Certified Early Gold (1795-1834) and Why They Are Scarce, Part I

By Silvano DiGenova

Methodology of This Study
There are those of us who not only consider early gold as rare coins worthy of our investment dollars, but the ultimate embodiment of the first American mint masters and engravers art as well. The best examples of these coins are rare and desirable as both artifacts of our new nation and tangible evidence of the difficulty that the original founders faced when creating our new currency system. The mintages are small and the survival rates in all grades low. Early United States gold coins in any grade worthy of investment are going to be both rare, and thus hard to come by, and much in demand, and thus expensive to buy.

Collectors have known that pre-1834 gold is rare virtually since the coins were originally made, but just how rare, while not a surprise is statistically amazing. All the mintage figures in this article come from John Dannruther’s new unpublished manuscript, which is very helpful, and sometimes, often, differs from the mintage figures in the Yeoman’s Red Book. I recommend you buy a copy when it is published, as it will unquestionably be the “state of the art” on the subject for years to come.

The population report figures come from both Professional Coin Dealers Grading Services and Numismatic Guaranty Corporation population report figures combined, in some, if not all cases there will be some duplication and other statistical errors, perhaps to the extend of 20 percent in either direction. Grades of individual coins go up and down with the fashions in grading, complicating the issue even further. Additionally, the coins held in old collections, museums and at the National Collection in Washington are not certified, so they will further confuse the survival rates. Therefore, survival rates within are a compilation of the opinions of Silvano DiGenova, John Dannruther, David Akers, David Hall and Neil Berman, DiGenova being the original source and later used to verify his estimates.

Early Money before United States Gold Coins
The first attempts at producing currency inside North America were issued by the Continental Congress, the original 13 Colonies individually, and later the brand new United States of America. Because these were for the most part paper or copper money, what little acceptance they received was on the faith our early patriots and did not readily translate into serious use for international commerce. The paper money devalued into fiat currency as paper money almost always does, and the need for hard currency became apparent immediately during the American Revolution. Production was planned as soon as the new government was able, which was no small undertaking. This was authorized by the new U.S. Government by the Mint Act of 1792.

This new coinage appears to have begun on or about March, 1793 with the production of what we now call chain cents, the design of which the public was not pleased with. The first gold coins, the coins that we are particularly interested in, half eagles, were not manufactured until 1795. It is here, at their little sisters, the quarter eagles, that we start our story.

Early gold coins come in three denominations, those being quarter eagles, half eagles, and eagles, or 10-dollar pieces, as the gold coins were all divisions or multiplications of the eagle 10-dollar denomination. There were no denominations on the coins because it really did not matter to the merchants and governments of the time who used the coins in commerce, as the coins were only worth their weight and fineness in gold, and no more. They were emitted from the mint in the following order. First, the Half Eagles, 744 of them, were struck on July 31, 1795. Next, the Eagles, 1,097 units of the highest denomination coin, on Sept. 22, 1795. Last the lowest denomination gold coins, quarter eagles, and they were first delivered on Sept. 21, 1796 (Dannruther). A quick note on the mintage figures. All mintage figures at the early U.S. Mint are more or less educated guesses, as there was no law governing the use of dies like there is today. Dies were time consuming and expensive to make, and so the dies were used almost indiscriminately until they were no long serviceable, and sometimes even past then, as coins struck from cracked and rusted dies are not uncommon. The date on the gold coin is not necessarily the date that the coin was made at that first American mint, and in some cases has no relationship at all to the date of manufacture.

All the early gold coin types of all denominations are rare for several reasons. First, the very limited mintages made them hard to come by, even when they had just been freshly minted. Then they were removed from circulation for all of the usual reasons including loss and wear. The grand final, so to speak, was the change in the weight of all gold coins by Act of Congress on June 28, 1834 which restated the ratio of the value of gold to silver. With the increase in the relative gold value, the coins were worth more as metal than coins, and they were melted by the thousands. What is left today was saved as souvenirs by the new Americans, shopped overseas, saved as bank reserves both in the States and abroad, or in the hands of early collectors.

Descriptions to be continued in Part II

Methodology of This Study

There are those of us who not only consider early gold as rare coins worthy of our investment dollars, but the ultimate embodiment of the first American mint masters and engravers art as well. The best examples of these coins are rare and desirable as both artifacts of our new nation and tangible evidence of the difficulty that the original founders faced when creating our new currency system. The mintages are small and the survival rates in all grades low. Early United States gold coins in any grade worthy of investment are going to be both rare, and thus hard to come by, and much in demand, and thus expensive to buy.

