Rare Coin News
Buy Type I Double Eagles NOW
It is quite obvious to me that the Type I Double Eagle market has turned into a hotbed of activity . . . and I believe, as the saying goes, “You ain’t seen nothing yet!”
With the majority of the SS Central America Type I coins now off the market and in the hands of collectors and investors, we’ve seen a significant increase in activity chasing these popular issues. After all, these coins were the first $20 gold pieces ever struck and were coined in one of the most romantic periods in our nation’s rich history. From the discovery of vast amounts of gold in California . . . to the worst peacetime maritime disaster in America’s history . . . to the culmination of a horrifying Civil War, these historically significant gold coins are poised to return to their pre-1999 price levels. If they do, and I believe they will, you will want to own as many of these coins as you can get your hands on.
If you read my Special Report on Type I Double Eagles, originally published in November 2001, then you are well aware that I’ve been recommending these wonderful rarities since long before their recent price increases. In that Type I report I explained that the SSCA treasure had doubled the population which, in turn, caused a severe price drop. Even before that report, I recommended that collectors stay away from Type I Double Eagles in my July/August 1999 issue of the CMI . . . before they dropped in value!
At that time, I’d learned that the Federal litigation, which had the SSCA treasure under lock and key, was coming to a close and I anticipated lower price levels as a direct result of the sudden and substantial increases of available coins. I also did not participate in the original marketing of the SSCA treasure coins until all but approximately 500 of the 7,000-plus coins were sold. This proved to be a good decision for our clients, saving them 20-40% off the original release price. When I did have the opportunity to scoop up the rest of the coins, only the most eye appealing coins remained.
Now with the enormity of the SSCA deal reduced to near zero, the stage is set to support much higher prices throughout this entire series. Another interesting component, which has increased the level of interest significantly, is that these once prohibitively expensive coins are now far more affordable by far more collectors. Looking at this logically, I believe this adds explosive potential to these very desirable rare coins. In fact, I believe we are beginning to experience this phenomenon now.
Since the publication of my book, An Insider’s Guide to Collecting Type I Double Eagles, an increased level of interest for Type I coins has the entire market in a buzz. At the recent Florida United Numismatic Convention in early January, Type I Double Eagles were among the hottest items on the bourse floor. The very few examples of these coins in the $30 million auction brought very strong prices. Case in point: An 1854-O in AU50 realized an impressive $93,100 sale price. Unfortunately, I was the under-bidder of this rarely seen issue. (In hindsight, I wish I had remained in the bidding.) Another eye-opener at the FUN auction, an 1861-S Paquet Reverse which graded VF20, brought more than $11,000—more than double the price published in any price guide.
In my view, it is clearly the time to begin aggressively acquiring Type I Double Eagles of every date and variety. Why? Two reasons: One, the 1999 drop in values due to the increased supplies brought on by the SSCA treasure has evaporated; and two, the current economic and geopolitical conditions point to tangible investments more than at any time in the last 20 years.
While the price support for these coins comes mainly from collectors, the fact that the spot price of gold has broken out above a long term bear line certainly makes these coins more interesting. Gold is up some 30% in the past 18 months, while paper asset prices and value have plummeted. That is a clear and certain shift in investor sentiment! And although I believe Type I coins offer the best value for the dollar as a store of wealth for the long haul, the current status and trends of the markets should provide tremendous opportunity, without tremendous risk, for those who may be a little less patient.
The price history of the Type I series offers some insight into what rarities, when popular, can do in a bull market. For example, the following chart shows price activity of the most common date Type I Double Eagles during the last year of what were actually 4-year bull markets:
Market
Year Grade Bid Price % of Increase
1979 MS60 $1,350
1980 MS60 $2,700 100%
1979 MS65 $5,000
1980 MS65 $20,000 400%
MS63 $3,200
1989 MS63 $12,750 398%
1988 MS65 $15,000
1989 MS65 $92,000 613%
This chart confirms the old adage that buying quality always pays, especially over the long-haul. In my new book I recommend many ways to acquire Type I Double Eagles. I believe this book is an invaluable resource and offers both the collector and investor more insight into this exciting issue than any other book published. It ranks the rarity of this series by date, mint, quality and popularity. It also shows how many of each date and mintmark, as well as grade, have sold in auction since 1990.
If you have already purchased some of these wonderful Type I coins, congratulations! Buy more . . . and don’t be afraid to acquire quantities of the same date. They can be used as “trading chips” to acquire harder-to-find date coins in the future. In other words, I believe these coins will continue to climb in value off of their recent lows. By adding quantities of the same date, you can use cheaper dollars to acquire the tougher coins if and when they become available.
No doubt, Monaco will continue to be very aggressive in searching for and acquiring coins of this series. And I believe you should do the same. Already, since my book was published, I have seen a noticeable increase in activity by other dealers wanting to acquire Type I coins for their clients. This trend is just beginning . . . and the secret won’t last.
If you would like to get a copy of my new book, and I believe you should, call your Monaco Account Representative today and find out why thousands of collectors and investors are so excited about the Type I series and why I love these coins so much: They come from an era that defined our nation . . . they are big . . . they are old . . . and they are GOLD!
