Early Gold Coin Values Soar

http://www.coinvaluesonline.com/con...548&visitor={E5117F20-D7B9-499C-8ACE-BB19BC72C401}
5/8/2006

By Mark Ferguson
COIN VALUES Market Analyst

Our latest valuation update of "early" gold coins is comprehensive and thorough. Virtually all gold coin values for every issue and grade from 1795 to the late 1830s, prior to the Coronet coins, increased in value.

These values were primarily based on recent auction prices realized, which include collector and dealer purchases. Although demand for these early coins is probably the strongest it has ever been, dealer bids - prices dealers are hoping to pay - that are posted on the wholesale trading networks and popularly reported elsewhere, are abysmally low compared to the prices at which these coins are actually trading.

I also used specialty books, grading service population reports, mintage information, other resources and consulted with gold specialists to determine values.

While useful in assessing rarity, mintages have to be viewed with caution. Numerous early gold coins were melted early on, as their gold content values sometimes exceeded their face values. The surviving numbers are well below original mintages.

For many issues the population reports may show just a dozen or so pieces graded, for example, or even just two or three coins graded. Grading service population reports, however, are not perfect sources of information, as many of these coins have been cracked out of their holders and resubmitted in hopes of receiving higher grades, often multiple times. That might mean an individual coin is listed in a report multiple times in one or more grades.

Rarity can also be measured by the frequency at which these coins appear in the marketplace. Some issues and grades are so rare that 10 or 20 years may pass before one of these issues comes on the market and sells. Therefore, values for some of these infrequently traded rarities have been interpolated to keep their values current.

So consider these values, especially for the ultra-rarities, as guides to use in your trading. Dealers may offer some early gold coins for less than we list, but rare issues may also trade for substantially more. Many wealthy collectors are regularly competing to purchase the highest graded early gold coins they can find. And when these buyers or their representatives fight it out at auction, new record prices are routinely being set these days.

The highest valued pieces routinely trade for hundreds of thousands of dollars, and a few, if they were to come on the market, would probably trade in excess of a million dollars. Collectors without those kinds of funds, however, can still afford some early U.S. gold coins.

While most circulated examples from this period cost several thousand dollars or more each, some of the circulated Classic Head $2.50 quarter eagles and $5 half eagles from the 1830s can be acquired for less than $1,000 each. And for the budget-minded collectors, some of the other early gold coins with problems can be bought for less. These might include coins with plugged holes, heavily cleaned coins or jewelry pieces with removed mounts.

("Early" gold generally encompasses the Capped Bust quarter eagles, half eagles and $10 eagles; the Capped Draped Bust quarter eagle and half eagles; and the Capped Head and Classic Head quarter eagles and half eagles.)