Collectors have known that pre 1834 gold is rare virtually since the coins were originally made, but just how rare, while not a surprise, is statistically amazing. All the mintage figures in this article come from Joh9n Dannruther’s new unpublished manuscript, which is very helpful, and sometimes, often, differs from the mintage figures in the Yeoman’s Red Book. I recommend you buy a copy when it is published, as it will unquestionably be the “state of the art” on the subject for years to come.

The population report figures come from both Professional Coin Dealers Grading Services and Numismatic Guaranty Corporation population report figures combined, in some if not all cases there will be some duplication and other statistical errors, perhaps to the extend of twenty percent in either direction. Grades of individual coins go up and down with the fashions in grading, complicating the issue even further. Additionally, the coins help in old collections, museums and at the National Collection in Washington are not certified, so they will further confuse the survival rates. Therefore, survival rates within are a compilation of the opinions of Silvano DiGenova, John Dannruther, David Akers, David Hall, and Neil Berman, DiGenova being the original source and later used to verify his estimates.

Early Money before United States Gold Coins

The first attempts at producing currency inside North America were issued by the Continental Congress, the original Thirteen Colonies individually, and later the brand new United States of America. Because these were for the most part paper or copper money, what little acceptance they received was on the faith our early patriots and did not readily translate into serious use for international commerce. The paper money devalued into fiat currency as paper money almost always does, and the need for hard currency became apparent immediately during the American Revolution. Production was planned as soon as the new government was able, which was no small undertaking. This was authorized by the new US Government by the Mint Act of 1792.

This new coinage appears to have begun on or about March, 1793 with the production of what we now call chain cents, the design of which the public was not pleased with. The first gold coins, the coins that we are particularly interested in, half eagles, were not manufactured until 1795. It is here, at their little sisters, the quarter eagles, that we start our story.

Early gold coins come in three denominations, those being quarter eagles, half eagles, and eagles, or ten dollar pieces, as the gold coins were all divisions or multiplications of the eagle ten dollar denomination. There were no denominations on the coins because it really did not matter to the merchants and governments of the time who used the coins in commerce, as the coins were only worth their weight and fineness in gold, and no more. They were emitted from the mint in the following order. First, the Half Eagles, seven hundred and forty-four of them, were struck on July 31st, 1795. Next, the Eagles, one thousand ninety-seven units of the highest denomination coin, on September 22, 1795. Last the lowest denomination gold coins, quarter eagles, and they were first delivered on September 21st, 1796 (Dannruther). A quick note on the mintage figures. All mintage figures at the early US Mint are more or less educated guesses, as there was no law governing the use of dies like there is today. Dies were time consuming and expensive to make, and so the dies were used almost indiscriminately until they were no long serviceable, and sometimes even past then, as coins struck from cracked and rusted dies are not uncommon. The date on the gold coin is not necessarily the date that the coin was made at that first American mint, and in some cases has no relationship at all to the date of manufacture.

All the early gold coin types of all denominations are rare for several reasons. First, the very limited mintages made them hard to come by even when they had just been freshly minted. Then they were removed from circulation for all of the usual reasons including loss and wear. The grand final, so to speak, was the change in the weight of all gold coins by Act of Congress on June 28th, 1834 which restated the ratio of the value of gold to silver. With the increase in the relative gold value, the coins were worth more as metal than coins, and they were melted by the thousands. What is left today was saved as souvenirs by the new Americans, shopped overseas, saved as bank reserved both in the States and abroad, or in the hands of early collectors.

Early $10 Gold 1795-1804 by Silvano DiGenova

For rare coin collectors seeking challenge and reward, Early United States Gold coins dated 1795 to 1804 are an ideal choice of specialty. Early Gold coin mintages are remarkable small and the survival rates in all grades are low, making these beautiful coins not only challenging to collect, but also potentially highly rewarding as an investment. Sophisticated collectors often become interested in early Gold coins because these coins are fascinating artifacts from our nation’s infancy, and tangible pieces of history, attesting to the development of our nations system of money.

