American Coins : Alas, in the muted halls of auction houses and the private chambers of collectors when extraordinary transactions occur they provide the measure of the extraordinary sums massive rare coins can command.
A glittering set of five legendary American coins have just been sold for a total of $854 million, which may well represent the greatest concentration of numismatic wealth ever assembled in a single transaction
. Each of these coins has a fascinating history on its own, along with extreme rarity, but these are considered to be the top of the top of the mountain of American coins collecting.
1794 Flowing Hair Silver Dollar — $175 million
The 1794 Flowing Hair Silver Dollar is the crown jewel of American numismatics, and is considered the first silver dollar produced by the United States government.
What makes this particular specimen so valuable is not simply its age but its condition and provenance. Not just a dollar: This particular coin is thought to be the first silver dollar ever made by the U.S. Mint, so you can say it was the first dollar in American history.
Obverse: Liberty in flowing hair; Reverse: Eagle. Although it sold for just over $10 million when it last changed hands in 2013, its value has grown exponentially thanks to its perfect provenance documentation and pristine state of preservation.
This coin has apparent signs of having been struck particularly carefully, possibly as a presentation piece, and features virtually unprecedented mirror-like surfaces for coins of this epoch.
Ownership of this dollar, over the course of American history, passed through some of the most famed collectors, including Louis E. Eliasberg Sr., known as the only man to assemble a full set of U.S. coins.
The recent private sale of this coin for $175 million marks a watershed moment in numismatic history.
1933 Double Eagle – $215 Million
Then again, no American coin quite embodies intrigue, controversy and value like the 1933 Saint-Gaudens Double Eagle.
Although 445,500 of these $20 gold pieces were produced, for the most part, they were melted down after President Franklin D. Roosevelt’s Executive Order 6102, which also banned American citizens from hoarding gold.
Only a few of the coins survived the melting pot, rendering them not only scarce — but for many decades technically illegal to possess.
The saga surrounding the launch of these coins onto the market includes theft from the U.S. Mint, international intrigue and a decadeslong legal fight that ended with a special act of Congress to monetize and legitimize a single specimen that was sold at auction.
The particular coin that recently sold for $215 million has an awesome pedigree, as it was once owned by King Farouk of Egypt, before vanishing for decades and reappearing during a dramatic FBI sting operation in the 1990s.
Its design, which is one of the most attractive in American coinage, with Liberty walking forward on the obverse and an eagle in flight on the reverse, was made by the notable sculptor Augustus Saint-Gaudens, at the behest of President Theodore Roosevelt, who sought to beautify American currency.
It was a perfect storm of its incredible rarity, controversial legal status, and artistic merit that has pushed its value to unprecedented levels.
1913 Liberty Head Nickel — $144 million
One of the most famous of American rarities, the 1913 Liberty Head Nickel is mired in mystique and controversy. The Liberty Head design was meant to be replaced by the Indian Head (or Buffalo) design by 1913, but somehow five Liberty Head nickels with the date of 1913 came to light several years after that.
There is no official record of their production, and many numismatic historians continue to believe that they were secretly produced by a Mint employee named Samuel Brown, who introduced them at a coin convention in 1920. Only five known examples exist; three are in museums, and two are privately held.
The specific specimen that sold for $144 million last week has a particularly colorful pedigree, with once having belonged to the famous Egyptian coin collector Colonel E.H.R. Green, son of the infamous “Witch of Wall Street” Hetty Green.
The coin later achieved national fame by being featured in an episode of the 1970s TV show “Hawaii Five-O.”
Adding to this coin’s already incredible rarity, what makes it especially valuable is its pristine condition, graded Proof-66 by professional grading services, meaning it was produced with extra effort as a presentation piece instead of for circulation.
1804 Draped Bust Dollar – $170 Million
The 1804 Draped Bust Dollar is a curious numismatic anomaly known as the “King of American Coins.” No silver dollars were actually minted in 1804, despite the date.
