A Grader’s Insight on $5 Indians

The difficulty is mostly due to the incused design, therefore the most fundamental part to understand is the coin’s high points and how they differ from other series.

Many other series, such as the $5 Liberty, struck from 1839 to 1907, were struck with a high rim so that when the coins are stacked, the rim offers maximum protection for Miss Liberty from the coin above.

$5 Indians on the other hand offer no such protection. The high point on the obverse is the cheekbone rather than the rim (see obverse diagram). When stacked, the cheek of the $5 Indian therefore bears the brunt of the contact.

$5 Indians that never experienced circulation will sometimes exhibit what we refer to in numismatic circles as “stacking friction.” Stacking friction presents not as actual wear, but small cuts and abrasions on the cheek where the luster is missing. Stacking friction may appear as “rub” from circulation to the untrained eye.

The ideal mint state $5 Indian will often exhibit a fully frosted cheek. After viewing many such examples, experience will enable one to determine whether the frost has been worn off via circulation, capping the grade at AU58.

Distinguishing between stacking friction and wear from circulation is an ability developed after having studied a vast amount of $5 Indians. If the luster has been affected by stacking friction, the coin can be graded MS60–64 or higher depending on the degree and other factors.

I would urge collectors to seek out as many pieces as they can. I don’t mean online images in this case, which really offer no help. They must be seen in hand and with proper lighting. I recommend a five-power magnifying glass.

Let’s discuss the reverse. See the high point on the reverse diagram. Coins that exhibit obverse stacking friction will most likely have fully uncirculated and frosted reverses. Coins with obverse wear (AU58) will often exhibit wear on the reverse high point as well, but not as prominent.

All this considered, it’s no wonder why a true gem MS65 $5 Indian is so rare! It must be entirely devoid of rub via circulation and, for the most part, devoid of stacking friction and exhibit nearly flawless fields and devices. United States gold coins are essentially 22 carat gold in terms of fineness, a soft metal that's easily abraded. The right reverse field is especially vulnerable as there's quite a bit of real estate there without the protection of devices or lettering.

Looking at population reports and considering that CAC and CACG have been in business for 18 years, we have stickered or graded a little over two hundred in the entire series in MS65. This amounts to an average of only one coin per month! This is not a low demand esoteric coin; $5 Indians are major type coins and a very popular series for set collectors.

I often thought that if I were reincarnated and had to come back as a $5 Indian, I would choose a gem 1908-S. They are ALWAYS perfectly struck, exhibit a fully frosted cheek devoid of stacking friction and possess amazing swirling mint luster.

By John Albanese, Contributor