Rare Coins

Photo Credit: South Street Coin Company

Here is a stunning example of a 2011-dated 1000 Amero fantasy coin issued in pure .999 fine gold by Daniel Carr.  Overstrike, fantasy and bullion coins privately-struck by Daniel Carr and his Moonlight Mint have enjoyed strong secondary market prices due to robust collector demand.

Daniel Carr and his Moonlight Mint products are one of the best kept secrets in coin collecting.  He produces absolutely sublime coins – usually in ultra-high relief with proof-like surfaces.  His pieces call out to you to be possessed and cherished, before being passed onto future generations.

Yet when I first heard about him, I had a hard time figuring out who the man was and what exactly he did.  After coming across Carr’s name on numismatic forums all over the internet, I quickly discovered that many coin collectors loved his Moonlight Mint products while a few hated them.  I wanted to know why.

After extensive research, I got my answer.

Most collectors love his coins because they are as close to perfection as it is possible to get.  On the other hand, numismatic purists hate his coins because they are, ironically, too close to perfection!

I’ll talk about that more in a moment, but first let’s cover some important background information.

Daniel Carr specializes in an area of coin collecting known as exonumia.  This is a sub-section of numismatics that encompasses non-coin items such as medals, tokens, fantasy issues and bullion bars – anything that wasn’t issued by a sovereign government with a face value.  Many collectors are drawn to exonumia because of its rich history, endless choice and, of course, its strong dash of numismatic whimsy.

Daniel Carr strikes exonumia at his private Moonlight Mint facility located in Loveland, Colorado and then sells these products to the general public via his website.  The items he mints include medals, hard times tokens, trade coins, fantasy pieces, overstrikes and bullion coins and bars.

But the mainstay of Carr’s business is fantasy coins.  These are privately-struck pieces that were never officially issued by any national mint.  Yet they were often coins that almost came into existence, only to be stymied by some historical quirk of fate.  Daniel Carr enjoys meticulously recreating these improbable coins for discerning collectors.

Carr’s detractors believe he diminishes the hobby of coin collecting when he strikes what would, under normal circumstances, be near-perfect counterfeits.  But there are a couple important mitigating facts.  First, the date on Moonlight Mint fantasy issues never match any officially struck date.  Second, Daniel Carr never attempts to deceive his costumers about what they are buying.  Everyone laying down money for his coins knows exactly what they are getting – beautiful, but unofficial fantasy pieces.

And because a quick look at the date of any Carr fantasy coin will let even a novice collector know that it isn’t an official mint product, I’m enthusiastically siding with those who love Daniel Carr coins rather than those who hate them.  Carr and his Moonlight Mint strike incredibly desirable pieces that must by experienced firsthand to truly be appreciated.

Daniel Carr’s Biography & the History of the Moonlight Mint

Born in 1958 in Denver Colorado, Daniel Carr is a self-taught medal and coin engraver/designer who has had a love affair with numismatics since the age of 14.  Although art (primarily sculpture and engraving) was a hobby, he ultimately graduated from the University of Colorado with a Bachelor of Science in Mechanical Engineering in 1982.  Later in life, Carr decided to combine his diverse interests by entering the field of numismatic design.

In 1998, Daniel Carr submitted an Apollo Astronaut-themed design to the U.S. Mint for use on a proposed small-diameter circulating dollar coin.  However, his concept was passed-over in favor of the Sacagawea gold-dollar that was ultimately adopted.  Undeterred, Carr submitted several reverse designs for the U.S. Mint’s state quarter program in 1999.  Two of his designs were chosen – one for the 2001 New York state quarter and the other for the 2001 Rhode Island state quarter.  In addition, his proposed reverse for the 2003 Maine state quarter was adopted with modifications.

In 1998 Daniel Carr completed the first iteration of a unique software program – VS3D Virtual Sculptor – meant to digitally render coin designs.  He subsequently enhanced his software in 2004 to allow it to interface directly with CNC engraving machines.

In 2007, he bought himself a piece of decommissioned Denver Mint industrial equipment – a Grabener coin press.  This German-made coin press is capable of exerting up to 400 tons of striking force.  It operated at the U.S. Denver Mint between 1986 and 2001 before being retired and sold as surplus.  Once restored to working order in his Loveland, Colorado workshop, Carr began using the Grabener press in conjunction with his VS3D Virtual Sculptor software to design and strike his own line of privately-issued coins and medals.

