The 1910-D $5 Indian in MS63 is the Coin of the Week

I spend a lot of time searching for coins that I believe will perform best for collectors over time and sometimes I find one that surprises even me. For example, as I was reviewing coin populations and capitalizations this past week, I came across the very popular 1910-D $5 Indian Gold coin from the Denver Mint, specifically in a grade of MS63.

This coin has incredible appeal and lots of room to move upward, as the same coin graded one point higher, in MS64 condition, by one of the three leading grading services – Certified Acceptance Corp. (CAC), Professional Coin Grading Service (PCGS) and Numismatic Guaranty Company (NGC) – is more than double in price.

Part of the reason for that is that there are so few of these coins to be found in either grade. However, our expert buying team, which includes Stacey Stegall, Trent Roberts, Michael Stubbs and myself, reached out to all of our sources to gather a handful of these coins for our clients.

Personally, this is one of my favorite coins in the $5 Indian series, which is one of only two series of coins that feature an incuse (or sunken) design rather than a raised design like most U.S. coinage.

This 1910-D $5 Indian Gold coin has a mintage of only 193,600, the fifth lowest of the 29 coins issued by the U.S. Mint. Additionally, research shows that most of these coins were circulated and their conditions quickly became worn or they were melted in the 1930’s during the government gold recall. So, choice uncirculated coins like this coin are very rare and difficult to find because most serious collectors have them locked away.

As good as all of the reasons above are for buying these coins, the fact is that when our 20/20 Program formula is applied to evaluate the popularity, graded population and price, it rates very high compared to other MS63 $5 Indians from different years.

As I stated previously, we only see a handful of these coins throughout the year, if we are lucky, so now is your chance to reserve one. If you miss your chance, we can add you to the waiting list but you must call your account representative to start the process. If you want to add this rare coin to your collection, call today. You will be glad you did.

There Are No Magic Formulas - Like Price Ratios - to Calculate Gold’s “Fair” Price

Ever since the OPEC oil embargo of late 1973 helped spark massive inflation and economic stagnation (dubbed “stagflation” at the time), there have been countless theories about calculating the fair value of gold in terms of the rise and fall of the oil price, published as the “gold-to-oil” ratio.

This joined the long-established “gold/silver” ratio, which dates back to America’s original Coinage Act of 1792, when the ratio was set at 15 ounces of silver being equivalent to one ounce of gold. The Coinage Act of 1834 then raised the ratio to 16:1 by reducing the gold content of U.S. Gold Eagles coins by about 6%. For most of the century from 1834 to 1934, the official gold price was $20.67, while silver was valued at $1.29, a 16:1 ratio which clearly favored Western silver mining interests, as opposed to the East Coast “gold bug” banking interests. More voters could afford a silver dollar than a Double Eagle, which generated the ‘Cross of Gold’ speech.

This historic 16:1 ratio was not based on market forces but federal regulations – a form of price controls – and so it is not a “natural” ratio in global markets, which trade both metals freely. In recent years, the ratio rose from a low of 30:1 in April 2011, when silver reached $50 vs. $1,500 gold, to a spike in the COVID panic of March 2020. That’s when gold traded at $1,500 while silver sank to a low of $11.30, a 126-to-1 ratio. Today, the ratio is about 72:1 but it was under 50:1 in January when silver reached its all-time high.

So, let’s allow the silver/gold ratio to die a natural death, as each metal trades on different fundamentals, with silver more of an industrial metal. Its new supply is dependent on the mining of other metals, while gold is a monetary metal and investment alternative to currencies and bonds, with limited newly mined supply.

This leaves the supposed gold/oil ratio as the surviving “magic formula” for gold’s value but this year we saw oil prices rise over 40% after the launch of the conflict in Iran, starting February 28. Gold has risen 48%, from $67 to $99 a barrel, while gold has fallen from over $5,310 to $4,150, down (-22%). And this month – in the first 19 days of October – gold prices are virtually flat while the price of oil has risen by over 9%.

The current ratio of an ounce of gold ($4,150) to a barrel of oil ($99) is 42:1 but it reached more than twice that level (90:1) in 2020, when oil prices plunged and gold prices rose. In previous decades, the gold/oil ratio was significantly lower, ranging from 10:1 to 30:1 during the 1970s to 2010s.

One reason why gold and oil don’t mix is that they have vastly different fundamentals. Oil is the world’s key source of global energy and economic growth. The world economy needs crude oil or it will grind to a halt. Gold is essentially a monetary metal and an “inflation hedge,” subject to the monthly reports of consumer or producer price inflation. However, this past week, we saw “hotter than expected” readings in the Consumer and Producer Price Indexes, yet gold hardly budged. Oil rose, but that had more to do with the ups and downs of negotiations and strategies for the oil traffic in the Strait of Hormuz in the Persian Gulf.

