The 1883, from the standpoint of total number known, is even rarer than such celebrated issues as the 1854-O and the 1856-O; two issues that now sell for $300,000-500,000. If the Type Three series were to ever become as popular with date collectors as the Type One series currently is, the current prices for Proof-only issues such as the 1883, 1884 and 1887 could double or triple. (more…)

By Steve Roach – First published in the Jan. 3, 2011, Special Edition of Coin World – Rare Coin Market Report

For the past few years, arguably the main annual event for the rare coin market has been the massive Heritage auctions at the Florida United Numismatists convention, a major coin show that will take place during the first week of the new year in Tampa Jan. 6 to 9.

The multiday auctions and the packed bourse floor at FUN set the tone of the market for at least the year’s early months, as dealers reposition their inventories, and collectors make their first buys of the year.

Some expensive coins were sold at the 2010 FUN Heritage auction, including $3,737,500 realized for one of finest known examples of the 1913 Liberty Head 5-cent coin, tying the third-place record for the largest sum ever paid at auction for a single U.S. coin.

Two other million-dollar coins traded hands in the 2010 Heritage FUN auctions: a 1927-D Saint-Gaudens gold $20 double eagle graded Mint State 66, which sold for $1,495,000, and an 1874 Dana Bickford gold $10 eagle pattern in Proof 65 deep cameo, which sold above expectations for $1,265,000.

In total, more than $36.5 million in coins traded hands at the 2010 Heritage official FUN coin auctions.

While the new year’s first auction lacks an obvious million-dollar superstar on the level of the 1913 Liberty Head 5-cent piece, three exceptional coins could prove dazzling.

Perhaps the most noteworthy is an 1852-O Coronet $20 double eagle graded MS-65. It is the finest known example of the date and the catalog description states that it is “quite likely the finest New Orleans twenty of any date.”

In 2009, a Specimen 63 1856-O Coronet double eagle realized $1,437,500. In addition, 1850 to 1866 New Orleans Mint double eagles enjoy a healthy popularity.

Since the offered 1852-O Coronet double eagle has been off the market for more than 30 years, it’s anyone’s guess as to what this grand condition rarity will bring.

Another New Orleans Mint gold coin may also soar – the finest collectible 1909-O Indian Head $5 half eagle, graded MS-66. The lot description counts 19 examples graded MS-64 to MS-66 and the issue is the key to the series. The offered example last sold publicly in May 1998 as part of the Thaine B. Price Collection for $374,000, where it was described by auctioneer David Akers as “the finest collectible example of the rarest issue in the entire series.” (more…)

These coins were part of a family’s possessions during World War II exile and remained together for more than 65 years.

NGC has certified a very interesting group of Saint-Gaudens Double Eagles that have remained in the possession of a family since prior to World War II. When purchased in Europe last month, their unusual history was revealed to the buyer. During the turbulent period prior to World War II, these coins were a trove meant to sustain a family through the worst possible situation.

Just subsequent to the Nazi invasion of this family’s home country in 1940, each of these coins was sewn into the lining of a leather coat. With great risk, they were spirited out to a safe-haven neutral country, where they have been kept ever since.

According to the gold buyer, who relayed the history of these coins to NGC, the family in possession of the coins elected to sell them this year because gold had risen to record price levels. The group of 200 coins has been encapsulated with the pedigree WWII EXILE HOARD.

While other US gold coins come from caches with similar histories, several features contribute to the significance of this group. When they arrived at NGC, many of the coins still had bits of leather still adhering to the coins’ rims.

At the submitter’s request, professionals at Numismatic Conservation Services expertly removed the leather so that the coins would be eligible for certification. Their unconventional storage imparted a number of the coins with a delicate reddish patina that was left untouched during conservation.

Another unusual feature is the uniformly high grade of these coins. Each graded from MS 63 to MS 67, with seven coins achieving this highest grade and a greater number grading each MS 66 and MS 66+. All are dated 1924 and 1925, with over three-quarters being from the latter date.