Early $5 gold pieces make pricey targets
By Paul M. Green
In
all probability you are not going to complete a collection
of the early half eagles of the United States. As a
group, they are simply too rare. Even if you can acquire
one of the better dates the numbers available are so
low, in some cases, that it would potentially be years
before a date you need wilt come on the market, even
if you have unlimited funds to spend. While a complete
collection might not be possible, it is possible for
some to acquire type examples. It is also possible to
learn about what was a fascinating early coin, which
is an excellent reflection of the condition at the time
- both at the Mint and in circulation.
When the first gold $5 coin appeared
it had a Capped Bust Liberty on obverse and what is
called a small eagle on reverse.
The early half eagle turned
out to be a surprise in terms of its role which was actually
much greater than many would have predicted on April 2, 1792
when the half eagle, along with other denominations, was first
authorized. At the time, the half eagle was to be the middle
gold coin between the $2.50 quarter eagle and $10 eagle. Normally,
being in the middle tends to suggest a somewhat limited role,
but as it worked out the half eagle became the dominant gold
coin in circulation.
The $2.50 quarter eagle was
not really popular at the time, while the $10 gold eagle had
little commercial use as the denomination was too large. In
1804, the production of gold eagles was suspended, making
the half eagle not the middle denomination, but rather the
largest gold coin in production in the United States at the
time.
Being the largest gold coin
and also being a popular size saw the half eagle produced
regularly. Although the numbers were limited, the half eagle
was still the most heavily produced gold coin of its day.
In fact, it took some time before there was any production
of gold coins. There first had to be a Mint where they could
be made and that took until 1793. At that point officials
had to post a bond before there could be any production of
gold or silver coins and they balked at that requirement.
It took until 1794 to settle the bond matter and at that time
the first emphasis was on silver coins with dollars, half
dollars and half dimes being produced. The dollar and half
dollar were produced in 1794 with the half dimes having examples
dates of both 1794 and 1795, although there is some suspicion
the production might have been entirely in 1795.
The first steps toward gold
coin production came in July of 1795 when the first gold arrived
in the form of 128 ounces followed by another 100 ounces.
The dies were ready, having been prepared by Rob Scot. As
was the case with the other gold coins which would follow,
there was no denomination, just a Capped Bust obverse , and
small eagle reverse. Production apparently began fairly quickly
as 744 half eagles were delivered on July 31, 1795. Those
first half eagles had little impact n the commerce of the
day as there were an assortment of gold coins of other nations
already being used. The mixture of gold coins was at the root
of the lack of denomination. Merchants of the day were more;
concerned about the amount of gold in the coins, rather than
their face value.
Before 1795 there would be
additional half eagle mintages putting the total for the year
at 8,707 pieces. In fact, we cannot really be certain of the
accuracy of that total. There was a reported 1796 mintage
of 6,196 pieces with the strong suspicion that at least some
of them may have been made with 1795 dies.
In fact, the matter of using
old dies would be one that would mark the first few years
of half eagle production. It takes time to make dies and that
costs money which the early Mint did not have. The small profits
from producing gold and silver coins at the time barely covered
the cost of all the activity and material involved with the
only real profit coming from the production of copper coins.
As
a result, the Mint was frugal when it came to dies.
If they were not completely worn out they would be used
again, even if the actual year and the date on the die
were not the same. This is proven by the fact that a
1795 is known with a large eagle reverse - which did
not even exist in 1795. What clearly happened is that
an old 1795 die was discovered and pressed into service
in a later year creating a variety dated before its
reverse even existed.
There are a host of questions with regard to the early
half eagle varieties. There is a 1796/5 with the regular
1795 being seen about eight times more by the grading
services than the 1796/5. There are about a dozen varieties
for the 1795 and only one for the 1796/5 suggesting
the overdate was very possibly a 1795 die used in 1796.
The Turban Head design commenced in 1807
and was used until 1812. The type is affordable for
many collectors.
The 1795 with the large eagle reverse is the
best proof of dies being used long after they were created.
The large eagle reverse did not appear on any denomination
until 1796, although experiments were possible but hardly
likely to be used for making regular coins back in 1795.
There is other evidence of the later date for the large eagle
reverse in that there are 16 stars while the small eagle reverse
has only 15. The addition of that extra star cre¬ates
the earliest date when a 16-star reverse would have been appropriate
- after June of 1796 when Tennessee was added to the Union.
Once that was official it would be natural to have 16 stars.
Prior to June of 1796 it would seem unlikely that there would
be any 16-star combinations.
