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

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.

The Royal Canadian Mint has been producing the extremely popular Canadian Silver Maple Leaf since 1988. And China, Mexico, and Great Britain also issue silver bullion coins.

Australia has the distinction of having two mints that create and produce investment-quality silver dollars. The Perth Mint, which issues the Kookaburra, the Koala, and the Lunar Chinese Year silver dollars, and the Royal Australian Mint, which issues the popular Australian Kangaroo silver dollar.

The Perth Mint dates from 1899, when it was opened to create coins from a lode of gold discovered in neighboring Coolgardie and Kalgoorlie. Owned by the State Government of Western Australia, it was part of the British Royal Mint until 1970.

Today, the Perth Mint is recognized around the world for beautiful design and superb craftsmanship. They are the official issuer for the federal government of Australia’s gold and silver bullion coins. And the purity – 99.9% silver – and weight of the coins is guaranteed by the Australia government.

Australian Kookaburra silver dollars.

2010 Australian Kookaburra

In 1990, the Perth Mint produced the first Australian Kookaburra silver coins. Although the obverse, which features an image of Queen Elizabeth II designed by Ian Rank-Broadley, remains the same, the image of the kookaburra on the reverse changes each year.

Native to Australia, the kookaburra is a member of the kingfisher family that’s best known for it’s distinctive call, which sounds eerily like a human laughing. Because of that, he’s a favorite of Aussies and visitors alike who are enchanted by his infectious good spirits.

The 2010 design features a kookaburra on a large branch, facing right. One kilo, ten ounce, and one ounce versions of the coin are being produced with a face value of $30, $10, and $1. The one-ounce silver dollar is limited to a mintage of just 300,000.

Australian Koala silver dollars.

2010 Australian Koala

The Perth Mint issued the first Koala silver coin in 2007. Since then, it’s become a very collectible coin. Like the Kookaburra, the design of obverse features an unchanging Queen Elizabeth II, and the design of the koala on the reverse changes every year.

For 2010, one kilo, ten ounce, one ounce, and one-half coins are being issued. They have a face value of $30, $10, $1, and 50 cents, respectively. This year’s design depicts a koala sitting in a tree, eating eucalyptus leaves. It features a frosted background that makes the bright koala really pop.

Australian Lunar silver dollars.

2010 Lunar Year

First minted in 1999, Silver Lunar coins depict the twelve animals of the Chinese Calendar. The 2010 coin, the twelfth in the series, commemorates the Year of the Tiger. Previous issues show a rabbit, dragon, snake, horse, goat, monkey, rooster, dog, pig, mouse, and ox.

The 2010 design features a tiger in repose on the reserve with the inscription, “Year of the Tiger.” Queen Elizabeth II is on the obverse.

There are eight sizes available – ten kilo, one kilo, one-half kilo, ten ounce, five ounce, two ounce, one ounce, and one-half ounce. The ten-kilo coin has a mintage limit of 500, and the one-ounce coin is limited to 300,000.

The “P” mint mark appears on all Perth coins and they are available directly from the Perth Mint or from authorized dealers.

Read more about American Silver Eagle coins here.

Images courtesy of Perth Mint.

You’ve probably heard of silver bullion but may not be exactly sure what it means. In a nutshell, bullion is valued for its mass and purity rather than for its face value as a coin. Silver bullion coins are never intended to be used as currency. And their face value is significantly less than the value of the silver they contain.

American Silver Eagle Reverse side

Both bullion and proof finishes of American Silver Eagles are produced. But since 2009, demand for the American Eagle silver bullion coins has been so great that all the available silver blanks have been used to produce silver bullion coins.

Because the cost of bullion coins is keyed to the market silver price — also called the spot silver price, they are available from authorized bullion and coin dealers. When they are available, proof versions of the coin are sold by the U.S. Mint. until the next year’s Silver Eagles are issued or until they are sold out.

Each bullion Silver Eagle is 99.9% silver and weighs 31.103 grams. The U.S. government guarantees their weight, composition, and purity. Interestingly, they are the only silver coins that can be used to fund an Individual Retirement Account (IRA).

The obverse features Adolphe A. Weinman’s Walking Liberty, which was first used on the 1916 half dollar. She strides confidently wrapped in Old Glory with branches of laurel and olive in her left hand.

The reverse, which was designed by John Mercanti, show an eagle with arrows in his left talons, and an olive branch is his right.

In 2006, the U.S. Mint introduced a platinum American Eagle.

