By Doug Winter – www.RareGoldCoins.com

I’ve been working on a third edition of my book on Carson City gold coins. For some odd reason, I’ve been working from back to front, meaning that I’ve done the new research of double eagles before following this with eagles and half eagles. I’ve been able to uncover some really eye-opening new information on the rarity and price levels of Carson City double eagles and I’d like to share a few tidbits.

The last Carson City book that I produced was published in 2001, so almost a full decade has passed. My first impression about the market for Carson City double eagles is that it has become far, far more active than ever. Prices have risen significantly since 2001, especially for rarities and for high grade pieces.

In 2001, the five rarest Carson City double eagles in terms of overall rarity (i.e., total known) were the 1870-CC, 1891-CC, 1871-CC, 1878-CC and 1879-CC (these last two issues were tied for fourth rarest). In 2010, the five rarest Carson City double eagles in terms of overall rarity are the 1870-CC, 1871-CC, 1891-CC, 1879-CC and 1885-CC (these last two issues were tied for fourth rarest).

The 1870-CC has remained an extremely rare coin, despite a surprisingly high frequency of auction appearance in the middle part of this decade. I had previously thought 35-45 were known. Today, I think that number is around 40-50. This includes a number of low grade coins and at least five or six that are either damaged or cleaned to the point that can not be graded by PCGS or NGC.

The rarity of the 1891-CC seems to have diminished quite a bit. I think there are two reasons for this. The first is that I overestimated its rarity in 2001. The second is that a significant number of examples have been found in Europe and other overseas sources. This date hasn’t become plentiful in higher grades but it is far more available in AU50 to AU55 than I ever remember it being before.

The 1871-CC seems more available as well. In 2001, this issue was very hard to find in any grade and it was almost never seen above AU50. Today it is more available and the number of coins graded AU53 to AU55 has risen dramatically. I would attribute much of this to gradeflation as the majority of the 1871-CC double eagles that I see in AU53 and AU55 holders are “enthusiastically” graded, to say the least. In properly graded Mint State, the 1871-CC remains exceedingly rare.

A date whose rarity has become more apparent is the 1885-CC. In the 2001 edition of my book, this date was not even listed in the top six rarest Carson City double eagles. I now rank it as being tied for fourth along with the 1879-CC.

Everyone loves a sleeper, right? The dates that I believe are underrated (and undervalued) in the Carson City double eagle series include the 1872-CC, 1877-CC, 1882-CC and 1892-CC.

In higher grades (AU50 and above), the rarity scale of the Carson City double eagle series has remained remarkably consistent. In 2001, I stated that the 1870-CC, 1871-CC, 1879-CC, 1878-CC, 1891-CC and 1872-CC were, in that order, the six rarest issues. In 2010, I believe the six rarest are the 1870-CC, 1871-CC, 1878-CC, 1879-CC, 1872-CC and 1891-CC. In other words, the same six dates are still the keys in higher grades but there are now some minor changes in the order. (more…)

By Doug Winter – RareGoldCoins.com

How’s the market doing for Type One double eagles? Good question and one that I feel well-qualified to answer, having been a very active participant in this market for over two decades.

We’ve had a lot of interesting external factors shape the Type One market in the last few years. Naturally, the severe economic conditions of 2007-2009 had a profound influence; especially at the high end of the market. And even if the economy had been strong there’s a chance that prices for rarities might have slowed down on their own, given the extreme rise in prices we had seen in the Type One market for the previous five years. It was natural that there would be some profit taking; what I didn’t expect was some of the forced sales we saw in 2007 and 2008.

And then there is the X factor in the Type One market: the incredible run-up in gold prices that has seen metal prices top $1,200 per ounce, and the associated pressures on supply that this has brought with it.

All that said, I’m pretty amazed at how strong this segment of the market is right now. In my mind, there is no question that most Type One double eagles valued at less than $5,000 are in greater demand than I can ever remember. I also think that prices are about as strong as I can recall for these coins. If you look at recent auction, nearly all decent quality EF45 to AU58 Type One double eagles are bringing in excess of Trends (more on pricing in a second…) and these coins are typically selling at auction to dealers; not necessarily end-user collectors.

