In January 1836, James B. Longacre engraved several patterns for a gold dollar.  To increase the diameter of the coin but retain the metallic content, a hole was put in the center in the same manner as Chinese coins.  Some more experimentation was done until 1849 when Congress authorized a gold one dollar denomination.  The adopted design consisted of a compact head of liberty with a coronet, with her hair tied in a bun.  Specimens of this design known as the Type I were minuted at the Philadelphia, Charlotte, Dahlonega, and New Orleans Mints from 1849 to 1854.  Beginning in 1854 the design was modified.

 

Known as the Type II, the diameter was increased to 15 millimeters and the head of Liberty redesigned to resemble an Indian Princess.  Immediate problems with the new design developed.  The head of Liberty was in relatively high relief.  Because of this, there was not enough metal flow during the striking process to bring up details on the obverse while at the same time filling the inscriptions on the reverse. Therefore, examples were weakly struck, usually at the two central figures of the four digit date.

 

In 1856, Longacre redesigned the portrait of Liberty to a larger size with a plummed headdress to alleviate this problem.  The Type III gold dollars were minted until 1889 at which time the design was discontinued.  Large quantities of gold dollars were made from 1849 until the Civil War.  Despite their inconvenient size they found ready use in circulation.  After the Civil War, with few exceptions, coinage was diminished sharply, the lowest point reached in 1875 when just 400 business strikes and 20 proof coins were struck.  The war with its rapid inflation caused a significant appreciation of the value of the gold dollar after 1861.  Many coins were destroyed as their gold value exceeded their face value.

 

During the 1880's gold dollars because a popular item of speculation.  Coin dealers, collectors, jewelers, and others hoarded these coins therefore causing them to sell for a slight premium.  There are numerous rare issues among this denomination.  All pieces from the Charlotte and Dahlonega Mints are elusive.  Several, including the 1849-C with open wreath, 1854-D, 1856-D, and 1870-S are very rare.  One of the rarest gold dollars is the 18612-D.  These were apparently struck after the Dahlonega Mint was captured by the Confederate States of America Forces.  Many gold dollars are elusive in high quality condition and are recommended because of their rarity and beauty.  These represent good value on today's coin market.