The History of the U.S. Gold Dollar

Overview

The Gold Dollar holds a unique place in American numismatic history as the smallest regular-issue U.S. coin ever produced for circulation. Spanning just 40 years (1849-1889), this tiny gold coin emerged from the California Gold Rush and disappeared as economic conditions changed and the coin's small size proved impractical.

Despite its diminutive size—at its smallest just 13mm in diameter, smaller than a modern dime—the Gold Dollar contained real gold and represented significant purchasing power in the 19th century. The coin went through three distinct design types, each responding to practical concerns about durability and public acceptance.

Today, Gold Dollars are prized by collectors for their historical significance, beautiful designs, and connection to one of America's most exciting eras—the Gold Rush and Western expansion.

Historical Context: The California Gold Rush

The Gold Dollar's creation was a direct response to the California Gold Rush of 1848-1849. James Marshall's discovery of gold at Sutter's Mill in January 1848 triggered the largest gold rush in American history. Suddenly, massive quantities of gold flooded into the U.S. economy.

Congress responded with the Act of March 3, 1849, authorizing both the Gold Dollar and the Double Eagle ($20 gold piece). The Gold Dollar served practical needs: it provided a small denomination gold coin for Western commerce where gold was abundant, and it helped monetize the gold discoveries by converting bullion into legal tender.

The coin's small size reflected its gold content—1.672 grams of .900 fine gold (90% pure). This amounted to about 1.5 grams of pure gold, worth exactly one dollar at the official gold price of $20.67 per troy ounce that prevailed from 1834 to 1933.

Type 1: Liberty Head / Small Diameter (1849-1854)

Design and Specifications

The original Gold Dollar featured Liberty's head surrounded by stars on the obverse, with a simple wreath on the reverse. Chief Engraver James B. Longacre designed both this coin and its companion Double Eagle.

Obverse: Liberty faces left, wearing a coronet inscribed "LIBERTY," with her hair in a bun tied with a ribbon. Thirteen stars surround her (seven left, six right), with the date below.

Reverse: A wreath of corn, wheat, tobacco, and cotton (representing American agriculture) encircles the denomination "1 DOLLAR" and the date. "UNITED STATES OF AMERICA" curves around the outside.

Specifications: Diameter 13mm, weight 1.672g, composition .900 gold/.100 copper. This made it the smallest U.S. coin ever struck for regular circulation—so small that it was easily lost and difficult to handle.

Production and Varieties

Type 1 Gold Dollars were struck from 1849 through 1854 at multiple mints:

• Philadelphia (no mintmark) - Largest production, all years
• Charlotte, NC (C) - Southern gold source, 1849-1854
• Dahlonega, GA (D) - Southern gold source, 1849-1854
• New Orleans (O) - 1849-1854, 1855-O transitional
• San Francisco (S) - Began 1854

The first year, 1849, saw extraordinary production: over 688,000 from Philadelphia alone, plus substantial mintages from Charlotte, Dahlonega, and New Orleans. This open wreath design continued through most of 1854, with a transitional closed wreath appearing late in that year.

Collecting Type 1 Gold Dollars

Common Dates: Philadelphia issues from 1849-1853 are relatively available in circulated grades. The 1849 with its large mintage is the most common.

Scarce Dates: Charlotte and Dahlonega issues are much scarcer than Philadelphia. The 1849-C Open Wreath is the most available Southern issue but still scarce in high grades.

Key Dates: - 1849-C Open Wreath (rare, only about 11,634 struck) - 1854-D (very rare, only 2,935 struck) - 1854-S (rare, first San Francisco gold dollar) - 1855-O and 1855-D Type 1 varieties (extremely rare transitional issues)

Condition Considerations: These tiny coins circulated heavily and show wear easily. High-grade examples (AU and Mint State) command strong premiums. The small size and thin planchet mean many survivors show adjustment marks, weakness, or damage.

Type 2: Indian Princess Head / Large Diameter (1854-1856)

The Design Change

Public complaints about the Type 1's tiny size led to a complete redesign. Type 2 Gold Dollars increased in diameter from 13mm to 15mm while maintaining the same weight and gold content. This was achieved by making the planchet thinner, which improved handling but created new striking challenges.

Obverse: An "Indian Princess" (actually a fanciful Liberty with Native American headdress) faces left. She wears a feathered headdress with "LIBERTY" inscribed on the headband. The date appears below, and the portrait is much larger and more prominent than on Type 1.

Reverse: A simple agricultural wreath encircles "1 DOLLAR" with the date. "UNITED STATES OF AMERICA" forms the legend.