The Moonlight Mint’s Grabener Coin Press (Photo Credit: Moonlight Mint)

These moves culminated in Carr’s establishment of the Moonlight Mint in 2008 – a company dedicated to minting overstrikes, fantasy and bullion issues for coin collectors.  In 2013, Moonlight Mint acquired the rights to the storied Clark Gruber & Company name, allowing Carr to strike coins and bullion bars under this moniker.  He further enhanced the Moonlight Mint’s operations in 2016 with the acquisition and restoration of an antique Mossberg ingot rolling machine.

Fantasy Overstrikes

Daniel Carr is perhaps best known for issuing fantasy overstrike coins, which are highly regarded by many coin collectors.  An overstrike occurs when an existing, previously struck coin is used as the planchet (coin blank) for another, different coin strike.  In most instances an overstrike is an error when produced by a government mint.  However, Daniel Carr intentionally creates overstrikes as a private mint product.

Carr has minted a wide variety of fantasy overstrike coins including Peace dollars, Morgan dollars, large cents and silver American Eagle bullion coins, among others.  Most of the time he employs a genuine, vintage circulated coin as a blank to enhance the history and legitimacy of a freshly-struck piece of the same design.  In some cases, ghost images from the original coin are still faintly visible on the final, overstruck coin.

It is important to note that the defacing of U.S. coins is legal provided it isn’t done for fraudulent purposes.  All of Carr’s overstrike products fall under this safe-haven provision.

Daniel Carr’s most well-known fantasy overstrike coin by far is his 1964-D Peace silver dollar.  In August of 1964 Congress authorized the U.S. Mint to resume striking silver dollars – a coin that had not been minted since 1935.  The Denver Mint dutifully prepared new Peace dollar dies and struck a grand total of 316,076 coins.

Unfortunately, the United States was in the midst of a silver coinage crisis at the time and the decision was quickly made to melt all existing 1964-D Peace dollars without releasing any into circulation.  Despite persistent rumors to the contrary, there is no record of any original 1964-dated Peace dollar surviving.  But even if these coins did exist today it would be illegal to own one because the assumption would be that it had been stolen from the mint!

Enter Daniel Carr who meticulously reconstructed his own Peace dollar dies to strike this fantasy masterpiece.  In addition, nearly all examples were overstruck on circulated Peace dollars dating between 1922 and 1935.  Carr’s 1964-D Peace dollar allows the collector of silver dollars or unusual coins to own what would normally be an ultra-rare piece for as little as $200.

Daniel Carr 1902-S Philippine Silver 1 Peso Overstrike Fantasy Coin (Photo Credit: Moonlight Mint)

Another interesting overstrike fantasy piece created by Carr is the 1934 Saint-Gaudens $20 gold piece.  The renowned St. Gaudens design was featured on the nation’s largest circulating gold coin from 1907 to 1933 and is widely regarded as one of the most beautiful U.S. coins ever minted.  While 445,500 of these coins dated 1933 were originally struck, nearly all of them were melted due to President FDR’s gold nationalization edict issued in April of that same year.  Only a handful of 1933 St. Gaudens double eagles survived, making it one of the rarest and most valuable coins in the world today.

The United States didn’t strike any gold coins in 1934.

Daniel Carr’s 1934 Saint-Gaudens $20 gold piece plays with the idea of an alternate history where the United States didn’t abandoned the gold standard in 1933.  All of these amazingly beautiful fantasy issues were overstruck on genuine St. Gaudens double eagle gold coins dated between 1908 and 1928.  A grand total of just 60 overstrikes were produced, making them very difficult to find in the secondary market.

Carr has also tried his hand at minting foreign fantasy overstrike coins.  Two of his most desirable foreign overstrikes are the 1907 and 1915 Mexican silver 1 peso.  This series was officially struck in Mexico from 1910 to 1914, with patterns struck in both 1908 and 1909.  It is affectionately nicknamed the “Caballito” (little horse) peso among numismatists due to its dynamic equine motif.

Although the coin’s design is stunningly beautiful, its original production run was plagued by technical difficulties due to poor quality dies and inadequate striking pressure.  Consequently, most Mexican Caballito silver pesos suffer from mushy details and uneven striking.  Even so, an original example in decent circulated condition will still cost you at least $100 while a gem Brilliant Uncirculated specimen can run close to $1,000.

