The Case of the Golden Spike

EnservioSelect was asked to determine if a “Golden Spike” - made as a commemorative of the 1869 joining of the Union Pacific and the Central Pacific tracks creating the first transcontinental railroad in the US - could be worth the $3,000 claimed by the Insured. The Insured purchased the spike in 1979 along with a Special Edition “Golden Spike” rifle made by Winchester in 1969 to commemorate the 100th Anniversary of the historic joining of the tracks.

At the time of the loss (by theft), gold bullion prices were around $950.00 per ounce. The Insured spoke to Select and related that he thought the spike weighed between 3 and 4 ounces and was about 4” high and about ½” square with a sharp tip and a broader top – just a smaller version of a real railroad spike. Given the weight per cubic centimeter of gold bullion, Select was able to calculate that a spike of these dimensions – if made of real gold – would exceed ½ pound – more than double the Insured’s estimate of weight.

EnservioSelect also confirmed that Winchester did issue the commemorative rifle – though without any accompanying “golden spike.” Instead, Colt Industries had also issued a Golden Spike Commemorative pistol in 1969 that came in a presentation box along with a commemorative “golden spike” – but that spike was clearly identified as gold plated.

The Result

After checking further with gun dealers and dealers in historic memorabilia, EnservioSelect concluded that the “golden spike” at issue was most likely one of the gold plated spikes originally part of the Colt pistol presentation box. The collector value of the spike on its own was determined to be $35.00.