At the start of the Civil War, the United States government halted specie payments – or the mechanism by which citizens could turn in their paper money and redeem it for gold or silver. This led to widespread hoarding of gold and silver coins during the war and these coins disappeared from circulation.

In order to alleviate this crisis, Congress authorized the creation of five-cent coins made of a 75% copper-25% nickel blend.

Today known as the Shield Nickel – this prized coin marks the point in history when 5-cent coins stopped being minted as small silver disks and became the base metals coins they still are today.

The Shield Nickel was issued from 1866 through 1883 – and the series boasts two proof-only years (1877 and 1878). The Shield Nickel proofs can indeed be elusive for collectors to find and these years stand as one of the great classic rarities among the late 19th-century proof coins.

Mint Engraver James Barton Longacre designed the new nickel. The obverse features a large shield with arrows intertwined at its base. A lovely wreath hangs over the shield with a cross at the top. The date is marked at the bottom with the motto IN GOD WE TRUST in small letters around the top. On the coin’s reverse, a large numeral 5 is the feature, surrounded by 13 small stars and 13 glory rays as well. At the top reads the UNITED STATES OF AMERICA with the word CENTS at the bottom.

Mint officials discovered the hard way that the inclusion of the rays on the reverse was problematic due to the combination of metals. The copper and nickel together created a very hard planchet that was difficult to fully strike with the intended designs. To correct this problem, mint officials ordered the removal of the rays in mid-1867, creating two varieties: With Rays and No Rays. However, striking problems persisted, resulting in a series of coins noted for inconsistent strikes and die cracks.

For collectors interested in building a series of Shield Nickels, circulated coins and those in lower Mint State grades are relatively easy to obtain. However, gems are rare and the survivor rate for all years falls dramatically above the MS 66 level. The early mintages are fairly large, yet the series boasts tiny mintages as well which creates intrigue around building a complete set.

Is it an everlasting contribution to our nation’s coinage? Today, the Shield Nickel is the reason we refer to five-cent coins as nickels.

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The National Numismatic Collection at the Smithsonian Museum in Washington D.C. is the home to the rarest of the rare coins in the world. The treasured collection houses more than 1.6 million monetary objects in total and is considered the largest collection of money in the world. The coins are sourced from every inhabited continent on the globe and span more than three millennia. Today we highlight five of the most interesting U.S. rare coins in the Smithsonian collection.

1. 1804 Silver Dollar

Although dated 1804, the silver dollars which bear this date were minted in 1834. President Andrew Jackson himself requested the U.S. Mint create these coins for diplomatic gifts to world leaders – gifts that would literally be fit for a king. Celebrating U.S. history, the front of the 1804 Silver Dollar features Liberty’s bust, the date “1804” and the word “liberty.” The back of the coin highlights an eagle and 13 stars that represent the original American colonies.

In November 1834, the Philadelphia Mint struck eight 1804-dated silver dollars for the gift sets. One was given to the Imam of Muscat and another to the King of Siam. The other six quickly landed in private collections and remain numismatic legends today. There are three ‘classes’ of these silver dollars and the Smithsonian owns all three varieties.

2. 1838-O Half Dollar Proof

In 1835, Congress made numismatic history with the establishment of three new U.S. mint branches. The first two facilities were at Charlotte, North Carolina and Dahlonega, Georgia, which were created to coin gold from nearby mining activity. The third branch at New Orleans was admittedly far from any mining activity, but as a major port of entry for gold and silver coin shipped in from Mexico and Latin America, it was well positioned to mint both gold and silver coins.

The 1838-O Half Dollar was the first coin struck at the New Orleans Mint – and only 20 coins were made as proofs. Yellow fever struck the New Orleans area and the rampant disease, combined with technical issues at the mint limited coin production that year. The result is a highly prized numismatic treasure in the 1838-O Half Dollar piece. The 1838-O Half Dollar from New Orleans is ultra-rare and historic. There are only eleven known survivors, one of them is housed at the Smithsonian and this coin is considered one of the most important American rarities in existence.