To demonstrate how volatile oil can be, based on the latest rumors of wars escalating (or ending), the price of oil fell after President Donald Trump temporarily waived some sanctions and tariffs on Russia, raising hopes of a surge in Russian exports. Iran also reiterated its proposal to open the Strait of Hormuz “within seven days,” even though the negotiations with Washington stalled over Iran’s strict conditions, such as relief from sanctions and an end to the blockade of Iran’s ports. At the same time, attacks on tankers resumed, so the European brand of oil (Brent crude) surged to $109 a barrel, while WTI was around $100.

It’s time to retire theories of magic ratios between gold, silver and oil, as each has different fundamentals.

Long Live Eddie the Eagle

 In one form or another, the bald eagle has appeared on U.S. coinage since 1794, reminding Americans that this majestic bird serves as an official national symbol of our country’s power and prestige. It gained that recognition in 1782, while the fledgling republic was governed under the Articles of Confederation.

Some U.S. coins portray eagles in repose; these include the Walking Liberty half dollar and the Peace dollar. Others depict them in heraldic form, as on the Liberty Head gold pieces and the Kennedy half dollar. Perhaps the most stunning, however, are those that show them in full flight, such as the Saint-Gaudens $20 gold piece – widely hailed as the most magnificent of all U.S. coins. If you don’t have a $20 Saint-Gaudens gold coin in your collection, call one of our professional account representatives today and they will help you find what you want.

One particular eagle occupies a niche that’s intriguing and unique in the annals of U.S. coinage. He even had a name – and why not, since he was the real creature, not just an image engraved on a piece of metal.

His name was Peter, and he’s said to have made his home at the Philadelphia Mint from 1830 to 1836.

There’s little doubt that Peter existed. His preserved body is on display at the current Philadelphia Mint, where it has been a popular attraction for decades. But serious questions surround the circumstances of his tenancy while he was alive – and especially which years he resided at the nation’s mother mint.

A U.S. Mint website for children states, “Peter, the original Mint Eagle” lived from 1830 to 1836 “at the first Philadelphia Mint.” This appears to be at least partly inaccurate, since the first Philadelphia Mint, affectionately known as “Ye Olde Mint,” ceased operations in January 1833, when the much larger Second Philadelphia Mint began producing coins. Given the cramped quarters at the original mint, plus its location among several small buildings, it wouldn’t seem conducive to hosting a resident eagle – however friendly the bird might have been. According to the Mint website, “The real Peter used to live up near the roof of the building. People would see him go out during the day to hunt for food and come home at night to sleep.” Given this, it seems more likely Peter’s adopted home was the Second Philadelphia Mint, a spacious edifice made of marble, resembling an ancient Greek temple, with large, graceful columns.

There seems to have been a pattern to Peter’s comings and goings. He was released each morning, according to most accounts, then spent the day foraging for food, returning to the Mint each evening. During these outings, he was a common sight in the skies over Philadelphia, which was then a small community by 21st-century standards – even though it ranked among the three or four most populous cities in the nation. U.S. Census figures show that “The City of Brotherly Love” had a population of 80,482 in 1830 and 121,376 in 1850. And since the countryside was largely undeveloped not far beyond the city limits, wild creatures could frequently be spotted even in the heart of the urban center.

The exact dates of Peter’s years at the Mint hold significance for numismatic scholars, for he has been credited – rightly or wrongly – with inspiring some important U.S. coins. Perhaps the most significant of these is the beautiful Gobrecht dollar, a coin designed by Mint Engraver Christian Gobrecht and first produced in 1836. Peter supposedly served as the model for the eagle on this much-acclaimed coin. 

Peter is also said to have inspired the eagle on the Flying Eagle cent, issued only twice, 1857 and 1858. Some researchers maintain that the eagle on the cent was based upon the bird on the Gobrecht dollar.

By all accounts, Peter was remarkably tame by eagle standards. He was given access to much of the mint’s work area, including the coining facilities and frequently perched on the coin presses themselves. Sadly, this familiarity ultimately led to his demise. One day, while he was sitting on the flywheel of a coining press, the operator – not realizing Peter was there – activated the equipment and the regal bird’s wing got caught in the fast-spinning wheel. The wing was broken and Peter died soon afterward.

Grieving Mint employees took up a collection to hire a skilled taxidermist to preserve the bird’s body. It has been viewed by visitors in all the Philadelphia Mints since then, for nearly two centuries now. Peter the Eagle has truly become the stuff of legends.