Gold dollar

Discovering the History and Value of the United States Gold Dollar Coin

The United States gold dollar coin, a fascinating piece of American numismatic history, was struck by the Bureau of the Mint from 1849 to 1889. This unique currency has a rich past that is both intriguing and complex. Imagine holding in your hands a coin that once circulated freely but now commands significant value due to its rarity and historical significance. Could you ever imagine such a small coin being so valuable?

The Early Years: 1849-1853

In the early days, the gold dollar was struck in three types, all designed by James B. Longacre. The Type 1 issue had a small diameter and quickly gained popularity due to silver coins being hoarded or exported during that period. Was it not just a matter of convenience for people to have smaller, lighter currency?

The gold dollar became rare after Congress required lighter silver coins in 1853. During the American Civil War, when gold circulation resumed in 1879, it didn’t regain its place. The series ended with the last regular issue struck in 1889.

Valuable Finds: From Melt Value to Thousands

Damaged common date coins can be worth melt value to US$110 while rarer coins can sell for thousands. Can you imagine finding a coin that could potentially be worth more than its weight in gold? This is not just a dream; it’s reality for many collectors and enthusiasts.

The Birth of the Gold Dollar

Alexander Hamilton initially proposed a one-dollar denomination as both silver and gold, but Congress only authorized silver in part. Private mints had already produced gold dollars before the US Mint began striking them. Patterson presented Gobrecht’s pattern dollar to a committee, advising against its production due to its small size.

The proposal resurfaced in 1848 and again in 1849, with McKay introducing bills for a gold dollar and double eagle coin. Despite opposition from the Whig Party, which claimed the coins would be too small, counterfeited, or mistaken for other denominations, the bills passed easily, becoming law on March 3, 1849.

The Type 1 Gold Dollar: A Delicate Design

The Philadelphia Mint’s officers were mostly Patterson’s friends and relations, with Longacre, a new chief engraver, working alone until he gained recognition. The Mint Director agreed to proceed with preparation of dies for the Type 1 gold dollar after viewing a model of the head on the obverse.

The design features a head of Liberty facing left, surrounded by 13 stars representing the original states. Contemporary reviews of the design were generally favorable, describing it as ‘neat’ and ‘delicate.’ The first coins were produced on May 7 or 8, 1849, with some in proof condition.

Evolution Through Types

The Type 1 gold dollar was modified to include Longacre’s initial ‘L’ on the truncation of Liberty’s neck. The Open Wreath variety is rare and has sold for a record price at auction. All issues beginning in 1850 bear the Closed Wreath, and the gold dollar was also struck at the San Francisco Mint starting in 1854.

Silver coins began to flow out of the country for melting in 1849, leading to a surge in gold dollar production as the price of silver rose. By 1853, the gold dollar was widely circulated and considered the ‘glory years’ of the denomination. However, Congress passed an act reducing the weight of most silver coins, allowing new issues to circulate.

The Type 2 Gold Dollar: A Short-lived Experiment

The Type 2 gold dollar was introduced in 1854 but proved unsatisfactory due to difficulties in striking the coin with high relief designs. Many Type 2 gold dollars quickly became illegible due to worn dates, which were sent back to Philadelphia for melting and recoinage.

Production of the gold dollar continued in the late 1850s, with mintages declining after 1854. In 1860, only about 51,000 gold dollars were produced, with most coming from Philadelphia. The Dahlonega mint produced fewer than 200 coins that year.

The Civil War and Beyond

After Georgia seceded from the Union and the Civil War began, the Dahlonega mint was secured by state militia, and small quantities of coins were produced until May 1861. In 1860, two pairs of dies were shipped to Dahlonega just before it closed due to the war.

The mintage of 1861-D is estimated to be around 1,000, with only 45-60 known examples. This minting was associated with the Confederacy and made the coin especially rare and prized. The gold dollar became less common after the Civil War as public confidence in the Union declined.

Collectible Status

By mid-1862, all federal coins had vanished from commerce, except for those produced outside Philadelphia at San Francisco. The exception was the Far West, where only gold and silver were acceptable currencies, with paper money trading at a discount.

In 1870s and 1880s, public interest grew in the low-mintage gold dollar, leading to its use as collectibles and jewelry. The Mint produced proof coins for numismatists at a premium price, while circulation strikes were sold to banks with an added charge.

The Last Gold Dollar

The gold dollar was last struck in 1889 by the Act of September 26, 1890. 19,499,337 gold dollars were coined, with Philadelphia producing 18,223,438 coins and other mints producing significantly fewer.

Gold dollars brought varying prices over time, ranging from $1.80 to $2 per coin. In the early 20th century, coin collecting became popular, making gold dollars a sought-after collectible.

As we reflect on the history of the United States gold dollar coin, it’s clear that its journey through time is a testament to the ever-changing nature of currency and the enduring fascination with numismatics. Whether you’re a collector or simply curious about America’s monetary past, these coins offer a fascinating glimpse into our nation’s financial heritage.