While collectors have long known that all early Unites States Gold coins are rare, recent analysis by noted authority John Dannruther indicates that these coins are even rarer than was originally thought. The mintage figures in Mr. Dannreuther’s yet unpublished study differ in some instances from the mintages figures in “A Guide Book of United States Coins,” by R.S. Yeoman. When published, Mr. Dannreuther’s study rates to become a standard reference on the topic.

The basis of the population figures in this article is the combined number reported certified by the Professional Coin Grading Service (PCGS) and Numismatic Guaranty Corporation (NGC). However, in the opinion of the authors, actual populations may be as much as 20% difference than published figures in some cases, taking into consideration multiple submissions of the same coin(s). In several cases we have made some estimates where we feel the published information does not give as accurate a perspective on the true population. This is due to the services not recognizing certain varieties in the beginning of the population reports and then adding them later. Also in the case of the 1803, besides the population report variety changes, it is with near certainty that virtually all the Large Start reverse Tens certified are actually the Large Start with 14 Star reverse.

Following is a date-by-date analysis of early Eagles to use as an aid in making informed buying decisions in this challenging and rewarding series.

Eagles 1795 – 1804

Eagles are the largest denomination struck of early Gold, and the second denomination of Gold coins manufactured at the new Mint. The first Eagles were struck at the Philadelphia Mint on September 22, 1795.

All Early Eagles are thirty-tree millimeters in diameter, weigh 270 grains of .9167 fine Gold alloyed with .0833 Copper and Silver, have a reeded edge and were designed by Robert Scot except where otherwise mentioned. In those cases the reverse may have been engraved by John Gardner. They come in two types, with both the Small Eagle reverse and with a Large Eagle reverse. A total of 132,500 plus were minted between the two types, with 3,213 examples certified in all grades, a total survival rate of two percent for the entire series, of which 1,550 graded Uncirculated. There are only twenty-five Gem Uncirculated coins reported of all dates, or less than two hundredths of one percent.

The Small Eagle reverse was made with four major varieties, those being the 1795 13 Leave and 9 Leaves, the 1796 with 11 Leaves and the 1797. There is just a total mintage of somewhere between 13,344 and 15,251 coins, of which 524 reported certified in all grades, which is a survival rate of nearly four percent, with 154 graded Uncirculated by both grading services. I would be surprised if there really are that many coins in such a high grade, as widely known coins of this value and subjectivity are frequently regarded and often the tags are not returned. We believe a 20% or more over statement by the population reports is certainly possible.

The large Eagle reverse comes in eleven date/variety combinations, a total of 2,689 examples reported certified in all grades, of which over 1,102 are called Uncirculated. There are also the Proofs of 1804 with a Plain 4 that were struck thirty years after the date on the coin. As states before, we certainly feel like the population data is considerably overstates. Also worth nothing that unlike series such as Morgan Dollars or $20 Saint Gaudens, the majority of the known coins have been graded with the likelihood of undiscovered hoards next to nil.

Draped Bust Small Eagle Type 1795 – 1797

1795 Small Eagle 13 Leaves: With a mintage estimated at just over five thousand from two pairs of dies, this is the most “common” of the Small Eagle Type by a factor of more than two over the next “common” date 1796. With 327 graded we have a relatively large survival rate, probably because this was the first year of the Type and many must have been saved as souvenirs, accounting for the availability in most grades. The grading services have graded 105 as Uncirculated and four as MS65 or better. Certainly duplication exists. Being the first year Type and the most available of the Type, this is always sought after and fully priced within the series. Scarce in Circulated grades, rare in Mint State.

1795 Small Eagle 9 Leaves: With an estimated mintage of only five hundred coins, this is the rarest date of the Type. There are 21 examples reported certified in all grades, which is undoubtedly many of the same coins being resubmitted to the grading service. I doubt there are even the fifteen that Dannreuther seems to think survived. Twelve examples are reported certified in Uncirculated, also likely to be overstated. The population shows four coins in MS63. We are aware of only two with the possibility of three. The 9 Leaf $10 in all grades is far undervalued relative to the 1795 13 Leaf and most of the series. Very rare in all grades, extremely rare in Mint State.

1796 Small Eagle 11 Leaves: With a mintage of just over 4,100, including 125 examples reported certified in all grades makes this the second most “common” date of the Type./ The certified mintages match Dannreuther’s estimates. PCGS and NGC have reported 25 uncirculated survivors. Underrated relative the 1795 13 Leaf. Rare in all grades, very rare in Mint State.