Daniel Carr sought to solve the coin’s technical issues with his fantasy version.  First he consulted with the world’s foremost expert on Mexican Caballito pesos, Alan Schein, throughout the project.  Then Carr engraved high-relief dies with increased detail before fully striking the coins using his high-pressure Grabener coin press.  The resulting 1907 and 1915 Mexican Caballito pesos are spectacular fantasy issues that realize the true vision of the original design.

Carr only issued 64 of these coins dated 1907 and an additional 47 dated 1915.  All were overstruck on genuine Mexican Caballito silver pesos originally minted between 1910 and 1913.

The last of Daniel Carr’s overstrike fantasy coins that I wanted to highlight is the 1902-S Philippine silver 1 peso.  After the 1898 Spanish-American war, the United States gained control over the Philippines from Spain.  The Philadelphia and San Francisco mints began striking coinage for the newly acquired Philippine territories shortly afterwards, starting in 1903.  The Philippine silver 1 peso is a particularly gorgeous coin, with its dramatic depiction of Liberty on the obverse and a heraldic American eagle mounted atop a shield on the reverse.

The Philippine silver 1 peso coin was originally struck to the same standard as the U.S. silver dollar from 1903 to 1906, before being reduced in both weight and fineness starting in 1907 due to rising silver prices.  Survival rates for these early U.S.-Philippine silver issues are very low, resulting in the coins being rather scarce and difficult to obtain.

Daniel Carr decided to recreate this classic coin with a date of 1902 and a San Francisco mint mark.  His expertise in die engraving and minting produced a 1902-S Philippine silver 1 peso fantasy issue that is close to perfection in every dimension.  Although the total overstrike mintage is just 204 specimens, these proof-like beauties are still attainable with prices generally running between $150 and $350 each.  All of Carr’s 1902-S Philippine silver 1 peso fantasy coins were struck over genuine 1903 or 1904-dated Philippine 1 peso silver coins.

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Amero Fantasy Issues

One of Daniel Carr’s early successes was his Amero series of fantasy coins, struck from 2007 to 2018.  The Amero is a fictional currency unit for a hypothetical North American monetary union between Canada, the United States and Mexico.  The imagined Amero would presumably function similarly to how the Euro is used across Europe today.

Carr’s designs for his Amero series are fanciful, yet superbly conceived.  They feature a variety of well-executed subjects on the obverse, ranging from the bust of a Native American chief with full headdress to an Art Deco-inspired personification of Liberty, among others.  The reverse typically depicts a majestic eagle with a map of North America and the legend “Union of North America”.  Denominations range from the modest 1/4 Amero struck in copper, to the hefty 1,000 Ameros minted from 1 troy ounce of pure 24 karat gold.  Silver coins also exist in the 5, 10 and 20 Amero denominations.

Daniel Carr’s Amero series hasn’t been without its share of controversy, though.  The modern concept of a shared North American currency originated in a 1999 research paper written by Canadian economist Herbert Grubel on behalf of the Fraser Institute.

By 2007 alternative radio talk show host Hal Turner, a hardcore conspiracy-theorist, had latched onto the shared-currency idea.  He falsely claimed that Daniel Carr’s Amero fantasy coins were proof that an ill-advised North American monetary union was imminent.  Although these wild speculations were quickly debunked, some people remained suspicious of the Amero fantasy issues.

In order to clear up any misunderstandings, Daniel Carr publicly stated that his Amero coins were solely meant for collectors and did not imply any political message.  A message on Carr’s website explained:

“My goal with these coins is not to endorse a Union of North America or a common “Amero” currency.  I fully support the United States Constitution, and I would not welcome (in any form) a diminishment of its provisions.  I expect that these coins will help make more people aware of the issue and the possible ramifications.  I leave it up to others to decide if they are in favor of, or against a North American Union.  And I encourage citizens to voice their approval or disapproval of government plans that impact them.”

Daniel Carr Amero Fantasy Coins for Sale on eBay

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The Moonlight Mint’s Clark Gruber & Company Bullion Issues

Daniel Carr has also issued an extensive line of bullion products – first under the Moonlight Mint name before switching over to the Clark Gruber & Company brand.  He has struck bullion coins and bars in metals as varied as silver, gold, platinum, palladium and even indium!  These bullion products are of particular interest to collectors because Carr has imbued their design and production with his own artistic sensibilities.