Production Challenges

The Type 2's larger, thinner planchet proved difficult to strike properly. Many examples show weakness, especially on the Indian Princess's headdress details. Dies broke frequently, leading to numerous die varieties. These production issues contributed to the type's short lifespan—just three years.

Mintages were generally lower than Type 1:

• 1854 Type 2: Philadelphia produced 783,943
• 1855: Production at Philadelphia (758,269), Charlotte, Dahlonega, New Orleans, San Francisco
• 1856: All mints produced Type 2, but late in the year transitioned to Type 3

Collecting Type 2 Gold Dollars

The Challenge: Type 2 is the shortest-lived and generally scarcest of the three Gold Dollar types, especially in high grades. Well-struck examples with full feather details are particularly prized.

Common Dates: 1854 and 1855 Philadelphia issues are most available, but still significantly scarcer than common Type 1 dates.

Key Dates: - 1855-D (very rare, only 1,811 struck) - 1855-C (rare, 9,803 struck, but very few survived) - 1856-D (extremely rare, only 1,460 struck—the rarest regular-issue Gold Dollar)

Grading Considerations: Weak strikes are the norm. Even Mint State examples often show incomplete feather details. Coins with sharp central details and minimal weakness command significant premiums.

Type 3: Indian Princess Head / Large Diameter, Large Head (1856-1889)

The Final Design

Type 3 addressed Type 2's striking problems by enlarging the portrait and modifying the design. This version proved successful and continued for 33 years until the series ended in 1889.

Obverse: The Indian Princess portrait is larger and more boldly designed. The feathered headdress is fuller, extending further down and back. "LIBERTY" remains on the headband, and the date is below. The overall design has more relief and strikes more completely than Type 2.

Reverse: Similar to Type 2, with an agricultural wreath surrounding "1 DOLLAR" and the year. "UNITED STATES OF AMERICA" encircles the design.

Production History

Type 3 began mid-year 1856 and continued through 1889. During this period:

• Civil War Era (1861-1865): Gold coins were hoarded and disappeared from circulation in the East. Mintages dropped dramatically during these years.
• 1870s: The Coinage Act of 1873 (the "Crime of '73") demonetized silver but kept gold coins, including Gold Dollars.
• 1880s: Mintages remained low. The Gold Dollar was becoming obsolete as economic conditions changed and paper currency became more prevalent.
• Final Issues: The series ended in 1889. By then, the small coin was impractical for most commerce, and few were needed for circulation.

Mint Distribution

Type 3 was struck at multiple mints:

• Philadelphia: Every year 1856-1889
• San Francisco (S): 1856-1860, 1870
• Dahlonega (D): 1856-1861 (closed during Civil War, never reopened for federal coinage)
• Charlotte (C): 1856-1859 (closed during Civil War)
• New Orleans (O): None for Type 3

Collecting Type 3 Gold Dollars

Common Dates: Late Philadelphia issues from the 1880s, despite low mintages, are relatively available because they didn't circulate heavily. The 1888 and 1889 make good type coins.

Semi-Key Dates: - Charlotte issues (1856-C through 1859-C)—all are scarce - Dahlonega issues (1856-D through 1861-D)—Southern gold, all scarce - 1875 (only 420 business strikes, proof year) - 1876 (only 3,245 struck) - 1877 (only 3,920 struck)

Major Rarities: - 1861-D (struck after Georgia seceded but before Confederates took over mint—rare and historic) - 1875 (lowest business strike mintage) - Proof-only years: 1878 and 1879 had very limited business strikes

Investment Potential: Type 3 offers dates for every budget. Common late dates in AU/MS are affordable. Civil War dates and Charlotte/Dahlonega issues appeal to advanced collectors. Proofs from the 1880s are available but expensive.

The Historical Significance of Gold Dollars

Symbol of the Gold Rush Era

Gold Dollars are tangible connections to one of America's most transformative periods. The California Gold Rush didn't just populate the West—it transformed the national economy, established San Francisco as a major city, accelerated railroad construction, and made the United States a global economic power. Each Gold Dollar represents this extraordinary era.

Southern Branch Mint Legacy

Charlotte and Dahlonega Gold Dollars are especially significant. These Southern mints processed locally mined gold and served regional economies. Both closed during the Civil War—Charlotte permanently, Dahlonega as well, though its building later housed a Confederate assay office. Coins from these mints, especially dated 1861, represent the last federal coinage from the South before secession.

