Coin Collection - How to Collect Pioneer or Private Gold
The first discoveries of gold in the United States were not in California, as you may have guessed, but in North Carolina and Georgia. Local private minters turned this gold into coins to help alleviate the need for money in the region, especially because most of the output of gold coins from the U.S. Mint was melted for its bullion value as soon as the coins hit the streets.
When gold was discovered in California, new problems arose. Because California was so far removed from the Philadelphia Mint, there was no convenient way to turn gold dust and nuggets into usable coins, which were sorely needed to help regulate and facilitate business among the miners. To the rescue came private minters, who created a variety of different coins. Unfortunately, the temptation to cheat a little was too great, and many of the early pioneer gold coins (as they are known) fail to live up to the values or purity stated on them.
Eventually, the federal government solved the problem by establishing an Assay Office in San Francisco, where raw gold was converted into $10, $20, and $50 gold pieces of standard, reliable weight and purity. When the official mint opened in San Francisco in 1854, most of the private minters went down the drain, but not before leaving a lasting impression on numismatics.
The following are some of the more important issuers of pioneer gold:
Templeton Reid: Templeton Reid operated out of Georgia and made coins from native gold in 1830, becoming the first of our pioneer mints (Guess you could call him a pioneer among pioneers). All his coins are extremely rare.
The Bechtler Family: The Bechtler Family operated a mint in North Carolina in the 1830s and 1840s. They have the distinction of having made the first gold dollars in the United States, beating the U.S. government by 15 years. The Bechtler coins were quaint pieces struck from handmade dies, but they served as important contributions to the economy of the region before the U.S. Mint opened its branches at Charlotte and Dahlonega.
Moffat & Co.: Beginning in 1849, the firm of Moffat & Company began producing high-quality ingots and $5 and $10 gold pieces in San Francisco from newly discovered California gold. Moffat & Co. made lots and lots of coins, but like most pioneer gold coins, they were later melted down. Thank goodness for coin collectors, or none might have been saved!
Clark, Gruber & Co.: Clark, Gruber & Co. operated out of Denver, Colorado, where the firm struck gold coins in 1860 and 1861. Some of its $10 and $20 gold coins have an interesting, stylized version of Pikes Peak on the back.
Wass, Molitor & Co.: Wass, Molitor & Co. produced $5, $10, $20, and $50 gold coins in San Francisco between 1852 and 1855. Its most impressive piece of work was the huge $50 gold piece struck in 1855. This massive piece of gold will set any coin collector's heart aflutter.
Kellogg & Company: Kellogg & Company operated out of San Francisco, where it produced high-quality $20 and $50 gold coins in 1854 and 1855.
The Mormons: In 1849, Brigham Young established a mint at Salt Lake City and oversaw the production of $2.50, $5, $10, and $20 gold coins. Most of the coins had the inscription G.S.L.C.P.G., which stood for "Great Salt Lake City Pure Gold." Unfortunately, the gold was neither pure nor from Salt Lake City (it came from California). The Mormons also made $5 gold coins in 1850 and then again in 1860.
California fractional gold coins: California fractional gold coins are actually mini pioneer gold coins of low face value (25¢, 50¢, and $1) that were made by local jewelers and merchants from 1852 to 1882. Hundreds of different varieties exist. Because they are relatively inexpensive compared to the higher-denomination pioneer gold, collectors find them attractive and desirable. But if the denomination is only represented by a fraction, the pieces are likely to be modern, and not made of gold.
Questions and Answers
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