For example, Carr’s Moonlight Mint/Clark Gruber & Co. products draw heavily for inspiration on coin designs from both the 19th century Old West and the golden age of American numismatics, circa 1905 to 1920.  The resulting bullion pieces are uniquely American in their look and feel, representing an authentic embodiment of American monetary traditions.  Each non-legal tender piece is also stamped with a purely symbolic dollar denomination at the rate of $40 per troy ounce of pure silver and $2,000 per troy ounce of fine gold.

Privately-minted bullion bars and coins have a long, rich history in the mining districts of the American West.  Although first issued in North Carolina and Georgia in the 1830s and 1840s, privately-struck U.S. gold coins really hit their stride during the California Gold Rush of the early 1850s.  During this time legendary assayers such as Moffat & Co., Augustus Humbert and Kellogg & Co. minted California placer gold into a variety of beautiful coins.  Some of these bullion pieces were used locally for high-value transactions while others were shipped back east to the nation’s banking centers.

The next great renaissance in privately-struck bullion coins occurred during the Pike’s Peak Gold Rush in Colorado in the early 1860s.  The Denver firm of Clark, Gruber & Company minted copious quantities of $2.5, $5, $10 and $20 gold pieces from locally mined ore to satisfy demand for money in the region.

Honest to a fault, the company actually struck their coins with a slightly higher gold content than equivalent U.S. Mint issues.  Clark, Gruber & Company was so well respected that the United States government purchased their entire operation in 1863.  The resulting U.S. Assay Office was eventually converted into the Denver Mint in 1906.

It was no coincidence that Daniel Carr resurrected the Clark Gruber & Company name in 2013 for use on his Moonlight Mint bullion products.  He wanted to capture the pioneering spirit and unimpeachable honestly of that legendary firm.  And in my opinion, he has succeeded beyond all expectations.

The Moonlight Mint’s Mossberg Ingot Rolling Machine (Photo Credit: Moonlight Mint)

An interesting Moonlight Mint bullion product is the massive 100 gram silver “Union” coin featuring a winged Liberty design derived from the famous $20 St. Gaudens double eagle gold coin.  Carr actually based his work on Augustus Saint-Gaudens’ preliminary design sketch of the iconic coin.

In effect, Carr’s ultra high-relief, angelic-version of Liberty is what the $20 St. Gaudens gold piece might have looked like if history had taken a different turn.  Daniel Carr only plans to strike these impressive silver coins for a 3-year run from 2019 through 2021.

A pair of gold bullion pieces that I find fascinating are Carr’s 1/5 owl (symbolic face value: $200) and 1/2 eagle (symbolic face value: $500) gold coins that carry the Clark Gruber & Company branding.  The obverse designs of these attractive coins closely match the original Clark, Gruber & Co. gold coins issued back in the early 1860s.

The biggest difference between those privately-issued 1860s coins and the recent Moonlight Mint series is that the latter is minted from .999 fine gold in round fractions of a troy ounce – 0.1 troy ounces for the 1/5 gold owl and 0.25 troy ounces for the 1/2 gold eagle.  Carr’s coins are also a technical triumph, with far better details, luster and striking than you could ever hope for in a 19th century coin.  Struck every year from 2013 to the present, Carr has typically limited the mintage of these Clark Gruber & Co. pieces to less than 50 of each denomination per year.

The final Clark Gruber & Co. products I wanted to touch on are Carr’s silver ingots and octagonal slugs.  Gold and silver bullion bars were a mainstay of mining communities in the Old West and the Moonlight Mint keeps that old-time tradition alive.

Weighing between 1 and 5 troy ounces each, these silver bars are typically stamped with either the Moonlight Mint logo (an owl sitting on a crescent moon), a majestic eagle, or a bust of Liberty borrowed from 19th century circulating U.S. gold coins.  The stamping of a symbolic dollar value on each bar at the rate of $40 for each troy ounce of silver further enhances their monetary character.

Although unattainable for most collectors today, over-sized octagonal gold bullion coins with a face value of $50 were struck by the San Francisco U.S. Assay Office during the 1850s.  These pieces were termed slugs because they were technically considered ingots and not coins.

The United States even issued an octagonal $50 commemorative gold coin in 1915 to celebrate the opening of the Panama Canal.  In addition to being obscenely heavy (with a gross weight of nearly 84 grams – 2.69 troy ounces), the octagonal $50 Panama-Pacific gold piece is considered one of the most exquisite and desirable U.S. coins ever made.

