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1921 $20 PR64+ NGC. CAC. JD-1, R.8 as a Proof.. ...
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Sold on Aug 18, 2021 for:
$2,010,000.00
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Description
1921 Saint-Gaudens Double Eagle, PR64+
Enigmatic Satin Finish Proof
Only Two Examples Known
Exciting New Discovery
1921 $20 PR64+ NGC. CAC. JD-1, R.8 as a Proof."And therefore as a stranger give it welcome.
There are more things in heaven and earth, Horatio,
Than are dreamt of in your philosophy."
Hamlet, Act 1, Scene 5
In the study of numismatics there are occasional surprises. For example, new die varieties are occasionally found, but these are not entirely unexpected. The more we study coinage, the more of these previously unknown varieties we expect to find. Similarly, new research in the archives can fundamentally change our thinking about famous rarities, but the researchers were usually looking for answers to longstanding questions when they started. What was completely unexpected, however, was the appearance of a Satin proof 1921 Saint-Gaudens double eagle in an auction in 2000. Then, six years later a second example surfaced. No Mint documents exist to prepare collectors and dealers for the eventual appearance of these pieces in the marketplace. The fabric of the coins' surfaces are the only clues to the method of production of the two known proof 1921 twenties. The discovery of these pieces is a fascinating story and one that transcends the collecting of Saint-Gaudens twenties. We believe the appearance of the 1921 proof double eagle is one of the most important numismatic discoveries of the 21st century. Heritage Auctions is privileged to offer the finest-known example of this ultra-rare numismatic treasure and we consider this lot description as recommended reading for all numismatists.
Satin Finish Proofs
The Mint experimented with a variety of matte (sandblast) and satin finishes for proof coins in the early 20th century. The basined fields and sculptural high relief devices of Augustus Saint-Gaudens' beautiful new designs for the eagle and double eagle made it impossible for the Mint's technicians to produce the deeply mirrored brilliant proofs of earlier years. Instead, the Mint opted for an artistic, darker, sandblast finish for proofs in 1908. The coins were struck on the medal press, using specially selected planchets, and lightly sandblasted after striking. The resulting proofs had a high-quality, almost medallic appearance that present-day collectors find most attractive. Unfortunately, contemporary collectors were not as receptive and sales of proof coins declined dramatically in 1908.
To address collector complaints, the Mint switched finishes again in 1909, to a Roman Gold, or Satin finish. Numismatic researcher Roger W. Burdette believes the Satin proofs were produced in the same manner as the 1908 matte proofs, but without the post-strike sandblasting. The resulting coins have fine-grained surfaces, with a lighter appearance than the dark matte proofs of 1908. The unworn dies produced satiny, semi-reflective luster characteristics, rather than the frosty, cartwheel luster seen on business strikes. The strike was uniformly sharp and the overall appearance was closer to the old brilliant proofs collectors preferred. Prominent coin dealer Wayte Raymond referred to the Satin proof issues as "brilliant matte proofs." Unfortunately, the Satin finish proved just as unpopular as the matte finish with contemporary collectors and it was discontinued after 1910.
The Satin finish was officially only used on proofs in 1909 and 1910, but some extremely rare experimental pieces with Satin finishes are known from different dates, in several denominations. At least one proof 1908 Saint-Gaudens double eagle was struck with a Satin finish and donated to the Boston Museum of Fine Arts by William Sturgis Bigelow on June 11, 1908. That piece was deaccessioned in 1976 and has been publicly offered several times since then. In its last appearance, in lot 5490 of the Central States Signature (Heritage, 4/2015), the coin (graded PR65 NGC) realized $329,000. Even more famous is the 1907 Satin finish proof Rolled Edge Indian eagle that was once owned by Mint Director Frank Leach. That coin, with surfaces that closely resemble the present piece, was graded PR67 by NGC when it was sold in lot 5238 of the FUN Signature (Heritage, 1/2011). The lot realized $2,185,000, a record price for any Indian eagle.
It should be noted that these remarkable Satin finish proofs were struck between 1907 and 1916, the period when the Mint was actively experimenting with various non-brilliant finishes for their yearly proof set offerings. At least one 1909 eagle and half eagle are known with a matte (rather than Satin) finish, as well. It is not too surprising to find a few experimental pieces with different surfaces produced on a trial basis during this era. However, since the program of commercial proof offerings was discontinued after 1916, the existence of 1921 Satin proof double eagles is extremely surprising and requires a different explanation.
The 1921 Proofs and Mint Director Raymond T. Baker
Wealthy Nevada mine owner and diplomat Raymond T. Baker served as Mint Director from March 1917 through March 1922. During his tenure at the Mint he demonstrated a strong interest in proof coinage and was directly responsible for the striking of at least one of the Satin proof 1921 double eagles.
