All silver coins, including silver dollars, vary widely in price depending on a number of factors, notably scarcity, desirability, and condition. But how is condition established? You may think a coin looks pretty good, while the dealer you’re trying to sell it to may think it looks pretty bad. So in order to reach a fair price for both buyer and seller, it’s important for both parties to agree on condition.

In order to establish a standard reference, in the 1950s, psychologist and coin collector William H. Sheldon came up with the scale that’s widely used today. It rates coins from 1 to 70, based on the quality of the coin when it was first struck, the integrity of the metal, and the wear and damage that’s occurred since the coin was first minted.

An uncirculated silver dollar

Perhaps you’ve looked at coins online or in coin shops, and seen the designation AU-58 or MS-65. If you weren’t clear about what that meant, this will help clarify. And having a decent grasp of silver coin grading will keep you from overpaying for your coins.

First of all, coins are divided into three groups – circulated, almost uncirculated, and uncirculated. Coins in the first group can be Poor (P1), Fair (FR-2), Good (G-4), Very Good (VG-8), Fine (F-12), Very Fine (VF-20), and Extremely Fine (EF-40).

There’s little dispute about coins in the Poor to Extremely Fine group. These coins were used as currency, and changed hands – sometimes often. To grade one yourself, get the same coin in mint condition if you can. That way, you’ll have something to compare it to.

You’ll also need a magnifying glass that magnifies up to eight times, and a good source of light. Examine the coin carefully to see if there are any signs of wear. If there’s no visible wear whatsoever, you can classify your coin as uncirculated. If there are some signs of wear – and even coins that have never been in circulation can be damaged by coin counters or mishandling – then it needs to go into one of the other groups.

Poor coins are just that. Fair coins have a lot of wear. You may not be able to read the date, mint mark, or other inscriptions. Even coins in fair condition can be worth collecting, depending on the other factors. Good coins (4-8) will range from some wearing of the date to an unbroken ridge around the edge of the coin.

Most of the design is visible in Fine coins. There may be a little wear evident in finer details such as hair or feathers, but overall, the coin is in good shape. Extremely Fine coins have hardly any visible wear, although they won’t have quite the luster of a AU coin.

A Morgan Silver dollar that’s been in circulation

Coins in the Almost Uncirculated group can range from AU50 to AU 58, and it’s very difficult for beginners to tell the difference. There will only be a slight amount of wear on the highest spots of the coin. And curiously, top-grade AU coins often look better than lower-grade MS or Mint State coins.

Uncirculated coins – from MS60 – MS-70 – have no visible wear. But even a coin that appears to be perfect to an untrained eye probably won’t be an MS-70. Those are extremely rare, even though they have never been circulated.

It’s relatively easy to establish the grade of a silver dollar that you’re trying to sell. Just visit a couple of dealers. If you’re buying, you’ll need to be more cautious. If you buy Almost Uncirculated or Good-quality coins, you’ll have an easier time of it.

Read more about collection silver dollars.

An uncirculated silver dollar courtesy of the U.S. Mint
A Morgan Silver dollar that’s been in circulation Image Flickr: Jeffrey Beall

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Australia issues several silver dollars that are of interest to both collectors and investors. The popular Australian Koala and Kookaburra silver bullion coins are issued by the Perth Mint in Western Australia. But the Royal Australian Mint (RAM) in Sydney also issues beautiful, investment-quality coins.

When the RAM first opened in Sydney on February 22, 1965, it was the first mint in Australia that was not a branch of the London Royal Mint. The Duke of Edinburgh officiated at the ceremony and the RAM began the process of creating Australia’s decimal coinage.

Forty five years later, the RAM has produced more than 11 billion coins. In addition to issuing Australian coins and silver dollars, the RAM also mints coins for other South Pacific nations, including New Zealand, Papua New Guinea, the Cook Islands, Fiji, and Malaysia.

