The History and Inspiration Behind the Liberty Head Gold Coins

The average collectors can't add the actual Holy Grail to their stash, but for those who are incredibly determined, it's possible to get pretty close! Some coins minted right here in the United States that have taken on a near-mythical status due to their history and elusive nature. One such gem is the Liberty Head Gold Coin, also known as the gold double eagle gold coin.

Whether a person is a completionist, a history buff, or just loves a good mystery, they will devour the fascinating story behind the $20 US Gold Coin. The double eagle was in production for nearly ninety years of the 245-year history of the United States. Where did these striking coins come from, and where did they go?

Most importantly, how can a collector get their hands on a rare Liberty Head Double Eagle today? Bullion Sharks can help you find the perfect addition to your collection! Continue reading to learn the history and facts behind the intriguing liberty gold coin.

As Good as Gold: Historical Context

Early in the nation's history, it was still a practice for the amount of precious metal in a gold coin to be equivalent to the gold coin value. For example, a coin containing five cents worth of silver would also be worth five cents.

While this was initially effective, it posed problems during times of austerity. Hoarding coins was a common practice during the Civil War era when many were destitute. The poor would melt valuable coins down for raw materials which retained their value in the global market.

Over time the materials used for minting US coins would be changed to dissuade citizens from hoarding. Coins would contain much less valuable metal and more filler. Melting down modern coins would not yield much value, for example.

The Liberty Head $2.5 Coin

While less elusive than the double eagle, the first liberty head coin was the $2.5 coronet. This coin was first produced in 1840 and would not cease production for sixty years! It never received a significant design change for that entire period.

The goal with the Liberty Head $2.5 was to create a coin design that was both iconic and enduring. By many metrics, this was successful. Before 1840, there had been several attempts to create an iconic liberty head or 'coronet' design, but none were to last.

The republic was growing, after all, and the symbol needed to reflect both the history and the future of the changing nation. The perfect design would come about in 1838. Christian Gobrecht designed the coin and adapted it for use on the Liberty Head $2.5 in 1840.

The design featured Lady Liberty in left profile, wearing a coronet bearing the word "LIBERTY." Her hair is in a bun, held in place using a strand of pearls. It featured thirteen stars, representing the thirteen original colonies of the United States of America, as well as the date.

On the reserve side was a version of the eagle originally designed by John Reich and modified only slightly by Gobrecht. It features an eagle with a union shield, olive branch, and three arrows. It says "UNITED STATES OF AMERICA" and "2 1/2 D."

The reverse side of the coin also featured the mintmark. The government struct the coin at five US mints: Philadelphia, Charlotte, Dahlonega, New Orleans, and San Francisco.

The design was a success. As a result, the Liberty Head $2.5 coin had the longest continuous production in the history of the American mint. The only difference between coins produced in 1840 and coins produced in 1907 were the dates.

This, of course, meant that any little variation became immediately unique and collectible. These variations are of most interest to collectors today.

Rare Liberty Head $2.5 Coins

Those starting a collection of Liberty Head $2.5 coins have their work cut out for them. With so few changes between 1840 and 1907, even collecting one coin from each mint is a challenging prospect! Coins from some mints are rarer than others, with coins from Dahlonega and Charlotte being the rarest.

Coins minted in Philadelphia are the easiest to find today. Even within that set, there are some elusive specimens. Coins minted during the civil war found their way into hoards in Europe, which is the source for many surviving coins from the period.

The 1841 Liberty Head $2.5 coin was only made with proof finish. Collectors call it "The Little Princess" because collectors believe that only fifteen exist in the world. They are part of some of the world's finest and most complete collections.

The 1854 coin struck in San Francisco is increasingly hard to find. The mint did not have enough parting acids to produce these coins. It received only 246 business strikes and remains the gem of any collection, with only about ten in existence today.

Likewise, the 1875 Liberty Head $2.5 coin was low mintage, as the president stopped trading paper money for coins during the war. Only 400 of these coins were ever struck. Out of those, fewer than 25 exist in collections today.

Let the Gold Rush In!

Nobody would deny that America is a capitalist nation. One of the most significant events in the country's history was the discovery of gold at Sutter's Mill in 1848. This discovery led directly to the famous California Gold Rush.

During this dynamic period in history, nearly 100,000 hopeful Americans made the trek to San Francisco in the hopes of finding their fortune. In some cases they were successful. By the conclusion of the gold rush, individuals had extracted approximately two billion dollars worth of gold and other precious resources from the earth.

The gold rush contributed to America's early reputation as a land of opportunity. It brought many of the first migrants into the nation. In many ways, it became another strong case for the existence of the American Dream.

