(1849) $5 Oregon Gold Restrike (Regular Strike)
From the Oregon Gold (1849) Series
Obverse & Reverse
The 1849 Oregon Exchange Company $5 gold piece, colloquially known as the 'Beaver,' is a tangible relic of frontier ingenuity and a direct consequence of the California Gold Rush. When news of gold discovery reached the Oregon Territory in 1848, a significant portion of the male population journeyed south. Many returned successful in 1849, laden with gold dust and nuggets. This influx created a severe economic problem: the absence of a standardized medium of exchange. Commerce was crippled by the cumbersome and often fraudulent system of weighing gold dust for every transaction. The powerful Hudson's Bay Company exploited the situation, buying gold for as little as $11 an ounce, far below the $16 market rate in San Francisco. Recognizing the dire need for coinage, Oregon's provisional legislature passed a bill on February 16, 1849, to establish a territorial mint. However, the newly appointed territorial governor, Joseph Lane, arrived on March 2 and declared the act unconstitutional, as the right to coin money was reserved for the federal government. Undeterred by this legal obstacle, a consortium of eight prominent Oregon City citizens—William K. Kilborne, Theophilus Magruder, James Taylor, George Abernethy, William H. Willson, William H. Rector, John Gill Campbell, and Noyes Smith—formed the private Oregon Exchange Company to fill the void. Using improvised machinery, including rollers fashioned from wagon tires, they began striking $5 and $10 gold coins in the spring of 1849. To ensure public acceptance, the coins were intentionally made overweight from unalloyed 'native gold,' containing about 8-10% more gold than their federal counterparts. This high intrinsic value, while fostering trust, also sealed their fate; the vast majority were eventually melted down for profit after the San Francisco Mint opened in 1854. The minting operation was short-lived, ceasing in September 1849 when their crucibles broke. In just a few months, these 'Beaver' coins stabilized the local economy, broke the Hudson's Bay Company's monopoly on gold pricing, and left an indelible mark on American numismatic history.
Associated EventCalifornia Gold Rush and Oregon's subsequent economic needs.
Reason For MintingTo convert raw gold dust into a standardized, reliable currency for commerce in the Oregon Territory, which lacked official coinage.
Minter HistoryThe Oregon Exchange Company was a private enterprise established in Oregon City in 1849 by eight influential citizens: William K. Kilborne, Theophilus Magruder, James Taylor, George Abernethy, William H. Willson, William H. Rector, J.G. Campbell, and Noyes Smith. Formed in response to the territorial governor's veto of a public mint, the company aimed to solve a critical currency shortage by minting privately produced gold coins. They improvised their equipment and operated for only a few months, from roughly March to September 1849, before ceasing operations. Despite its brief existence, the company successfully created a trusted medium of exchange that had a significant positive impact on the regional economy.
Historical SignificanceThe Oregon Exchange Company coinage was the first currency struck in the Oregon Territory. These coins played a crucial role in stabilizing the local economy, facilitating trade, and establishing a fair market value for gold dust, thereby breaking the economic stranglehold of the Hudson's Bay Company. Their distinctive beaver design has made them an iconic and highly coveted issue among all U.S. territorial gold coins.
K-1
Denomination$5
Minting Period1849
Assayer/MinterOregon Exchange Company
Geographic OriginOregon City, Oregon Territory
Obverse DescriptionThe central device is a beaver, facing right, standing on a log. The initials of the eight company partners arc above the beaver. Below the log are the initials 'T.O.' for Territory of Oregon (an engraver's error, as it should have been 'O.T.') and the date '1849' flanked by branches.
Obverse InscriptionK.M.T.A.W.R.G.S. / T.O / 1849
Reverse DescriptionThe periphery is inscribed with the issuer's name. The center is dominated by the inscriptions for weight and composition in three lines, with the denomination below.
Reverse InscriptionOREGON EXCHANGE COMPANY / 130 G. / NATIVE GOLD. / 5 D.
CompositionGold (unalloyed)
Stated FinenessNative Gold (no fineness stated)
Actual FinenessApproximately .840 to .880 fine, consistent with unrefined California placer gold which naturally contains silver and other trace elements.
