Build an Eight-Piece 20th Century Gold Set

By Weimar W. White
Numismatic News

Many collectors are attracted to U.S. gold coins, especially if they are in uncirculated condition. Fortunately, one can still assemble an eight-piece 20th century gold type set, made for circulation, at reasonable prices. For collectors who like different coin designs, such a set is very appealing. Capital Plastics offers attractive storage cases for these coins on their Web site, www.CapitalPlastics.Com.
The Coronet Head $2.50, $5 and $ 10 pieces were designed by Christian Gobrecht and contain 0. 12094, 0.24187, and 0.48375 ounces of gold, respectively.
The double eagle, Liberty Head type, was designed by James B. Longacre and it contains 0.96750 ounces of gold. The $2.50 and the $5 Indian Head type gold pieces were designed by Bela Lyon Pratt and contain the same quantities of gold as the Coronet denominations.
However, the $10 Indian Head type was designed by Augustus Saint-Gaudens as well as the double eagle, which shows Miss Liberty bolding stepping forward on a rock with torch in hand. The Saint-Gaudens $10 and $20 contain the same quantities of gold as the Coronet Head $10 and $20 denomination previously mentioned.
Many collectors with whom I have talked like US. gold coins and feel that they can assemble an eight-piece type set in high grade much easier than trying to complete a gold series date set in circulated condition. Some of the gold coins in a date set are just too rare and expensive for the average collector. By contrast, finding the right eight gold coins to complete the type set is both doable, interesting and fun.
Additionally, these coins are the ones that escaped Franklin Roosevelt's confiscation of gold money in 1933, which makes them even more desirable. Would you believe that our Constitution still states in Article 1, Section 10 that lawful money is to be gold and silver? There have been no amendments to state otherwise.
What I have done is to list in Table I the eight gold type coins that make up a set and their approximate value in MS60 and in MS63. Needless to say, other dates can be used. Additionally, I give the price appreciation of the set with an original face value of $75 starting in 1932 to 2005 for MS-60 and MS-63 graded coins.
The math used to obtain the average annual returns for the two grades is given. This mathematical tool is invaluable to collectors and unfortunately few collectors are aware of it. A scientific calculator is all that is needed to obtain compounded annual rates in just seconds. The math used to extend these compound rates of return into the future, to estimate value, is also given.
Let us assume the present value of the eight coins in MS-60 is $3,550. Let's also assume that the set was assembled at face value in 1932. The arithmetic used to calculate the average annual rate of return for the MS60 set over the 73-year period is:

(($3,550 / $75)^1/73 - 1) x 100 = 5.43 percent per year.

For the MS-63 set, we get:

((10,000 / $75)^1/73 - 1) x 100 = 6.93 percent per year.

One can see that the MS-63 set has given a greater average annual rate of return.

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