It also resulted in brilliant innovation. Prospectors had discovered most of the surface gold in California as early as 1850, just two years after Sutter's Mill. This led to the development of hydraulic mining techniques, leading directly to the peak of the gold rush.

Unfortunately, the amount of gold discovered on the western frontier would continue to decrease. Still, the nation had developed a reputation as a vast land with plentiful resources. One might argue that the gold rush was the thing that made minting new gold coins in the United States a possibility.

The First Commemorative Coin?

The true centerpiece of any quarter eagle collection is the 1848 CAL. This was the first coin minted exclusively from gold mined from California during the very early days of the gold rush. The treasury minted 1,389 coins out of the 230 ounces of native California ore extracted at the very beginning of this historic period.

You can distinguish these coins by the letters CAL stamped over the head of the eagle on the reverse side of the coin. Authentic coins have a square period following the L.

Some may believe that the Columbian Half Dollar is the first commemorative coin, but true collectors disagree. The 1848 CAL is a historic memento and served as a souvenir during the period. The Columbian Half dollar would not exist for another forty-four years!

Today somewhere between 200 and 300 specimens exist in the world.

The Double Eagle Flies In

In 1859, the ability to mint a large gold coin was a sign of the nation's prosperity. It meant that America had the resources and the need for a large coin of significant value. The face value of the gold double eagle was $20.

This is significant because, before 1850, a coin in such a high denomination was unheard of. $10 eagle coins were the highest denomination available. They were first minted in 1795, soon after the Philadelphia mint was first established.

By 1849, most Americans were familiar with the $10 eagle coin, even if they'd never owned one. Thus, when a $20 coin went into production, they equated it with the $10 eagle. That is how the $20 gold coin became known as the gold double eagle, as it was worth two eagle coins.

The double eagle contained 90% gold and only 10% copper alloy. Each contained approximately 1 oz of gold. While this might not seem like much on the scale, it's worth $1200 today!

The Liberty Head Double Eagle

The coins minted between 1849 and 1907 featured a liberty head coronet design, not unlike the Liberty Head $2.5 coin. While this design seemed to have precedent, the decision to use the design was not easy! Rumor has it that they only settled on Chief Engraver James B. Longacre's design after significant infighting at the Philadelphia Mint!

Both sides of the coin are exactly as one might describe the Liberty Head $2.5, with the liberty head with a coronet on one side and the eagle on the other. In the case of the double eagle, the designer's initials also appear. Collectors can find JBL inscribed on the head. This was the first American coin to feature the designer's full initials.

The design was not immediately as popular as the design of the Liberty Head $2.5 coin, however, and not destined for such longevity. Initial reviews described it as "confused," "shabby," and "routine." Collectors, however, don't seem to mind these early responses as it remains imminently collectible and desirable today!

Three Types of Liberty Head Double Eagle

Three distinctive types went into production between 1849 and 1907, referred to as Type I, Type II, and Type III. Type I between 1859 and 1866, Type II between 1866 and 1876, and Type III between 1877 and 1907.

The Type II coin differs from the Type I coin in one significant way. In 1865, a law went into place requiring all coins to bear the words "In God We Trust." Thus, designers made amendments so the coin would adhere to the new law.

The most well-known difference between the Type II and Type III coins was an amendment to the "In God We Trust" text. It was set in bolder type in 1877. Collectors distinguish the change in design by referring to gold double eagles as either "heavy motto" or "light motto."

Other changes were less significant. Designers adjusted the proportions of Liberty's head to better fit the hand-stamped date. They also changed the denomination to read "Twenty Dollars" rather than just "Twenty D."

Designers made small changes to each of these types throughout the minting process that may be notable to collectors. The biggest change, however, was a complete shift in design in 1907.

The Saint-Gaudens Double Eagle

President Theodore Roosevelt had a new vision for American Coinage. He wanted each and every coin to be beautiful. The best way to elevate the coins to beauty seemed to be to hire an artist to redesign some of America's coins.

In the case of the double eagle, Roosevelt sought out the sculptor Agustus Saint-Gaudens. Saint-Gaudens was ill at the time, so work on the new design was slow.

Furthermore, because Saint-Gaudens was an artist, he approached the design process in a creative way. He hoped to innovate, while those at the mint hoped for a more practical, easy-to-strike design. Notably, the sculptor sought to incorporate several high-relief sculptural elements that would have required many steps and made the coin more difficult to produce.

High Relief and Low Relief Saint-Gaudens Double Eagles

Saint-Gaudens died in 1907 before seeing his designs finalized for production. Initially, a few high-relief specimens of the coin went into circulation. Ultimately, however, the mint could not keep up production, so the government produced only about 12,000 between 1907 and 1908.

