Capped Head $2.50 Quarter Eagle

Early gold quarter eagles a collecting challenge Collectors of United States gold coins are usually known to have deep pockets and a strong will. The need for deep pockets is due to the high cost involved with collecting gold coins, either by type or date and Mint. A strong will is very necessary because, often, collectors must be extremely patient in their quest to buy a rare date. Consider the early gold $2.50 quarter eagles. The early quarter eagles, dated from 1796 to 1834, do not make frequent appearances on the market. For some dates, appearances on the market may be several years apart. All early quarter eagles were struck at the Philadelphia Mint. When it comes to collecting the early $2.50 quarter eagle series, the first date, 1796, begins with a bang! The 1796 is not only an extremely scarce and valuable coin, but it is available in two distinct subtypes. The first subtype is the Capped Bust, No Stars obverse; the second is the Capped Bust, Stars obverse. Stars are also found on the remainder of the dates in the series. Both subtypes of 1796 are practically unavailable in Mint State condition. Even though circulated specimens infrequently appear at public auction, be prepared to pay dearly to obtain even a Fine 12 condition example. The 1796 Capped Bust, No Star coin also holds a unique distinction according to Walter Breen. In his book Walter Breen's Complete Encyclopedia of U.S. and Colonial Coins, he wrote: "It is the first precious-metal coin without stars issued for circulation by the USA prior to 1836; it is the first ever to show the heraldic eagle, which would become standard on all silver and gold denominations 1798-1807; and, it is the earliest made showing 16 reverse stars honoring Tennessee's admission." The Capped Bust, facing right, design was struck from 1796 to 1807. Don't let its short number of examples fool you because it is full of challenge and rarities. Even though only 11 coins are needed to complete this segment of the series, these 11 coins are not only expensive but next to impossible to locate. While most of these dates are quite expensive and generally unavailable in Uncirculated, the 1804 13 Stars and 1806/4 varieties are major obstacles for collectors. If you are lucky enough to find an 1804 13 Stars quarter eagle in About Uncirculated 58, the price tag would approach $225,000. The date 1808 is a type collector's nightmare. That's because it is a one-year type and a major rarity. This type is a Capped Draped Bust with Liberty facing left. A Very Fine 20 coin will cost approximately $50,000. Breen wrote: "But even in worn condition, this date has always been subject to unusual demand, much of it representing pressure from type collectors who want one of each major design. Many survivors have accordingly spent decades in museums, estates, or permanent collections; any that show up at auction will attract fierce competition." The Capped Head design began in 1821, and in 1829 the Mint reduced the diameter of the quarter eagle. The Capped Head design is probably the most affordable of all the early $2.50 quarter eagles. But affordability is relative and Mint State examples are still priced at $35,000 plus. The date 1826 is a most difficult one for collectors to obtain. According to gold expert David W. Akers in his book United States Gold Coins An Analysis of Auction Records Volume II Quarter Eagles 1796-1929: "The 1826 is the lowest mintage date of this type and also one of the lowest mintage dates in the entire quarter eagle series." The modified Capped Head design was created by William Kneass (a local engraver of bank note plates, replacement for Robert Scot, who died in 1823). Kneass' design was used from 1829 to 1834. The dates from 1829 to 1833 are generally considered evenly scarce. The dates 1832 and 1833 are more rare in Uncirculated. Still, as a group, this series of coins is available for collectors to obtain. The last year of the Capped Head quarter eagles and the last year of the early quarter eagles is much like the first year: yet another major challenge for collectors. The date 1834 is a transitional date. Besides being the last year of the Capped Head type, it is the first year for the Classic Head design. The 1834 Capped Head quarter eagle is a major rarity and usually unavailable in any grade. Specimens do appear on the market in circulated condition and that's when one must seize the opportunity and acquire it. Easier said than done, especially when other knowledgeable collectors have the same idea. Why is this date so unobtainable to collectors considering that its mintage of 4,000 closely resembles the other mintages for the small-size Capped Head design? The answer can be found in Akers: "The Mint Act of June 28, 1834, significantly reduced the gold content for quarter eagles and half eagles and, therefore, it is probable that the vast majority of the 4,000 minted were melted and never released. This is definitely one of the half dozen or so rarest quarter eagles. ..."