In 1783 the monetary system in the United States was something of a mess. There was inconsistency among the coinage used throughout the thirteen states governed by the Articles of Confederation. Some people used coins from other countries and others used money that was unique to their region. The value of goods fluctuated from state to state and the accepted currency also differed. As a result, transactions were burdensome. Customers had to frequently exchange currencies. This step generated additional fees. In time the Continental Congress chose to mint a single currency.

The first step in this project was to assess the different currencies in use and attempt to reconcile their values. The purpose of this initial phase was to devise a currency that could be easily adopted by each of the thirteen states. After evaluating the scope of money in circulation across the states officials decided to use a system based on 1,000 Units. Doing so would equip all but one of the thirteen states to adjust their money to this new system with ease. The resulting currency were the Nova Constellatio pattern coins created in 1783.

Five patterns exist today. The range of values is in three silver denominations of 1,000-Units, 500-Units, 100-Units, and 5-Units. There are two pattern types within the 500-Unit family. The design of each is essentially identical except for the mark indicating the number of units. One side has an all-seeing eye in the center with rays of light radiating out with a circle of thirteen starts to represent each state and the words “Nova Constellatio” surrounding the image. This means “a new constellation.”  The reverse features a laurel wreath with the words “Libertas Justitia” (“Liberty, Justice) circling the leaves.

The coins are rare because the plan never came to fruition. The currency never advanced beyond the Congressional committee. In fact, the first official U.S. mint would not open for nearly a decade. This rarity means that few have ever owned the coins and those in existence can be traced back to the men, metallurgist Benjamin Dudley, and founding father Robert Morris, who championed the cause.

It is a sad postscript that Robert Morris later made some highly speculative moves in real estate which left him broke. As a result, he landed in debtor’s prison from 1798 to 1801. After serving his time he spent the remaining, though few, years of his life in Philadelphia until his death in 1806.

Ron Guth, President and Founder of PCGS Coin Facts best encapsulates the importance of the coins when he says “few coins radiate history like the 1783 Nova Constellatio Patterns.  They represent an innovative effort to unify the monetary systems of the thirteen colonies, fresh off their defeat of British rule.  These once-in-a-lifetime coins reflect the pride, idealism, and hope of a new American nation.  Their simple, yet powerful, designs proclaim America’s place as a new constellation in the universe of nations.”

Today the Nova Constellatio coins continue to intrigue collectors because they are the first pattern coins that emerged from the newly independent United States.

When the United States government began minting its first official coins – the 1792 silver half dismes, there were no known coin collectors actively seeking them out.

At the time, American coin collectors pursued ancient Greek and Roman money and European coins.

By the 1850’s that had changed. Philadelphian Joseph Mickley, born in 1799, started collecting coins as a teenager. By the 1850’s, he was the most well-known collector in Philadelphia. His musical instrument repair shop became a gathering place for numismatists who shared stories and knowledge about coins.

If you want opportunities to share and deepen your knowledge for numismatics, here are 3 industry resources to enrich your journey.

1. The American Numismatic Association

Located in Colorado Springs, Colorado, the American Numismatic Association is a nonprofit educational organization dedicated to educating and encouraging people to study and collect coins and related items. The ANA serves the academic community, collectors and the general public with an interest in numismatics, according to its website.

The ANA was founded in Chicago in 1891 and has over 25,000 members today. Numismatics can visit the The Edward C. Rochette Money Museum in Colorado Springs.

2. The Industry Council for Tangible Assets (ICTA)

Our company founder Jim Blanchard also co-founded this industry advocacy organization, which began in July 1983.

The ICTA was created after 1981 federal legislation, which removed tangible assets from individual retirement accounts (IRAs). Before 1981, Americans could save and invest for retirement with a broad tangible asset portfolio that included artwork, valuable rugs, antiques, rare coins and precious metals. In 1997, bullion products were restored as qualified investment products and efforts to restore rare coins is ongoing.

