About Edward Dunbar of Dunbar and Company
Edward Dunbar left New York City in December of 1848, heading to San Francisco to seek his fortune. He opened an auctioneer’s office, but it was destroyed in the great fire in 1850 that ravaged San Francisco. He then opened a “bank”, sometimes called Dunbar’s California Bank, which bought and sold gold dust and ore and, importantly, insured shipments of gold dust to New York City. This bank provided services similar to those of a bank before formal bank structures were established in San Francisco. Dunbar also began redeeming Baldwin and Company’s coins at face value through Dunbar’s California Bank, but they were later discredited as under nominal value.
Edward Dunbar, like many others in the precious metals business, sought to profit from the California Gold Rush. Around early 1851, Dunbar & Co. acquired coining equipment and dies and began issuing $5 gold coins. All known Dunbar & Co. gold coinage is dated 1851.
Dunbar & Co. $5 Gold Coin Details
Like many other California private gold coins, this $5 gold coin resembled the federally issued $5 Liberty Half Eagle Coins. Most private gold coins were minted to resemble federal issues, making them seem trustworthy and more widely accepted in circulation. The obverse depicts Lady Liberty, facing left. Her hair is in a bun at the back, and she is wearing a coronet. Instead of “LIBERTY” across it, this says “DUNBAR & Co.” with the date at the bottom and 13 six-pointed stars around the periphery. These stars traditionally represent the original thirteen American colonies, a motif borrowed directly from federal coin designs. The obverse rim is encircled by dentils (tooth-like border elements). Dentils serve both decorative and functional purposes, visually framing the design and discouraging clipping.
The reverse depicts a federal eagle with its wings spread. The eagle has a patriotic shield covering its body, an olive branch in one talon, and 3 arrows in the other. Around the periphery was “UNITED STATES OF AMERICA” and at the bottom, periphery was the denomination “FIVE D.”
How Assay Results Shut Down Dunbar and Co.
During this period, public confidence in private gold coinage was volatile. Several companies’ coins were found to be underweight or inconsistent, undermining confidence in privately struck gold coins, even those that were legitimate. Dunbar sent his own coins to be privately assayed, and upon completion, his $5.00 gold half eagle was found to be worth $5.13. Although these coins exceeded their full melt value, they were mistrusted by the public and largely melted, and Dunbar stopped minting coins. After Dunbar and Co. closed, Dunbar returned to New York and founded the Continental Bank Note Company, which was later acquired by the American Bank Note Company.
There are less than 20 gold coins that still exist today. It is likely that these private gold coins were melted or traded in for bullion. Just one of these coins could be priced between $400,000 and $750,000, and one is stored at the Smithsonian Institution. Expand your collection today and shop our assortment of pre-1933 U.S. gold coins.
