By Doug Winter -  www.raregoldcoins.com

I appear to have hit on a popular format as the last three articles I’ve written (a Ten Rarest Triumvirate on Liberty Quarter Eagles, Eagles and Dahlonega gold) have garnered considerable positive accolades. I personally like writing these kinds of articles and I like reading them as well. Lots of information in a tight, compact, format…what’s not to love?

This month, we’re going to look at Liberty Head half eagles. This design was first adopted in 1839, modified in 1840, modified again in 1866 (with the addition of the motto IN GOD WE TRUST on the reverse) and finally replaced in 1907. Liberty Head half eagles were produced at the Philadelphia, Carson City, Charlotte, Dahlonega, New Orleans, Denver and San Francisco mints. This is the only denomination to have been produced at seven mints.

The Liberty Head half eagle series is technically incompletable due to the extreme rarity of the 1854-S (see below for more information) but the rest of the issues are available. If a collector is condition-oriented, the half eagles of this design are a real challenge. There are a host of Liberty Head half eagles, especially in the No Motto design, that are excessively rare in Uncirculated and many are very rare even in properly graded AU55 to AU58.

I personally like this series a lot even though I would be the first to admit that assembling a complete (or near-complete) set would be daunting. I would probably suggest that a beginner or a collector on a budget form a specialized set or, more likely, focus on the issues from one particular mint.

For collectors who try to focus on legitimate rarities, there is no shortage of issues in this series that fit the bill. All of the following issues are rare in all grades and, as I mentioned above, all are very rare in higher grades.

In my opinion, the ten rarest Liberty Head half eagles are as follows:

1. 1854-S

As with the quarter eagle of this date, the 1854-S half eagle is a major rarity. But the 1854-S is considerably rarer and it is regarded as the rarest regular issue Liberty Head gold coin of any denomination as well as one of the rarest half eagles of any design. There were only 268 struck of which a grand total of three are currently known. One is impounded in the Smithsonian while the other two are in tightly-held collections. The finest known is owned by the Pogue Family in Dallas and it is ex: Eliasberg: 471 (where it brought $187,000) while the other is ex: Norweb, Wolfson and Col. Green. One of the bigger numismatic thrills I’ve had in the last few years was at a coin show where the owner of the Eliasberg 1854-S handed me the coin (still in its original clear Lucite display holder from the Eliasberg sale) and let me study it while he sat across from me at my table.

When I first heard about the cargo of the S.S. Central America being located, I thought that there might be a realistic chance that an 1854-S half eagle would be found. But there were no 1854-S half eagles (or quarter eagles) discovered and one can assume that the vast majority of the original mintage for both issues was quickly melted.

It is hard to ascribe a value to a coin such as the 1854-S half eagle but I think that if the Eliasberg or Wolfson examples were to come onto the market they would sell at a price level that would shatter records for the Liberty Head half eagle series. It is the only regular issue Liberty Head gold coin of any denomination that I have never owned; another testament to its rarity.

2. 1875

This year of issue includes some of the very rarest 19th century American gold coins ever produced. Only 200 business strike half eagles were struck. I have seen estimates as low as only five or six known (Breen and Akers, respectively) but I think this number is probably a little bit higher; perhaps more on the order of seven or eight. There are no 1875 business strikes known in any grade approaching Uncirculated. The best I am aware of grades AU55 and I have never seen an AU example that wasn’t unattractive as a result of heavily abraded surfaces. All 1875 half eagles are prooflike and can be distinguished from Proofs of this year by the placement of the date.

As of October 2008, PCGS and NGC had combined to grade ten 1875 half eagles but this includes a number of resubmissions. Seven of these ten coins graded About Uncirculated. In the last five years I am aware of just one having sold at auction: Goldberg 2/07: 2335 ($74,750) which is ex: DLRC 7/04: 1444 ($86,250). This coin has been graded AU55 by NGC but I feel a more accurate grade is AU50 to AU53.

I find it remarkable that a coin as rare as the 1875 half eagle has never broken the $100,000 barrier at auction. Part of this, obviously, has to do with the fact that Liberty Head half eagles are not an ultra-popular series with specialized collectors. Part of this also has to do with the fact that this is an underpublicized issue and that none of the survivors is especially attractive. That said, I think the 1875 half eagle appears to be awfully good value at current levels.

