Before a coin makes it into circulation it’s subject to scrutiny. Sometimes the coin is modified to make manufacturing easier; sometimes to settle a dispute over its design. And sometimes it just never makes the cut. This was the fate of gold ring dollar.
Silver Outshines Gold
The California gold discoveries created a glut of the yellow metal, driving its price down and causing a subsequent rise in the price of silver. By 1853 a US silver dollar contained $1.89 worth of silver. Because of this, production of silver dollars was suspended for several years, but the need for a one-dollar coin was still there. To alleviate the problem, and because gold was abundant, the Treasury began minting gold dollar coins in 1849.
The Problem with Gold
Even though the price difference between gold and silver had shrunk, gold was still worth considerably more. Since coins at the time were required to represent the market value of the metals in them, that meant that dollars made of gold had to be much smaller than their silver equivalents.
The first gold dollars were only 13mm in diameter, barely half an inch, and smaller than 3-cent copper coins. In 1854 the diameter was increased to 15mm and the thickness was reduced to maintain the coin’s weight. But the coins were still small and easily lost, making them unpopular because a dollar was a significant sum at the time. Experimentation began to find a solution.
A Ring of Gold
Rather than redesigning all the silver coins in circulation, ways were sought to make a gold dollar coin more practical. A larger coin could be made by lowering the quality of gold it contained, but international custom dictated minimum purities making that solution undesirable.
So how do you make a coin larger without changing its weight or purity? You put a hole in it.
The Shapes of Nothing
In 1849, Chief Engraver James B. Longacre submitted at least half a dozen designs that had square and rectangular holes in the center. They were hand-engraved and had different design elements. Some proof coins dated 1849 were struck but none went into circulation.
Experiments continued and by 1852 more elaborate designs were tested. These later designs have circular holes and are more detailed. The openings are wider, restricting the elements on the face to the country’s name and the date surrounded by small dentils on the outside and a thin wavy line around the inner circumference. The reverse states the denomination (dollar) at the top and has a wreath below it. Several proof coins were struck with some surviving in excellent condition.
Rarity and Value of Gold Ring Dollars
Because they never went into production, samples of ring dollars are scarce and highly sought. While several dozen may exist in total, only a few examples of each style are known.
An 1849 Ring Dollar with a rectangular hole in MS-61 condition sold for $76,375 in 2015. An 1852 Ring Dollar proof graded MS-68 in cameo condition sold for $33,600 in March 2018. Other similar examples have sold for over $47,000 in recent auctions.
Collecting Gold Ring Dollars
Collecting Gold Ring Dollars requires considerable investment limiting the market to high-dollar collectors. As with any high-value collectibles, always have the coin authenticated by a reputable coin dealer or third-party grading service before buying.
