United States Coin of the Week: Gem Proof 1854 “Indian Princess” Three-Dollar Gold Rarity

By Frank Van Valen, Numismatist and Cataloguer

In our upcoming June 2012 Baltimore auction event, one of the stand-out rarities has to be the 1854 “Indian Princess” three-dollar gold piece certified Proof-65 Cameo by NGC. I have had the extreme good fortune to be the cataloger of this coin, describing it in part as: “A lovely yellow gold Gem with boldly frosted design motifs and richly mirrored fields that exhibit lively luster and afford an attractive overall appearance throughout. The strike is bold and the eye appeal readily lives up to the rigors of the grade.” However, the history and rarity of the Proof 1854 three-dollar gold piece encompasses far more than just a cosmetic description can impart.

As far back as June 1832, a bill was introduced in Congress seeking the authorization of the three-dollar gold coin concept, though it went nowhere at that time. Indeed, it wasn’t until the Mint Act of February 1853, some 21 years later, that the denomination was authorized. The cost of mailing a letter had recently dropped in price to three cents, and congressmen believed that a new three-dollar coin would make it easier to purchase 100-stamp sheets of postage stamps. At the time, Chief Engraver James Barton Longacre produced several design ideas, and the familiar “Indian Princess” design was born, both for the $3 denomination as well as the gold dollar issues of 1856 through 1889, which enjoyed the same obverse and reverse as its $3 cousin, though on a somewhat smaller scale. The Greco-Roman Venus Accroupie statue is credited for Longacre’s inspiration.

According to research by Walter Breen and others, the first 15 examples of the new denomination, all Proofs, were produced on April 28, 1854. These were almost certainly struck as presentation pieces for congressional committee members, and probably also for “friends” of the Mint. Whether additional Proofs were struck of the date is unknown; regular production of the denomination for circulation commenced on May 8, 1854, and ended after 138,618 pieces were struck. The word DOLLARS on the 1854 pieces is in small letters; beginning in 1855 and continuing through the end of the three-dollar gold series in 1889, DOLLARS is expressed in noticeably larger letters, making the 1854 issue a one-year-only type coin.

As most collectors know, Proof gold coins of any denomination from the era prior to 1859 are great rarities, and the Proof 1854 $3 “Indian Princess” is no exception to that rule. In fact, the combined PCGS and NGC population data for the Proof 1854 three-dollar gold piece is a mere 14 coins in all grades, and I suspect that at last a few of those entries represent resubmissions in the constant search for an additional grading point. No matter what the true population, the 1854 three-dollar gold piece is among the great Proof gold rarities of the era, and I suspect that bidding activity for this numismatic treasure will justify this assessment.