1797 Small Eagle: With a mintage of 3,650, there are only 51 certified in all grades and just 12 in Uncirculated grades. Of the Uncirculated coins, none appear to be higher than MS62. Undervalued in all grades. Rare in all grades, exceedingly rare in Mint condition.

Draped Bust Large or Heraldic Eagle 1797 – 1804
1797 Large Eagles: With a mintage of almost eleven thousand in three die variations, the 1797 is the fourth most “common” date of the Type. There are 305 certified in all grades of which 71 are reported to be Uncirculated. Scarce and very popular as it is the first year of the new type as a result it tends to be more fully priced than the 1803 or very underrated 1800 both of greater rarity when evaluated by year and variety. Scarce in all grades, rare in Mint State.

1798/7 9X4 Stars Obverse. Overdate with nine Stars to the left of Liberty and four to the right. With the obverse of 1795, reverse by John Gardner, and an estimated mintage of nine hundred coins, of which 61 are certified in all grades, only ten of those are Uncirculated. Very rare in all grades. Exceedingly rare in Mint State. Undervalued relative to its rarity, especially in Mint State.

1798/7 7X6 Stars Obverse: Overdate with seven Stars to the left of Liberty and six to the right. With the obverse of 1795, reverse by John Gardner, and an estimated mintage of only eight hundred forty-two. Since there are only 11 coins certified in all grades, Akers call this the rarest date of the Type, and the certified numbers bear him out. Only four Uncirculated coins make this the second rarest in the series and the rarest of the major “Red Book” varieties. In general undervalued, however, always fairly expensive and only necessary to the advanced collector.

1799 Small Stars Obverse: This variety is from seven pairs of dies with an estimated mintage of 7,500. As both services did not designate this variety from the beginning, the population figures do not illustrated an accurate picture. We know that 939 total 1799 have been graded, of which 407 are Uncirculated. In examining several criteria including the following, approximately 1/3 of the 1799 $10 were Small Stars from the time NGC started making the designation. Also examining Jeff Garrett and John Dannreuther’s book on auction records, 36% are Small Stars and 64% Large Stars. It is this ratio that was used to approximate the population report. The proportion of Uncirculated was 30% and therefore we approximated 122 Small Stars in Uncirculated. The 1799 Small Stars, although nearly twice as rare as the Large Stars is still the third most common of all early Tens but at little or no premium over the 1799 Large Stars or 1801, it still presents a very good value and is relatively rare in Mint State.

1800: With a stated mintage of 6,000 from one pair of dies, it has only 198 examples certified in all grades and just 77 in Mint State. Very rare and underrated in all grades. Generally sells for less than the 1797 although far rarer. MS63 and better specimens should trade for far more.

1801: With a mintage of about 44,500 the 1801 has the largest mintage of the Type, and in fact, the early $10 series. Seven hundred sixty-seven examples certified, of which 358 were graded Uncirculated, which while not very likely does illustrate that this is the most “common” of the Type. Available readily in all grades except Gem, which of course barely exist. Very popular as the Type coin for the series. Rather than the 1799 in high grades of MS64 and up.

1803 Small Stars Reverse: The 1803 Small Star reverse has a mintage of 10,800 of which we estimate 249 are certified in all grades and 97 in Mint State grades. Far scarcer than either 1799 and the 1801, this date and variety should carry a considerable premium to those especially in Uncirculated grades.

1803 13 Large Stars Reverse: With a total estimated mintage of only 1,200 from four pairs of dies, we estimate only about four coins are graded in all grades (or less) only one Mint State coin can actually be identified through the last ten years of auctions. This is the rarest of the varieties listed here. Not well known in the marketplace, this coin is highly sought-after by several specialists. Hard to determine an accurate current value, however, what is certain that we would pay far in excess of any current price guide!

1803 14 Large Star Reverse: The extra star in the clouds, with a total estimated mintage of only 3,000 coins, we estimate 67 of the total 319 1803 graded in all varieties are the 14 Star Reverse. This variety was first identified by Harry Bass and, although rare, many more Large Start Reverses are actually the 14 Star as the Small Star is easily worn away or obscured by bag marks. Very popular and rare. Probably priced accurately in today’s market.

