1850-O $20 MS61 NGC. Variety 3....

Description

1850-O Double Eagle, MS61
Incredibly Rare in Mint State
A Landmark New Orleans Issue

1850-O $20 MS61 NGC. Variety 3. The inaugural double eagle from the New Orleans Mint is an item of significant numismatic importance and conditional rarity. Its denomination was intended to be a mode of coinage for domestic gold deposits, which had sharply increased at the outbreak of the California Gold Rush. Its sister coin, the gold dollar that was authorized by the same legislation, was intended to supplement commercial silver, which was rapidly disappearing from circulation; the large amounts of gold being produced in California created an imbalance in the gold-to-silver value ratio that made it profitable to hoard and melt the 90% silver U.S. coins for a 1-3% profit.

The double eagle was authorized in 1849, but difficulties in the execution of the dies prevented the new denomination from being produced until 1850. In a late December 1849 memorandum to Director Patterson, the Chief Coiner stated:

"It is with extreme regret and after the most earnest endeavors to overcome the difficulty that I am compelled to inform you that the impression upon the new die, for the double eagle, cannot be brought up by the usual coining processes. The depth of the head of the obverse is such that the steel will not sustain the degree of pressure necessary for a perfect impression."

The pattern 1849 double eagle that was struck and approved was made on a hand press, and the steam-driven production presses could not produce the same product. A small number of 1849 trial strikes on the regular press were apparently destroyed after being found inadequate for issue. Lower-relief dies were not completed until the new year.

The inaugural coinage of the denomination in 1850 consisted of nearly 1.2 million pieces at Philadelphia and a moderate 141,000-coin mintage at New Orleans -- largely with California gold. The New Orleans mintage would prove to be one of the highest from that mint, although this issue is starkly separated from the other early 1850s issues in one respect: it is far more rare in Mint State. NGC and PCGS combined report seven grading events in Mint State, including two MS60, four MS61, and an MS62; all are NGC-certified save for a single MS61 that is PCGS (10/17). We have previous handled three different Uncirculated pieces, and in this sale we have the unprecedented opportunity to offer two more individual examples back-to-back, bringing the total to at least five known 1850-O double eagles in Mint State. As all of these are low-grade, it is presumed that they survived merely by chance. Issued in the South where gold circulated extensively, and prior to significant numismatic events such as the introduction of the small cent in 1856 and the public marketing of proof sets in 1858, it is unlikely that American coin collectors had any desire in preserving a branch mint double eagle for numismatic purposes.

This MS61 coin is easily in the Condition Census for the date. The bright yellow-gold surfaces offer semireflective fields and bold central detail. Scattered light abrasions define the grade but are unimportant, as the Mint State status of this piece alone is enough to make it an object of great desire. This will be a standout showpiece in a fine New Orleans gold collection.
From The Collection of Maj. Eugene Neal "Red" James, USMCR. (Registry values: N7079)

Coin Index Numbers: (NGC ID# 268G, PCGS# 8903, Greysheet# 9843)

Metal: 90% Gold, 10% Copper
Weight: 33.44 grams
AGW: 1.06oz
Mintage: 141,000

Note for clients in the European Union: This lot is considered by the European Union to be “investment gold”. We believe that it meets the criteria established in Article 344(1), point (2) of Council Directive 2006/112/EC and thus should be exempt from import VAT regardless of the selling price. Any questions or concerns about VAT should be addressed to your accountant or local tax authority.

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