By Doug Winter – RareGoldCoins.com

The Philadelphia mint began producing the familiar Liberty Head half eagle design in 1839. After a quick modification in 1840, this issue continued without change until 1866 when the motto IN GOD WE TRUST was added to the reverse.

The branch mint No Motto half eagles from the 1840’s are very popular with collectors. But their Philadelphia counterparts have lagged behind, both in price and level of demand. I would not be surprised to see this change a bit over the coming years given the fact that the Philadelphia issues are much more affordable and a complete “by decade” set from the 1840’s is within the budget of most gold coin collectors.

Here is a date by date analysis of the Philadelphia half eagles from the 1840’s, to assist new collectors.

1840: Mintage: 137,822.

This is one of the more common issues from this decade. There an estimated 400-500+ known and they are easily located in all circulated grades. In Uncirculated, the 1840 is scarce. I believe that there are around fifteen to twenty known with most in the MS60 to MS62 range. There is one Gem. It is originally ex Pittman I: 947 where it brought $41,250 as a raw coin. It last appeared as Heritage 2/06: 1853 where it sold for $43,125. It has been graded MS65 by both PCGS and NGC.

There are two varieties known. The more common has a Narrow Mill (or diameter) while the scarcer has a Broad Mill. The Broad Mill variety seems to be considerably harder to find in higher grades, especially in Uncirculated. The Broad Mill has an extremely distinct appearance and it is much easier to distinguish from the Narrow Mill than on the New Orleans and Dahlonega issues of this year.

1841: Mintage: 15,833.

The number of half eagles produced at the Philadelphia mint in 1841 is the fewest of the decade. This is the second scarcest date in this subset but it has an interesting grade distribution. There are an estimated 125-150 known and this issue is generally seen in Extremely Fine or in the MS62 to MS64 range.

There was a hoard of 1841 half eagles that was found a few decades ago. Most are in the MS63 to MS64 range and are characterized by sharp strikes, excellent luster and rich golden coloration. I have personally seen at least four MS64 examples and believe that there are a few more known. In all, probably 10 to 15 exist in Uncirculated. The finest is Bowers and Merena 12/04: 2635, graded MS65 by NGC, which sold for a record-setting $27,600. PCGS has not graded any pieces higher than MS64 and their current listing of eight examples is certainly inflated by resubmissions. (more…)

One of the more interesting (and lesser known) gold coin auctions that I’ve attended was the sale of the Stetson Collection which was conducted by the old Bowers and Merena in May, 1993. This was an instance where the back story (or stories in this case) was nearly as interesting as the coins themselves.

Beginning in 1992, an amazing hoard of gold coins started to quietly enter the market. This hoard consisted of tens of thousands of coins dated from the late 1830’s through, I believe, the 1920’s. It included large quantities of semi-key St. Gaudens double eagles, extensive runs of Carson City eagles and double eagles, large quantities of New Orleans eagles from the 1880’s through the early 1900’s, sizable quantities of San Francisco rarities and much, much more.

It has never been revealed where these coins came from (although it is widely rumored that they came from an Eastern European central bank; given the time they were sold it would suggest that they were dispersed by a former Soviet bloc country in an attempt to infuse some Western capital).

This incredible hoard was dispersed over a number of years in a quiet, orderly fashion. Some of the coins went to dealers who sold them to marketers or specialists. Other coins were sold at auction. The first group of these coins to sell at auction was at the aforementioned Bowers and Merena sale and I can remember being extremely excited to have the chance to purchase some very important and very fresh coins.

Before I discuss the sale (and some events leading up to it) I’d like to discuss the appearance of the coins themselves. Because of the massive size of this hoard (and the intelligence of the individual who was masterminding its dispersal) these coins were, for the most part, kept original and dirty.

Many of them had the prototypical “euro-Grime” appearance which I describe as follows: extremely deep almost brassy orange-gold toning with a noticeable two-ton e appearance from blackish grime or dirt on the high spots. This appearance was almost certainly the result of the environmental conditions in which these coins were kept. On some coins, the look was very attractive. On others, it was pretty ugly and the coins needed to be dipped (or washed with soap and water at the very least). (more…)

By Doug Winter – www.RareGoldCoins.com

As a dealer who has spent over $100 million on rare coins, what are some of the “tricks” that I have learned that can help you when you are buying coins? Read on to see some of the ones that I think you will benefit most from.

When I buy a coin I am looking to sell it immediately for a profit. This makes my needs as a buyer slightly different than yours as a collector. But your ultimate goal, I would hope, is to sell your coins for a profit. What are a few of the most obvious but most important parameters to consider each and every time you buy a coin?

1. Buy Coins That Are Pretty

Numismatics has always been a highly visual hobby. But the advent of the Internet has made the visual aspects of numismatics more significant than ever before. When I look at coins now one of the first questions I ask myself is: will it image well on my website? Coins that are pretty are very easy to sell.

The term “pretty” is somewhat semantic. I tend to like gold coins that are dark and dirty and find these to be aesthetically appealing. Not everyone agrees me. Some people like gold coins that have bright, dazzling luster while others prefer coins that two-tone contrast between the devices and the fields. But I think most people can agree that a certain percentage of coins are, for lack of a better term, “special.” This does not necessarily mean “expensive.” I have seen circulated $100 Bust dimes that I thought were really pretty. The bottom line is that you should try and have as many pretty coins as possible in your collection.

2. Buy Coins That Are Popular

There are many coins that no matter how many examples I have purchased over the years, I have never lost money on them. As an example, I have probably owned twenty 1838-D half eagles in the past decade, ranging in grade from VF25 to MS62. Every time I’ve owned one, it has sold quickly to a happy collector and I’ve made a decent amount of money on each transaction. It’s obvious to me why this date sells quickly: it’s a first-year-of-issue, it’s a one-year type, it has a neat design, it’s a Dahlonega coin and it is relatively affordable.

In the last few years, key date coins in virtually every series have shown dramatic increases in value. There is a good reason for this: they are very popular and this creates a constant level of demand for these issues. In some cases (like 1901-S quarters or 1907 High Reliefs) prices are now probably too high and these key issues are currently overvalued. But I would personally rather have a collection (or inventory) that was full of popular coins than ones that were too esoteric and hard to sell. (more…)