Certainly the numbers known
today strongly favor the small eagle reverse as PCGS reports
over 300 examples of the small eagle reverse but fewer than
50 examples of the 1795 with a large eagle reverse. The NGC
totals show the small eagle reverse has been seen 173 times
while the large eagle is at just 23.
Interestingly enough, there
are other indications of dies being used later as there is
also a 1798 with a small eagle reverse. That was safely after
the small eagle reverse had been replaced. It appears the
die did not last long as the best estimates are the mintage
might have been only 100 pieces. That number is supported
by the fact that PCGS so far has seen only two.
For those seeking an example
of the 1795 with a small eagle reverse, the current price
is about $11,500 for an F-12 while the tougher large eagle
reverse is $8,800 in the same grade. The 1796/5 rounds out
the possibilities at $12,000. The prices actually reflect
the demand and not the supply. The price that a special example
can bring is seen in the $241,500 price of an MS-64 1795 with
a large eagle reverse in a 2003 Bowers and Merena sale. In
all cases, coins are likely to be fairly well worn as they
did see active circulation and adjustment marks from filing
the planchet are likely as are strikes which tend to weak
in various areas. The same can basically be said of the large
eagle reverses, although they are less expensive at $3,000
in F-12, while an MS-60 is possible at around $8,600. For
the specialist there are a host of options as might be suspected
with the way dies were used years after being produced. Those
possibilities are increased when different numbers of stars,
different sizes of numbers and other possibilities are added
to the coins.
There are certainly a host
of questions for the dates from 1796-1807. A couple unique
varieties exist, including the 1797 with a 16-star obverse
and a 1797 with a 15-star obverse, both of which were thought
to have been produced in 1798. Both are basically impossible
to obtain. Add them to the 1798 with a small eagle reverse
and you have major rarities. In other cases, there is simply
uncertainty as the 37,628 mintage 1800 does not seem to appear
in the numbers expected from such a mintage raising questions
about that total.
The suspension of gold eagle
production in 1804 would thrust the half eagle into the role
of being the largest gold denomination. That would mean potentially
large numbers being exported, although the 1807 Embargo Act
shut down most of the maritime commerce at the time. That
also means the coins were probably not melted in large numbers
as would happen later, but realistically the supply remaining
today is still very small and certainly not large enough to
meet demand without seeing higher prices especially in higher
grades.
There
was a design change in 1807 that saw the John Reich
Turban Head introduced - a design that would last until
1812. The short-lived design, thanks to larger mintage
and apparently relatively few losses from export, can
be found today with an F-12 at $2,400 and an MS-60 at
$8,000. The strikes are better and adjustment marks
less common than on the earlier issues making this type
somewhat easier to find in the form of a decently struck
coin without problems.
The design would change
again in 1813 with the new design having a capped head
and this design would last until 1834. In this type
we find some of the great rarities in U.S. numismatics
although at least some type coins can be found.
Mint marks appeared on early $5 gold
pieces in 1838 when Charlotte, N.C., and Dahlonega,
Ga., became home to federal mints that struck gold.
This one is a "D."
The fact that the type produced
some of the great rarities of U.S. numismatics is something
that has been traced to a number of factors. There were certainly
some very low mintages during the period and in addition there
were even fewer collectors who would attempt to save such
a high denomination. That did not change for decades which
meant that half eagles released into circulation could have
any number of potential fates and none of them were good in
terms of the surviving to the present day.
An additional factor was that
circulation losses were only part of the story. The ending
of the War of 1812 saw international trade resume. As the
largest gold coin of the United States at the time, the half
eagle was the natural first choice to be exported in foreign
trade.
That situation was enhanced
by the fact that the American gold-to-silver ratio of 16-to-1
was slightly different from the rest of world, so American
gold coins could actually be exported at a small profit. That
was made easier by brokers who would cheerfully buy the coins
and take care of the rest. There were virtually no gold coins
in circulation even though there were regular mintages.
The situation made for a perfect
storm of factors for any gold coin produced - especially the
half eagle - to end up being melted in Europe in a relatively
short period of time. That makes almost any date from the
period extremely tough.
The first of a number of rarities
is the 1815, which had a mintage of just 635 pieces. With
that mintage, the 1815 did not need to be exported as it was
going to be very tough under any circumstances and that is
the case with less than a dozen examples known and many of
them being housed in museum. While not well known, the 1825/4
overdate is even tougher with only two examples being known.
Under normal circumstances,
other tough dates would be much better known. In a virtual
galaxy of rarities a date such as the 1819 of which there
are fewer than 20 pieces known simply does not stand out the
way it might if it was another denomination.
