Pre-Long Beach Auction #84

1851 U.S. Assay Office $50 "Slug", 887 THOUS. Lettered Edge, 50 on Reverse. K-4, Rarity 5. PCGS graded AU-55. CAC Approved. The $50 octagonal "slug," was a golden bastion of California commerce during the first years of statehood. Such pieces were used in large transactions, being the coin of choice, since the local residents were repulsed by paper money (paper money was made illegal in the state under the Constitution of 1850.) The octagonal $50 slugs were last made in 1852, after which the Assay Office closed; but the slugs, themselves, continued in use for many years thereafter. Often, they found their way to the various federal mints, where they were melted into bullion, then refashioned into federal denominations. When the Gold Rush began, California was a particularly lawless place. On the day when gold was discovered in 1848 at Sutter's Mill, California was still technically part of Mexico, under American military occupation as the result of the Mexican-American War. With the signing of the treaty ending the war on February 2, 1848, California became a possession of the United States, but it was not a formal "territory" and did not become a state until September 9, 1850.

Generally speaking, all varieties of the U.S. Assay Office fifty dollar octagonal coins are very scarce, however, the Reeded Edge varieties are somewhat more obtainable than their earlier Lettered Edge counterparts. This example, featuring .887 fineness on the ribbon above the eagle, also has lettering around the edges: AUGUSTUS / HUMBERT / UNITED / STATES / ASSAYER / OF GOLD, / CALIFORNIA / 1851. The denomination is seen, both on obverse and reverse, on the latter side as a simple 50 at the center. The surfaces present some deep orange-gold color at the borders, indicative of the copper inherent in the 887-fine gold alloy. While the coin exhibits several corner bumps and rim abrasions, traces of original luster can still be discerned, making for an especially pleasing piece. Pop 5; 9 finer, 3 in 58, 4 in 61, 2 in 62 (PCGS # 10208) .
Estimated Value $120,000-UP.