Daniel Carr’s Moonlight Mint has perfectly replicated the look and feel of these massive octagonal bullion slugs in silver.  Weighing in at a hefty 1.5 troy ounces of .999 fine silver, each of Carr’s octagonal bullion pieces is emblazoned with the Clark Gruber & Co. name and a symbolic $60 face value.

The Moonlight Mint logo of an owl sitting on a crescent moon graces the reverse of these magnificent coins – an obvious nod to the famous reverse of the 1915 Pan-Pacific $50 gold piece.  The obverses vary, but always reference a classic U.S. coin design or pioneer theme.  Some examples of the obverse designs used on Carr’s octagonal slugs are Liberty with a puma, a Native American bust and a heraldic bald eagle inspired by an 1850s private California gold issue.

Moonlight Mint & Clark Gruber & Co. Bullion Coins for Sale on eBay

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The Investment Case for Daniel Carr and his Moonlight Mint Coins

The investment case for Daniel Carr and his Moonlight Mint overstrikes, bullion pieces and fantasy issues is remarkably straightforward.  He produces incredibly well-designed, technically-polished gold and silver coins with a lot of history and symbolism behind them.  Yet their mintages are usually quite limited.

It is normal for Daniel Carr to strike no more than 200 or 300 of a given coin.  He frequently limits mintages to less than 100 pieces.  Some issues have a total population of only 20 or 30 coins!  And Carr never goes back and restrikes older designs or dates, no matter how high prices might climb in the secondary market.

Fiercely dedicated collectors usually snap up any available inventory within weeks of its release on his website.  At that point, it is only possible to purchase his products on the secondary market (e.g. online platforms like eBay).  This means that buyers are limited by what’s on offer, so you may have to patiently wait for the exact piece that you want to show up.  Many Daniel Carr collectors are “strong hands”, meaning they have no intention of selling regardless of how high prices go.

Consequently, you can expect secondary market prices for Daniel Carr coins to be high (and remain high) relative to their bullion values.  As proof, the median realized price of Moonlight Mint issues sold in the secondary market (via eBay) during summer 2020 was $125.  This statistic excludes expensive gold coins but includes low-intrinsic value copper and bronze pieces, thus dragging down the average realized price.  Nonetheless, it is common for Daniel Carr silver coins and bullion bars to sell for $50 to $100 a troy ounce – a profound vote of market confidence in a world where the spot price of silver has been hovering between $25 and $30.

It is also noteworthy that third-party grading services ANACS and ICG currently certify Daniel Carr fantasy issues and tokens.  It is almost unheard of for professional third-party graders to accept submissions of modern fantasy issues from private mints.  So the fact that these firms do is telling (although it should be noted that the two gorillas in the coin-grading space – PCGS and NGC – do not certify Carr pieces at the present time).  In any case, a third-party certification is valuable because it can give novice collectors or those seeking a guaranteed ultra-high numerical grade (e.g. MS-69 or MS-70) the confidence to buy.

Right now in 2020 Daniel Carr is 62 years old and near the apogee of his creative and technical skills.  But he won’t be producing these wonderful pieces of exonumia forever.  The productivity of many artists and craftsmen declines dramatically as they age into their late 60s and early 70s due to creeping health issues or the desire to enjoy semi-retirement.

Even if Daniel Carr has another 10 or 15 good working years left (and I certainly hope he does), it will still amount to far less coin production than you’d think given the complex designs, exacting quality standards and limited mintages that he embraces.

As a result, it is easy to see a time 20 or 30 years in the future when Daniel Carr coins are widely recognized as legitimately rare works of desirable numismatic art.  In such a scenario, his coins would command much, much higher premiums than they do today.

As numismatic investors, we are looking for today’s $100 or $200 coin that will be a $1,000 or $2,000 coin a couple decades from now.  And although we cannot say for certain that Daniel Carr issues will achieve that prestigious distinction, their combination of stunning design, extreme rarity and cultural relevancy certainly gives his coins that potential.

Read more in-depth Antique Sage coin investment guides here.

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Pre-1933 semi-numismatic U.S. gold coins – like this 1904 Liberty Head quarter eagle ($2.50) gold piece struck in Philadelphia – are compelling investments that combine intrinsic and collector’s value.  Premiums on semi-numismatic U.S. gold have collapsed in recent years, granting hard asset investors a unique opportunity to acquire these premiere tangible assets cheaply.

