By David Lawrence Feigenbaum & John Feigenbaum

The 1894-S dime is one of those few American numismatic treasures that has transcended it's particular series to become one of the most famous of all U.S. coins. Just like the 1804 silver dollar and 1913 Liberty nickel, the 1894-S has an undeniable and mystical appeal which will excite collectors for years to come. It's often the case with such sought-after coins that they are not the rarest -- certainly there are U.S. coins with only one known survivor (for example, the 1866 no motto quarter and half dollar). But it's the story that makes the coin, and the 1894-S dime is no exception.

First of all, the 1894-S dime is the only true rarity in all the Barber series (dimes, quarters and halves). Of the 24 pieces minted, just 9 coins are known to exist today and it is unlikely that any more will surface. Two of these are low-grade specimens while the others have survived without wear, though most have been mishandled in some way. The 9 specimens are well known and bear the "pedigrees" of some of the most famous numismatic collections ever assembled.

Farran Zerbe's Account
The circumstances surrounding the production and distribution of the 1894-S dimes remain a mystery. In April 1928, The Numismatist (p. 236-237, the monthly publication of the American Numismatic Association) gave an account by Farran Zerbe, a former president of the ANA. The coins were struck, Zerbe said, to provide a balance of forty cents needed to needed to close a bullion account at the San Francisco Mint by June 30, 1894 -- the end of the fiscal year. Since any even dollar amount ending in forty cents was acceptable, the employees were said to have struck 24 pieces, or $2.40. Mint employees weren't deliberately trying to create a rarity because they were still expecting orders to produce more 1894-S dimes before the end of the calendar year. But December 31 passed without a request for further production. Two or three pieces were obtained by Mint employees "just to have a new dime," Zerbe said; when they realized the coins were now rare, they sold them to collectors for $25 or more apiece. The remaining 1894-S dimes went into a bag with other dimes and into circulation.

At the time of this article, only 3 or 4 specimens had been found. Zerbe's information, which he said was "obtained from the San Francisco Mint in 1905," is similar to an earlier account by J.C. Mitchelson, a Kansas City collector. Mitchelson said he was told by Mint employees that only 14 of the 24 coins went into circulation, the others to be restruck and presumably melted (The Numismatist, 1900, No.6). The "unintentional rarity" theory is probably the explanation the San Francisco Mint wanted to publish, rather than admit what may have actually occurred. In recent decades, however, Zerbe's and Mitchelson's accounts have been more or less debunked by new information.

What An Investment!
As a dealer who caters to collectors, we rarely tout coins as an investment vehicle, although many collectors certainly buy them for that purpose. In the case of the 1894-S dime, it is hard to overlook the significant gains made by those fortunate enough to own one of these exciting coins.

Consider the performance of the Lawrence-3 specimen which has traded three or more times in over the past two decades:

* 1990: Sold for $275,000 in auction (Stack's)

* 1998: Sold for $825,000 in private treaty (David Lawrence)

* 2005: Sold for $1,332,000 in auction (DLRC Auctions)

* 2007: Sold for $1,900,000 in private treaty (David Lawrence)

This impressive price climb is proof that this exciting rarity has real market strength which may still have much more potential. We had an inquiry in early 2010 and the current owner declined to even put a price on it. "It's not for sale.", he said.

As of this writing in April 2010, there are 10 known examples of the 1894-S dime have been tracked back to creation at the Mint with varying degrees of success. In David Lawrence's 1991 book, The Complete Guide to Barber Dimes, he identified these 10 known specimens, one of which had been delisted but later reinstated (Lawrence-4). Until its appearance in a Stacks sale in October 2007, the coin had not been seen since a Kagin sale in 1985.

The "Lawrence" numbering system has been used to identify each coin. For still more information, read William Burd's article, "The Inscrutable 1894-S Dime" in The Numismatist, February 1994.

Proof 60. Has a noticeable spot on Liberty's chin and the obverse shows evidence of being harshly cleaned. Owners include Waldo Newcomer; Boyd; A. Kosoff (1946); Will W. Neil (paid $2,350); B. Max Mehl, Hydeman ($13,000); Kosoff, Bowers-Empire; Hazen Hinman; Jim Kelly; Leo Young; RARCOA Auction '80 (Lot 1578); Ron Gillio (1986 for $145,000); anonymous collector ($93,100).

Gem Proof. Has not been graded at either PCGS or NGC as of this writing, however, it mostly likely would grade Proof 64-65. Described in the Bowers & Merena Eliasberg Auction catalog: "Mostly brilliant centers changing to delicate gold at the borders. A tiny lint mark from neck to below chin will serve to identify this specimen." One of two pieces owned by J.M. Clapp, who most likely acquired them within a decade of their minting. Louis Eliasberg purchased Clapp's entire collection in 1942 for $100,000 and this coin was included (the collection was brokered by Stack's). The coin was purchased by Harvey Stack in the May 1996 Eliasberg Estate sale held by Bowers & Merena Auctions for $451,000 with buyer's fee (lot 1250).

Grade unknown but probably an impaired proof which would not certify at PCGS or NGC due to mishandling. Owners include: A. Kagin; Reuter; Kreisberg; Bowers & Ruddy; Pennsylvania Estate.

AG-3. Supposedly certified by NGC but does not show up in the Census Report. Has a circular cut on the obverse. Owners include: Romito (1911); consigned by Montesano to Stack's in 1942, but withdrawn; sold by John Hipps to Laura Sperber in 1990 to private collector for about $35,000.