Jeff Garrett on Collecting American Gold Eagles

By Jeff Garrett for Numismatic Guaranty Company (NGC) ……

Although this modern series can be demanding, there are strategies that can help collectors who are ready for the challenge.

Next year will be the 40th anniversary of the American Gold and Silver Eagles. This anniversary is sure to draw considerable attention to an already-popular segment of the hobby. The US Mint will most likely issue special coins to celebrate the milestone as well. NGC will offer a host of special labels for the 40th anniversary, similar to what they have done in the past.

A set of American Silver Eagles is affordable and can be completed with a modest cash outlay. Silver Eagles have been produced since 1986, with coins struck in Uncirculated and Proof. The mint has also sold several special finish coins for collectors, including Reverse Proof and Enhanced Uncirculated. A more recent innovation has been coins with special privy marks, such as the ones struck to commemorate the 250th anniversary of the US Army. Upon their release last week, the coins quickly sold out.

The American Silver Eagle contains one ounce of pure silver and boasts an impressive physical appearance. With silver bullion selling for around $36 per ounce, the issues are attractive for collectors of limited means.

These contrast sharply with the American Gold Eagles series. These coins range in size and are produced in weights of 1/10 ounce, 1/4 ounce, 1/2 ounce, and 1 ounce. The Mint began making these in 1986, following the passage of the Gold Bullion Coin Act of 1985. The US government guarantees that the coins contain the stated amount of gold and requires them to be sourced from American gold.

The obverse features a modern rendition of the Saint-Gaudens Double Eagle design that was first used in 1907. Coins struck from 1986 to 1991 are dated with Roman numerals. In 1992, the Mint switched to Arabic numerals. Miley Frost created the reverse design, depicting a family of eagles, which features a male eagle carrying an olive branch above a nest with a female eagle and hatchlings. In 2021, the reverse was updated to feature a close-up portrait of an eagle. Jennie Norris created the new design. These bullion coins are legal tender and carry face values of $5, $10, $25, and $50.

Collecting a set of American Gold Eagles is a significantly greater challenge than collecting their silver counterpart. There are over 300 different issues of American Gold Eagles in Mint State and Proof. The coins are also much harder to find in superb condition. Most of the early-issue Uncirculated coins were sold solely for their bullion value without special attention to their preservation.

Gold is extremely soft, and the coins were usually shipped in rolls. Even minimal contact with other examples prevents the vast majority of the coins from achieving a grade of MS70. A complete set of American Gold Eagles in both striking formats contains almost 200 ounces of gold. This results in a substantial six-figure investment, regardless of the grade. The challenge of collecting the series is truly immense.

Regardless of the challenge, collecting American Gold Eagles is an attractive endeavor for many numismatists. As mentioned above, the coins feature the extremely popular design of Augustus Saint-Gaudens. This alone is the sole reason that many collectors purchase them. The coins are a great bullion play, with many of them available for a relatively small premium over their melt value. The coins were also struck in much smaller numbers than the American Silver Eagles and are genuinely scarce, especially in superb condition.

Options for Collecting American Gold Eagles

There are several ways to collect this series, some of which fit the budgets of most collectors or investors. For beginners, I would suggest assembling a complete set of 1/10-ounce coins from 1986 to date, in grades of MS 69 and Proof 69. This set comprises approximately 80 coins, many of which can be purchased for under $375 each. After this has been accomplished, a collector may then choose to move on to the higher denominations, as budgets allow. A complete set of any denomination is quite impressive and will give collectors a feel for the difficulty of the task.

Another popular way to collect the series is to purchase a complete set of PF 69 or PF 70 American Gold Eagles. The set contains more than 100 different issues, each of which is stunningly attractive. As many collectors are aware, building complete sets of vintage 1858-1915 Proof American gold coinage is an almost impossible task. Only a handful of legendary numismatists have ever come close to completing a set, including famous names such as Ed Trompeter, Harry W. Bass, and Louis E. Eliasberg. Completing a set of Proof Gold Eagles is expensive for the average collector, but at least the coins can be found.

The same set can be attempted in Mint State. Many of the Mint State issues are actually quite scarce in MS 69, making them a challenge to find for even the most dedicated collector. As mentioned above, several of these have low mintages, with some below 25,000 coins. One of the key dates for the series in Mint State is the 1991 $25, which has a mintage of only 24,100 coins. The coin is listed on the NGC US Coin Price Guide for $7,525 in grade MS 69. There are several others, as they were not carefully handled when issued, and Choice coins are quite scarce. Again, the set is possible to assemble for anyone with patience and enough money.

As most everyone knows, coin collectors love quality, and the American Gold Eagle series is no different. The ultimate challenge for this series is to collect them in grades MS 70 and PF 70. A complete collection of the entire series in this grade is monumentally difficult. Regardless of your financial resources, it will take years to accomplish. For collectors with more modest means, I would suggest concentrating on the coins in grade PF 70. A set of the 1/10-ounce coins can be purchased for around $17,500. These, along with the other denominations, are popular with registry set collectors.

Watch Out for the Rarities

The real challenge for the series is collecting the coins in MS 70 grade. The American Gold Eagles struck from 1986 to around 2000 are full of condition rarities. Several of the coins have NGC Census pops of fewer than 200 coins.

The coins were not carefully preserved, and even today, very few are regularly added to the population reports. When an early roll of the coins appears on the marketplace, most of the coins have considerable marks that preclude them from being graded MS 70. The coins are legitimately scarce and are very likely to remain so.

Collecting American Gold Eagles in grade MS 70 is extremely difficult for several reasons. Many of the coins are rare, and finding them is nearly impossible. Most of the coins that have been graded at this level are in closely held collections. I could locate a dozen 1907 High Reliefs at a single coin show, but would not see a single rare issue American Gold Eagle in grade MS 70.

The coins also rarely show up at auction. I have not seen a single set of MS 70 American Gold Eagles cross the auction blocks ever! This is quite remarkable, considering the billions of dollars’ worth of coins sold by rare coin auction houses over the last few years. When one of the very rare issues does show up at auction, collectors of the series jump at the opportunity.

For someone with adequate funds who enjoys an incredible challenge, collecting American Gold Eagles will be a fun and rewarding experience. In today’s global economic uncertainty, many are turning to gold as a hedge against financial calamity. If you are considering an investment in gold, think about collecting American Gold Eagles. You get the gold investment, and you are sure to enjoy the chase. With premiums at all-time lows for many of the coins mentioned above, now is a great time to take a look at the series.

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