3. 1849 $20 Gold Coin

Before the California Gold Rush, the largest U.S. gold coin denomination was $10. Following the enormous amount of bullion that was coming out of California, a decision was made to authorize a new larger denomination coin: the Double Eagle. The artist, James B. Longacre, designed the new gold coin and, in late December, the first two pattern double eagles were struck at the Philadelphia Mint. There remain questions on whether the second 1849 $20 pattern coin was actually struck as there is no evidence in the numismatic community today about its whereabouts.

Widely considered to be the most valuable coin in the world, the 1849 $20 gold coin housed at the Smithsonian is the first Double Eagle and the only one with known whereabouts. As the story goes, in 1909, J.P. Morgan unsuccessfully offered to pay the then enormous sum of $35,000 for this gold coin in the Mint Collection. It has been estimated if this coin were up for auction today it would sell for a multi-million dollar amount.

4. 1907 Saint-Gaudens Ultra High Relief Double Eagle $20 Pattern

Quite simply, President Theodore Roosevelt wasn’t happy with the nation’s coinage. As the story goes, at a Washington dinner party one evening, Roosevelt tasked Augustus Saint-Gaudens, a brilliant sculptor of that time, to redesign America’s gold coins. Both men admired Greece’s ancient coins and agreed that U.S. gold coins developed in that fashion would be a monumental achievement. This coin was the result of those endeavors. Today, the Saint-Gaudens Double Eagle is often considered the most beautiful American coin ever made.

Fewer than 24 of these pattern coins were struck with the ultra-high relief, which were never meant for circulation. The minting process was complicated due to the unusually high relief featured on the pattern coins. It took nearly a dozen tries through the hydraulic coining press to achieve the ultra-high results. In 1907, President Roosevelt surprised his daughter with this pattern coin as a Christmas gift. Later, in 1961, Roosevelt’s daughter donated this coin to the Smithsonian.

5. 1913 Liberty Head Nickel

Last, but not least, the 1913 Liberty Head Nickel is one of the most celebrated coins of the 20th century. Only five are known to be in existence today and one is at the Smithsonian.

These nickels come with a bit of intrigue and scandal. In 1912, the U.S. Mint retired the Liberty Head Nickel and replaced it with the Indian Head Nickel design. However, five Liberty Nickels were still secretly struck. The existence of the coins remained a secret until 1919 when the statute of limitations for prosecuting the mint official expired.

It became public that Samuel W. Brown, of North Tonawanda, New York, had possession of the five nickels. He had previously served as Storekeeper of the Mint. Despite already having them, Brown placed an advertisement in the periodical: The Numismatist, offering to pay $500 each for 1913 Liberty Head Nickels. Later he raised the offer to $600. Brown knowingly was creating hype around these coins, which he later displayed at the 1920 ANA convention before selling the pieces to a Philadelphia dealer.

All five of these legendary coins are among the greatest numismatic treasures in the Smithsonian collection, which continue to be studied and enjoyed by visitors from around the world.

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Desperate times call for desperate measures. And hard times call for Hard Times Tokens.

Hard Times Tokens were copper tokens that were either one cent or half a cent in value. These pieces served as unofficial currency between 1833 and 1843. The coins were privately minted in response to an ongoing shortage of small changes in the US resulting from an economic depression.

One major contributing factor to this setting was the decision from President Andrew Jackson and his Treasury secretary, Levi Woodbury, to enact a law – referred to as Specie Circular – which demanded that banks only accept gold and silver as forms of payment for the purchasing of public lands. This decision had major implications because public land speculation reached new heights at the time.

This law prompted panic as people began hoarding coins that consisted of precious metals. As a result, banks had an inadequate supply of gold and silver as Americans rushed to retrieve their savings. Consequently, many banks failed.

The size of the Hard Times Tokens was similar to the cents they were intended to replace. Many of the designs took the difficulty of the situation as an opportunity to poke fun at Jackson and his vice president, Martin Van Buren.

Here we look at a few of the most amusing designs.