American Silver Eagle Reverse side

To make the proof coins, specially burnished silver coin blanks are manually fed into a coin press that’s fitted with special dies. The coins are struck several times, resulting in a frosted image that seems to float above the highly polished background.

Inspectors wearing white gloves check the coins and then place them in a protective plastic case. The coins are sold with a Certificate of Authenticity.

Like all silver bullion coins, American Eagles are popular with investors because they are an affordable way to add precious metals to your portfolio. They are the only investment-grade U.S. silver coins. And today, they are also the world’s most best-selling silver coins, with more than 130 million sold.

Investors are attracted to precious metals because as a rule, they move independently of stocks and bonds. They are portable, extremely liquid — most coin dealer will be cash for them — and easy to store and care for.

Although the coins are mostly of value due to the silver they contain, three Silver American Eagles are more valuable because fewer were produced. The 1995-W Proof Silver Eagle was part of the Gold Eagle Proof Set with a mintage of just 30,125. The 2006-W Reverse Proof was part of a mintage of 250,000 sets. And the 2008-W Silver Eagle was struck with the 2007 reverse die.

If you’re interested in collecting silver dollars, consider investing in some silver bullion American Eagle coins. You can get started for a modest price, and the coins are beautiful.

Read more about collecting coins here.

Images: U.S. Mint

Because commemorative silver dollars include a surcharge — usually $10 per coin — that helps support the organization, buying them is more than a good investment. It’s also a good way to support worthy causes and institutions. In fact, the program has raised more than $418,000,000 since it began. Over the years, the funds have helped to preserve historical sites and to create new national monuments and museums.

Obverse of AVDL Silver Dollar

The U.S. Mint is issuing two commemorative silver dollars in 2010. The first is the American Veterans Disabled for Life (AVDL) Silver Dollar which became available on February 25, 2010. The second is the Boy Scouts of America Centennial Commemorative Silver Dollar which is scheduled to be released on March 23, 2010.

The AVDL silver dollar was authorized by Congress in July of 2008. It was created to honor the sacrifice of American armed forces members who have been permanently disabled during their service to our country. Few subjects have been as worthy of this honor.

A total of 350,000 AVDL proof and uncirculated silver dollars will be minted at West Point. They will bear the W mint mark. The coins, which are 90% silver and 10% copper, weigh 26.73 grams and are 1.5 inches in diameter.

U.S. Mint Sculptor-Engraver Don Everhart designed the obverse which shows the booted legs of three soldiers. One of the soldiers has only one leg. It’s a poignant design that conveys the sacrifice these heroic Americans have made for their country. The inscription in the banner at the top of the coin reads THEY STOOD UP FOR US. The inscriptions at the bottom read LIBERTY and IN GOD WE TRUST with the year 2010.

Reverse of AVDL Silver Dollar

U.S. Mint Artistic Infusion Program Master Designer Thomas Cleveland designed the reverse of the coin. It shows a wreath of ribbons and oak branches with a forget-me-not at its base. The oak branches represent the strength of the veterans, and the flower is a symbol of remembrance. The message in the center of the wreath reads Take This Moment to Honor Our Disabled Defenders of Freedom. The other inscriptions are ONE DOLLAR and UNITED STATES OF AMERICA.

The proof AVDL silver dollars will be sold for the introductory price of $39.95 until March 29, 2010. Uncirculated coins in will be $33.95. After March 29, they will be $43.95 and $35.95, respectively.

The $10 surcharge from the sale of this coin will be used to build the AVDL Memorial in Washington, DC. The memorial was authorized by Congress in 2000.

You can order the silver dollars from the U.S. Mint by calling 1-800-USA-MINT or at http://www.usmint.gov/catalog.

Previous U.S. Mint commemorative silver dollars have turned out to be solid investments. Some proof 2001 Buffalo Silver Dollars are selling for ten times the issue price. And the 2009 Abraham Lincoln Silver Dollar sold out very quickly, which usually leads to appreciation.

Read more about commemorative silver dollars here.

Images from the U.S. Mint.

Commemorative silver dollars also help to raise money for worthy causes and institutions. A surcharge, usually around $10 per coin, is designated to support the organization that’s being honored. Since the program started in 1982, more than $418,000,000 has been raised. This money has been used to fund new museums, national monuments, and to help preserve historical sites.