The coins priced at $5,000-20,000 are generally quite strong as well, although not as much so as at the lower price point. The key factors for Type One double eagles in this price range are: eye appeal, eye appeal, eye appeal and the “sexiness” of the date. This is clearly a collector-oriented market and really pretty coins (i.e., those that are not excessively bagmarked, those that are not all bright and shiny and those that are well-made) are in great demand. Average and below-average quality coins still sell; especially if they are useful dates. But they do not bring the premium prices that the nice coins bring.

The real weakness in this market a few years ago was with the expensive coins. As I touched on above the reasons for this were twofold. When the world economy seemed to be melting down, people weren’t all that crazy about dropping $50,000 on a coin. And prices had risen so much on many of the key issues that many market participants wondered if certain key issues were still good values at the levels they had risen to.

Before addressing some specific areas in the market, I mentioned earlier about difficulties with pricing. Coin World Trends ability to keep up with this area in the market appears to not be as good as it was before and many Type One issues now sell for over Trends. This is particularly true with less expensive coins in circulated grades. (more…)

News and Analysis regarding scarce coins, coin markets, and the coin collecting community #5

A Weekly Column by Greg Reynolds

I. Today’s Theme

I will not be discussing the most expensive or the rarest coins that are coming ‘on the auction block’ this week. Rather, I have selected a few that I find to be both newsworthy and particularly interesting. Admittedly, these are expensive. I continue to insist, though, that an understanding of rare coins, and of the values in the coin collecting community, requires knowledge of coins that most collectors cannot afford.

Suppose that this column was geared towards art enthusiasts rather than coin enthusiasts. Would it then make sense to discuss only the paintings that most art collectors could afford? Collectors who cannot afford great and culturally important paintings enjoy learning about them and often learn to apply their knowledge of famous painting to their interpretations of a wide variety of not-so-famous paintings. Likewise, coin enthusiasts, in general, appreciate coins that are great, famous, very rare and/or important to the culture of coin collecting.

Please see my discussions below of the following coins. The 1851-O trime is the only Three Cent Silver issue that was not struck at the Philadelphia Mint. Indeed, it is curious that the New Orleans Mint struck this denomination, as the Branch Mints tended not to manufacture small denomination coins in the 19th century. The Hawaiian Eighth-Dollar is certainly extremely rare and extremely curious. The 1926-S nickel issue is just incredibly difficult to find in MS-65 or MS-66 grade. As I discussed one in last week’s column, I could not resist mentioning another, as B&M will auction it this week in Baltimore. Similarly, I discussed a rare and historically important King James II English gold coin last week and B&M will auction a coin of the same design type this week. Plus, the unique Proof 1876-CC dime is one of the most exciting coins of all.

II. The CAC Surpasses $150 Million Level

It is widely known that the CAC approves (or rejects) submitted coins that are already graded by the PCGS or the NGC. Approved coins receive a green sticker, or, in rare instances, a gold sticker. It is not as widely known that the CAC will make sight unseen commitments to pay competitive prices for CAC approved coins. These are not ‘low ball’ bids. As of June 15, the CAC has purchased $154 million of coins, almost all of which are CAC approved.

The CAC was founded by John Albanese in Oct. 2007. CAC purchases have thus been averaging more than $4.7 million per month. The $150 million level was reached in early June.

Albanese was the sole founder of the Numismatic Guaranty Corp (NGC) in 1987. Around Dec. 1998, he sold his shares in the NGC to Mark Salzberg, who is the current NGC Chairman. (For more discussion of the CAC, please see my articles on CoinFest, Jay Brahin’s Coins, the PCGS graded MS-68+ 1901-S quarter, the 20th Century Gold Club, and Dr. Duckor’s quarters.)

Although the CAC has acquired thousands of coins that are valued at under $5000 each, the CAC has approved and acquired some very famous coins. Among others, the Eliasberg 1870-S silver dollar and the finest known, Rogers-Madison 1796 ‘No Stars’ Quarter Eagle ($2½ gold coin) come to my mind.

III. Unique Proof 1876-CC Dime

Laura Sperber, of Legend Numismatics, acquired the unique Proof 1876-CC dime from a New Jersey dealer in early June. On Saturday, June 12, she sold it for an amount in excess of $200,000. It “went into a collection of Proof Seated Dimes,” Sperber reveals. It is certified as Proof-66 by the PCGS and has a sticker of approval from the CAC. (more…)