3. Professional Coin Grading Service (PCGS) and Numismatic Guaranty Corporation (NGC)

These two third party grading services are both highly reputable and the accepted industry standard for third party certifications of rare coins.  For a nominal fee, individuals can submit a coin for grading, which will be returned certified, graded and sealed in a tamper-evident plastic container known as a “slab.”

Prior to the formation of these firms, dealers graded rare coins in-house, which raised serious conflict of interest issues. The third-party grading services were established to combat this conflict of interest and safeguard the reputation of the numismatic industry. These organizations neither buy nor sell coins, so there are no conflicts of interest.

A Personalized Resource for You

Your Blanchard portfolio manager is a dedicated resource just for you. If you seek knowledge, assistance in crafting a portfolio asset list, or sourcing for a special coin that you’ve hankered after for ages, we can assist. Call Blanchard at 1-800-880-4653 to learn about current market trends in rare coins, our current inventory or to ask even the most basic question. Blanchard is a family run company founded in 1975 and serves over 450,000 clients today.

It’s big, beautiful and very rare.

It’s also controversial and was only minted for one year, which increases the rarity value of any survivors today.

The 1793 Chain Cent is one of the first coins American collectors began acquiring in the 1800’s.

Today, the 1793 Chain cent remains a highly sought after piece of history. The auction record? A cool $1.5 million.

The large Chain copper cent is about the size of a quarter, much larger than modern day pennies. It was the first circulating coin officially produced by the U.S. Mint. A total of 36,103 were struck in 1793, the only year the coin was produced. Only a tiny number of these magnificent Chain Cents have survived over the last 226 years.

Jumping Over Hurdles

U.S. Mint Director David Rittenhouse faced several challenges in the production of the Chain Cent.

Amid rising world copper prices and tight supplies in 1792, Mr. Rittenhouse arranged for imports of sheet copper from Great Britain. He also appealed to Congress and successfully won approval for a reduction in the weight of the cent, from 264 to 208 grains to help cut costs.

A second challenge? The U.S. Mint had no engraver. Rittenhouse persuaded Henry Voight, the chief coiner, to cut the first dies. Voight’s previous experience as a watchmaker left him ill-prepared for engraving.

Nonetheless, Voight went forward and engraved the Chain Cent dies in February 1793.

The Obverse design featured a Liberty head with flowing hair. The reverse featured an interlocking chain with 15 links to represent the existing 15 American states at the time.

The Controversy

An article in the Boston Argus of March 26, 1793 stated: “The chain on the reverse is but a bad omen for Liberty, and Liberty herself appears to be in a fright.”

Liberty’s appearance is likely a result of Voight’s inexperience in engraving. While the chain was intended represent unity and strength of America, critics said it was symbolic of slavery.

The uproar over the Chain cent design sent the government back to the drawing board. The following year, a wreath replaced the chain, and a better Liberty was engraved for the obverse.

Chain Cents are scarce. We have only one. See it here.

Add to Your Collection Today

The study of the history of money is a fascinating journey that opens the door to periods of history with rich detail and little known facts that you might not otherwise have learned.

Looking back and learning gives you a greater appreciation of the significance, artistic excellence and thought and care that drove the minting of early U.S. coins. See our rare coin inventory here.

American coinage often follows a strange path. Each piece minted has a unique, twisting history. This characteristic is especially true of the 1858 three-cent silver piece. The coin has origins in the most unlikely place: the post office.

In early 1851 congress began discussing reducing the cost of postage from five cents to three cents. Not long after officials proposed a formal bill to support the minting of a silver, three-cent piece.

While the decision was congruent with the move to change postage rates, historians often note a more important characteristic of the coin: it marked a first for the U.S., as the coin was the first silver piece to consist of a metal that was worth less than the face value.

Previous silver coins were .900 fine. This piece was .750 fine, consisting of three parts silver to one-part copper. In his book Fractional Money: A History of Small Coins and Fractional Paper Currency of the United States, author Neil Carothers writes that “the new piece was the first silver coin in the history of the United States that was not legal tender for an unlimited amount.”

