Common And Rare Date Gold Coins Surging

Gold values surge ahead Common, rare-date gold coins both rising

10/24/2005

By Mark Ferguson
COIN VALUES Market Analyst

Not only have common-date gold coins recently risen in value because of a strong surge in the gold bullion price, but scarcer and rare-date gold coins have maintained their steady climb as well. Although rare gold may be financially out of reach for most collectors, its long-term rising trend is leading the coin market toward higher levels in general, and money coming into the market for these coins trickles down to the rest of the market.

Rare gold has been hot for at least three to four years now, and values for virtually all denominations, series and date ranges have continued to rise during this period. Coronet $20 double eagles, especially, have been hot. All early gold, beginning in 1795 and progressing into the 1830s, has also been especially hot, as are the gold $3 coins, which date from 1854 to 1889.

Price records at auction and in private transactions are being reached on a regular basis as advanced collectors and dealers bring a lot of money to the market. But keen-eyed buyers have plucked a few bargains in this market.

For example, the 1854-S Coronet $2.50 quarter eagle graded Extremely Fine 45 by Numismatic Guaranty Corporation that sold in the American Numismatic Rarities C.L. Lee auction in September for $253,000 may be one of the best recently sold bargains. This piece, which was unknown to the collecting world until mid-2005, is just the 10th known example.

Because this rare issue trades so infrequently, it is not very well known, and it is a perfect example of how popularity, or lack thereof, adds or does not add value to a rare coin. Compare this coin to the famous 1913 Liberty Head 5-cent coins, of which just five examples are known, and the 1804 Draped Bust silver dollars, of which 15 examples are known. These coins are selling in, roughly, the $2 million to $4 million range. The lower grade examples of these two coins may sell for a little less, but certainly not less than $1 million!

This relatively high price-level 1854-S Coronet quarter eagle also is a good example of what collectors at all price levels can pluck out of the market by spending time studying a specialty. Knowledge is power! But for the most part, while today's overall coin market remains hot, you must step up to the plate and pay what it takes to get the coins you're after.

Experienced collectors and dealers know this hot market can't last forever, but at this time there is no end in sight, nor are there signs of a turnaround. Inflation is increasingly being talked about in the press and the Federal Reserve is raising interest rates to help stem the inflationary tide. History indicates that inflation is normally very good for the coin market.