The numismatic community was shocked in June 2000, when a Satin proof 1921 Saint-Gaudens double eagle with the following pedigree was offered in a Sotheby's auction in New York:
"Provenance:
The United States Mint; Raymond T. Baker, Director of the United States Mint, 1921; to his nephew Joseph Baker (on his birth), killed in action 1944; to his mother Carmen Ghirardelli Baker (great-granddaughter of Domingo Ghirardelli - founder of the great San Francisco chocolate factory); to her grandson Joseph (Jerry) Porter Baker."
Joseph Porter Baker was the consignor of the coin. The lot description continued:
"AN IMPORTANT AND HITHERTO UNRECORDED ROMAN OR SATIN FINISH DOUBLE EAGLE PRESENTED BY THE DIRECTOR OF THE MINT TO HIS NEPHEW IN THE YEAR OF ISSUE. THE FINISH ANALOGOUS TO THE EXCEPTIONALLY RARE 1921 SATIN FINISH PROOF PEACE DOLLARS. POSSIBLY UNIQUE.
"Although no Mint records to date have been discovered relating to the issue of Satin or Roman Proofs in 1921, there is an extensive body of anecdotal information, and the existence of Peace Dollars with this finish provides incontrovertible physical evidence that such coins were struck. The appearance of this remarkable double eagle from the same year with provenance which stretches back to the then Director of the Mint should not, therefore, be wholly unexpected ... The existence of any post-1910 Roman Finish Double Eagles has never even been rumored. However, the likely circumstances of this astonishing coin's production, its physical appearance - which to paraphrase Walter Breen 'carries its own credentials' - and its impeccable provenance, provide yet another clue to understanding the not yet fully told history of the United States Mint and its productions."
The lot realized $203,500 in spirited bidding, to a prominent East Coast collector of Saint-Gaudens material. Roger Burdette notes that Joseph Baker was born on December 19, 1921. Mint Director Raymond Baker left Washington, D.C. on December 20 on a western trip to the San Francisco Mint, stopping at his brother's house in Reno, Nevada along the way. It may be that Baker had the coin struck and took it with him to present to his new nephew when he stopped at his home in Reno. The coin was apparently carried as a pocket-piece for some time and was not certified at the time of the Sotheby's auction. Heritage Executive VP, Todd Imhof, reports the coin that sold at Sotheby's was later certified by PCGS as SP58 and it continues to reside in that same holder.
Baker's interest in proof coinage was not limited to the double eagle denomination. The Peace dollar design was introduced very late in 1921. As mentioned in the Sotheby's lot description, a few matte and Satin finish proof Peace dollars were produced during the last week of December, to illustrate the new design to Mint and Treasury officials. It seems most unlikely that any of these Peace dollar proofs were struck for sale to collectors, but a few specimens eventually ended up in collector's hands and have sold for high prices over the years. On page 2758 of his Silver Dollars and Trade Dollars of the United States, Volume II, Q. David Bowers notes the first three Satin finish proofs were delivered by messenger to President Harding, Secretary of the Treasury Andrew Mellon, and Mint Director Raymond T. Baker on January 3, 1922. Apparently, Baker also received a 1921 High Relief matte proof Peace dollar during this time frame, as an example of this issue in a personalized original envelope from Baker has been shown to collectors at a Southern California coin convention in recent years. Baker also owned two rare 1922 High Relief matte proof Peace dollars that were sold in a Goldberg auction in June 2014. Aside from the 1921 Satin proof double eagle he gave to his nephew on his birthday, Baker carefully preserved all of his rare proof coinage until his death in 1935. The coins were later dispersed by his heirs.
The history of the present coin is not documented before it appeared in lot 4504 of the ANA Convention Auction (Bowers and Merena, 8/2006). While it is impossible to link this coin directly to Mint Director Raymond T. Baker, his role in striking the other 1921 Satin proof double eagle and his collecting interest in other proof issues of that era strongly suggests he was the original owner of this piece.
Brian Hendelson's Account of This Coin's Discovery
The coin offered here, now graded PR64+ by NGC, was graded MS63 by PCGS when it first appeared in the Bowers and Merena sale in 2006. However, at least two veteran coin dealers who attended the 2006 ANA Convention were aware of the appearance of the Baker coin in the earlier Sotheby's auction and recognized this coin as another Satin finish proof. Prominent coin dealer Brian Hendelson was a key participant in both auctions. He has provided an exciting eye witness account of the discovery of the present coin:
"The biggest event for the numismatic world each year is the ANA World's Fair of Money. Dealers from all over the world get together to buy, sell and network with one another. I have been attending ANA shows since 1973, enjoying many landmark exhibitions and bidding on many wonderful coins over the years, but what happened at the 2006 auction proved to be one of the most exciting events of my career.
