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Gold US coins - How quickly or slowly would they wear in circulation?

SanctionIISanctionII Posts: 11,645 ✭✭✭✭✭
Over the weekend I looked at a 1925D Quarter Eagle my father in law received in 1925 (when he was 6) from his aunt as a gift. He kept it ever since.

Looking at it with a 10x loupe reveals both muted luster, a few marks and what appears to be rub on certain high points of the coin. Since the coin was minted and given as a gift in 1925, I would expect that it would be MS (i.e. obtained new from a bank and given as a gift). However, I suppose it could have passed around in circulation for a period of time (weeks or months) between the time it first left the bank that acquired it from the government and the time it was given as a gift.

I do not know how common these coins were in circulation in California in the mid 1920's and I do not know how long it would take these coins to show wear from circulation.

Any thoughts, comments or insight?

Comments

  • Steve27Steve27 Posts: 13,266 ✭✭✭
    Gold is a very soft metal and wears quickly; however, most gold coins didn't circulate.
    "It's far easier to fight for principles, than to live up to them." Adlai Stevenson
  • anablepanablep Posts: 5,013 ✭✭✭✭✭
    By 1925, gold coins were not the medium of choice.

    If it was 1885, then I'd say circulation was more common...
    Always looking for attractive rim toned Morgan and Peace dollars in PCGS or (older) ANA/ANACS holders!

    "Bongo hurtles along the rain soaked highway of life on underinflated bald retread tires."


    ~Wayne
  • speetyspeety Posts: 5,424
    Pocket piece?
    Want to buy an auction catalog for the William Hesslein Sale (December 2, 1926). Thanks to all those who have helped us obtain the others!!!

  • ziggy29ziggy29 Posts: 18,668 ✭✭✭
    Most of the circulation of gold coins came in the west. After the turn of the 20th Century, there was a lot more minor coinage and silver coinage available in the West and the need to circulate gold coins declined. Also, paper money was becoming more prevalent and Gresham's Law would predict that the paper money would drive the precious metals out of circulation (i.e. $5 notes would circulate before gold half eagles would).
  • JazzmanJABJazzmanJAB Posts: 1,025 ✭✭✭✭
    If you could weigh it, depending on the wear, probably such a small difference from the issue weight. (0.05 - 0.08 grams, if that)
  • adamlaneusadamlaneus Posts: 6,969 ✭✭✭
    A 90% gold/10% copper alloy, cold worked, is actually quite hard. It can be three times harder than pure gold alone.

    That said, I believe that even one day in a pocket with other change will cause significant wear as viewed under a 10x loupe.

    The metal flow in these incuse coins was quite low compared with the liberty design. Meaning that there is less potential for luster. And, due to the design, the luster on the surface wears quickly.

    By the mid 1920s, I get the impression that the bulk of these coins were kept as 'grandson-gifts' and the like.

    I have three such coins passed down to me from my grandfather. One is clearly XF and two of them may be MS. No backstory as to where they came from.

    I, too, have no idea what the dividing line is between MS and AU on this sort of coin, even when comparing my raw examples to graded examples.

    I come from a time when the government uses relatively worthless base metals for money. Gold in circulation seems like a distant fantasy.

  • TomBTomB Posts: 20,638 ✭✭✭✭✭
    Incuse gold coinage does not have the same luster or flow lines that other gold coinage has, which would mean that at least part of your observation about muted luster may be due to the characteristics of manufacture rather than subsequent wear.
    Thomas Bush Numismatics & Numismatic Photography

    In honor of the memory of Cpl. Michael E. Thompson

    image
  • CaptHenwayCaptHenway Posts: 31,470 ✭✭✭✭✭


    << <i>Gold is a very soft metal and wears quickly; however, most gold coins didn't circulate. >>



    I respectfully disagree. The great majority of 1907-1916 $10 Indians and $20 Saints that we see from old personal holdings are in EF to AU condition. Likewise pre-WWI $2-1/2 and $5 Indians. Circulated post-WWI Saints are also not unusual.
    TD
    Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
  • joebb21joebb21 Posts: 4,732 ✭✭✭✭✭
    a gold piece given to a 6 year old (even if if was a $1 coin) was a lot of money back then. Im sure even if he knew he couldnt spend it (or didnt want to) he would take it out and look at it every night before he went to sleep and give it a rub for good luck
    may the fonz be with you...always...
  • Here's what Q David Bowers says on post WW1 gold coins and quarter eagles in particular:

    "In America, holders of quantities of gold coins-such as banks-generally declined to pay them out at par. This situation eased about 1920 (although quarter eagles were no longer readily available for face value after that time)."

    -page 240, A Guide Book of Double Eagle Gold Coins.

  • For early 20th century gold, I've read that a huge number of quarter and half eagles were given out as gifts. This is probably why many indian head gold coins are very lightly circulated. Most people who received them probably spent them immediately and then the coins were returned to banks by the stores. I'm sure you can find more info on here or online somewhere...
    For those that don't know, I am starting pharmacy school in the fall. image
  • <<"In America, holders of quantities of gold coins-such as banks-generally declined to pay them out at par. This situation eased about 1920 (although quarter eagles were no longer readily available for face value after that time">>

    In World War I, the Federal Reserve system aided by member commercial banks hoarded gold and they kept hoarding it afterwards.
    There was a policy reversal and gold was promoted. Gold certificates were first reissued again in 1922. This policy change might not have been wise since it led to a gold squeeze in 1933.
  • leothelyonleothelyon Posts: 8,342 ✭✭✭✭✭
    I thought gold invented suspenders, to help hold up those trousers stuffed full of gold. image


    Leo

    The more qualities observed in a coin, the more desirable that coin becomes!

    My Jefferson Nickel Collection

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