The height of the relief was ultimately lowered to make the coin easier to strike, but the integrity of the design remained intact. Collectors refer to this version of the coin as "low relief." The Saint-Gaudens estate denounced the changes.

Despite its wild history, many collectors consider the Saint-Gaudens Double Eagle to be the most beautiful US coin ever minted. Roosevelt agreed, calling it "the best coin that has been struck for two thousand years."

The United States Mint would produce the Saint-Gaudens double eagle coin until 1933.

The End of the Gold Coin in America

Why did the most beautiful coin in the history of the United States cease production in 1933? Most would blame the United States Gold Reserve Act of 1934.

In essence, the act, signed by Roosevelt, transferred the ownership of all gold money to the US treasury. This included all gold and bullion held by the federal reserve, institutions, and individual citizens. The government paid individuals $35 for each ounce of gold surrendered.

Federal institutions could no longer redeem dollars for gold. Instead, the treasury converted all gold into dollars, regulating its use in the country. In essence, it became illegal for citizens to own gold in the United States.

Most significant was Section 12 of this new law, which allowed the president the power to declare the gold value of the dollar. Roosevelt did this immediately to increase the credit supply and stabilize prices in the country.

Thus, the United States was no longer on the "gold standard," as had been the case since the nineteenth century. The plan worked, as the amount of gold in the treasury increased and interest rates reached all-time lows.

The legislation would, however, mark the end of gold coins in America.

The Elusive 1933 Gold Double Eagle

Roosevelt signed the United States Gold Reserve Act into law in January of 1934. At this point, the president was drafting every component of the New Deal, and small changes were already being made to revitalize the economy. The end of the gold standard in America was only one small part of a much larger plan to revitalize the US economy after the depression.

While the government minted the double eagle coin in 1933, it was never circulated. It would not have made logical sense given the major changes to come. The Treasury would have had to buy every coin back, and therefore chose to retain them instead.

The plan was to reserve two 1933 double eagle coins and melt the rest down into gold bars per the new laws. The two coins that were intentionally spared found a home at the U.S. National Numismatic Collection. Not everyone in the treasury was honest, and the desperation of the depression may have created the origin story for one of the world's rarest coins.

Twenty 1933 double eagles got stolen and were purportedly sold to collectors. These twenty coins have taken on a near-mythical status in the coin collecting world. As a result, the 1933 Liberty Head Gold Coin is one of the rarest coins on earth.

Since 1934, the government has recovered nine of those coins and subsequently destroyed them. Eleven of them remain. Of those eleven, ten are currently at the United States Bullion Depository.

Where is the one remaining 1933 double eagle coin?

The Case of the Missing Coin

The one 1933 double eagle that wasn't accounted for was sold to a private collector in 2002 for 7.59 million dollars. With inflation, that is about 11.4 million dollars as of the year 2021.

The coin was so valuable that the owner chose to remain anonymous. He revealed his identity as collector Stuart Weitzman when the coin sold again in 2021. The current anonymous owner of the coin paid 18.8 million dollars.

But how did a private collector manage to get his hands on one of the most elusive coins in the world? Is it legal for an individual collector to own the coin?

The Eagle Flies to Egypt

Somehow, one of the stolen coins found its way into the hands of one of the world's most prolific collectors - King Farouk of Egypt. He purchased the 1933 double eagle in 1944. He wasn't trying to break the law and applied to the United States Treasury for an export license.

The government granted the license. Several days later, a 1933 double eagle would be missing from the United States Treasury Department. Before the Treasury could reverse their mistake, WWII delayed their efforts, and the coin remained with Farouk.

Farouk was deposed in 1952, and many of his precious possessions went up for public auction, including his collection of over 8,500 coins. The 1933 double eagle was among them. The Treasury requested that Egypt return the coin, and though the Egyptian government agreed, the coin vanished.

The Eagle Flies Home

Nobody would see the coin again until 1996. It turned out that British coin dealer Stephen Fenton was in possession of the coin, though it remains unclear how he acquired it. The case was not closed until 2001 when ownership of the coin was transferred back to the United States government.

At that point, the United States government could legally sell the coin to a private owner. The government went through the appropriate steps to make the coin legal tender for the first time. They kept it safe at Fort Knox until its salt to Weitzman in 2002.

Weitzman bought the coin legally at a Stacks Bowers auction in New York City. Today, the coin remains the only 1933 Liberty Gold Coin that can legally be part of a private collection. It is truly one of a kind, making it about as rare as the holy grail!