Courtesy of Royal Australian Mint

In 1993, the RAM introduced the first Australian Silver Kangaroo. This silver dollar has been produced every year since then. It has a purity of .999 and weighs one ounce. An image of Queen Elizabeth II appears each year on the obverse. And a different image of a kangaroo – the national symbol of Australia – appears on the reverse.

Together with American Silver Eagle coins, Canadian Maple Leafs, and the St. George Sovereign from the London Mint, the Australian Kangaroo has become one of the most collectible silver bullion coins in the world, valued as much for its artistry as its investment potential.

Because the mintages were limited in quantity, some of the older issues have shown strong appreciation in value. The 1998 and 2007 silver bullion coins are especially collectible. In 1998, 7,645 proof coins — the first in the series — were produced, and the portrait of Queen Elizabeth was changed to the Ian Rank-Broadley design. Proof coins have been available since then and coins with some gold plating were introduced in 2002.

For 2010, the design features a Yellow-Footed Rock Wallaby designed by W Pietranik. It is shown on a rocky ridge, typical of its New South Wales habitat. Listed as Vulnerable in the 1999 Environment Protection and Biodiversity Conservation Act, the Yellow-Footed Rock Wallaby is something of a success story in Australia, having bounced back in number.

There will be just 20,000 proof coins produced. The mintage on the frosted, uncalculated coin is unlimited.

Collectors and investors should strongly consider adding Australian Kangaroos to their holdings. Because the quantities are so limited, they are more likely to appreciate than coins with mintages in the millions. And because their silver content is slightly greater than that of American Silver Eagles, they are often the first choice of collectors.

Learn more about Australia’s other silver bullion coins, the Australian Koala and Kooaburra here.

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Minted between 1921 and 1928, and again between 1934 and 1935, the Peace Dollar was the last silver dollar minted in the United States.

The Pittman Act of 1918 required that up to 350 million silver dollars be converted into bullion and that for each coin that was converted, a new one had to be minted.  More than 270 million silver dollars — nearly have of all that were ever struck — were melted down.  Paving the way for an equal number of new coins.

The popular Morgan Silver Dollar hadn’t been minted since 1904.  But to comply with the Pittman Act, 86 million Morgan Silver Dollars were produced in 1921.  But a movement was afoot to design a coin that would commemorate the end of World War I.

As the Mint’s chief engraver, George T. Morgan — the designer of the Morgan Silver Dollar — was the likely choice to design the new coin.  But President Warren G. Harding ordered than an open competition be held sponsored by the Commission of Fine Arts.

Nine artists entered the competition, including the designers of the Lincoln Penny, the Mercury Dime, and the Standing Liberty Quarter.  The design of an Italian immigrant named Anthony de Francisci carried the day.  Francisci’s wife was the model for Lady Liberty and his initials are visible under her neck.  Also an immigrant from Italy, she considered modeling for the coin the culmination of a lifelong dream.

The Peace Dollar is so named because the word “peace” appears at the base of the rock on which the eagle is perched.  Morgan did have a hand in the design.  He replaced the broken sword in the eagle’s beak with a more pacifist olive branch.

The first Peace Dollars were minted on December 26, 1921, but there were problems with the design.  The relief of the coin was so high that the dies used to produce it were breaking at record pace.  And the coins didn’t stack well.   The next year, the design was modified to lower the relief.

In 1928, the number of new silver dollars produced finally equaled the number melted down in compliance with the Pittman Act, and production stopped.   To back up existing silver certificates — paper dollars that could be redeemed for silver — some additional Peace Silver Dollars were minted between 1934 and 1935.

In May of 1964, 316,000 Peace Silver Dollars were struck in Denver.  But by order of Congress, all those coins were melted down.  There are rumors that there are still some in existence, but owning them is illegal.

Several Peace Dollars are valuable.  Extra-fine 1921, 1928-P, and 1934-S Peace Dollars are worth a bundle.   And extra-fine 1925 and 1928-S are also valuable.

Read more about the history of U.S. silver dollars here.

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