U.S. GOLD COINS

Collecting American Gold Coins

A collector's decisions boil down to a matter of personal taste; there is no single "correct" way to collect coins. Here are some of the ways people focus on U.S. gold.

Collecting Patterns
Every coin begins as a concept. Be it a new denomination, design, size, shape, or alloy, the best way to present the concept or to test it is in a physical form. The physical form of a coin concept is known as a pattern. By their very nature, pattern coins are exceedingly rare, with most being unique. Pattern coins are produced in extremely limited quantities, especially in the intended metal. Gold patterns, because of their high intrinsic value, are the rarest and most desirable. Sometimes a pattern coin ends up going into production, but usually with modifications (a good example is the evolution of Augustus Saint-Gaudens's design for the 1907 $20 gold pieces).

Pattern collectors often focus on a single denomination, design type, date, or alloy. Thus a collector might decide to chase after all $3 gold piece patterns regardless of date or metal. Or, they may choose to pursue all aluminum versions of patterns for gold coins, regardless of denomination.

Collecting Regular Issues
Many collectors prefer coins that were made for circulation-coins that were actually used in everyday commerce. Unfortunately, gold coins are intrinsically expensive and the average collector can only afford to purchase one of each type. Date collecting is both difficult and prohibitively expensive, thus it is the rare collector who can afford to pursue this method. In addition, many circulation strikes simply do not exist in Mint State condition, thus the collector who seeks only high-grade examples will be disappointed in many instances. Nevertheless, there are numerous collecting methods that can be both satisfying and challenging. Here are a few:

BY DENOMINATION: A denomination set of U.S. gold coins includes the following coins: $1, $2.50, $3, $5, $10, and $20. For most collectors, this is an easy, affordable set that illustrates the interesting array of denominations that have evolved over the years that gold coins were produced. Wealthy collectors might consider adding the $4 Stella (which is actually a pattern coin).

BY DESIGN TYPE: From 1795 to 1933, America produced a number of different design types, most of which were some variation on a depiction of Miss Liberty (the Indian head designs of 1907 to 1933 were the exception). A design set includes, at the least, one of each major design type, regardless of denomination. At the most, a design set includes one of each major design type of every denomination. Unfortunately, a complete set of design types is very expensive, so collectors have created some interesting subsets. For instance, some collectors focus only on designs from the 20th century, or they may collect only design types on gold dollars. Other collectors focus on a single design type across all denominations (e.g., all Liberty Head issues from 1838 to 1907).

BY DATE: Collecting coins this way is a throwback to the middle to late 1800s, when collectors focused on acquir¬ing one coin from each date, but paid little or no attention to mintmarks. In recent years, date collecting has made a resurgence due to the high cost of gold coins. The benefits of choosing one coin of a given date can best be illustrated by example: in 1875, half eagles were made at the Philadelphia, Carson City, and San Francisco mints. The 1875 is an extremely rare and valuable coin, the 1875-CC is moderately rare and somewhat expensive, and the 1875-S is also scarce, but is the least expensive of the three. For the date collector, any one of the three coins will suffice. Since the date collector seeks to minimize costs, usually the least expensive coin is chosen.

BY DATE AND MINTMARK: Collecting every possible date and mintmark combination of gold coins is a daunting and expensive proposition, but one that can be extremely challenging and rewarding. Old-time collectors such as Waldo Newcomer, Louis Eliasberg Sr., and Harry W. Bass Jr. achieved remarkable levels of success in this area and their names are repeated throughout this volume. Today, increased competition and relatively higher prices make it nearly impossible to repeat their success. Nonetheless, the authors encourage collecting at all levels, including the very top.

Collecting Proof Coins
Proof coins are specially made pieces that are usually sold to collectors at a premium. Proof coins represent the pinnacle of the minter's abilities; they are meant to be perfect in every respect. The blanks for Proof coins are polished to a mirror-like sheen. Inspectors examine the dies for imperfections, selecting only the very best for Proof coin production. Mint personnel, specially trained in the proofing process, prepare the dies, then place them in higher-capacity presses to ensure that every last detail is squeezed out of the dies. Often, multiple blows from the dies are required to bring up the fine relief on each coin. Proof coins are handled individually to prevent each from coming into contact with another coin.
Existing records indicate that Proof gold coins were usually sold in complete denomination sets for the year, but varying mintages within a year indicate that it may have been possible for collectors to obtain Proof gold coins on an individual basis. Until modern times, the premium charged by the Mint to produce Proof coins was very reasonable, usually just a tiny percentage or fee over the face value. Unfortunately, the high face value of most gold coins prevented all but the wealthiest of collectors from obtaining them. The small Proof premium came back to haunt the coins later on. When times got tough, collectors often sold their collections or spent the coins at face value, including Proof gold coins. After all, for many decades, Proof gold coins weren't worth much more than their denomination value, and collectors back then were unaware that their coins would even¬tually become some of the rarest and most sought-after pieces in the market.

Proof coins can be found with a variety of finishes. Prior to 1828, the Mint lacked the technology to produce perfect coins, although it is apparent that some attempts were made. Pre-1828 "Proof" coins often have a semi-reflective sheen, the details are not always full, and there is often a lack of documentation suggesting that such coins were made. However, several of the pre-1828 gold coins are convincing in their characteristics. The authors prefer to call such examples "Specimen" coins, an appellation that points to their special qualities but which does not require strict adherence to a specific set of standards.

The introduction of the "close" collar in 1828 created the opportunity to strike coins of exact diameters and superb details. Proofs began to exhibit the familiar characteristics of modem examples: near-perfect details, squared rims, mirrored surfaces, and (sometimes) frosted design elements.

In 1902, the Mint shifted to a brilliant finish, with little or no cameo contrast.
Beginning in 1907, new coinage designs ushered in a short period of completely new Proof finishes. The brilliant and cameo finishes of prior years went by the wayside, replaced by Proof surfaces that ranged from satiny to finely etched to a sandblast, matte texture. Sometimes, the proofing process was so subtle that experts disagree as to whether a particular coin is a Proof or not (for example, the 1907 $20 High Relief Proofs are recognized by NGC but not by PCGS). The differences between Satin Proofs, Roman Finish Proofs, and Matte Proofs are best learned by examining as many different coins as possible. The last Proof gold coins were struck in 1915.

Collecting by Mintmark
Collecting coins by their various mintmarks did not come into vogue until the 1890s, after the publication by Augustus Heaton of a treatise on mintmarks.
Gold coins were produced at Philadelphia, Dahlonega, Charlotte, New Orleans, Carson City, Denver, and San Francisco. All of the mints (except Philadelphia) placed a mintmark (a letter or letters) on each of the coins to identify the source. For example, the New Orleans Mint placed a small letter O on each of its coins. Each mint seems to have had its own set of characteristics and quirks. Dahlonega coins are infamous for their poor strikes and general quality. Philadelphia appears to have produced the best coins of all the mints. Thus, a complete set of mintmarks includes coins of varying quality and even of varying color (because of differences in the metallic composition of local ores).

Courtesy Garrett and Guth: Encyclopedia of U.S. Gold Coins

Check out Live Gold Prices:

 
Gold Coins - Gold - Gold Coins Info