A select few collectors take up collecting the Indian Head gold $3 coin series. It is possible for those of average means to collect this series, but it would take a very long time to form a complete collection because of availability and because of the coins' costs. However, design type collectors who include gold coins as part of their collections normally want just one example of a gold $3 coin.

The 1878 coin is by far the most common date of the series and it is what most type coin collectors purchase. However, the 1854 Indian Head gold $3 coin, the first in this series, and the 1874 issue are close seconds. Mintages for these three issues are by far the highest of the series, but the highest survivorship has been the 1878 date, even though its mintage is less than that of the 1854.

During the bull market of the past five years, certain coin dealers have promoted these three common-date $3 coins, driving their prices to high levels until the market recently corrected. The result has been a significant fall in their values, especially in the Mint State grades.

For example, the 1878 Indian Head gold $3 coin has dropped in its values to the following amounts:

Grade Previous Current

Value Value

MS-60 $4,000 $3,500

MS-62 $8,500 $5,000

MS-63 $15,000 $9,500

MS-64 $20,000 $12,000

MS-65 $30,000 $20,000

This may be a great time for buyers to ac¬quire these coins because values appear to have stabilized, and interest has been renewed in this series.

Rare issues have been in continual demand, and values for some scarce and rare issues have actually increased. Examples of these increases are the 1854-D Indian Head gold $3 coin in Mint State 62, which increased in value from $135,000 to $175,000, and the 1854-O $3 coin in MS-62, which doubled in value from $40,000 to $80,000.

These values are derived from actual transactions in major auctions, rather than from bids by dealers hoping to flush out a few pieces. These two examples are very rare coins in these grades and trade infrequently.

The market has shown strong interest in and demand for the rare Proof-only issues of 1875 (mintage of 20) and 1876 (mintage of 45). Sales of these two issues are found so infrequently that their values must be interpolated to stay consistent with the current market. Circulated or "impaired" Proofs occasionally turn up for sale, but most auction reports for these two coins are many years old.

(One coin unavailable to all is the 1870-S Indian Head gold $3 coin, currently known by the one example in the Harry W. Bass Jr. Foundation Collection.)

The gold $3 series experienced a strong rally during 2005 and 2006. After the market correction, the series may bear consideration again at these new price levels. It's also important to note that Civil War era issues have continued in popularity.