The 1913 Liberty Head nickel is an American five-cent piece which was produced in extremely limited quantities unauthorized by the United States Mint, making it one of the best-known and most coveted rarities in American numismatics. In 1972, one specimen of the five cent coin became the first coin to sell for over US$100,000; in 1996, another specimen became the first to sell for over US$1 million. A specimen was sold for US$3 million in a 2004 private sale, then resold for US$3.7 million at a public auction in 2010.
Only five examples are known to exist: two in private collections and three in museums.
Origin
The Indian Head (Buffalo) nickel was introduced in February 1913, replacing the Liberty Head design. These were the first official strikings of nickels in 1913, since the United States Mint's official records list no Liberty Head nickels produced in that year. However, in December, 1919, a previously unknown 1913 Liberty Head nickel was shown at a meeting of the Chicago Coin Club. Then in August, 1920, the general numismatic community learned of five Liberty Head nickels dated 1913, all owned by Samuel Brown, a numismatist who attended the American Numismatic Association's annual convention and displayed the coins there. He had shown the nickel at the Chicago club meeting and had previously placed an advertisement in the December 1919 issue of The Numismatist soliciting information on these coins, offering to pay US $500 for each and ostensibly purchasing them as a result. However, Brown had been a Mint employee in 1913, and many numismatic historians have concluded that he may have struck them himself (or had them struck) and taken them from the Mint. If true, this was not a unique occurrence; such clandestine strikes were quite common in the 19th century, with the Class II and III 1804 silver dollars perhaps the best-known instance. Other numismatic authorities, such as Q. David Bowers, have questioned this scenario, and pointed out that there are several methods by which the coins could have been legitimately produced; e.g., they may have been lawfully issued by the Mint's Medal Department "for cabinet purposes", or could have been struck as trial pieces in late 1912 to test the following year's new coinage dies. Bowers, however, did not entirely discount the private minting theory.
Pedigree
In January 1924, Samuel Brown sold all five 1913 Liberty Head nickels. The intact lot passed through the hands of several other coin dealers before finally being purchased by Colonel E. H. R. Green (son of the famous Gilded Age investor Hetty Green), who kept them in his collection until his death in 1936. His estate was then auctioned off, and the five 1913 Liberty Head nickels were purchased by two dealers, Eric P. Newman and B. G. Johnson, who broke up the set for the first time. Later rumors that there is a sixth specimen that was lost or is otherwise hidden appear to be unfounded.
Eliasberg specimen
Of the five 1913 Liberty Head nickels, two have proof surfaces and the other three were produced with standard striking techniques. The Eliasberg specimen is the finest known 1913 Liberty Head nickel, with a grade of 66 from various professional grading services, including PCGS and NGC.
This coin was purchased from Newman and Johnson by the Numismatic Gallery, a coin dealership that then sold it to famed collector Louis Eliasberg. It remained in Eliasberg's comprehensive collection until after his death. In May 1996, it was sold at an auction conducted by Bowers and Merena to rarities dealer Jay Parrino for US$1,485,000: the highest price for a coin up until that point. When it was auctioned again in March 2001, the price climbed to US$1,840,000. In May 2005, Legend Numismatics purchased the Eliasberg specimen for US$4,150,000. In 2007, it was sold to an unnamed collector in California for US$5 million.
Olsen specimen
While the Eliasberg specimen is the best preserved of the five coins, the Olsen specimen is almost certainly the most famous. It has been graded Proof-64 by both PCGS and NGC, and was featured on an episode of Hawaii Five-O ("The $100,000 Nickel", aired on December 11, 1973). It was also briefly owned by King Farouk of Egypt.