The 1863-S quarter eagle is an extremely scarce coin, as are the majority of gold coins struck in 1863. The Civil War had halted circulation of gold and silver coinage in the east, where mintages remained low because there was no need for new coinage. In the western states, in particular California and Oregon, the need was served by a small number of coins struck at the San Francisco Mint. Most recent coinage still was in circulation, and depositors usually requested the largest denomination, the double eagle for its convenience. As such, only 10,800 1863-S quarter eagles were struck, and all, except a few extremely rare pieces are in the lower circulated grades.

During the 19th century, as had been the case for many centuries, gold and silver coins were generally not valued at the amount noted on them. Instead, gold and silver coins were mostly traded at spot value, using difficult calculations. Usually, the spot value would be fairly close to the denomination of the coin, but during some times the silver or gold would be worth more. This problem was often solved by reducing the value of silver/gold in the coins. During the Civil War however, it was, besides the rising costs of the war, also the unpredicted outcome of the Civil War that played a large role in the east where federal coins did not circulate for many years. Even with low mintages, a majority of those coins are thus available in higher grades, a situation completely the opposite as that in the east.

In the western territories, the situation was different. With low-populations spread out in large areas, and mostly concentrated in larger cities, living in the west was much harder than in the populated east. When the Civil War commenced only California and Oregon had officially been granted statehood, and were located in the west. Between the states in the middle of the country, Texas and Kansas (Kansas had become a state on January 29, 1861) were a number of mostly "organized incorporated territories". They were part of the United States and were organized in a territorial government, but had not yet admitted into the Union as a state.

Most people in the Western states and territories were hardworking men who distrusted paper money. Not generally accepted, most people in California and nearby states and territories preferred to have real money in their hand, coins made out of gold and silver. As such, paper money did not circulate in the east and federal US coins continued to circulate. Because of this, most San Francisco Mint coins are extremely scarce in grades above Extremely Fine, and extremely rare to virtually unknown in any uncirculated grade.

As previously mentioned, the 1863-S quarter eagle is exceptionally rare in uncirculated condition. Yet, in circulated condition, where it can not considered too be common at all, prices have remained relatively low. The small premium over a common date indicates that most collectors don't pay much attention to the rarity of these gold coins. For the conscious collector, this is once again an excellent opportunity to buy a set of rare gold coins at a relatively modest price. The rarity of offerings, however, won't make it an easy task, but once completed the connoisseur as a set to be proud of.