A History of the Three Dollar Indian Head Gold Coin

A History of the Three Dollar Indian Head Gold Coin

One of the most unusual and rare types of coins ever produced in the United States is the Three-dollar Indian Head coin. Made of a 90% gold alloy, these tiny coins were rare, even during the second half of the nineteenth century when they were minted.

One of the more unusual and collectible coins ever minted in the United States was a $3 gold coin, colloquially known among numismatists as the Indian Head Gold Coin. Minted between 1854 and 1889 in relatively small numbers, this small gold coin was never minted in large quantities and, never really caught on with the public as a common currency. In fact, during the entire 35-year run, only about half a million of the coins were struck.

The Three-dollar Indian Head gold coin is just slightly larger than the currently produced Roosevelt Dime, at 20.6mm in diameter. The edges are reeded, as is almost universally the case with gold coins of that era, to discourage coin shaving. It is an alloy of 90% gold and 10% copper, resulting in 0.14512 ounce of pure, 24-karat gold per coin, before wear losses.

Perhaps most unusually, the Three-dollar Indian Head coin was minted with the specific purpose of making it easier to buy stamps. When the national post-office system was instituted in 1845, the universal rate for sending a letter was set at five-cents. In 1851, the rate was lowered to three-cents and coincided with the minting of a tiny, silver three-cent coins (sometimes called ”fish scales” or ”trimes”). Made to replace the large, copper one- and two-cent pieces that people had come to resent carrying. These trimes were, in fact, the smallest coins ever produced in the US.

Then, as now, sheets of postage stamps were sold in hundreds. As such, the Three-dollar gold coin was meant to enable people to buy an entire sheet of stamps (or a roll of trimes) with a single gold coin. While it seemed like a good idea at the time, the practice of using these coins was never popular. Perhaps because they were so small, or perhaps because three was a cumbersome number to exchange anywhere but the post office.

Designed by noted 19th century engraver, James Longacre, the obverse shows a Romanesque form that he called an ”Indian Princess,” wearing a 16th century feathered headdress of the Timucua tribe. The obverse shows a wreath of seeds, tobacco, wheat, cotton and maize - representing the major botanical commodity groups of the time. The majority of the coins were minted in Philadelphia, with a few produced at the New Orleans, San Francisco and Dahlonega mints.

While there are several years that produced very few coins, and just a few proofs in some, the entire run of the Three-dollar Indian Head gold coins is considered rare. Because they didn't enjoy heavy circulation, many of the remaining specimens are in fine, very fine or excellent condition.

Certified Three-dollar gold coins are guaranteed to be free from the wear that cleaning invariably leaves in these soft, gold coins. There are also quite a few known counterfeits that are also avoided by dealing with only certified specimens.