"During the annual ANA WFM conventions, there are usually one or two major auction houses that conduct sales in conjunction with the show. In 2006 the official show auctioneer was Bowers and Merena.
During lot viewing I came across a coin that stopped me in my tracks. The instant I saw this coin, I knew it was special. I became determined not to leave the show without that coin!
"The item I discovered was an amazing 1921 Double Eagle attributed and graded Mint State 63 by PCGS. I had to do a double take when I saw it. Clearly this coin was not a typical Mint State 1921 Double Eagle. The coin reminded me of another 1921 Double Eagle I tried to buy years earlier out of a Sotheby's sale in New York City. That coin was described as a mishandled Proof that Mint Director Raymond T. Baker had specially struck for his nephew as a birthday present. Unfortunately, I was the underbidder and missed the opportunity to own that piece. That coin now resides in a prominent East Coast collection specializing in the coinage of Augustus Saint-Gaudens.
"I revisited lot viewing the next day to confirm my suspicions. After further examination, I concluded that the coin was a second 1921 Proof Double Eagle in Gem condition. The condition was far superior to the earlier coin sold by Sotheby's and there was no doubt in my mind that it was always intended to be struck as a Proof.
"Over the next few days my mind raced, wondering if others had noticed this magnificent coin. After much worry about who my competition might be for this amazing discovery, I decided to just be prepared for the worst and hope for the best.
"The Friday auction session finally arrived and it was game time. I decided to go back to my room and set up shop to bid on the coin by phone. After a few minutes my phone rang. It was a representative from the auction house that was going to be bidding with me. She said we were 10 lots away and she would be right back. The time had come for decisive action and I still had not arrived at a final number I was willing to pay - I just knew I wanted to buy the coin at any price, or so I thought.
"The lot opened up at $180,000. I waited to see if there was any action on the coin. I remember someone bidding $200,000 and then there was a pause. I jumped in at $220k and over the next few minutes the bidding was at $400k. I thought to myself, that's probably someone thinking they could upgrade the coin to a 64. I waited a couple of seconds and continued bidding, this time to $425K. The bids jumped quickly to $475K and it quickly became apparent that someone else had come to the same conclusion about the true nature of this amazing discovery coin. The bids raced to the $1 million mark and I quickly became concerned that I might not capture the coin.
"The battle continued to $1.2 million and the next bid required was $1.3 million. After thinking about it for a few seconds, I cut the bid to $1.25 million. There was a brief moment I thought they were going to hammer it down to me but then the other bidder jumped in at the $1.3 million bid. I had finally been defeated in this epic battle by the other bidder, who I later found out was fellow coin dealer Daniel Ratner. The final price, including the buyer's premium, was $1,495,000.
"The story has a good ending for me, however. After the show I contacted Dan and asked him if he would like a partner on the coin and, after a little negotiation, we became partners (at considerably more money).
"Until a couple of years ago, when I bought out his interest, Dan and I were partners on the coin, which we never officially offered for sale. Dan and I always considered the Proof 1921 Double Eagle to be the most valuable $20 gold coin, even ahead of the 1933 Double Eagle (fourteen known) which sold for almost $7.6 million in 2002.
"The market for high-end rarities, with interesting histories, has blossomed in the last couple of years. I have decided to let the market determine the value of this unique numismatic treasure, the only 1921 Saint-Gaudens Double Eagle certified as a Proof. Truly great coins rarely appear on the market and hopefully a new generation of collectors will experience the same passion and excitement Dan and I did fifteen years ago when this coin crosses the auction block this summer."
CAC founder John Albanese saw the coin for the first time on a black velvet tray before it was certified by NGC, and spontaneously offered more than $1 million for it. In a July 2013 Coinweek interview he noted:
"I knew instantly it was a proof the first time I saw it. Since 1978 I've viewed several hundred thousand Mint State Saints and perhaps a hundred proofs. This one doesn't look like any of the Mint State coins, but does have the look, texture, and fabric of the proofs I have seen. This was a no brainer."
In a phone conversation with this cataloger (David Stone), Albanese noted:
"If you hid the date, you would swear this was a 1909 proof. It's a great coin and an amazing discovery."
Albanese compared the circumstances of the discovery of this coin to that of another specially struck coin from the same era, the SP65 PCGS 1927 Buffalo nickel offered in lot 2168 of the Central States Signature (Heritage, 4/2009). That coin was an experimental issue, struck from chromium-plated dies. Chief Engraver John Roy Sinnock was possibly the original owner of that piece, another example of high-ranking Mint personnel producing specially struck coins for experimental or presentation purposes during the 1920s.
This spectacular proof has been off the market since its 2006 discovery, but Brian Hendelson exhibited it at the ANA World's Fair of Money in 2010 and 2013, where it was viewed by thousands of interested collectors.
