Why Are Gold Coins Valued Differently?

Grades

• Condition plays a large role in the numismatic value of gold coins. For example, a 1910 Indian head quarter eagle that grades in choice uncirculated (MS-63) condition, meaning it has almost no flaws, can sell for more than $2,000 at 2011 prices. A similar example with plenty of wear that grades in very fine (VF-20) condition would be worth about 10 percent of that.

Gold Content

• In general, the larger the face value of a gold coin, the larger and more gold is contained within it. The aforementioned Indian head quarter eagle (with a face value of $2.50) only has slightly more than a tenth of an ounce of gold in the coin. The half eagle, or $5 coin, has close to a quarter of an ounce. The $10 eagle coin has nearly half an ounce and the $20 double eagle contains almost an ounce of gold in each coin. Obviously, the more the gold in the coin the more it tends to be worth.

Rarity

• Some gold coins were produced in fewer quantities than others, and the oldest coins have been lost or disappeared over time. Only about 9,000 copies of the first half eagle coin issued in 1795 were struck by the U.S. Mint. Most of these are either missing or were melted down. A prime example of this coin sold for $345,000 at auction in 2007. Only 2,250 copies of the 1856 double eagle were struck at the New Orleans Mint. This coin with an "O" mint mark has sold for more than $500,000 at auction.

Collector Interest

• Some collectors prize gold coins over others simply because of their beauty. While the first gold coins are hard to find, many collectors would consider them unattractive. On the other hand, the Saint-Gaudens double eagle is often considered as one of the most beautiful U.S. coins ever minted. This coin designed by Augustus Saint-Gaudens and minted from 1907 to 1933 features a walking Liberty with flowing hair on the obverse and a soaring eagle on the reverse. The coin is often valued as much as copies of the Liberty head double eagle issued in the decades before it, even though the Saint-Gaudens coin is easier to find.