Primer on Collecting Early Dollars: Part 1, Intro

[EVillageProwler]

Some of the board members have indicated a willingness to learn more about collecting early coinage, in particular the silver Flowing Hair and Bust series.

 

This 4-part primer is intended to help folks become a bit more familiar with some of the earliest of U.S. coinage. The first part will be an introduction to Bust coinage, with a focus on the dollars. Next, I will discuss the popular ways of collecting ED's. The third installment will touch upon the various challenges of collecting ED's. Finally, I will close out the primer by touching on the available reference material.

 

Early Bust coinage is generally broken down into the following major categories: Flowing Hair (1794-95), Draped Bust, Small Eagle reverse (1795-98), Draped Bust, Heraldic Eagle reverse (1798-1807), Capped Bust (1807-36). For ED's, the series ends at 1803.

 

People love the ED. It is large, majestic, and represents the coin of the realm. However, compared to most of the other denominations (with the possible exception of the halves), the ED is the most common and overrated of the various Bust denominations. I collect them. I love them. Please do not think I am trying to dissuade anyone from collecting ED's. I am unabashed in my affection for this series.

 

Compared to most other series, however, the ED truly is rare and special. It is a true antique.

 

As early American antiques, this series is not without its problems and quirks. Many of the coins come with adjustment marks (to deal with overweight planchets) or striking irregularities (due to poor technology). Many have also been cleaned, and some even have a silver plug (for underweight planchets).

 

EVP

 

[Guest]

I am anxious to read all your posts on the subject. I think part of the attraction to these coins is the problems you can encounter such as the adjustment marks. There is just so much history in these coins, from the way they were made to who may have handled them and when they were spent.

 

Just out of curiosity, do you know how long you could actually find these is circulation?? Was it into the 1900's or did they dissappear as soon as the seated coins came along??

[EVillageProwler]

I am anxious to read all your posts on the subject.

 

Thanks.

 

Just out of curiosity, do you know how long you could actually find these is circulation??

 

Dunno... I would hazard to guess that ED's were no longer generally available in circulation by the time the Seated Dollars came along. The last year of mintage for the ED was 1804 (dated 1803), and between then and 1840, the circulating silver coin of the realm was the Capped Bust half dollar.

 

EVP

 

[GP_]

Do you have any examples of adjustment marks? I have heard the term before (never knew what it meant until I read your post) but still have no idea what it would look like. Also, do adjustment marks, or plugs decrease the value of a coin, like after mint damage would?

[Chippewa]

EVP

 

Thank you for your effort in this regard. I look forward to reading the rest of the series. In the meantime, I have long suspected that the best way to become moderately wealthy investing in early american coinage is to start out extremely wealthy. Is this true?

[EVillageProwler]

Do you have any examples of adjustment marks? I have heard the term before (never knew what it meant until I read your post) but still have no idea what it would look like. Also, do adjustment marks, or plugs decrease the value of a coin, like after mint damage would?

 

I do have examples of adjustment marks. I will post a pic when I do the 3rd installment.

 

As for how they affect value, it depends. Light adjustment marks not in prime areas tend to have no effect on value. (I actually like light adj marks because I think they add character!)

 

Silver plugs, on the other hand, are the hottest item within the ED series. You'd be surprised how much money people will pay even a junkie specimen! (I will see if I can locate an image of a silver plug on the web...)

 

EVP

 

[EVillageProwler]

Thank you for your effort in this regard. I look forward to reading the rest of the series. In the meantime, I have long suspected that the best way to become moderately wealthy investing in early american coinage is to start out extremely wealthy. Is this true?

 

You're welcome.

 

As for the wealth part, you basically wrote that one can go from ``extremely'' wealthy to ``moderately'' wealthy when investing in early American coinage.

 

I would have to say that early American coinage seems to be doing quite well; most folks acquire more wealth from this segment of the market. However, in general, I think you can make or lose money in any venture if you don't buy right.

 

Giving investment advice at this point is not good for me right now as it will help me lose focus on the ``collecting'' primer. Perhaps later, ok? (And, keep in mind that I'm not an investment advisor.)

 

EVP

 

[jtryka]

Great thread EVP, I am really enjoying it. As far as the circulation question, would these dollars as well as the earlier Seated dollars have disappear from circulation by the early 1850s as the silver content became worth more than face value? This seems to have affected most series minted prior to the devaluation in 1853.

[EVillageProwler]

I doubt that these coins simply disappeared from circulation due to the increase in the price of silver...

 

It really wasn't cost effective for the average person to melt or not spend these coins when they have 'em. And, most people didn't hoard enough of them to matter.

 

Anyway, that's my guess...

 

EVP

 

[jtryka]

You are probably right, but they probably spent the newer coins first, holding on the the older higher silver content coins as long as they could. I doubt there was much melting. It's a whole different story for gold coins however.

[nwcs]

From what I understand, dollars were not circulated all that much in the early 1800s due to the value of them (representing around a day's wage or more). Most things could be purchased for 5 cents or less except for bigger ticket items. So I would assume that many dollars resided in bank vaults to be ready when called for. If that is true, then it leads me to wonder where they have been "hiding." I wonder if some made it overseas as an early "trade dollar" of sorts?

 

Neil

[EVillageProwler]

good point, neil. and, i have seen ed's overstamped by another country's dies. i have not, however, seen any chopped...

 

evp

 

[jtryka]

Your post prompted me to dig out my old Heritage catalog from the Morris Silverman collection, and it has some great info and pictures of early dollars. One note of interest regarding quality of coins is that of the first 2,000 in 1794, 242 were melted due to poor strike or improperly prepared planchets. As for their use overseas, the cataloguer states, "Beginning with the large mintages of 1798 and 1799, U.S. Silver Dollars started to leave domestic shores to pay for foreign goods. Most of these coins went to either the treaty port of Canton, China or the West Indies, and few returned to the United States. This practice continued through early 1804, when President Thomas Jefferson finally took measures to preserve the country's dwindling supply of silver bullion." Lots of neat history here!

[EVillageProwler]

Lots of neat history here!

 

Amen!

 

EVP