The one dollar gold coin was first proposed by Treasury Secretary
Alexander Hamilton, but was not included in the provisions of the
Mint Act of
1792.
Taking note of the successful Bechtler family mint in the gold mining region of
North Carolina, the U.S. gold dollar was again considered by Congress in 1836,
as part of a major overhaul of the nation’s coining laws.
However, Mint Director
Robert M. Patterson appeared before Congress in December of that year, and convinced
lawmakers to remove the gold dollar coin from further discussion, over concerns
about its smallish size and ease of counterfeiting.
The one dollar gold coin was brought up in 1844, but once again, Patterson
squashed the idea, citing his previous objections. The Director also pointed out
the increased cost to the Mint and the unpopularity of small gold coins in other
countries where they had been introduced.
The
discovery of California gold in 1848 shifted the dynamics of the gold dollar
debate. With a new massive gold reserve on hand, the question was no longer if there should be a one dollar gold coin,
but in what form it ought to take. Some favored the coin with a hole in the
middle, to increase the diameter of the coin while retaining the same weight.
Mint Engraver James B. Longacre created some pattern coins utilizing this
concept, even before final legislative action.
On March 3, 1849, the one dollar gold coin was authorized by Congress. The law
specified a solid coin of only 13 mm in diameter, sending Longacre back to the
drawing board with the task of designing the smallest US coin
ever minted for general circulation. The 1849 law also brought about
the Double Eagle $20 coin.
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Type 1 Gold Dollar
Specifications |
Diameter: |
Weight: |
Minted: |
Composition: |
Designer |
Edge: |
13.0 mm |
1.672 g |
1849-1854 |
.900
Au .100
Cu |
James B. Longacre |
Reeded |
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Coin Photos courtesy of
Ira & Larry Goldberg Coins & Collectibles, Inc., Beverly Hills, CA . |
Longacre’s design consisted of a left-facing portrait of Miss Liberty wearing a
coronet (a small crown) in her hair. She is surrounded by 13 stars, representing
the 13 original colonies. With little space to work with, the reverse was
necessarily kept simple, bearing the words “1 DOLLAR” and the date within a
plain wreath, encircled by the words ‘UNITED STATES OF AMERICA”. Beginning in
1849, one dollar gold coins of this style were minted at
Philadelphia,
Charlotte,
Dahlonega, and
New Orleans. The
San Francisco Mint started operations
in 1854, and likewise issued the gold dollar coin. Numismatists have named the
1849-1854 dates the Type 1, or Liberty Head Dollars. They are also called
Coronet Gold Dollars. Pictured directly above is the Type 1 dollar.
As predicted by critics, the tiny size of the coin caused problems; they were
easily misplaced (a big loss for someone who earned one dollar a day!), plus
nearly everyone had to squint to read the inscriptions. As a result, the gold dollar was
modified in 1854, its diameter increased to 15 mm and made thinner. Liberty
donned a feathered headdress, appearing as an Indian princess. Her head was
reduced in size, compared to the previous design. The reverse shows the date and
denomination within a wreath of corn, cotton, wheat and tobacco. These are
called the Type 2, or Indian Gold Dollars.
Problems with the Type 2 gold dollar were quickly observed. The head of Liberty
was raised too far above the surface of the coin, meaning that there was
insufficient metal flow into her head during the striking process, because metal
was trying to fill into the reverse design elements at the same time. The
outcome was that many Type 2 gold dollars are weakly struck. Very few specimens
display crisp details in the hair, with lettering on the reverse barely
discernible. Adding to the shortcomings of the Type 2 gold dollars was the fact
that they wore down quickly in circulation.
To correct this flaw, Longacre yet again put forth a new design in 1856. The
portrait of Liberty was made larger and flatter, and she wore a different type
of headdress. Also, lettering around the edge of the obverse was repositioned
closer to the rim to compete less with metal flow requirements of the reverse.
The Type 3 Indian Gold Dollar finally did the trick. Size, quality, and
durability goals were met with the Type 3 dollar. The coin remained in
production every year until 1889.
Despite their manufacturing difficulties and diminutive size, the US gold dollar
immediately became an important coin in everyday commerce. From 1849 until the
Civil War, fairly large quantities were minted and remained in circulation, even
more so than the silver dollars of the time. The reason for this was that value
of gold relative to silver had declined due to the large influx of the yellow
metal unearthed in California, hence making silver a more valuable commodity and driving
it into the arms of bullion dealers.
As the Civil War unfolded, most of the nation’s coinage disappeared from
circulation. Uncertainty over the outcome of that cataclysmic conflict led
individuals to hold onto their hard currency as a measure of financial security.
Far removed from the battlefields, coinage in the western states continued to circulate
freely, including the gold dollar.
The opening of massive new
silver mines in Nevada and
Colorado flooded the
metals market, causing the value of gold to rise relative to silver. Now the
bi-metallic relationship was reversed, and it was gold coinage that was removed
from public view. Minting of the gold dollar diminished sharply thereafter. When
the
Bland-Allison Act required large scale production of silver dollars
beginning in 1878, the gold dollar series toiled in virtual anonymity until
Congress ordered its termination following the release of the 1889 issues.
Of all the gold dollar coins, the rarest is the 1849-C with open wreath.
An
MS-63 specimen with proof-like qualities was sold in July 2004 for a
staggering $690,000. The
1861-D is probably the most famous one dollar gold coin of all. No one
knows how many were made, but the number is assuredly very small. The
1861-D dollars were struck by the Confederacy following the takeover of the
Dahlonega Mint by southern forces in April 1861. It is believed that a
small quantity of gold on hand at the time of the seizure was used to produce
the coins. At least $10,000 is required to acquire this historically
significant coin.
There are many US gold dollars that are considered key
dates. Series specialists especially love the coins of the relatively
obscure Charlotte and Dahlonega
Mints. Believe it or not, gold dollars are not heavily collected,
translating to rather sluggish price advancements over time, compared to key
dates of other coin series. Most of the key dates spiked around 1980 and
remained moribund until recent years. Perhaps this
is because of the difficulty in completing a set because of scarcity and cost.
Another possibility is that Director Patterson was onto something in 1836 when he
predicted the unpopularity of the gold dollar due to its tiny size, though he
probably wasn't thinking of coin collectors in the 21st century. The key
date one dollar gold coins with some of the better records of appeal with
collectors include:
eBay auctions has more gold dollars for sale than most dealers, so its a good
place to start your search. The links below will pull up auctions of the
date highlighted. Despite the enormous number of coins on eBay, you'll
probably have to check quite a few times before you find any of these gold
dollars. Yes, they are rare indeed. The coin pictured for
sale in the right hand side, if any, is not necessarily the same condition coin or
the same date as that
represented in the value trend analysis on left hand side. It is
very wise to consider only coins graded by the services of PCGS, NGC, ICG, or ANACS.
American gold coins have been the target of counterfeiters for a long, long time
.
The map above shows the goldfields of
California. San Francisco was a small settlement before the rush
began, but when news of the gold discovery reached the town, ships,
businesses, and homes were quickly deserted in favor of joining the Gold Rush. As
thousands of seafaring fortune seekers and merchants from all over the world began
arriving, San Francisco then exploded in population, rising from an estimated
1000 people in 1848 to perhaps 25000 by 1850. The sudden surge of people
stretched the infrastructure of San Francisco and other towns near the
goldfields. The "49ers" lived in tents, wood shanties, or deck cabins
removed from abandoned ships. Very few of them got rich, but some of the
first gold-seekers were able to find large amounts of the most easily accessible
gold—in some cases, thousands of dollars worth each day.
