Many people often ask how to price rare coins, whether they are new collectors or seasoned experts. In this article, I will explain my process for pricing a specific coin I recently handled. Pricing coins can be tricky, especially when it comes to rare or unique pieces. Most price guides don’t help much with these complex coins. Instead, I rely heavily on auction records to determine how much to buy or sell a coin for. Let’s take a closer look at my thought process behind pricing a rare 1863 Half Eagle coin.
Understanding the 1863 Half Eagle
The 1863 Half Eagle is a special coin that was made during a significant period in American history. Only 2,442 of these coins were produced, making them very rare. Most coins from this year are not in great condition, especially those rated AU50 or better. In my experience, I hadn’t seen a coin better than AU53 to AU55 in over a decade. A quick search revealed that PCGS (Professional Coin Grading Service) has graded none of these coins as Uncirculated and only five coins graded as AU58. The NGC (Numismatic Guaranty Corporation) had graded two as Uncirculated and five as AU58. Moreover, at that time, CAC (Certified Acceptance Corporation) had not approved any 1863 coins, suggesting that most examples lack good eye appeal.
Analyzing Auction Records
To understand the value of the 1863 Half Eagle, I looked at auction records. You can do this too! Check out the PCGS auction archives on their website. Looking at the auction records showed that only 30 of these coins had sold since 1941. For comparison, a similar coin, the 1864-S Half Eagle, had 32 auction records during the same period.
Assessing the Coin’s Quality
While statistics are helpful, the actual quality of the coin matters most. The 1863 Half Eagle I handled had excellent eye appeal, making it stand out. Even though it was graded as MS60 (Mint State 60), I thought it deserved a higher grade because of its appearance. A well-known dealer once referred to MS60 as “dumb,” which I agreed with. I was impressed by the coin, despite its lower grade.
Summary of Auction Records
| Coin Type | Year | Auction Records | Last Sale Price |
|---|---|---|---|
| 1863 Half Eagle | 1863 | 30 | N/A |
| 1864-S Half Eagle | 1864 | 32 | N/A |
| 1863-S AU58 | 1863 | 1 | $25,875 |
Comparison of Grading
| Grade | Description | Approximate Value |
|---|---|---|
| MS60 | Mint State 60 – acceptable quality | $20,000 |
| AU58 | Almost Uncirculated – high quality | $17,500 – $20,000 |
| AU55 | About Uncirculated – good quality | $14,375 |
Determining the Price
Since I found no recent auction records for an Uncirculated 1863 Half Eagle, I turned to the AU58 sales records. The last two sales of AU58 coins were around $14,950 and $14,375. After reviewing these coins, I decided that a real CAC-quality AU58 coin was worth between $17,500 and $20,000. Since I believed this coin had better quality than the AU58, I figured I could pay at least $30,000 for a nice MS60.
To confirm this price, I looked for comparable coins in auction records. I didn’t find many comparable coins, but I did find that an 1863-S AU58 had sold for about $25,875. This coin was the best example I had seen in years. Given that the 1863-P was rarer, I felt it had to be worth at least $30,000 to $32,500.
After some negotiations, I was able to buy the 1863 Half Eagle for around $30,000 to $32,500. I later sent it to CAC for approval, making it the first and only example with a CAC sticker for this date. I sold it shortly after for a price in the mid-$30,000s to a specialist who had been searching for a high-grade 1863 Half Eagle for many years.
Conclusion
The process of pricing rare coins like the 1863 Half Eagle requires thorough research and understanding. Published price guides often don’t provide much help for these unique coins. Instead, looking at auction records and assessing the coin’s condition is crucial. Factors such as the coin’s rarity, its historical significance, and its overall eye appeal can significantly affect its value. As shown in this example, being prepared to stretch your budget for a unique piece can pay off. Whether you are a new collector or an experienced one, always research and analyze before making a purchase.
FAQ’s
What is a Half Eagle coin?
A Half Eagle coin is a $5 gold coin minted in the U.S. It has a rich history and is sought after by collectors.
Why are some coins so difficult to price?
Some coins are difficult to price due to their rarity and the lack of recent sales records, making it hard to determine their market value.
How do I know if a coin is in good condition?
A coin’s condition can be assessed by its grade, with higher grades indicating better quality. Eye appeal also plays a significant role.
What does CAC approval mean?
CAC approval indicates that a coin has been reviewed and approved for its quality and grade by the Certified Acceptance Corporation.
Where can I find auction records for coins?
You can find auction records on websites like PCGS or Heritage Auctions, which provide valuable information for pricing coins.