The design of the coin was practical. The simple, uncomplicated imagery accounted for the small size of the piece. One side shows a star with the shield of the Union inside. The reverse side shows an ornamental letter C with the Roman numeral III inside. Thirteen stars form a circle around the edge. Later versions of the coin would include olive branches above and below the Roman numeral. After designing the piece, the coin entered production that extended into three phases:

1. Phase I    1851-1853
2. Phase II    1854–1858
3. Phase III    1859–1873

Phase 1

The Philadelphia Mint struck 5,446,400 pieces in 1851. At the same time officials struck an additional 720,000 in New Orleans. Public reception was not favorable. Many believed the coins were too small and easily lost.

Phase 2

The US government decided to increase the composition to .900 silver. The impetus for this change was a desire to push Spanish silver coins out of circulation. This change, however, meant that the government had to purchase large quantities of silver for minting. The 1858 coin represents the largest minting with a total of 1,603,700 struck.

Phase 3

The final phase of production occurred before, during, and after the civil war. During the war the government introduced legal tender notes backed only by faith in the credit standing of the government rather than a precious metal.   

In time, production ended because the U.S. no longer had a need for the coin. Many pieces from the 1863 production and after were retained by the treasury and ultimately melted after officials decided to cease minting.

Today, the coin’s value varies greatly based on year and condition. One extreme end of the spectrum is an 1851 proof of the three-cent piece which sold in 2012 for $172,500. This particular coin is the only known of its kind in existence. Collectors value the history of the coin and the role it played during a long, and formative period of US history.

For centuries people buried and hoarded coins for many reasons.

In ancient times, many coin hoards were buried during times of war. Other coin hoards began in the wake of the Great Depression by those who distrusted banks and paper money and preferred to store their life savings at home.

People who buried the coins typically planned to come back and retrieve the treasure, yet that wasn’t always possible. Even today, there are ancient coin hoards found in the Mediterranean region dating back to the Greek and Roman eras.

The discovery of a true coin hoard is an exciting numismatic event. It opens the door for collectors to obtain a rare coin perhaps even in mint condition. Here’s a look at the history behind three famous U.S. coin hoards.

The Economite Treasure

In 1878, a notable hoard of silver coins was discovered in an underground storage area in Economy, Pennsylvania.

Around 1836, members of the so-called Harmony Society, which claimed to be a utopian work-share community sealed about $75,000 face value of U.S. silver coins in a vault and covered it in brick and mortar. Today, the communal group known as the “Rappites” would be regarded as a cult. The coins were found 42 years later, many blackened and tarnished from their years in the damp vault. Coins discovered in that hoard included 400 quarters minted from 1818-1828, 800 Flowing Hair Half Dollars minted from 1794- 1795, 3,500 Large Eagle Draped Bust half dollars minted from 1801-1807 and other assorted silver dollars and half dollars. After the discovery, a Philadelphia dealer bought most of the rarer pieces paying $6,500 for coins worth $4,000 in face value.

Binion Hoard

Ted Binion was the youngest son of casino tycoon Ben Binion, who opened the Binion’s Horseshoe Casino in Las Vegas in 1951. Son Ted grew up working different jobs at his father’s casino and was well-respected for his gambling acumen. Later in life, however, he began associating with a rough crowd, which ultimately led to the loss of his casino license and led to nefarious circumstances surrounding his death. In the wake of Ted’s passing in 1998, law enforcement officials discovered a 12-foot deep vault on his property in Pahrump, Nevada, which held roughly $7 million in treasure including over 100,000 Morgan and Peace silver dollars.

The Saddle Ridge Hoard

Many of you are probably familiar with the more recent Saddle Ridge Hoard, the largest discovery of buried gold coins ever recorded in the United States. In 2013, a married couple was out walking their dog on their rural California property. They spotted a rust covered metal can partially visible in the dirt. Upon further exploration they discovered the first gold coin of many. The 1,427 gold coins minted from 1847 to 1894 were valued at over $10 million.

Who knows why those gold coins were buried, or why they never came back to get their hoard.

Collector’s Paradise

Finding a coin hoard could happen to anyone. It could be a small coin hoard in an elderly relative’s floorboards or a buried vault on a rural property. Sadly, there are likely many coin hoards still out there today that may never be found.