3. 1864-S

Earlier this year (on January 27 to be exact) I wrote a blog specifically about this issue so I’d suggest you go to the archive section of my website if you’d like to read more. In summary, the 1864-S half eagle is a major rarity with just 20 or so pieces known from an original mintage of 3,888.

There is one truly incredible 1864-S half eagle known, a Gem MS65 graded by PCGS that is ex: Bass and Norweb. It last sold in 1999 for $176,000 but I feel that it is worth considerably more than this today.

In spite of the extreme rarity of this issue, it is still priced within reach of many collector’s budgets. I would strongly suggest to anyone attempting to complete a set of Liberty Head half eagles that if an example of the 1864-S becomes available in a respectable level of preservation that it be bought without a second thought.

4. 1863

Despite a small mintage figure of 2,472 business strikes, the true rarity of the 1863 half eagle is not well-known outside of the specialist community. It is, however, a very rare coin in all grades with around 30-35 pieces accounted for. NGC has graded two in Uncirculated (an MS60 and an MS61) but the single finest that I can recall having seen is Bass II: 1143, graded AU58 by PCGS that sold for a reasonable $13,800 back in 1999. The all-time auction record for this date was recently set by Heritage in their May 2008 sale when an NGC AU58 brought $14,375. As with other rare dates of this denomination, price levels for the 1863 are currently very reasonable when one considers how rare it is in all grades.

When available, the typical 1863 half eagle grades EF40 or so and very few examples that I have seen show good eye appeal. The few known that have not been dipped or scrubbed have light to medium orange-gold color with rose shadings. The luster is typically a blend of satiny finish and Prooflike reflectiveness and most pieces have considerable abrasions or surface marks that disturb the mint luster.

There is not much information in published price guides for the 1863 half eagle and this is another factor that keeps the demand down for this issue. Trends only goes as high as AU50 and it is listed at $7,750 while CDN Bid is $4,500 in AU50 and $8,500 in AU58. It is my belief that an accurately graded, attractive mid-range AU at current levels is exceptional value.

5. 1887

The 1887 is the only Proof-only Liberty Head half eagle. In other words, there were no business strikes produced and just 87 Proofs were made. This makes the 1887 an interesting date. As far as being regarded as a Proof issue, it is overvalued. There are as many as 35-40 Proofs known; a rather large number in comparison to other half eagles from this decade. As an example, CDN Bid for an 1887 half eagle is $40,000 in PR63. As a comparison, the 1880 with a mintage of just 36 Proofs (and probably no more than nine or ten of these are known) has a Bid of $11,500 in the same grade. Why is the more common 1887 worth three times more than the 1880? Because the 1880 is extremely common as a business strike while the date collector who seeks an 1887 only has Proofs available.

For some reason, more Impaired Proof 1887 half eagles are seen more often than other half eagles of this era. Most 1887 half eagles grade in the PR62 to PR64 range and show good contrast and depth of fields but are often hairlined from past cleanings. The best two pieces that I have seen are Heritage 1/07: 3128 (graded PR65CAM by PCGS) that sold for a record $103,500 and an NGC PR65UCAM that I sold via private treaty back in 2005.

Overall, I have mixed feelings about the 1887. As I mentioned above, you can make a pretty compelling case for it being an overvalued issue. And in a series like Liberty half eagles, where there are so many decidedly undervalued issues, the 1887 stands out like a sore thumb. On the other hand (pun intended) you have to like an issue that has an original mintage figure of just 87. So while I do think that average quality pieces are probably fully valued at current levels, I actually think that above-average examples (in this case PR64 and better) are still good values.

6. 1865

I wasn’t going to rank this date as high as #6 on my list of the ten rarest Liberty Head half eagles but as I sat and thought through this article, I realized that the 1865 was a date that I just never see. I believe that the population figures are greatly inflated by resubmissions and that the total number known is lower than most people believe. There were just 1,270 business strikes produced and given the high percentage of gold coins from this year that were melted, I’d have to think that no more than three dozen or so are known today.

