Gold US coins - How quickly or slowly would they wear in circulation?
SanctionII
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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?
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?
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Comments
If it was 1885, then I'd say circulation was more common...
"Bongo hurtles along the rain soaked highway of life on underinflated bald retread tires."
~Wayne
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.
In honor of the memory of Cpl. Michael E. Thompson
<< <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
"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.
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.
Leo
The more qualities observed in a coin, the more desirable that coin becomes!
My Jefferson Nickel Collection