A rare and historic coin captivated avid collectors during a recent auction in Southern California. The 1870 $20 “double eagle” gold coin, a piece of American numismatic history, was sold for a staggering $1.44 million, including buyer’s premiums, setting a new standard for rare coin auctions. This unique piece of history not only drew significant attention but also demonstrated the continued demand for high-quality, rare collectibles in the market.
The History Behind the $20 “Double Eagle”
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The 1870 $20 “double eagle” coin was minted in Carson City, Nevada, one of the nation’s historic mints. In total, only 3,789 coins of this type were produced, and it’s believed that only 40 to 50 still exist today. The $20 “double eagle” was introduced after the California Gold Rush, which brought an abundance of gold to the United States. Prior to the double eagle, the highest denomination of U.S. gold coins was the $10 “eagle.”
Authorized by the U.S. government to help manage the increased supply of gold, the double eagle became an iconic part of American coinage. However, finding one of these coins, especially one as well-preserved as the 1870 edition, is a rare event that attracts the attention of collectors and investors alike.
A Coin with Historical Significance
The coin sold at auction was not just any double eagle; it was the finest-grade example known to exist, according to the Professional Coin Grading Service (PCGS). The coin’s provenance and exceptional condition made it highly sought after by collectors, raising its value far beyond its intrinsic worth. The coin’s last sale occurred in 1986, when it fetched $23,100. Its reappearance after decades made it a “new discovery,” as described by John Kraljevich, a coin expert at the auction house.
The Auction Event: A Moment of Anticipation
The 1870 double eagle was one of the most anticipated lots in the auction hosted by Stack’s Bowers Galleries. As the bidding began, the coin quickly surged past its opening bid of $800,850, outpacing all other items in the catalogue. Ultimately, it sold for $1.44 million, including the buyer’s premium, a notable sum but still below the auction house’s initial expectations, which had predicted the coin could break the $2 million barrier.
The coin was part of the Bernard Richards collection, which is renowned for its high-quality, historically significant pieces. This sale not only highlighted the desirability of rare coins but also reaffirmed the power of private collections in the numismatic world.
The Impact of the Pandemic on Coin Values
The surge in prices for rare coins, including the 1870 $20 “double eagle,” can be partially attributed to the pandemic-era market shift. During the COVID-19 pandemic, many people turned to hobbies like coin collecting as a form of investment, pushing prices higher for high-quality coins. This increase in demand is reflected in the sharp rise in value for certain rarities, especially those that had been off the market for decades.
The Gold Value: A Fraction of the Coin’s Worth
While the intrinsic value of the gold in the 1870 double eagle coin is approximately $2,600, its historical significance and rarity have elevated its value by a factor of more than 500 times. This highlights the powerful connection between numismatic value and historical context, which often far exceeds the market price of gold itself.
Looking to the Future of Rare Coin Auctions
The 1870 $20 double eagle gold coin is a prime example of how numismatic items can grow in value over time, especially when they are tied to pivotal moments in history. While this particular coin didn’t break the $2 million barrier, its record-breaking sale serves as a reminder of the enduring appeal and potential profitability of rare coin auctions. As more collectors and investors turn their attention to the world of coins, the market for these high-value treasures is expected to continue growing, with more incredible finds and sales sure to follow.
The 1870 double eagle gold coin’s sale represents just one chapter in the ongoing story of coin collecting, but it also stands as a testament to the enduring value of rare and well-preserved historical artifacts.