The Buffalo Nickel is one of the best loved American coins. Designed by James Earle Fraser, it was produced between 1913 and 1938. Fraser was a student of sculptor Augustus Saint-Gaudens, who designed one of the most beautiful American coins, the $20 Double Eagle. Fraser’s initial “F” appears under the date on the obverse side.

The reverse side of the coin features an America Bison. Black Diamond, a buffalo in New York’s Central Park, was likely the model.

American Buffalo Silver Dollar

The obverse shows a portrait of a Native American Chief. Fraser used several actual chiefs as models — Iron Tail of the Oglala Sioux tribe, Two Moons of the Cheyenne tribe, and Big Tree of the Kiowa tribe. The three performed in Wild West shows in New York City when Fraser was designing the coin.

Fast forward 80+ years. The U.S. Mint decides to produce a coin to commemorate the opening of the National Museum of the American Indian at the Smithsonian Institution. And a slightly modified version Fraser‘s Buffalo Nickel design was chosen for the coin. On October 27, 2000, President William Clinton signed the law authorizing the creation of the commemorative silver dollar.

Only 500,000 coins were struck. They went on sale on June 1, 2001, and they were sold out by June 21. Originally, the coins sold for $35 apiece but today, proof coins are selling for $250 to $800. A portion of the proceeds from the original sale was used to help supplement the museum’s endowment fund.

American Buffalo Silver Dollar

Buffalo Silver Dollars are 90% silver and 10% alloy, and they weigh 26.73 grams. The uncirculated coins were struck in Denver, and the proof coins were struck in Philadelphia.

The silver dollars are slightly different from the original nickels. The word “Liberty” appears on the obverse to the right of the Chief’s profile. On the reverse, the words “United States of America” and “In God We Trust” appear above the buffalo. And “One Dollar” is visible below.

Coin collectors who jumped on the opportunity and were able to purchase Buffalo Silver Dollars are very glad they did. Especially those who were able to obtain one of the 50,000 American Buffalo Coinage and Currency sets.

If you collect coins, keep tabs on new issues from the U.S. mint.

Read more about collecting silver dollars here.

Photos: U.S. Mint

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Although gold is far more valuable than silver today, there was a time when silver was actually more scarce.  Prior to the Comstock Load, made public in 1859, the supply of silver was too spotty for consistent production of U.S. silver dollars.  In fact, none were produced between 1804 and 1836.

The vast flow of silver from the Comstock Load enabled a steady stream of silver dollars until the silver supply ran out in 1904.  Between 1918 and 1921, 270 million silver dollars were melted down in order to comply with the Pittman Act of 1918.  And U.S. silver dollars were minted again for a brief time, starting in 1921.

By 1926, silver was in short supply again, and in 1928, production of silver dollars was halted, once again.   To honor U.S. Silver Certificates — dollar bills that could be redeemed for silver — some Peace Dollars were issued between 1934 and 1935.

Since 1935, U.S. dollar coins have either not been silver — such as the Eisenhower Dollar, the Susan B. Anthony Dollar, and the Sacagawea Dollar — or have not been intended for circulation– like the American Silver Eagle coin.  

There are lots of reasons to collect coins.  Beautifully designed coins are tiny, portable works of art.  The best typify the aesthetic of an era — glimpses into another time and place.  And there’s something about being able to feel the relief of the design and the ridges along the rim that makes them even more special.

It doesn’t have to cost a lot of money to get started.  In fact, you could start collecting coins by  just sorting through the coins in your pocket or coin purse and setting them aside in some sort of order.   Once you start paying attention, you’ll be surprised by how many types of coins are in circulation.  

There are lots of coins you could collect.  But U.S. coins are the most collectible, trade the most quickly, and have the most collectors.  You could collect pennies, nickels, dimes, quarters, or half dollars.  But there’s no denying that silver dollars are the most appealing.  The designs are lovely. Silver is a beautiful metal. And there are nice quality coins available in the $20 – $35 range.

So how do you know which coins to buy?

There are several strategies you could adopt.  If you’re collecting as an investment, try to collect a set of coins that have a common denominator.  Specializing in coins released by one mint is a good strategy.  Carson City — “CC” — coins are the most valuable, and expensive.  But “O” coins from New Orleans, or “S” coins from San Francisco are both affordable and highly valuable.

Another method is to collect coins from the same year from all five mints.  This will be a bigger investment, but it will also be more valuable in the long run.  Depending on the year and condition, you could expect to invest about $5,000 and up.

Morgan Silver Dollars are the most collectible because there are lots of good quality coins that are readily available.  Know fair market value of the coin you’re interested in before you buy.  You can consult one of the online buying guides such as www.numismedia.com or buy the Official Red Book Guide to Coin Prices.

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Until very recently, the U.S Dollar has been the world’s leading currency.  But that wasn’t always the case.

When the U.S. began doing more trade with Asia in the late 19th-century, the Chinese  preferred the Mexican peso over the U.S. silver dollar because the peso contained more silver – 416 grains versus 412.5 grains.

To conduct business in the Far East, American traders had to exchange their silver dollars for pesos, and then pay a commission for the exchange.

By 1873, the situation had become irksome enough for Congress to pass the Coinage Act of 1873, which authorized the issuance of a new silver dollar that would weigh 420 grains.  Called the U.S. Trade Dollar, it was designed by William Barber and replaced the Seated Liberty Silver Dollar.

The obverse of the coin shows Lady Liberty seated on a bale of cotton in front of a sheaf of wheat.  This not-so-subtle imagery showcased America’s leading crops, and the olive branch in her hand was a gesture of peace.  Liberty faces left, or west, another nod to Asian interests.

To advertise the new dollar’s more generous silver content, the term “420 Grains .900 Fine” is inscribed on the reverse below an eagle clutching a brace of arrows and another olive branch.

Most of the Trade Dollars produced between 1873 and 1875 were circulated in China, where they were an immediate hit.  The coin became the official Chinese trade coin, ousting the Mexican peso once and for all.

Many coins from that period have an Asian chop mark used to verify its authenticity.  Depending on the rareness of the chop mark, this can either add or subtract from their value.

The Comstock Load of 1859 had produced more than $400 million dollars worth of gold and silver.  And silver miners began dumping it into U.S. markets.  By 1876, the price of silver had dropped so far that the silver in the Trade Dollar was barely worth 80 cents.

Most of the coins came back to America where they could at least be traded at face value.  But because the bullion in the coins was worth significantly less, many people were duped by swindlers who bought the coins at bullion prices and then used them as dollars to buy goods or pay workers.

Commercial production of Trade Dollars stopped in 1878, but production of proof coins for collectors was begun in 1879.  These coins were produced in very small quantities.  There were only ten in 1884 and five in 1885.

Produced on the sly, their existence was unknown until 1908.  Consequently, they are some of the rarest U.S. coins in existence.

In 1887, the United States Treasury agreed to redeem non-mutilated trade dollars and more than 8 million were turned in.

Just how valuable are these coins?  In January of 2006, an 1885 PF-66 sold for $3.3 million.

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