Business-Strike 1921 Saint-Gaudens Double Eagles
Even in business-strike format, the 1921 Saint-Gaudens double eagle is an elusive issue, with a surviving population of 150-175 examples in all grades. Unlike most issues in the series, the 1921 is seldom encountered in high grade. An adequate mintage of 528,500 business-strike Saint-Gaudens double eagles was produced in 1921, but the coins were all delivered in November and December of that year. The coins were all held "under seal" as currency reserves. Even influential numismatists, like Dr. Thomas Louis Comparette, the Curator of the Mint Cabinet, were unable to acquire examples for their collections before the end of the year. Eventually, a small portion of the mintage was released into circulation, accounting for the surprising number of specimens seen in circulated grades today. The great majority of the coins were held in government storage until the Gold Recall of 1933 took effect, and subsequently melted.
Today, the 1921 Saint-Gaudens double eagle is the leading condition rarity of the series. Gold specialist David Akers called the 1921 "the unrivaled 'Queen' of the Saint-Gaudens series" as a condition rarity. Only four business-strike examples are known in really high grade, the MS65 PCGS example from the Belden Roach Collection, the MS65+ PCGS Eliasberg example, and the two MS66 PCGS coins that were preserved at the time of issue by George Godard, through the good offices of Comparette. Those coins have all been known to collectors since at least the 1940s, making it extremely unlikely that any other examples will surface in MS65, or better, condition in the future. Auction prices realized for business-strike coins include the $1,092,500 paid for the MS66 PCGS example in lot 6644 of the Phillip H. Morse Collection (Heritage, 11/2005). The rarity of high-grade business strikes adds greatly to the importance of this recently discovered PR64+ example.
Physical Description
Speaking of the proof 1921 double eagles John Dannreuther notes:
"These two double eagles undoubtedly are the last specially struck regular issue gold coins, as no others have been reported before American gold coinage ended in 1933.
"Proof gold coinage represents the pinnacle of the output from the mints of the United States. Today we appreciate the beauty of these specially struck gold issues. They are among the most highly prized coins in American numismatics ..."
When this coin was exhibited at the 2013 ANA World's Fair of Money, Numismatic Guaranty Corporation Chairman Mark Salzberg stated:
"The 1921 proof ranks highly among the truly important recent numismatic discoveries. For the $20 Saint-Gaudens series, in particular, it is earth shattering to encounter a coin like this for the first time outside of a museum or marquis collection. This is a world-class numismatic treasure and everyone should take a few minutes to see it for themselves in its NGC holder."
This Plus-graded Choice specimen is the finest-known proof or specimen strike 1921 Saint-Gaudens double eagle by a full six grade points. The design elements exhibit razor-sharp definition throughout. A faint die crack is evident through the letters in LIBERTY and the torch. A thin wire rim is visible around much of the circumference of the coin. The colorful orange and greenish-gold surfaces are virtually flawless, suggestive of an even finer grade. Satiny semi-reflective mint luster radiates from both sides, with terrific eye appeal.
This coin is the only 1921 double eagle certified as a proof by either of the leading grading services and the market for unique numismatic items has skyrocketed over the last year. On the day this coin was cataloged, the Farouk specimen of the 1933 double eagle realized $18,872,250 at a New York City auction. This lot represents a once-in-a-lifetime opportunity to own this landmark numismatic rarity. The discerning collector will bid accordingly. Plate coin in John Dannreuther's United States Proof Coins. Census: 1 in 64+, 0 finer. CAC: 1 in 64, 0 finer (6/21).
Roster of Proof 1921 Saint-Gaudens Double Eagles
1. PR64+ NGC. CAC. Possibly Mint Director Raymond T. Baker; unknown intermediaries; ANA Convention Auction (Bowers and Merena, 8/2006), lot 4504 (as MS63 PCGS), realized $1,495,000; Dan Ratner; partnership of Dan Ratner and Brian Hendelson; Brian Hendelson; exhibited at the ANA World's Fair of Money in 2010 and 2013; the present coin.
2. SP58 PCGS. Mint Director Raymond T. Baker in 1921, as a birthday gift for his nephew, Joseph Baker; Joseph Baker's estate after his death in World War II (1944); Baker's mother; Joseph Porter Baker; Sale #7499 (Sotheby's, 6/2000), lot 432, realized $203,500; East Coast Saint-Gaudens collector.
Auction Info
2021 August 18 - 22 ANA WFOM US Coins Signature Auction #1333 (go to Auction Home page)
Auction Dates
August, 2021
18th-22nd
Wednesday-Sunday
Bids + Registered Phone Bidders: 38
Lot Tracking Activity: N/A
Page Views: 6,621
Buyer's Premium per Lot:
20% of the successful bid per lot.
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