1863-S Half Eagle (1863-S $5) NGC AU50. Most of the Civil War dated half eagle issues, minted at both the Philadelphia and San Francisco Mints (the only two minting facilities in operation during that turbulent time) range from very scarce to extremely rare, in particular in the higher circulated and uncirculated grades. The only exception is the 1861, which is a common issue, but still scarce at the gem level. But both Philadelphia and San Francisco issues from 1862 to 1865, and for the rest of the decade are rare. While certain external factors (like the Civil War) have to be taken into account when determining why these issues are so rare, there are two reasons that count: Low mintages and heavy circulation.

Relatively, the mintages at San Francisco were much larger than those in Philadelphia, which were often miniscule. However, an issue like the 1863-S half eagle, which had a mintage of 17,000 coins, can not be considered to be a high mintage issue, and in most series would be considered to be a coin with a low to extremely low mintage. The small number of pieces struck, obviously, has lowered the overall supply of examples, and while many remain of the Philadelphia dates they still are rare and often hard to find in any grade.

Heavy circulation took its toll, in particular, on the San Francisco issues. California, in the 1860s still was a remote part of the United States, like it had been since granted statehood in the late 1840s. There were large parts of the United States that were unincorporated, with few people living there. As such, the influences of the Civil War, which were much larger in the east, were basically non-existent in California, Oregon and Nevada. Coinage was not hoarded, as it was in the east, but circulated freely and much coin was need in general commerce. As such, the majority of coins minted at the San Francisco Mint went into circulation and stayed there for a long period, creating issues that are now virtually non-existent in uncirculated grades.

The 1863-S half eagle is such an issue, with no more than a single example which has recently been certified in an uncirculated grade. The next available grade are numerous About Uncirculated coins, but even the AU-55 and AU-58 graded pieces sell for relative large amounts of money. This coin, graded by NGC as AU-50 thus is a relatively affordable but important offering for the specialist of San Francisco or Civil War coinage. Moderately worn, some luster still remains in the protected areas. Some where is visible, but not as much as the usually encountered coins which circulated for a longer period. Khaki to tan-coloration is seen on both sides, which have been sharply impressed. Some marks are noted from circulation, but these are minimal and do not distract. A great coin and a rare offering, which is not repeated easily and thus, should be considered by every serious specialist.