Choice, the presence of good options in one’s life, is a great thing.  It can give you a sense of freedom as well as control.  Unfortunately, many of us today have fewer good options than we might prefer.  This is particularly the case when investing.  Among the traditional investment classes, many stocks seem egregiously overvalued while most bonds don’t seem much better.  However, there is one overlooked investment that is still a great choice: old, semi-numismatic U.S. gold coins.

Numismatics derives from the ancient Greek word for “coin” and refers to the study or collecting of coins.  Therefore, numismatic coins, unlike common circulating pocket change, are pieces with special value to collectors.  Semi-numismatic coins, therefore, trade partially on their bullion value and partially on their collector’s value, including their condition, design and history.

All semi-numismatic U.S. gold coins were struck at least 85 years ago, before 1933, when the United States was still on a classical gold standard.  These beautiful and historic tangible investments feature some of the most aesthetically pleasing coin designs the U.S. has ever issued.  Perhaps most importantly, semi-numismatic U.S. gold coins are the material expression of frontier America’s industry, invention and optimism.  In short, they are the physical embodiment of traditional Americana stamped into solid gold.

Struck in 900 fine gold, these high denomination coins not only circulated freely in the Old West and the Great Plains, but also in the big East Coast cities like Boston, Washington D.C. and New York.  In addition, many dates and denominations were minted in substantial quantities, ensuring a significant number have survived to the present.  This is a great boon to modern-day tangible asset investors as it ensures there is a ready supply of these remarkable old coins available.

It is vital to understand the concept of premium when discussing semi-numismatic gold coins.  The term “premium” refers to the amount over its bullion value that a coin sells for.

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South African Krugerrands, Canadian Maple Leafs and other bullion coins generally sell for premiums of less than 10%.  But a 2,300 year old ancient Greek gold stater coin bearing the image of Alexander the Great is a strictly numismatic piece, with a premium of several hundred percent or more.  Pre-1933 semi-numismatic U.S. gold coins trade between these two extremes with premiums that range from about 10% to around 100% of their bullion value.

This exceptional positioning makes old U.S. gold coins especially attractive investments.  When you buy a semi-numismatic gold coin, most of what you are buying is gold, the bedrock of any good tangible asset portfolio.  But semi-numismatic gold coins also include a modest dose of collector’s value, which is reflected in the premium.

These two components – bullion value and numismatic value – do not always move in lockstep.  This gives semi-numismatic gold coins two distinct, non-correlated return components.  Non-correlated assets are the holy grail of modern investment theory, as they provide diversification.

Worried about gold declining in value?  No problem, the numismatic value of your coin may rise to offset a drop in the gold price.  Likewise, a falling numismatic premium may be balanced by a rise in precious metal prices.  In the best case scenario, you “win” twice via a rising gold price and rising premiums.  Of course, in a worst case scenario both the bullion value and numismatic premium of an old gold coin can decline.  Thankfully, this is a very rare occurrence.

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It is important to point out that semi-numismatic U.S. gold coins have underperformed gold bullion over the last 15 years or so.  Why has this happened?  Well, the price of bullion is generally driven by economic instability and fear of currency debasement.  And the last 15 years has seen a lot of both of those things with the Great Financial Crisis of 2008-2009 and global central banks’ subsequent policy of Quantitative Easing (money printing).  Hence, the price of gold has risen strongly over that period.

Numismatic premiums, in contrast, are driven largely by strong economic growth and a booming economy.  In fact, there is a direct relationship between the size of a country’s GDP and its coin prices.  When a country’s economy is healthy and incomes rise, some of that wealth naturally bids up the value of collector’s coin.  Therefore, it shouldn’t come as a shock that the recently stagnate U.S. economy has been reflected in broadly lower premiums for semi-numismatic U.S. gold coins.

Investors shouldn’t buy numismatic coins in anticipation of the end of the financial world.  Instead, numismatics is a play on financial recovery – the economic dawn after the recessionary night.  And while I strongly advocate that people buy bullion to protect themselves against severe economic dislocation, I also think it is prudent to invest in numismatics in the expectation of happier and more prosperous times in the future.  Old semi-numismatic U.S. gold coins conveniently allow the savvy investor to do both in a single investment vehicle.

