1854-O $20 -- Improperly Cleaned -- NGC Details. XF. Variety 1....

Description

1854-O Double Eagle, XF Details
Low-Mintage Branch Mint Rarity
Unknown in Mint State

1854-O $20 -- Improperly Cleaned -- NGC Details. XF. Variety 1. The 1854-O is one of the rarest and most valuable Liberty double eagles, with a reported mintage of only 3,250 pieces. Among Type One twenties, only the basically uncollectible 1861 Paquet Reverse (two examples known) and the formidable 1856-O can claim to be more elusive in absolute terms. In terms of high-grade rarity, the 1854-O is actually rarer than either the Paquet Reverse or the 1856-O, as both of those issues are known in Mint State or specimen grades while the finest known 1854-O grades only AU58. Doug Winter estimates only 25-35 examples survive in all grades and conditions, with most examples seen grading no better than XF. Heritage Auctions is pleased to offer an attractive specimen of this classic branch mint rarity in our January 2014 FUN Sale.

The reason for the low mintage and consequent rarity of the 1854-O is easily found. The San Francisco Mint began operations in 1854 and the flow of gold deposits from the California gold fields, which had formerly gone to New Orleans for coinage, had a much more convenient destination. New Orleans Mint gold production declined dramatically after the California facility opened and never reached pre-1854 levels again.

Collecting large denomination gold coins was never popular in the 19th century because of the high intrinsic value of each coin. Few numismatists could spare the funds to compile a date run of double eagles, and branch mint issues were universally ignored until Augustus Heaton popularized those coins with his treatise on mintmarks in 1893. Certainly no contemporary collectors saved any high-quality specimens of the 1854-O for posterity, resulting in the complete lack of Mint State examples today. The small mintage was released into circulation and the coins circulated widely in the regional economy for decades before any numismatic interest in the issue developed. It is interesting to note that no branch mint twenties were exhibited at the remarkable 1914 ANS Exhibition, although a set of Philadelphia double eagles, mostly proofs, was displayed.

Things changed after the Gold Recall of 1933. At that time, several prominent collectors like Louis Eliasberg and Dr. Charles W. Green began collecting double eagles in earnest, mostly as a legal means of owning gold, which the average citizen was forbidden by law to stockpile. Investors quickly realized that the large gold content of each double eagle made it an ideal method of storing a considerable amount of the otherwise forbidden precious metal. The 1854-O double eagle was almost never offered publicly in the 19th or early 20th centuries, but auction appearances began to occur almost immediately after the 1933 presidential order. One of the earliest was in the Nickerson Collection (Thomas Elder, 12/1933), lot 1124, in the section titled VERY RARE $20.00 GOLD OF THE NEW ORLEANS MINT:

"1854 New Orleans. Don't believe we ever had it before. It has a sale record of $200. Very fine. Unpriced in Raymond's book."

The consignor of the gold collection was listed as J.H. Townsend, but the actual owner was probably John G. Townsend, who sold his extensive collection through Elder in 1935. The Raymond book mentioned in the description was probably the first edition of the Standard Catalogue of United States Coins, by Wayte Raymond. The $200 auction price Elder alluded to was certainly a high price at the time. Recent auction appearances include the AU55 PCGS example in lot 3012 of the Dallas Signature (Heritage, 10/2008), which realized $603,750.

The present coin is a still-attractive specimen that shows XF sharpness on the design elements but displays the lackluster surface quality of a coin that was lightly cleaned long ago. The pleasing orange and greenish-gold surfaces show only minor abrasions, unlike most examples seen, which tend to be heavily marked. The diagnostic die lump on Liberty's neck, near the curls, is plainly visible. No example of the 1854-O has been offered publicly in more than two years and we expect this coin to find a home in an advanced collection of Southern gold.
From The Douglas Martin Collection.

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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