Introduction to Rare Gold Coins

There are some truly rare gold coins in the United States. Almost any of the coins produced between 1792 and 1837 are quite hard to find in any condition, let alone in uncirculated or otherwise unmarked shape.

The Draped Bust Eagles, Half Eagles, and Quarter Eagles are all collectors’ items. In particular, the Quarter Eagles offer the chance to own a coin with a $2.50 face value.

There are some US gold coins that are even rarer or more unusual. Between 1854 and 1899, the US produced a $3 gold coin known as the Indian Princess. Stranger still, the Mint issued a $4 coin – dubbed the Stella due to the five-pointed stars in its design – in 1879 and 1889.

If you want to invest in rare gold coins, be aware that the upfront costs might be quite higher than typical gold investing. If a rare coin is graded or certified, it will have a premium attached to it.

So, let’s talk about the most popular pre-33 gold coins.

Notable Rare Gold Coin Series

Liberty Head Gold Eagles (1838-1907)

The Liberty Head gold coin series is one of the foremost series of gold coins in American history. It offered 19th and early 20th-century Americans a way to carry significant dollar amounts in their pockets.

Like many coins, Liberty Head Gold Eagles are bluntly named after their prominent design features. The coins feature a bust of Lady Liberty on their obverses. She faces left, and wears a coronet on her head. These coins are alternatively called Coronet coins because of the depicted headwear.

On their reverses, a bald eagle appears as a natural and recognizable symbol of the United States. He grasps a fistful of arrows in one claw and an olive branch in the other, and faces left toward the branches as a representation of the country’s commitment to peace.

Both the obverse and reverse came from work performed by Christian Gobrecht, the Mint’s third Chief Engraver. They began their service in 1838 in the same three denominations as the earlier Eagles: $10, $5, and $2.50.

However, either coincident to or because of the influx of gold from the 1849 California Gold Rush, Congress decreed that the Mint should create a $20 coin as well. Since it would be twice the price of the Eagle, it would thus be dubbed the Double Eagle.

Obviously, the Mint workers would need an updated design to reflect the new denomination. Unfortunately, Gobrecht had passed away in 1844, which placed the burden on his successor – James B. Longacre.

Longacre’s design changed very little from the other coins in the series. However, it did mark the first time an American coin featured a $20 face value, which Longacre styled on the coin’s reverse as “Twenty D.”

These coins remained the highest-denomination coinage in the United States until 1906. During that period, they served as the currency of the American Civil War, the Spanish-American War, the Wild West, and the Industrial Revolution.

Saint-Gaudens Double Eagle ($20 Gold Coin, 1907-1933)

Very few coins are famous and popular simply for their beauty. However, the Saint-Gaudens Double Eagle continues to dazzle investors more than 100 years after its introduction.

The Saint-Gaudens Double Eagle is the successor coin to the Liberty Head double eagle described above. Then-President Theodore Roosevelt pressed for the creation of a coin with a new and more interesting design, and the US Mint turned to sculptor Augustus Saint-Gaudens to come up with an original idea.

The resulting depiction of Lady Liberty, facing forward against a sunrise with a torch in her hand, was an immediate success and generated immense acclaim from the American public. He also created the image on the reverse of the coin – an eagle soaring in flight.

However, this coin’s aesthetic charms are not the only reason for its desirability. It was also not produced in large numbers, comparatively, as it was too much money for most to carry at the time.

Only 70 million or so were produced during all the years of its run. By contrast, the Mint released roughly the same number of quarters during the three-year period between 1917 and 1919. So, they were relatively hard to find even contemporarily.

Their numbers were further reduced – and dramatically so – by President Franklin D. Roosevelt’s Executive Order 6102. In this order, the President declared private ownership of gold all but illegal and compelled the public to turn in its gold coins and other instruments for cash.

Putting aside the sizable ethical and legal concerns of this action, the practical effect was the surrender of many Double Eagles in circulation. They were largely melted down and converted – along with other American gold coins – into the first bars placed into the new depository at Fort Knox.

Thus, any surviving versions of the Saint-Gaudens Double Eagle likely had to avoid the law for a time and undoubtedly have a colorful history going along with each one. So, they are a favorite target for coin collectors of all stripes.