1804: All are the Crosslet 4 variety with Small Stars, like the 1803, except the handful of Proofs that were struck in 1834 or 1835, depending on who you ask. All three of the known Proofs have a Plain 4 with Medium Stars, according to Dannreuther. A total mintage of 3,700 business strikes of the Crosslet 4 variety, with only 89 examples surviving certified in all grades. There are 37 certified Uncirculated specimens, but no Gems. Very scarce last year of issue. Also popular because of the profound numismatic year of 1804. Additionally this is notoriously weakly struck. Some examples as high as Mint State have much of the facial and hair detail missing. Very rare in Mint State, especially well struck. Rare in Circulated grades as well as generally under valued.

The art of gold leafing dates back to the times of the Pharaohs. Gold leafing is a process in which artisans hammer gold until it has achieved thin layers. The layers are then applied over the item to give it the look of solid gold.

Probably the most famous example of this is the burial mask of King Tutankhamen or “King Tut.” Not only the mask but several objects would be gold leafed. This is why the ancient burial chambers used to get looted by thieves and the thieves would in turn take the objects and peel the gold off them which then had the consistency or weight similar to tin foil. The gold would be melted down and resold.

Through the years, decades, and centuries up until today gold leafing has become a refined art form. The gold leaf has become the weight and thickness of feathers and is still used for application over picture frames and any given number of objects. This process is still very costly and time-consuming. As with everything else, this process is imitated to give an item the “look” of being gold leafed.

Being in the antiques and estate jewelry business, I have had several people approach me over the years regarding ceramic and glass objects being marked “24K gold trim” or “painted in solid 24K gold.” There is a ring of truth as to the gold trim being 24K, but the amount of solid gold actually used is not worth the cost of a telephone call. Through the aid of modern technology, dishes and glassware can be elaborately decorated in gold paint.

Gold painted items–examples

I have shown a few 20th century examples of gold painting on china and glassware. The first is the Hawaiian souvenir dish from the 1980’s being labeled on the front “24K gold trim”. This gives the novice buyer self assurance of the item being of value and collectability.

The second piece is a 1930’s oval dish with handles. It is marked “Pickard China 24K Gold.” It looks very good and one would think that the gold alone on this dish is very valuable but it is actually worth about $10-$20.00.

Then we have American glassware from the 1950’s with etched gold rims again worth about $10-$20.00 each. So if you have or see in your antiquing ventures that golden stamp of 24K, just remember that it is not the monetary value of the item being marked.

I hope this gives you some insight into gold leafing versus gold-painted wares.

People tend to think that the collectibles market goes only in one direction as things age and that is up. While it’s true that many antiques and collectibles do get more valuable with age, I can assure you it’s not always the case. Remember Beanie Babies? How about canning jars? Old Insulators? Right.

Now I know that a few of you out there can point to some obscure items in each of these categories and say hey, I know someone who just sold a $2000.00 Beanie Baby, there are rare exceptions to every rule, but most collectibles cool of after a hot period, that’s why timing is one of the most important considerations in the market. Sell it while it’s hot! I was with a client today, she’s the executrix of an estate, her and her brothers have a sizable US Silver Coin Collection they asked me to either appraise or sell. Either way I’ll make money on this transaction whether I appraise it or take it on consignment.

My advice to her, don’t even bother to have me appraise it, because the market for coins is so hot right now that they will likely bring more money than they could bring in any other market for a long time. What would be the point of me appraising the collection at let’s say $5000.00 when the value will drop for sure once this frantic market levels off?

Do you remember the 1980s when there was a run on Silver and it peaked at about $27.00 per oz? I can’t remember the exact time line, but somewhere around a month after the peak, it was at $3.50 an oz! Sell it While it’s HOT! What happened to all of the people who refused to sell at $27.00 per oz. and said, “well I’ll just hold on to it a bit longer, the price is sure to climb”? Smart people were carrying bags of silver to jewelry stores and other scrap metal liquidators, and walking out grinning. What was the silver really worth? What would have been an accurate appraisal for those items just before and just after the market crashed?

Please don’t think I’m advocating selling off Grandma’s antique wedding ring for a few quick bucks, but if your in a situation where you HAVE to sell or your precious metals are an investment, don’t wait because a hot market can cool off in a day. Got a horde of Gold or a stash of Silver? Call me crazy, most do, but I’d cash that out in a minute because all good things come to an end. Sell it while it’s hot.

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