Weight8.42 grams
Diameter23.50 mm
EdgePlain
Approximately 6,000
Survival Estimate50-75 known in all grades
Rarity ScaleR-5+
The K-1 'Beaver' is one of the most beloved and historically significant territorial issues. Its appeal stems from its crude, charming design, its direct link to the Gold Rush and the settling of the West, and its extreme rarity. It is often the first and most iconic coin that comes to mind when collectors think of Oregon gold.
Key VarietiesThe primary issue (K-1) is the only variety from the original 1849 minting period. Two notable engraver's errors serve as key identifiers: the use of 'T.O.' instead of the correct 'O.T.' for Oregon Territory, and the initial 'G' for John Gill Campbell instead of 'C'. Both errors were corrected on the later $10 issue. Decades later, modern replicas, often incorrectly called 'restrikes,' were produced for collectors. For example, the Eastern Oregon Mining Association (EOMA) issued proof-quality replicas in the late 20th century, struck in .999 fine gold. These are not original coins, were not made with original dies, and are considered modern tokens or medals, having a completely separate and much lower numismatic value.
Authentication TipsOriginals have a crude, somewhat soft strike, especially on the beaver's fur and the lettering. The surfaces should exhibit the color and texture of unalloyed gold, often with a slightly greenish-gold hue due to natural silver content. Look for die characteristics consistent with known genuine examples. Counterfeits are common and range from poor quality cast copies to more deceptive modern strikes. Any example with sharp, modern-looking details, a prooflike surface, or incorrect weight should be viewed with extreme suspicion. Authentication by a major third-party grading service (PCGS, NGC) is essential for this issue.
Shopping ConsiderationsA premium quality example for its grade is one that is free from significant, distracting marks, cleaning, or damage. The softness of the unalloyed gold makes these coins highly susceptible to scratches and rim bumps. Look for an even, honest wear pattern and as much original luster as possible. The strike is a critical factor; coins with a sharper-than-average strike, showing clearer details on the beaver and the partner's initials, command significant premiums. Eye appeal is paramount; an example with a pleasing original color and smooth surfaces will be far more desirable than a similarly graded coin that has been cleaned or tooled. Avoid examples with evidence of mounting, as many were used in jewelry.
A coin's grade is its condition, rated on a 1-70 scale. For rare coins, this is the most critical factor in determining value, as a tiny difference in preservation can mean a huge difference in price.
Relevant Grade TypesOriginal 1849 issues were business strikes produced for circulation and are found in Circulated (1-58) and, very rarely, Mint State (MS, 60-70) grades. No proofs were struck by the Oregon Exchange Company during the original period of issue. The term 'Restrike' in the user's query likely refers to modern, privately produced replicas, which are typically struck in Proof (PR/PF) finish for the collector market. These are considered tokens or medals and are fundamentally different numismatic items from the original 1849 business strikes.
Mint State CharacteristicsUncirculated examples are exceedingly rare. A true Mint State specimen would exhibit full, soft, satiny luster characteristic of unalloyed gold. The strike is almost always weak in areas, particularly on the beaver's head and body fur, and on some of the peripheral lettering. Due to the primitive minting process and the softness of the metal, even uncirculated examples will typically show some planchet adjustment marks, light contact marks from handling, or other minor imperfections. A sharp strike for the issue would be a major value driver.
Circulated Wear PatternsWear first appears on the highest points of the design. On the obverse, this includes the beaver's shoulder, back, and the top of its head. The initials of the partners, particularly those at the top of the arc, are also susceptible to early wear. On the reverse, the '130 G.' and '5 D.' inscriptions in the center will show the first signs of flattening. In lower grades (VG and below), the beaver becomes indistinct and the legends begin to merge with the fields.
Key Factors For ValueFor an Oregon $5, value is driven by several factors beyond the numerical grade. Surface preservation is paramount; original, uncleaned surfaces with minimal distracting marks are highly prized. The quality of the strike is crucial, as well-defined examples are the exception and command strong premiums. Eye appeal, encompassing attractive original coloration and the overall visual harmony of the coin, plays a major role. Finally, given the issue's rarity and the prevalence of problem coins, a CAC sticker indicating premium quality for the grade adds a significant layer of desirability and market value.