The current NGC population figures show four 1865 half eagles having been graded MS61 but none of these have ever appeared at auction. In fact, the only Uncirculated example to ever sell at auction was Heritage 4/02: 7010 ($17,250), ex: Goldberg 5/01: 1405 ($10,925) which was in an NGC MS60 holder.

This date appears not to have circulated as extensively as some of the other Civil War era Philadelphia half eagles and most survivors are in the EF40 to AU50 range. Properly graded AU53 and better pieces are extremely rare with around seven to nine known and I still have never seen a piece I conclusively regarded as Uncirculated. Most are prooflike and very bagmarked with poor eye appeal as a result.

7. 1876

The 1876 is yet another Philadelphia half eagle that gets little notoriety, despite a very low mintage figure of 1,432 business strikes. There are around 40-50 known but what makes this date much different than the 1863 or the 1865 is the relative availability of high grade business strikes. It appears that a small group (between four and six coins) was found overseas a few decades ago. This includes at least two Gems. The finest that I am aware of is ex: Heritage 2003 ANA: 10329 ($36,800), Heritage 1994 ANA: 7456 ($46,200), Stack’s 10/68: 499 ($1,000), Miles collection. It is graded MS65 by PCGS.

High grade 1876 half eagles tend to have exceptional luster that combines nearly full prooflike reflectiveness with mint frost. Business strikes are easy to distinguish from Proofs, however, as they have a raised die lump on the cheek near Liberty’s pupil.

The grade distribution of this date is very odd with around six or seven known in Uncirculated and many in the VF-EF range but almost none in the AU grades. It is clear that the surviving 1876 half eagles that are not from the small hoard mentioned above saw considerable use in circulation.

8. 1842-C Small Date

This is the rarest Southern branch mint half eagle from the standpoint of overall rarity. There are an estimated 50-60 pieces known but this figure is misleading as there are some non-certified pieces with signs of damage or harsh cleaning. I have also noticed that a few relatively high grade pieces have been certified multiple times, making the PCGS and NGC population figures highly unreliable.

I believe that there are between one and three known in Uncirculated. The unquestionable finest is the Dingler/Elrod coin that last sold as Heritage 1/05: 30245 for $150,000. It is currently in an NGC MS63 holder but it was previously graded MS62 by PCGS.

More than any other date in this Top Ten list, the perceived rarity and subsequent popularity of this issue has been harmed by overgrading. There are a number of really awful pieces in AU55 and AU58 holders and these tend to bring very low prices relative to Trends. In my opinion, an accurately graded EF or AU 1842-C Small Date half eagle with original color and surfaces is still a very rare coin.

9. 1859-S

I believe that the 1859-S is the third rarest San Francisco half eagle, trailing only the uncollectable 1854-S and the extremely rare 1864-S. There are around 50 or so known with most in lower grades. I am aware of two Uncirculated 1859-S half eagles. The first is an NGC MS62 owned by a private collector. This coin is not well-known to the collecting public but it has been shown to me twice by the owner and it is very nice. The second Uncirculated coin is a PCGS MS62 that is ex: Bowers and Merena 1/02: 694 ($25,300), Bowers and Merena 10/99: 1118, Bass, Milas.

10. 1847-O

The 1847-O is the rarest half eagle from this mint and it is one of my personal favorite issues in this group of half eagle rarities. Of the 12,000 struck there are around four to five dozen known with many in the VF to EF range. In About Uncirculated grades, the 1847-O is extremely rare with maybe as many as eight or nine known. There is a single coin that has been graded MS61 by NGC (ex: Pittman) but the finest I am personally aware of is the ex: Milas coin that is in an NGC AU58 but which is better than this by today’s standards.

Even though the 1847-O is part of a more popular series than the Philadelphia or San Francisco half eagles, it is still reasonably priced. As an example, I sold a really nice VF example earlier this year for less than $3,000 and have sold two very pleasing EF pieces in 2008 for around $7,500 each. There are a number of “runners up” that came close to making this list but which were just not quite rare enough. These include the 1842 Large Letters, 1842-O, 1858-S, 1860-S, 1870-CC, 1873-CC and 1878-CC.

If you are interested in this series and would like more information, please feel free to contact me via email at dwn@ont.com.