Running Boar Hard Time Token (1834)

This token, minted from copper in 1834, reads My Substitute for the US Bank. My Currency. My Glory. Experiment. The obverse lettering reads, Perish Credit Perish Commerce My Victory My Third Heat Down With The Bank 1834. The wording of this token perfectly captures the sense of anger prevalent in the US at the time. For example, Jackson and Van Buren were often ridiculed for the tokens as seen by another design which included a quote from Van Buren’s inaugural speech, “I follow in the footsteps of my illustrious predecessor,” with an image of a running jackass meant to represent Jackson.

Millions For Defence Token (1837)

This piece is a reminder of how many Americans felt about the British at the time. The lettering reads, Millions for Defence Not One Cent For Tribute which expresses support for building up defense capabilities in the US instead of giving in to British demands amid an ongoing border dispute over Canada.

Daniel Webster Token (1841)

This copper token contrasts the stability of the constitution with the peril of Van Buren’s “experiment.” The obverse includes the name “Webster” referring to the pro-Whig Democrat Daniel Webster who was a vocal opponent of Jackson’s policies. Webster disagreed with Jackson’s anti-bank stance which resulted in Jackson’s decision to remove federal deposits from The Second Bank of the United States, the second federally authorized national bank in the United States. Jackson diverted federal revenue into selected private banks by executive order. This ended the Second Bank’s regulatory role.

The coins are a reminder that even in the 1800s there was a level of divisiveness in the country that so many associate with only our current era. Many of these tokens are very affordable. They are a great way to include truly unique and individualistic pieces in a collection.

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If you are looking to expand your coin collection this year, this list contains some of the most sought-after coins for beginners and advanced numismatists alike. With an eye toward long-term investment value, if you seek to acquire the highest quality rare coin available that fits in your budget, you will never be disappointed. Here is our list of the top five rare coins you should collect.

1. 1909-S V.D.B. Lincoln Cent

In 1907, President Roosevelt wanted a new coin to honor the 100th anniversary of Abraham Lincoln’s birth (1809-1909). Roosevelt explored the idea of featuring an image of President Lincoln on the coin and ultimately accepted a coin design proposal submitted by Victor David Brenner, a sculptor, and engraver.

Americans eagerly anticipated the release of the new Lincoln cent in 1909, this was the first ever regular issue coin in American history to feature a real person. On release day – August 2, 1909 – the police were called in for crowd control, as the coin was distributed for the first time on Wall Street. Newsboys famously took advantage of the huge demand, nearly doubling their money after braving long lines selling their Lincoln cents at three for a nickel.

Quickly, however, public controversy and scandal broke out over the design, specifically the inclusion of Brenner’s initials “V.D.B” on the reverse of the coin. Internal complaints emerged over the size and placement of the initials. A few days later, Treasury Secretary Franklin MacVeagh sent a message: “Stop the mints!” He halted production of the coin and ordered the initials removed.

By then, almost 28 million cents were struck in Philadelphia and 484,000 at the San Francisco Mint. Today, this beloved coin featuring the V.D.B. initials is essential to any Lincoln cent collection.

In 1918, the initials returned, albeit smaller and on the obverse, rather than reverse.  That this occurred so soon after the death of Charles Barber led to rumors that Barber, the Mint’s chief engraver, was the person who made the original complaint about the initials.

2. $4 Gold Stella

Named for the five-pointed star featured on its reverse, there is a $4 gold coin known famously as a Stella. The gold coin was minted in 1879 and 1880 and originated as a prototype to closely approximate the value of common foreign gold coins. Stellas were never produced for circulation, but there was immediate collector demand for these awe-inspiring coins.

While it was said that no coin collector could obtain a Stella from the U.S. Mint, the Congressman who had received a special order for prototype viewing apparently used them as gifts and perhaps even payment. It was said that these great works of numismatic art were seen in special necklaces adorning the bosoms of Washington’s top madams, whose brothels were said to be patronized by those same Congressman.

