Eric Sepanek
SBC Founder
Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.
Gold dollars have captured the imagination of investors and coin collectors for decades, owing to their relative scarcity compared to other circulating coinage. The mystique surrounding these unique coins leads many people to wonder: Which gold dollars are worth more than their face value?
Some versions yield impressive auction prices while others aren’t worth more than their nominal value of one dollar. Understanding what constitutes valuable gold dollars from everyday coinage and what makes a gold dollar valuable can help investors make more informed financial decisions.
The Two Kinds of Gold Dollars
When discussing gold dollars, there’s a critical distinction to make between investment-grade gold dollars and modern, faux-gold dollars.
Investment-Grade Gold Dollars
Throughout its history, the US Mint has only produced three official gold dollars. Between 1849 and 1889, the government minted just shy of 40 million gold dollars in these three types. Unlike modern coinage which is comprised of unremarkable alloys, these gold dollars boasted 90% gold. Despite their large mintage figures, a minority of these gold dollars survive today following the government’s nationwide seizure and melting of gold coins under the Gold Confiscation Act of 1933.
This impressive purity, historical significance, and present-day scarcity of these gold dollars results in evaluations far beyond their face value of $1. As a result, these gold dollars are commonly purchased as assets. Investing in rare coins is a way to diversify your portfolio with physical gold to take advantage of this precious metal’s tendency to maintain value in the face of economic pressures.
Modern Gold Dollars
There are numerous gold dollars minted today by private and public mints that don’t contain any real gold. Instead, these faux-gold dollars contain a base metal core and an outer gold-colored layer, providing a superficial appearance of gold. The purpose of these gold dollars is to increase the aesthetic appeal and collectibility of the coin without requiring the use of real gold. Usually, these gold dollars are made to celebrate popular figures, cultural events, famous landmarks, or historical events.
Examples of Investment-Grade Gold Dollars
Liberty Head Gold Dollar (1849-1854)
The US Mint manufactured the first official gold dollar in 1849. This initial version became known as the Liberty Head design due to its obverse depiction of Lady Liberty adorned with a coronet.
Indian Princess “Small” Head (1854-1856)
The second iteration of the gold coin featured a similar bust of Lady Libert with an elaborate Indian headdress, instead of the traditional coronet. Type 2 is commonly known as the “small head” because of its comparative size to the subsequent design.
Indian Princess “Large” Head (1856-1889)
Type 3, commonly known as the “large head”, maintained the feathered headdress of the prior version simply with a larger image of Lady Liberty.
Examples of Modern Gold Dollars
Sacagawea Dollar (2000-present)
The Sacagawea dollar is perhaps the most well-known modern gold dollar. These coins, emblazoned with Lewis and Clark’s celebrated Shoshone guide, contain no traces of gold. Instead, they’re comprised of a copper core and a manganese-brass alloy cladding which provides the distinctive gold sheen. The only exceptions were 12 Sacagawea gold dollars minted with .9167 gold fineness that went into space on the Columbia in 1999 for a promotional event. However, each of the dozen coins was sent to Fort Knox, never intended to enter circulation.
Presidential Dollars (2007-2016, 2020-present)
The US Mint has released a series of presidential gold dollar coins to commemorate each deceased head of state. Despite their gold appearance, these dollars contain no gold. Instead, they’re covered with a manganese-brass clad.
Native American $1 Coins (2009-present)
On the back of the Sacagawea series, the government decided to issue a number of gold dollars celebrating Indian tribes and individual Native Americans. Yet another example of modern gold dollars, this coinage doesn’t contain any real gold, rendering its value to merely $1.
Private Mint Collectibles
It’s not uncommon for private mints to add a gold-colored layer to government-issued dollars. This is an ongoing source of confusion among investors who come across gold-covered coins that were only released by official mints in silver alloys. Susan B. Anthony and Eisenhower Dollars are some of the most common coins to receive this post-minting modification, leading many to mistakenly believe they possess a higher intrinsic value due to their gold appearance. However, this coinage is only worth its denominational value given the lack of precious metals contents.
Factors Determining a Gold Dollar’s Value
Gold Purity & Weight
The use of real gold is the main difference between collectible and rare coins. That’s why gold dollars containing actual precious metals are considered investment-worthy while faux-gold dollars rarely sell for more than their nominal value. The purity or fineness of a coin refers to the percentage of gold it contains, relative to its total weight.
Coins with higher fineness ratings and heavier weights are naturally worth more than their lower-purity and lighter-weight cousins. All official US gold dollars with real precious metals contents contain 90% gold and 10% copper, yielding a fineness of 0.900. On the other hand, modern gold dollars without any gold would have a purity and gold weight of zero.
Scarcity
Scarcity plays a major role in a coin’s evaluation. Typically, the rarer the coin, the higher the investors are willing to pay. Of course, there needs to be a high demand for the gold coin to drive up those prices. Some factors contributing to a coin’s scarcity include limited mintage numbers, a low surviving population, or difficulty in obtaining the specimen.
Although Liberty Head and Indian Princess gold dollars were initially minted in large numbers, only a tiny fraction survive until today. This relative scarcity drives up their value. On the other hand, modern gold dollars such as the Sacagawea or presidential coins still circulate in high numbers today, rendering them valueless beyond their denomination.
Historical Significance
The placement of a coin in history and the events surrounding it have lasting effects on its value. This is another reason the value of modern gold dollars pale in comparison to their historic counterparts. Although these faux-gold coins commemorate notable figures, events, and places, they don’t occupy a momentous period of history.
The authentic gold dollars minted between 1849 and 1889 have significant historical appeal given their unique status as the only three gold coins ever minted by the US government. Plus, most of these coins were subjected to widespread government confiscation and eventual melting. This historical backdrop imbues these coins with a profound rarity and historical value.
Condition or Grading
A coin’s condition contributes significantly to its value. Generally, high-quality coins fetch higher prices than similar counterparts in worse shape. Coin grading is a short-cut method investors and collectors use to determine a coin’s condition by providing an objective and widely recognized assessment from reputable coin evaluators. Keep in mind that condition alone doesn’t confer value.
Coins with little-to-no gold contents and abundant mintings won’t outpace their face value, even in impeccable condition. The physical state or grading of a coin only tends to increase its value when it possesses inherent characteristics valued by collectors and investors such as rarity, historical significance, and precious metal content.
👉 Buyer Beware: The Truth about Modern, Graded Bullion Coins as Investments
Market Conditions
Market conditions heavily influence the value of gold dollars, exclusively for those with gold contents. Most notably, the spot price determines how much the gold within the coin is worth, often accounting for a major share of its total price. The higher the spot price of gold, the higher the coin’s evaluation.
Demand can also impact a gold coin’s value. As more investors seek out a particular coin, precious metals sellers and coin dealers tend to increase their premiums to reflect the additional costs associated with securing, authenticating, and supplying these sought-after coins. Of course, other factors such as scarcity and historical significance can push the value of coinage even higher beyond the impact of market conditions.
👉 Related Reading: Why Silver Eagles Are So Expensive Right Now
Which gold dollars are worth keeping?
It depends on the gold content of the coin. Modern gold dollars that don’t contain any precious metals are usually only worth their face value. Conversely, surviving gold dollars minted between 1849 and 1889 offer tremendous value. The scarcity, historical appeal, and numismatic value of these coins in addition to their inherent gold value make for some impressive pricing.
Not sure if your gold dollar is worth anything? The precious metals experts at Scottsdale Bullion & Coin can help! We offer free coin evaluations to determine whether you have a worthwhile investment on your hands. Contact us by calling toll-free at 1-888-812-9892 or using our live chat function.