The real export began in the
early 1820s and that has produced a number of very tough coins.
The first year of significant export was probably 1821. The
1821, mintage 34,641, is much tougher than the mintage suggests
with a $5,800 price listing in F-12 of $7,000 and $70,000
in MS-60. The two major grading services report a mere six
examples each. A couple were Mint State, but there is no way
a collector desiring a nice 1821 can assume one can be found
quickly at any price.
The overdates headed by the
1825/24, which sold for $148,500 in a 1989 Bowers and Merena
sale, are also very tough. Currently there is relatively little
recognition or demand and their prices are lower than might
normally be the case.
The regular dates are not
by definition available, either. The 1829, which came with
a small or large planchet as that was the year the planchet
size was reduced, gets a certain amount of attention as an
interesting date. The mintage was put at 57,442, divided between
the old and newer planchet sizes. Few of either are known
with perhaps seven examples of the large-size planchet being
accounted for, primarily in Mint State. The number of smaller-size
planchets known is placed at six, meaning we cannot account
for the remaining 57,429 pieces. A couple might turn up, but
basically it's a terrible survival rate and it leaves any
1829 at high prices. In 1985 Superior offered a large-size
planchet in MS-65 and it realized $104,500. An XF-40 small
planchet in 1992 brought $89,000 while the Norweb small planchet
in Proof-64 to Proof-65 managed a price of $352,000 back in
1987.
The key date of the 1820s
remains the 1822, which is a classic rarity. The 1822 had
a reported mintage of 17,796. In all probability, not all
were dated 1822 because we know of only three examples today,
and two of the three are in the Smithsonian. It suggests the
mintage was not all dated 1822. The number exported may also
have been very large, with saving almost unknown.
With two examples in the Smithsonian,
that makes the one other 1822 the only example that can be
privately owned. It's an interesting coin that brought a price
of $687,500 in the Eliasberg sale. The price would have been
higher but the coin only graded VF-30. Although being circulated
does not help its price, it does help its charm, as it means
that an extremely valuable coin was circulating for its $5
face value. Should it ever be offered again, it is certainly
likely that the 1822 $5 will command a price in the millions,
as it will be the only chance anyone will have to own one
of the great rarities in US. numismatics.
Technically, the large and
small planchet types can be considered different types, although
the difficulty in finding just a single example from the period
especially in Mint State sees many content with just a single
example of type. Those looking for a Mint State coin will
find the challenge is very real, although the long period
of production has helped, even if only a small number of Mint
State coins survived most years that does represent a limited
supply. The supplies today put the type at $2,400 in F-12
for the most available dates, typcially from prior to 1821,
while an MS-60 is listed at about $7,800 for the most available
dates.
In 1834 there would be a significant
change as the William Kneass Classic Head design was introduced.
In fact, the design was to mark coins made with a new composition
involving slightly less gold. There was some debate over what
to do in 1834 when the old type and the new type would both
be produced. There was also concern that the public be aware
that the new type contained less gold. There was thought of
putting the date Aug. 1, 1834, or the word NEW on the Classic
Head 1834 half eagles, but eventually it was decided that
the new design was enough.
The new Classic Head half
eagles that contained less gold could circulate and made it
possible to have much larger mintages, making the type readily
available. In VF-20, an available-date Classic Head half eagle
lists at $300 while an MS-60 lists at as little as $2,950.
There are better dates, starting with an 1834 having a crosslet
"4," which is $ 1,650 in VF-20 while a plain "4"
is at available-date prices.
In a sense, the Classic Head
half eagles were truly transitional half eagles. They included
the first half eagles to be produced outside of the main facility
in Philadelphia. The Charlotte, N.C., and Dahlonega, Ga.,
facilities would produce their first half eagles in 1838.
The 1838-C had a mintage of 17,179 while the 1838-D was at
20,583. The two are certainly historic with the 1838-C listing
for $2,200 in VF-20 while the 1838-D is at $2,000 in the same
grade. In MS-60 the 1838-C is $38,500 and the 1838-D is at
$25,000. The grading services support the prices as the 1838-C
has been seen in Mint State just once at NGC, while the 1838-D
was seen 10 times. At PCGS, the 1838-C is at two Mint State
coins graded, while the 1838-D is at six graded.
With the introduction of the
Coronet Head design, the era of the early half eagles came
to an end. While a complete set is basically impossible, even
being able to own a single example of the early h' If eagles
is a special opportunity. They were the most important gold
coins of their day, and since that day they have attained
a place as one of the most important and difficult of all
U.S. coins.