Events in Europe doomed early U.S. gold coinage. The French Revolution of the
1790’s, followed a few years later by Napoleon’s military exploits, drove the
world price of gold higher. Unfriendly relations between the United States and
Old World powers fueled gold’s rise also.
In the U.S., the value of silver to gold was by law fixed at a ratio of 15:1.
Elsewhere, the ratio fluctuated according to market conditions. By the early
19th century, an ounce of gold valued at 15 ounces of silver in America was
worth about 16 ounces of silver in Paris and London. The precious metal content
in U.S. gold coins made them worth more than their face value, if traded in
Europe. Bullion profiteers seized upon this opportunity and shipped U.S. gold
overseas for melting just as soon as it left the
Philadelphia Mint.
Profits were most easily realized for the largest U.S. gold coin at the time,
the $10 gold eagle. The eagle was created by the
Mint Act of 1792, and was
deemed to be the flagship of American gold coinage. Ultimately, nearly all
eagles coined were lost to opportunists, and to halt this indignity,
President
Thomas Jefferson ordered production of the eagle stopped in 1804.
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Coronet
Eagle
Original Head Specifications |
Diameter: |
Weight: |
Minted: |
Composition: |
Designer |
Edge: |
26.80 mm |
16.718 g |
1838-1839 |
.900
Au .100 Cu |
Christian Gobrecht |
Reeded |
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Coin Photos courtesy of
Ira & Larry Goldberg Coins & Collectibles, Inc., Beverly Hills, CA. |
In 1834, Congress changed the bimetallic ratio to 16:1, thus reducing the
amount of gold in U.S. coinage to discourage metals speculators. For the
first time, gold became a viable medium of exchange throughout the nation. After
an absence of 34 years, the $10 eagle reappeared in 1838.
Christian Gobrecht’s Coronet design, shown above, depicted Miss Liberty looking left, wearing
a small crown called a coronet, inscribed with the word LIBERTY. Her hair is
tied in a bun with a few curls flowing down over the ear. The reverse features
the eagle originally designed by Assistant Engraver John Reich in 1807. Many
collectors refer to the ten dollar Coronet type as the Liberty Head Eagle.
During 1839, Gobrecht retooled Liberty and centered her over the date. Coronet
Eagles were minted every year until 1907. The only noticeable modification
during the 69 production run was the addition of a scroll on the reverse bearing
the motto IN GOD WE TRUST.
Following the passage of the 1834 law, gold coinage poured into circulation, but
of the
$2.50 quarter eagle, the
$5 half eagle, and the $10 eagle, the eagle was
the coin least in demand. Consequently, mintage seldom exceeded a million pieces
a year for the Coronet Eagle. Five dates have production of less than 1000 pieces.
The rarest of all Coronet Eagles is the 1875, with a mintage of a mere 120
pieces. A collector can expect to pay at least $30,000 for a specimen in F-12
condition. There were 20 Proof coins made in 1875, and these are valued today at
more than $200,000 each.
As mentioned, most Coronet Eagles are quite rare, if considered strictly by the
small number of them in existence today. Not that many, however, are
viewed as key dates. In fact, the vast majority of dates in lower grades advance
or recede in value in response to gold bullion market activity. After analyzing
long term trends, here are some members of this series that have won the hearts
of hobbyists, and have demonstrated strong price advancements over time because
of their collectible content:
One fact that is important to know about Coronet Eagles is that during their
years of service, not many of them were preserved in mint condition. Back
then, $10 carried a lot of buying power, and few collectors could afford to set
a Coronet Eagle aside for posterity. Consequently, Coronet Eagles in MS-60
or higher are exceptionally difficult to find, especially those dated 1880 or older.
In addition to the key dates above, collectors should concentrate on these coins
too, provided an ample budget and a desire to own gold coins of high numismatic
interest. The long term value trends of the 1878-S in MS-60 condition are
shown below to illustrate the bona fide popularity of Uncirculated Coronet Eagles
amongst collectors.
When purchasing key date or Uncirculated Coronet Eagles, the most critical
advice we can impart to you is to consider only coins that have been certified by one of the four leading
grading service companies: PCGS, NGC, ICG, or ANACS. Some of the lesser
known services have reputations for overgrading coins, sometimes only to goad
buyers into believing they've found a bargain. There is a huge difference
in value between an AU-50 and MS-60 older date Coronet Eagle, so if you're taken
in, you'll surely be disappointed later on. Experienced collectors have
greater confidence in coins graded by any of the Big Four, and will pay more
accordingly. The opposite is true for just about any other grading
service.
The links below initiate a search of eBay coin auctions for the indicated key date Coronet Eagles.
The left hand side of each "Sales Box" reports value trends over a very long
period of time for the key date in F-12 condition. The
percent annual increase since 1950 is computed for comparative purposes.
Then there is the 1878-S, which is used here to typify value trends for MS-60
Uncirculated Coronet Eagles. The "View All" link on the right side of the 1878-S
Sales Box is coded to isolate Uncirculated Coronet Eagles of any date, not just
the 1878-S. Most likely, you'll be viewing coins advertised as
Uncirculated, that in fact, are not. One last time: Consider only
those coins that have been certified by PCGS, NGC, ICG, or ANACS. Also,
the coin pictured
for sale in the right hand side, if any, is not necessarily the same condition coin
as that represented in the value trend analysis on left hand side.
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1841-O
Coronet Eagle
Condition: F-12
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1870-CC
Coronet Eagle
Condition: F-12
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Value Trends
1950: $30.00
1980: $450
1995: $1100
2003: $1250
2007: $4000
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Value Trends
1950: $40.00
1980: $1000
1995: $4000
2003: $5000
2007: $6500
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% Annual Increase
Since 1950 =
8.96%
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% Annual Increase
Since 1950 =
9.34%
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1875-CC
Coronet Eagle
Condition: F-12
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1879-CC
Coronet Eagle
Condition: F-12
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Value Trends
1950: $30.00
1980: $600
1995: $1750
2003: $2000
2007: $2500
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Value Trends
1950: $40.00
1980: $2250
1995: $1750
2003: $2750
2007: $5000
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% Annual Increase
Since 1950 =
8.07%
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% Annual Increase
Since 1950 =
8.84%
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