Among problem coins, some problems are worse than others.
On the scale of severity, coins obviously used in jewelry, with
mounts, and those so heavily polished that little original surface
remains are among the most problematic. These problem coins can
provide an opportunity because they allow a collector to own a rarity
that he or she may not otherwise afford, but they sell at a steep
discount to coins without similar impairments.
In this Market Analysis series, we're profiling three expensive gold
coins with major problems that were offered at auctions in the past
year and provided entry-level examples.
Here is one of them.
1850 Mormon pioneer gold $5 coin NGC Extremely Fine Details, Mount Removed
Mormon pioneer gold coins dated between 1849 and 1860 are all very
scarce and very expensive. They were struck in the home of a Salt Lake
City dentist, Dr. William Sharp. In 1849, gold coins in the $2.50, $5,
$10 and $20 denominations were struck. It’s not exactly clear why the
1850 Mormon gold $5 coins were minted, but Don Kagin believes the
mintage occurred shortly after March 15, 1850.
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The Mormon gold issues had a reputation for being underweight, so
they circulated primarily in Utah and if they crossed over to
California, they were typically discounted by merchants. This example
was formerly mounted and the soldering is evident on the obverse,
while the reverse is surprisingly clean. Numismatic Guaranty Corp. has
graded it Extremely Fine Details, Mount Removed.
At the August 2016 American Numismatic Association auction, Heritage
sold this 1850 $5 coin for $18,800, a relatively strong price
considering the visually jarring nature of the remaining solder on the obverse.
Let's Analyze More Problem Coins:
Why a coin that can sell for
$30,000 becomes a $9,000 opportunity:
It represented the ultimate entry level opportunity for a buyer to
purchase a coin that is generally priced well into the five-figure range.