Some people, primarily bullion and rare coin dealers, don’t like semi-numismatic gold coins.  You can read many internet articles by bullion dealers decrying how well-intentioned, but ignorant investors got scammed into paying outrageously high prices for old, common-date U.S. gold coins when they could have done much better just buying plain, no-frills gold bullion.

Of course, if you’re scammed into overpaying for any investment, you can expect to do poorly.  So this is hardly a convincing argument.

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But bullion dealers also have another objection which is partially valid.  They correctly claim that you will always be able to buy more ounces of physical gold for a given amount of money when buying bullion coins compared to semi-numismatic gold coins.  But this criticism misses the point.

The numismatic premium that you pay for old gold coins is a potential source of future return.  The premium level has the possibility of moving independently from the underlying price of gold.  This gives rise to a financial idea known as optionality.  In brief, numismatic optionality is the potential for a collector’s coin to rapidly increase in value at some indeterminate point in the future.  An ingot of gold bullion, in contrast, possesses no numismatic optionality and is always completely dependent on the whims of the gold price.

Rare coin dealers also often criticize semi-numismatic gold coins.  These self-interested dealers claim that only really rare gold coins make good investments.  Semi-numismatic U.S. gold coins are relatively common, having been struck by the tens of millions.  And, although huge quantities have been melted since their demonetization in the 1930s, these coins are still readily available in the marketplace.

Rare coin dealers’ assertion that only extremely rare and expensive coins make good investments is mostly based on the fact that this same class of coins has experienced superb investment performance over the last 20 years.  But these abnormally high returns have been largely driven by the rise of the super rich over the same time period – our modern day robber baron class.  These nouveau riche U.S. gold coin collectors have collectively poured hundreds of millions, if not billions, of dollars into their collecting passion.

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This insatiable market demand has driven up the prices of legitimately rare U.S. gold coins to tremendous heights.  In fact, it is doubtful if much investment upside remains in this part of the U.S. coin market.  However, old semi-numismatic U.S. gold coins have been largely left behind, ignored in the rush to cater to bullion buyers on the one side and ultra-wealthy collectors on the other.

The historical origins of pre-1933 semi-numismatic U.S. gold coins add to their investment allure.  In the late 1830s, the designs of the U.S. $2.50, $5.00 and $10.00 gold coins were updated by Christian Gobrecht, the Chief Engraver of the U.S. Mint.  These iconic American coins, known as the Liberty Head series, feature a bust of the personification of Liberty wearing a coronet on the obverse.  An eagle clutching an olive branch and bundle of arrows with its wings spread graces the reverse.

The Liberty Head series of U.S. gold coins were minted with only minor variations for approximately 70 years, from 1838 to 1908.  These coins were, in many ways, foundational to the identity of the young American nation.  They were witness to every major episode of U.S. history during this time, from the devastation of the Civil War to the taming of the Old West to the establishment of the National Park System.

Until the late 1840s the gold eagle, or $10.00 gold coin, was the highest denomination piece struck by the United States Mint.  However, the discovery of a major gold find in California in 1848 prompted the U.S. government to investigate the striking of an even larger denomination gold coin, the legendary double eagle, or $20.00 piece.  A unique Liberty Head design was created by Chief Engraver James B. Longacre for the new double eagle denomination and introduced into circulation in 1850.  It was issued with few changes until its discontinuation in 1907.

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In the first decade of the 20th century, President Theodore Roosevelt wanted the nation to have gold coins that would rival the magnificent coinage of the ancient Greeks.  To achieve this, he contracted the famous American sculpture Augustus Saint-Gaudens to prepare new coin designs.  While Saint-Gaudens died before he could finish his work, his breathtaking designs were still adopted for the $10.00 and $20.00 gold coins.

The $10.00 Indian Head gold piece features the bust of a noble American Indian with a feathered headdress on the obverse and a perched eagle on the reverse.  The $20.00 St. Gaudens double eagle depicts a robed Liberty, holding an olive branch and a torch, boldly stepping forward on the coin’s obverse and a majestic, powerful eagle in flight on the reverse.  Struck from 1907 to 1933, these two gold coins are generally considered the most beautiful U.S. coins ever produced.

In fact, the obverse of the modern-day U.S. mint’s popular American Gold Eagle bullion coin series is almost an exact copy of the iconic St. Gauden’s design.

