The Three Dollar Gold Piece: America's Most Unusual Denomination

The Three Dollar Gold piece (1854-1889) is one of America's most unusual denominations. Created ostensibly to facilitate the purchase of three-cent stamps in sheets of 100, it never gained widespread acceptance. The distinctive design features an Indian Princess head with a feathered headdress. Low mintages and melting of many examples make these scarce coins highly desirable. The 1870-S is legendary, with only one known specimen.

Historical Background

Why Three Dollars?

The official rationale was that it would make purchasing sheets of 100 three-cent stamps convenient (100 × $0.03 = $3.00). However, this explanation is questionable since most people didn't buy stamps in such large quantities.

More likely, it was part of the broader effort to expand gold coinage following the California Gold Rush. The denomination also matched the new three dollar postal rate for certain international mail.

Limited Acceptance

The three dollar denomination never achieved popularity. It was too large for everyday transactions but too small for significant commerce. Most remained in bank vaults rather than circulating, and many were eventually melted.

Design Features

Obverse (Front)

• Indian Princess head facing left, designed by James B. Longacre
• Elaborate feathered headdress with "LIBERTY" on headband
• "UNITED STATES OF AMERICA" around rim
• Date below the portrait

Reverse (Back)

• Agricultural wreath of corn, wheat, cotton, and tobacco
• Denomination "3 DOLLARS" inside wreath
• Date appears on obverse only

Specifications

• Years Minted: 1854-1889
• Diameter: 20.5mm
• Weight: 5.015 grams
• Composition: 90% gold, 10% copper
• Gold Content: 0.1452 troy ounces pure gold
• Edge: Reeded

Production History

Early Years (1854-1860)

Initial production was strongest, with hundreds of thousands minted at Philadelphia. Branch mints in Dahlonega (1854 only), New Orleans (1854), and San Francisco (1855-1857, 1860) also produced limited quantities.

Civil War Era (1861-1865)

Production dropped dramatically during the war. Most coins were hoarded or melted. Philadelphia struck small quantities for collectors.

Post-War Decline (1866-1889)

After 1865, production was minimal and sporadic. Many years saw only proof coins struck for collectors. The denomination limped along until final discontinuation in 1889.

Key Dates and Rarities

The Holy Grail: 1870-S

Only one specimen is known to exist, currently in a private collection. It's one of the great rarities of American numismatics. The coin was likely saved as part of a cornerstone deposit when the San Francisco Mint building was constructed.

Other Major Rarities

• 1854-D: Only three dollar gold from Dahlonega, extremely rare
• 1875 Proof Only: Only 20 proofs struck, no business strikes
• 1876 Proof Only: Only 45 proofs struck
• 1877: Only 1,468 business strikes, low survival rate
• 1873 Closed 3 and Open 3: Both varieties are scarce

Branch Mint Issues

• 1854-D: Dahlonega - extremely rare, under 10 known
• 1854-O: New Orleans - scarce but more available than Dahlonega
• San Francisco issues: All S-mint three dollars are scarce

Most Affordable Dates

Common dates from the 1850s and 1870s-1880s in lower grades offer the most affordable entry. Even these "common" dates are scarce compared to other denominations. Expect to pay significant premiums over gold melt value.

Collecting Strategies

Type Coin

Most collectors acquire a single example for type sets. The design remained unchanged throughout the series, so any date represents the type. Choose based on budget and availability.

Date Set

A complete date set is virtually impossible due to the 1870-S unique and other extreme rarities. Even excluding unique and proof-only dates, assembling a date set requires deep pockets and patience.

Proof Collection

Some collectors focus on proof three dollars, which were struck in most years. These are more available than many business strikes but still quite scarce and expensive.

Grading and Condition

Wear Points

• Hair detail above forehead and on top of head
• Feathers in headdress, especially at the ends
• Wreath details on reverse, particularly the corn and cotton

Strike Quality

Three dollar gold pieces often come weakly struck, particularly in the central obverse and reverse areas. Full strikes command premiums. Don't confuse weak strikes with wear.

Surface Quality

Due to limited circulation, many survivors have problems from cleaning, mishandling in bank vaults, or jewelry mounting. Original, problem-free examples are especially desirable.

Authentication and Counterfeits

The combination of gold content and numismatic rarity makes three dollar gold pieces attractive to counterfeiters. Chinese-made counterfeits have flooded the market in recent years. Always purchase certified examples from reputable dealers, especially for rare dates.

Weight and diameter should be exact. The reeding should be sharp and even. Professional third-party grading (PCGS, NGC) provides authentication and grade verification.

Market and Investment

Three dollar gold pieces appeal to both gold investors and coin collectors. They're scarce enough to carry significant numismatic premiums but contain enough gold to have intrinsic value. Common dates in lower grades trade at moderate premiums over melt, while rarities and high-grade pieces can command six or seven-figure prices.

Historical Significance

The three dollar gold piece represents an interesting experiment in American coinage. Its failure demonstrated that denominations must serve clear practical purposes to succeed. The coin also showcases the California Gold Rush era's influence on U.S. monetary policy and the government's efforts to absorb newly mined gold into the economy.