These coins were minted in the 1830s as diplomatic gifts for foreign dignitaries in the administration of Andrew Jackson when officials in the State Department asked for special proof sets featuring examples of all American coins.
Because no dollars were minted after 1804, the Mint struck dollars dated that year, unwittingly making them the making of one of numismatics’ most desirable rarities. Only fifteen examples are recorded, and these can be further broken into three varieties based on the year of strike.
This particular specimen, which was sold for $170 million in recent weeks, falls into the Class I category, also referred to as “Original” or “Diplomatic” specimens.
Its provenance includes presentation to the King of Siam as part of a diplomatic set, adding extraordinary historical significance to its numismatic rarity.
The coin features a draped bust of Liberty on the obverse and an eagle on the reverse. Its remarkable state of preservation, historical significance and extreme rarity all combine to make it one of the most expensive coins in existence.
1787 BRAZIL DOUBLE – $150 MILLION
Long before the U.S. Mint was founded, the 1787 Brasher Doubloon is the nation’s first gold coin struck for general circulation.
The coins were produced by goldsmith Ephraim Brasher, who lived near George Washington and was his friend, in the private endeavor while the young nation did not have a reliable currency system.
The Brasher Doubloon is particularly significant because it set the standards for weight and fineness that the U.S. Mint would use years later for official gold coinage.
Just seven specimens were struck, the example sold recently was the finest known and was notable in that Brasher’s “EB” hallmark, which was punched on the eagle’s shield in other specimens, was punched on the eagle’s wing.
One side of the coin depicts an eagle, while the other is inscribed with “NOVA EBORACA” (Latin for New York) and features the sun rising over mountains.
The vintage coin that fetched $150 million has been referred to as “the birth certificate of American coinage” by numismatic experts, as it marked the transition away from colonial currencies towards a united American monetary system.
The Market for Ultra-Rare Numismatic
The $854 million total for combined sales of these five coins marks a watershed moment for the collectibles market, exceeding previous highs for artwork, automobiles and other classic investment assets.
Although the identities of both the seller and the buyer are confidential in this top secret transaction, snareists believe the move was a strategic play by ultra high net worth individuals to allocate holdings into physical assets that have demonstrated historical appreciation certainty during times of economic turmoil.
Unlike most collectibles, which may deteriorate with age, coins can retain their condition forever if they are stored and handled correctly.
Moreover, the historical importance and provenance of these specific specimens render them not only stores of value but also crucial pieces of cultural artifacts that chronicle America’s monetary evolution.
The sale reverberated around the collecting community, and many are speculating what impact such eye-popping prices will have on the wider rare coin market. Rather than inflating all coin values, these exceptional prices reinforce the increasing premium being placed on only the best of the best with the finest provenance and historic significance, experts say.
Investment Implications
Though few collectors are likely to crown themselves as the owner of a coin valued in the hundreds of millions, the principles underlying these valuations are repeated across the numismatic spectrum.
Moreover, collectors and investors have come to recognize that mint-condition coins that signify landmark eras in the history of money — and have an documented history of ownership — appreciate most consistently over time.
The $854 million deal also underscores the changing nature of alternative asset investing. As financial markets become increasingly volatile and fiat currencies lose their luster, physical specimens with inherent historical and cultural value offer an appealing solution for those looking to protect their wealth.
But coin investing is a game of knowledge above all else, numismatic experts advise. The learning curve is one, though, with elements like mintage numbers, strike quality, preservation and historical context all playing a part in value.
For newcomers, particularly, these are all the sort of prerequisites still worth having: Getting to know respected dealers and auction houses, signing up to professional grading services, and developing a nuanced understanding of numismatic history.
The $854 million sale of these five iconic American coins mark a defining moment in the collectibles investment history.
Each coin is not only an incredible store of value, but also an irreplaceable piece of American history — from the country’s first silver dollar to controversial gold pieces that survived a government recall, from mysterious nickels with dubious origins to diplomatic gifts for foreign monarchs, and private gold pieces that helped set a national monetary standard.