Due to the premature death of Augustus Saint-Gaudens, the $2.50 and $5.00 gold coins were redesigned by his former student, the American sculptor Bela Lyon Pratt.  These two series are similar in design, although not identical, to the $10.00 gold coin created by Augustus Saint-Gaudens.  The $2.50 and $5.00 Indian Head gold coins feature a Native American in full headdress on the obverse and a perched eagle on the reverse.

In addition to being attractive in their own right, the $2.50 quarter eagle and $5.00 half eagle Indian Head series are notable for being the only U.S. coins that were struck in incuse, with the design features sunk into the flat field of the coin.  They were struck from 1908 until production ceased in 1929.

$2.50 Indian Head (Quarter Eagle) Gold Coins for Sale on eBay

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When considering pre-1933 semi-numismatic U.S. gold coins for investment purposes, eye appeal is paramount.  Anything that helps make a coin look better is desirable, including attractive toning, a full strike and a minimum of ugly contact marks.  However, condition is perhaps the most important characteristic.

Serious investors should only acquire specimens that grade Extra Fine (XF-40) or better in condition.  This will help guarantee maximum eye appeal by ensuring that most of the coin’s details are intact.  But this rule can be relaxed under certain circumstances, such as when dealing with less common, pre-Civil War dates and mints.

You can quickly enter full numismatic territory here though, so be careful.

Some collectors will not consider semi-numismatic U.S. gold coins unless they are in uncirculated (MS-60) condition or better.  I don’t personally believe semi-numismatic gold must be in uncirculated condition to be investable.  However, if you do choose to purchase uncirculated coins, you may want to consider pieces certified by a third party grading service.

The two most popular grading services for coins are PCGS (Professional Coin Grading Service) and NGC (Numismatic Guaranty Corporation).  These companies authenticate, grade and then encapsulate coins in tough, clear plastic holders called slabs.  This allows coin collecting and investing novices to buy and sell these slabbed coins with confidence.

$20.00 St. Gaudens (Double Eagle) Gold Coins for Sale on eBay

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Anything that detracts from the beauty of a coin should be avoided.  This advice is especially important for common-date semi-numismatic U.S. gold coins, as they can’t rely on rarity to enhance their appeal.  Unattractively toned, weakly struck or harshly cleaned specimens should all be eschewed.  Any sort of significant damage, such as major rim bumps, scuffs or scratches, is also unacceptable.  You want to buy clean, problem free gold coins.

You should also beware of unscrupulous coin dealers or telemarketers that may try to sell semi-numismatic gold coins at extravagant mark-ups.  They usually target those with little collecting knowledge.  Do not fall prey to these scam artists.  Nothing cripples the long-term performance of an investment more than overpaying.

As of mid 2018, with spot gold trading at around $1,270, prices range from just under $250 for $2.50 quarter eagles to around $1,400 or $1,500 for $20.00 double eagles.  However, it is important to note that the prices of semi-numismatic U.S. gold coins fluctuate with any sizable movement in the price of gold.

If you are looking for maximum exposure to gold and minimum numismatic exposure, larger gold coins like the $10.00 Liberty Head, $20.00 Liberty Head or $20.00 St. Gaudens series are your best options.  These coins currently have premiums that range from a modest 10% to 20% in the marketplace.

The $5.00 Liberty Head, $5.00 Indian Head and $10.00 Indian Head coins will give you a slightly higher exposure to numismatic value.  These semi-numismatic coins have premiums between 15% and 35% right now.

$2.50 Liberty Head (Quarter Eagle) Gold Coins for Sale on eBay

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The Liberty Head and Indian Head $2.50 gold coins have the highest premiums among U.S. semi-numismatic gold coins, hovering around 80% at the moment.  This gives quarter eagles an almost even split between bullion and numismatic value.  These smaller gold pieces tend to have rather low mintages compared to the larger denominations and, in my opinion, represent exceptional value at this time.

I’ve compiled a table that shows the premiums on pre-1933 semi-numismatic U.S. gold coins as of the summer of 2018 below.  This data was compiled using realized eBay sold prices for lightly circulated specimens; uncirculated examples would cost more.  The gold price used in the calculations is $1,310 per troy ounce.

The world may not be giving us as many good options as we would like, but there is at least one good investment option left to us – pre-1933 semi-numismatic U.S. gold coins.  These overlooked pieces of historic Americana represent great value in an otherwise lackluster investment landscape.

Read more in-depth Antique Sage rare coin investment guides here.

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Read more in-depth Antique Sage bullion & gemstone investment guides here.