Expert: Ronald Fern - 5/4/2010

Question
QUESTION: Hello,

I have a $5 gold coin made by the Pacific Company of California in 1849. It was found in a coin collection given to me by my late grandfather. It is in good shape and easily identifiable. I looked up the value in a couple coin books and it varies between $180K-$300K. I would be interested in selling it, but have know idea where to start? I would appreciate any advise about this trade that you could give me because it is not something I have experience with. Thank you for any help you can provide.

Sincerely,

Scott S. Roberts

ANSWER: Hi Scott:

Thanks for your question. The bad news is that it is very likely your item is a replica.

Little is known about the issuer of the genuine coins. It is impossible to guess on the authenticity of your specimen without seeing it or a photo. A five dollar gold coin of the period wold have been 21.6 to 22.5 mm in diameter, about the size of a modern nickel (21.2mm), and weigh about 8.36 grams. See: http://www.coinfacts.com/pioneer_gold/pacific_company/pacific_company_gold_coins or http://www.coinsite.com/content/articles/territorialcalifornia.asp

There is a law, (The Hobby Protection Act) governing the area of Numismatics. It requires all copies of coins or paper money must be at least 3 times larger or have the word "COPY" marked in them. This is to stop counterfeits from being passed off as originals. Many companies do make the copies for issue to collectors this way. Some actually use the exact alloy as the original. You don't mention if your piece has "copy" or an "R" (for Replica) on it.

You may want to check eBay listings in the California gold category or Exonumia (tokens) under coins and currency from time to time to see if items like yours are listed and what they are going for. Replica coins will sell for a few dollars ($5 to $10) each.

If it is real, it is valuable and should be sent to (ANACS, PCGS or NGC) a third party grading and certification service. Also for more help, at most large coin shows there are representatives from the grading services. ANACS service even some smaller shows. They give free consultations on coins at their table. If you still think your coin is authentic and need help finding a qualified coin person in your area feel free to a follow-up question back for the information, and try and include a photo.

Please remember to go to the experts site to rate this answer. Check the nomination box on the rating page below any comments you may have.

Thank You and Good Luck in your collecting.

---------- FOLLOW-UP ----------

QUESTION: Thank you for your response Mr. Fern. Frankly, I don't think it is a replica. I have read a few articles and posts about the coin and the company. It is not perfectly round (as I would not expect from the mints back then) and there is no "replica" or letter R on it. It came from a coin collection that was probably over 80 years old that contained other authentic coins. I would like to have it appraised, but it will have to wait until I get back to the states. I am currently deployed to Afghanistan and live in Germany. My family lives in Decatur, IL and that is where the coin is being kept. If you know of anywhere in the central Illinois area that I could have it appraised, I could do it on my next trip home.

Thanks again,
Scott S. Roberts

Answer
Hi Again Scott:

Sorry if I appear negative towards the authenticity of your coin. It's just that too few of these even exist to believe it to be real. You say it is from a collection "probably" over 80 years old that contained other authentic coins. Fine, but that alone does not make it real. It is way too difficult to offer an opinion without the coin specifics and/or photos, let alone not being able to actually see the coin and examine it. Do you have the weight, thickness and diameter of the coin, and does it match what I provided?

I am going to offer you an alternate opinion relative to the "roundness" of your coin. This $5 gold coin was supposed to have been struck with reeding. The reeding is applied by a retaining collar that acts as a third die to force the reeds into the edge of the blank as the obverse and reverse sides are struck up. It should be round, if it has reeding.

Your coin definitely has to be seen by an expert. I'm going to provide you a link for PNG dealers to find a shop in your area. If determined to be real, the coin should go into a major auction, where you would likely get a better price. Let me know what you find out.
PNG Link: http://www.pngdealers.com/dealersearch.php

Please remember to rate this answer as well as my original reply. Getting rated is the only way I know if my efforts make a difference. To rate an answer, go to the "Thank/rate the expert" button and click. You are allowed to rate four areas of the reply, and please notice the question about a "Nomination" for Expert of the Month. I would really appreciate your "Yes", which I hope you believe that I deserve. If you have any more questions, I'll try and accommodate you. Please recommend me to your friends that collect coins.

I only get about half of the people even to read my questions, let alone rate me. It takes about 20 to 30 minutes or more to research and answer each question, sometimes over an hour.

Thanks again for the opportunity to help you with your numismatic questions, and continued Good Luck in your collecting..