Monetary Evolution

The Gold Dollar's 40-year lifespan coincided with major monetary changes:

• The rise of fractional paper currency during the Civil War
• The great silver vs. gold standard debates
• Economic depressions and recoveries
• The gradual shift from metallic to paper currency for everyday transactions

A Numismatic Laboratory

The three distinct types of Gold Dollars represent the Mint's attempts to solve practical problems: coins too small to handle easily, planchets too thin to strike properly, and the eventual successful compromise. This evolution demonstrates 19th-century American engineering and artistry responding to real-world challenges.

Collecting Strategies

Type Set Collecting

Many collectors pursue one example of each type (1, 2, and 3). This provides historical breadth without the expense and difficulty of date collecting. Recommended dates:

• Type 1: 1849-1853 Philadelphia dates in VF to AU
• Type 2: 1854 or 1855 Philadelphia in VF to AU (expect to pay more than Type 1)
• Type 3: 1880s Philadelphia date in AU to MS (often more affordable than earlier types)

Date and Mint Mark Sets

Completing all dates and mint marks is challenging and expensive but achievable for dedicated collectors. The Charlotte and Dahlonega issues present the greatest challenges. Some collectors focus on just Philadelphia issues, which is more attainable.

Branch Mint Specialization

Collecting only Charlotte (C) or Dahlonega (D) Gold Dollars attracts specialists interested in Southern gold and antebellum history. These coins are all scarce, making for a uniformly challenging but historically cohesive collection.

Civil War Era Focus

Gold Dollars from 1861-1865 reflect wartime economic conditions. The 1861-D Dahlonega issues are particularly historic as products of a mint that briefly operated under Confederate control. Low mintages from this period make these dates scarce but fascinating.

Proof Collecting

Proofs were struck most years, particularly from the 1860s onward. Proof Gold Dollars are beautiful and allow collectors to see the designs in their finest form. They're expensive but represent the ultimate examples of the engraver's art.

Variety Collecting

Numerous die varieties exist, particularly in Type 1 (open vs. closed wreath, large vs. small letters). Specialists enjoy hunting these varieties, which add depth to the series.

High-Grade Collecting

Pursuing Gold Dollars in MS63 or better is challenging. Small size meant these coins were easily damaged, lost, or worn. Well-preserved examples are condition rarities that command significant premiums.

Notable Rarities and Values

The Ultimate Rarities

• 1856-D Type 2 - The rarest regular-issue Gold Dollar with only 1,460 struck. Very few survived. A major rarity in any grade.
• 1861-D Type 3 - Historic Confederate-era issue from Dahlonega. Struck after Georgia seceded but before Confederates fully controlled the mint. Highly sought by Civil War collectors.
• 1849-C Open Wreath - First year Charlotte issue, very low mintage, condition rarities in high grades.

Major Key Dates

• 1855-D Type 2 - Only 1,811 struck, very rare
• 1855-C Type 2 - Low survival rate despite mintage of 9,803
• 1875 - Lowest business strike mintage of Type 3 (only 420)
• 1854-S Type 1 - First San Francisco Gold Dollar, rare

Semi-Keys

• All Charlotte (C) issues are scarce to rare
• All Dahlonega (D) issues are scarce to rare
• 1860-D, 1859-D, 1857-D—all Southern gold, all scarce
• 1876, 1877, 1878—low mintages but available in proof

Type Coins and Common Dates

• 1849 Type 1 - Highest mintage (over 688,000 from Philadelphia alone)
• 1854 Type 2 - Most available of this scarce type
• 1880s Type 3 - Low mintages but good survival rates, excellent type coins

Grading and Authentication

Grading Challenges

Gold Dollars present unique grading challenges due to their small size and striking characteristics:

• Weak Strikes: Many examples, especially Type 2, show incomplete details even in Mint State. Liberty's hair details and headdress feathers are diagnostic points.
• Adjustment Marks: Planchet weight adjustment marks are common, particularly on Type 1. These are as-made characteristics, not post-striking damage.
• Contact Marks: Small size means even tiny marks are proportionally more significant to grade.
• Luster: Original mint luster varies from frosty to prooflike. Cleaned or dipped coins show altered luster.

Authentication Concerns

Gold Dollars are heavily counterfeited, especially rare dates and types. Always buy certified examples from reputable third-party grading services (PCGS, NGC, CAC) for valuable pieces. Particular concerns:

• Altered dates (common dates changed to rare dates)
• Added mintmarks (Philadelphia changed to C or D)
• Contemporary counterfeits (gold-plated base metal)
• Modern reproductions and fantasy pieces

Condition Census

For rare dates, knowing the "condition census" (finest known examples) helps establish value. Many rare Gold Dollars are unknown in Mint State, with the finest known being AU or even VF. Reference works and dealer consultations help establish rarity in grade.