Indian Head Eagle ($10 Gold Coin, 1907 – 1933)

At the same time the Saint-Gaudens design appeared on the $20 Double Eagle, another one of his designs appeared on the $10 Eagle. The Indian Head Eagle debuted in 1907 and was produced consistently for ten years. It then enjoyed sporadic releases until 1933.

One common misnomer about this coin is its name. Though both it and James Earle Fraser’s iconic design are both known as Indian Heads, this design is far different from Fraser’s naturalistic portrayal. Furthermore, Fraser’s design most famously appeared on the nickel, and later, the Gold Buffalo bullion coin.

Instead, the obverse once again features Lady Liberty, but with a beautiful and full-feathered headdress. She faces left, and it’s clear that Saint-Gaudens was similarly inspired as Fraser.

The reverse of the coin remained true to the coin’s namesake iconography. A bald eagle, standing upright and facing left, announces the ten-dollar face value stamped below.

As was the case with the Saint-Gaudens Double Eagle, many specimens of this coin were swept up and melted down as the result of the 1933 confiscation of most privately-owned gold. Thus, the supply of Indian Head Eagles was constricted, and they have become quite a rare item indeed.

Factors Influencing Value

There is no denying that the rarity of a gold coin is one of the chief drivers of its value. The novelty of the item and its difficulty to find pushes its demand higher.

The rarity of a coin often begins with its production. Coins that are minted in fewer numbers necessarily have a greater probability of becoming rare items. To be fair, some mints may only offer limited release coins to create scarcity and rarity, but it is a fact that the more unique a coin you have, the more valuable it will be.

Another factor that influences the value of a coin is its condition and grade. Coins that are minted as proofs are usually stamped twice and have frosted reliefs and mirrored fields. That is, their raised designs are a cloudy shade, while their stamped portions are almost reflective.

Other coins may not be proofs but may be reserved not to circulate. Uncirculated coins shine quite notably in light. In fact, many of them are characterized as Brilliant Uncirculated.

Both proofs and uncirculated coins rarely encounter open air – they are almost always sealed in protective cases as soon as they come off the production line. As such, they have no flaws or imperfections visible to the eye. In fact, the highest levels of these coins have no flaws detectable even at the microscopic level.

Most coins in this category are submitted to various rating agencies to receive a numerical grade. Coins are graded on a scale between 1 and 70, and proofs/uncirculated coins never have grades beneath 50. Coins with ratings in the 60s usually command prices far more than their more rudimentary counterparts.

The last factor that can affect the value of a coin is its historical significance. In fact, a coin that doubles as a historical artifact or record of a particular era may be valuable regardless of its rarity or condition.

For instance, any American coins minted in the 18th century, or between 1793 and 1799, are valuable as some of the first products ever created by the new country. These coins rode in the pockets of our most beloved Founding Fathers, like George Washington, James Madison, and Thomas Jefferson, and are extremely important pieces of American history.

Other coins may have historic significance due to the circumstances of their mintage. A somewhat recent example of this type of coin is the 1943 steel cent. For one year, the US Mint issued the penny with a composition primarily of steel, as the US war effort during World War II required a tremendous amount of copper.

So, one of these pennies not only looks different, but also represents a pivotal moment in American history. Their value is not hurt by the fact that they were only minted in a single year, either.

Investing in Rare Gold Coins

One of the best reasons to look for rare gold coin investments is, ironically, the high price of gold.

Because there are so many additional factors that influence the value of rare gold coins, the status of the spot price is much less important than it is for gold bars, gold rounds, or common gold coins. Thus, a rare coin might offer the opportunity to hold its value or increase its value regardless of the state of the economy.

We recommend that you only buy rare gold coins that are graded and certified authentic by independent organizations. Furthermore, restrict your purchases to reputable dealers, and be quite suspicious if a rare gold coin seems too cheap. As is the case with buying a Rolex, you expect to pay an appropriately steep amount for it, and a low price often indicates a problem with the product or the vendor.

Why Choose JM Bullion for Rare Gold Coins

Our rare products are certified and graded by independent agencies like the NGC or the PGCS. Our shipping process is quite secure and discrete. Your rare gold coin(s) will arrive to you in an unmarked and unremarkable package via secure courier, and all product shipments are completely insured until they reach your hand.

Finally, we never close shop, and we’re always available. Reach out to one of our friendly counselors 24/7, and start exploring our rare gold coin options today!