Today, these coins are scarce and expensive. In fact, this ultra-rarity may be beyond the reach of many collectors. But, for those who have the resources, this is a gem to be treasured. The $4 Stella is a historic gem from an exciting time in American history.

3. $20 Saint-Gaudens Double Eagle

Affectionately known as “Saints,” these are often called one of the most beautiful coins ever produced by the U.S. Mint. These lovely coins exist due to the partnership between two monumental historical figures of their day.

President Theodore Roosevelt decided that the nation needed a more classical design on its gold coins. Roosevelt began his vision to reshape the nation’s coinage by unleashing the majestic talent of Augustus Saint-Gaudens, a brilliant sculptor of that time. As the story goes, at a Washington dinner party one evening, Roosevelt tasked Saint-Gaudens with the grand undertaking to redesign America’s gold coins.

Both men admired Greece’s ancient coins and agreed that U.S. gold coins developed in that fashion would be a monumental achievement. They were right. Today, these stunning coins still take your breath away. The obverse showcases a dramatic full-length portrait of Liberty in a flowing gown, heralding a torch in her right hand and an olive branch in her left. She is featured in full stride with rays of sunlight behind her. Above her, the word LIBERTY sits atop the coin.

The original high-relief version was stunning but impractical to produce and difficult to stack. Subsequently, the relief was reduced and production continued.

The $20 Saint-Gaudens gold piece was minted from 1907 to 1933, except for the years 1917-1919, when World War I resulted in rising bullion prices and an influx of American gold coins from Europe.

4. Morgan Silver Dollar

Many collectors consider The Morgan Silver Dollar to be the premier coin design created by George T. Morgan. The Morgan Dollar is a U.S. coin that was minted between 1878 and 1904, and then again in limited production in 1921. During the initial production phase between 1878 and 1904, there were over 500 million Morgan Dollars minted.

Over 270 million silver dollars were melted down in the U.S. in 1918, in efforts to help finance World War I, the majority of those were Morgans. It was the Pittman Act that called for their replacement, which opened the door to the last production cycle of Morgans ever minted in 1921.

On the coin’s obverse, Lady Liberty’s head dominates the striking face of the coin and is surrounded by the date, 13 stars, and the phrase E Pluribus Unum, which is Latin for “Out of Many, One.” On the reverse: the American bald eagle sits on a branch with his wings spread out dramatically, while gripping arrows in one of its talons. The work of art is surrounded by a 3/4 wreath and the motto “In God We Trust” is emblazoned above the eagle’s head. If there is a mint mark, it sits below the wreath.

It’s easy to see why the Morgan dollar is beloved among numismatists. The large, nearly palm-sized heavy silver dollar is a joy to hold in your hand.

5. Mercury Dime

You may already be familiar with the Winged Liberty Head Dime, popularly known as the “Mercury” Dime. The U.S. mint struck this popular coin from 1916 until 1945. This is one of the iconic coins that numismatics acquire for sets. Easy availability for most of the years is one reason that even beginning collectors can tackle the satisfying goal of owning a Mercury Dime set.

Within the Mercury Dime series, there are only a few absolute rarities and there is only one that is hard to find. The 1916-D is the scarcest major key date and rarity within the Mercury Dime series. Only 264,000 were struck. Other key dates include 1921 and 1921-D and 1942-1 and 1942 -1D. The latter key dates show “overdates” with the number “2” struck over the number “1.”

Some Americans confused the depiction on the reverse of the coin of a young Liberty with the Roman god Mercury, which is how its popular name caught on. The coin’s design received positive reviews within the artistic community. However, some modifications were required as the coin did not perform well in vending machines.

Collectors actively pursue this stunning coin for the exceptional design created by Adolph A. Weinman. The metal content is 90% silver and 10% copper. The mints include Philadelphia, Denver, and San Francisco.

Getting started

If you are interested in starting or adding to your collection, contact a Blanchard portfolio manager today. We will take the time to learn your investment objectives, investment time horizon, and risk appetite before recommending rare coins for your consideration – to help you meet both your collecting and investment goals.

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