By Doug Winter – RareGoldCoins.com

Continuing my fascination with Proof-only issues, I’d like to discuss the rare Proof-only double eagles dated 1883, 1884 and 1887. These issues are not all that well-known outside of Type Three Liberty Head collectors and I think they merit more than a passing mention.

Beginning in 1881, production of double eagles at the Philadelphia mint became little more than an afterthought. And it would remain as such until 1888. In 1883, there were no business strikes produced. The Mint did strike 92 Proofs; ostensibly for the limited numbers of collectors who were interested in Proof double eagles at this point in time.

The Mint struck considerably more Proof 1883 double eagles than they were able to sell and it is believed that as many as half of the original mintage was melted later in the year. Of the four dozen or so that were distributed to collectors and dealers, around twenty at most are known today. This figure includes at least three that are impounded in museums and another two or three that are impaired.

The 1883 is the second rarest collectable Liberty Head double eagle, trailing only the 1884 (I consider the 1849 and the 1861 Paquet reverse non-obtainable and do not include them). Despite this coin’s indisputable rarity, it is only fairly recently that the 1883 became known as a major rarity. Prices for this issue had remained fairly stagnant for many years, hovering in the $75,000-100,000 range. This only changed in 2004 when Heritage sold an example for $172,500. Today, a Gem is worth at least $200,000-225,000.

There are a small number of Gems that have been graded by the services and at least one has been slabbed as PR66 by NGC. I know of six or seven Gems and the two nicest that I have personally seen are Heritage 1/06: 3580 (graded PR65 Ultra Cameo by NGC) and Heritage 1/04: 3224 (graded PR65 Deep Cameo by PCGS and possibly also ex Dallas Bank collection).

There are a few diagnostic criteria that make this an easy issue to authenticate. All show roughness on the back of the eagle’s neck and fragmentation of the fleur de lys beneath its beak. These die markers do not exist on any business strike reverses of this era.

The 1884 is the rarest of these three Proof-only issues. A total of 71 were struck and it is possible (although unconfirmed) that a few were melted as unsold, given the fact that so many Proofs dated 1883 suffered this fate. There are slightly fewer than twenty known. I wrote in 2000 that 15-17 exist and I think this number might be a tiny bit on the low side. A total of twelve have sold at auction since 2000 but this includes a number of coins that have sold more than once. (more…)

By Steve Roach – First published in the Aug. 30, 2010, issue of Coin World

Proof American Eagle gold coins have provided some sparks in the marketplace this past year, but the fast fall in prices over the past several weeks serves as a reminder that what goes up usually comes down.

Some major buyers have stopped buying these and prices have fallen sharply.

For some smaller dealers who were stockpiling the coins in anticipation of continued demand, the change in the market means they have lost substantial money, for now, as the coins are now worth substantially less than what the dealers paid for them.

During July, several large dealers were paying between $1,950 and $2,000 per ounce for Proof American Eagle gold coins in original Mint packaging – the inner and outer boxes, original capsules and original certificate of authenticity with the same year as the coins.

For example, on July 14 a major wholesaler was paying $2,025 per ounce; the dealer’s price gradually declined to $1,900 July 26. Then on July 27 the dealer’s buy price went down to $1,850. On July 29 in the morning the dealer’s buy price was $1,830 and by the afternoon it went to $1,800. On Aug. 3, the price hit $1,750 and then, with orders filled, that dealer stopped buying.

Incidentally, the price of gold on July 26 was $1,189 per ounce and the price on Aug. 3 was $1,184, meaning that the drop in demand was not directly related to the bullion market.

On Aug. 6, when gold increased to $1,205 per ounce, one dealer offered $1,650 per ounce for coins with original packaging, and for coins without the packaging, the price dropped sharply to $1,400 per ounce.

If those who are closest to the market are not buying at the high levels that have characterized these Proof issues for the last year, are they doing this because they know something that we at Coin World don’t know?

On Aug. 6, the U.S. Mint told Coin World that no decision has been made as to whether Proof 2010-W American Eagle 1-ounce gold coins would be struck.

If the U.S. Mint releases Proof American Eagle gold bullion coins in 2010, supplies will increase and less pressure will be placed on the current supply, likely ending the bull market for these issues.

Mr. Roach maintains a website/blog titled The Rare Coin Market Report

The following is from the Stack’s Auction Catalog description offering this raw 1914 Gold Eagle as Lot 1228 in the upcoming August 8th Boston auction.:

“Here is a most curious coin. The strike is clearly that of a Proof, with a high fin or wire edge around most of the extreme edge and the familiar textured fields (imparted by finely acid etched dies) and bountifully struck devices. However, there is no matte finish that normally is present on Proof eagles of this year, none whatsoever.

Philadelphia Mint records note a mere 50 pieces were produced in Proof in 1914 of the eagle denomination, likely including the present coin. The finish is the Roman style finish that first appeared on the unique 1907 Rolled Edge, Periods example, popping up again on perhaps four of the Proofs of 1908 and on all the Proof eagles of 1909-1910 (aside from a couple of unusual Matte pieces coined in those two years).

Apparently the mint was trying out various finishes through the brief and fleeting run of Proof eagles. As noted in Renaissance of American Coinage 1905-1908 by Roger Burdette the method of Proof manufacture seems to point to a single step being left out on this particular coin; that of course being the matte process which imparts the darker finish to the coin through sandblasting, applied as a final step prior to sale.

Essentially, the gold Proofs of 1908 to 1915 were initially struck as Satin Proofs, using newly hubbed dies that produce lustrous non-mirror surfaces—the so called Roman Finish Proofs seen in 1909-10.

The Matte Proofs have an additional step, the application of a powder which produces the matte finish over the entire coin. Clearly this 1914 was a manufactured Proof struck in the normal Roman finish of 1909-10, but did not have the final matte process applied. Each coin was carefully inspected, and perhaps this particular coin was found faulty for some minor reason and set aside. Reportedly, excess Proofs that did not merit the sandblasting and matte process were placed in circulation. This may be such a coin.

Another possibility is that in 1914 one person requested a satin finish style and this particular coin was struck to fill the order, as this too would account for the present coin. Notice the edge of the coin, the chiseled stars and boldly defined edge characteristics are decidedly different than any Mint State coin, with a precision reserved only for Proofs. The devices and rims are full and sharp, the entire surface has the slightly textured appearance unique to Proofs. Compared with a normal 1914 Proof eagle, this lacks only the microscopic facets and the darker, coarser finish as produced by bronzing matte powder. It would seem unlikely that this unusual finish (for 1914) came about by some casual blunder by the coiner with such a small order to fill of 50 coins, and those being the all important Proofs, presumably this coin would not have escaped unnoticed.

Similar one-off gold Proofs exist for 1907, 1908, 1909 and 1910 for the eagle series, and in the double eagles, multiple Proof finishes are known for 1907, 1908 and 1910 as well as a special striking as late as 1921.

Clearly unusual strikings were anything but unusual during this period. In our modern world the opinions of the third party grading services are highly prized. This particular coin was submitted to both NGC and PCGS in the past and neither service could render an opinion as to what to call it as it did not fit into the normal categories of the other known sandblast Proofs of 1914. (more…)