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Sale 100
Lot 1289
1869. PCGS graded Proof 64 Deep Cameo. PQ. Lovely light golden toning wiht fantastic eye appeal and contrast between the devices and fields. For identification there is a faint lintmark over the R in LIBERTY in Liberty's hair. These few Proofs were struck for collectors at the time, and they must have been sold at a premium as gold was trading well of the stated value of this coin at the time of issue. Only 25 examples struck and this is clearly one of the finer examples known today.
The year 1869 is of particular interest in history. The Civil War was over in 1865, but the monetary upheaval continued. President Lincoln had helped the North finance the war with the issue of Greenbacks, currency which was legal tender for all government debts, but could not be exchanged for gold at par. That meant that a $20 greenback note, would not be honored in exchange for a double eagle gold coin. By 1869 the premium of gold coins to greenbacks was around 130%, thus at $20.67 per ounce gold (officially) the 30% premium paid for gold meant the greenbacks of $20 were valued at $14.47 in gold buying power. Gold coins were still needed for most international transactions, so banks were supplied with them but the premium moved up and down depending on the supply of greenbacks and the market forces at any given time.
This was a situation that offered opportunity.to some. Two famous speculators of the time, James Fisk and Jay Gould noted that the government was slowly releasing treasury gold into the market to bring down the premium for the greenbacks in circulation. In time the premium might disappear. Looking for an edge, Gould and Fisk contacted a small time speculator Abel Corbin, who happened to be married to President Grant's younger sister, to come to their aid. Corbin used his influence to introduce Fisk and Gould to President Grant. Fisk pleaded with the President that selling gold into the market would bankrupt farmers (voters) and it would be wise to withold any gold sales until after the harvest in late 1869. Grant agreed, and Corbin was told to watch over Grant and make sure no gold sales happened from the Treasury. Gould and Fisk started buying up gold bullion on the New York market, soon the premium over the greenbacks began to rise. Further purchases of gold were ordered by the speculators. The premium for gold rose from 130 percent of par to over 150. Thus $100 worth of gold coins would cost $150 in greenbacks. As more and more speculatiors jumped on the golden bandwagon, the price continued to rise. The market reached a boiling point on September 24, 1869 when the premium of gold to paper hit 162 percent. Meanwhile Grant found out about the plot and ordered a large amount of gold from the treasury to be sold. Almost immediately the premium collapsed back to 130 percent of par, wiping out many speculators. The affair nearly cost Grant the Presidency. September 24th became known as Black Friday. After investigations Grant was cleared of wrongdoing, but never fully recovered the respect he had lost from the American people. Gould and Fisk hired favored lawyers and snuck away with what profits they could. People and their behaviour remain consistent through history. When you hold this fantastic double eagle in your hand just think of all the events it has witnessed.
Pop 1; 2 finer, 1 in 64+, 1 in 65. (PCGS # 99084) Estimate Value $130,000 - 150,000
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| Realized $166,263 |
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