2010 Boy Scouts of Amercia Silver Dollar Obverse

U.S. Commemorative silver dollars not only help to do a lot of good, they are often a good investment. Proof Buffalo Silver Dollars that sold for $35 when they were issued in 2001 now sell for ten times that.

The U.S. Mint will issue two commemorative silver dollars in 2010. The first was the American Veterans Disabled for Life Silver Dollar, which was released on February 25th 2010.

The second, The Boy Scouts of America Centennial Commemorative Coin, will honor the BSA’s 100th anniversary, which takes place on February 8th, 2010. The issue was authorized by Congress in October of 2008. And the surcharge for the coins will be used to support Boy Scout troops in hard-to-serve locations.

A total of 350,000 proof and uncirculated coins will be produced. Seventeen designs for the obverse and five for the reverse were developed. Secretary of the Treasury Timothy Geithner chose the winning designs on September 16, 2009.

U.S. Mint Artistic Infusion Program Master Designer Donna Weaver designed the obverse, which shows a Cub Scout, a female Venturer, and a Boy Scout saluting. The image reflects the diversity in scouting today. The inscriptions on the obverse include CONTINUING THE JOURNEY, LIBERTY, IN GOD WE TRUST, and the years 1910 and 2010.

2010 Boy Scouts of America Silver Dollar Reverse

U.S. Mint Sculptor-Engraver Charles Vickers designed the reverse which features the emblem of the BSA and the inscriptions ONE DOLLAR, BE PREPARED, UNITED STATES OF AMERICA, E PLURBIS UNUM, and BOY SCOUTS OF AMERICA.

The coins, which are 90% silver and 10% copper, weigh 27.73 grams and are 1.5 inches in diameter. They are available from the U.S. Mint and are scheduled to be released at noon ET on March 23, 2010. Uncirculated and proof silver dollars will be available for the introductory price of $33.95 and $39.85 respectively until April 22, 2010. After that, the price goes to $35.95 and $43.95.

Read about other U.S. Commemorative silver dollars here.

Images from the U.S. Mint.

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

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.
Read more about Morgan silver dollars here.

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.

Read more about collecting silver dollars here.

One of the best loved and most collected American coins, the Morgan Silver Dollar has a fascinating history.

The Comstock Load from Virginia City, Nevada, was first made public in 1859.  It produced more than $400 million dollars worth of silver and gold, and drove the price of silver way down.

So much so that in 1878, the Bland-Allison Act required the U.S. Treasury to purchase $2 to $4 million worth of silver bullion each month to convert into coins.

The Chief Engraver of the U.S. Mint, George T. Morgan, designed what is now known as the Morgan Silver Dollar.   The elegance and timelessness of the design has made it one of the most popular American coins.  And today, Morgan Silver Dollars run the gamut from affordable to extremely valuable.

In 1890, the Hayes Administration passed the Sherman Silver Purchase Act of 1890, which set the monthly commitment at $4.5 million.  Treasury Bills that could be redeemed for either gold or silver were used for the purchase.

So many bond holders redeemed their notes for gold that the Treasury’s reserves were seriously depleted, and financial panic ensued.  In 1893, the Sherman Act was repealed and production of silver dollars slowed dramatically.

Once the bullion supply for silver dollars basically ran out in 1904, minting of silver dollars ceased.

The Pittman Act of 1918 required the government to convert silver dollars into bullion and then create an equal number of new coins from the bullion.  More than 270 million silver dollars were melted down.

To comply with the Pittman Act, production of the Morgan Silver Dollar resumed in 1921 for a brief period of time.  You’d think that would be the end of the story, but it’s not.

The Silver Act of 1942 resulted in the melting down of even more Morgan Silver Dollars.  In fact, it’s estimated that more than 80% of the Morgan Silver Dollars that were produced are no longer in existence.  That’s why even coins with an original issue of over one million can still be valuable.

In 1962, with a surplus of silver dollars on their hands, the U.S. government began selling original Treasury bags containing 1,000 silver dollars for face value.   News stories about rare coins being included in the bags reignited interest in collecting Morgan Silver Dollars.

But when lots of the formerly rare uncirculated 1903-O coins were released, their value went from $500 to $35 in a matter of months.

During the early 1970s, the General Services Administration packaged and sold off most of the remaining government-owned Morgans, many of which were minted in Carson City.  Morgan Silver Dollars in the original GSA packaging are very collectible.

Probably the most valuable Morgan Silver Dollar is the 1893 proof minted in San Francisco, which is worth more than $1 million.  The 1893-O proof is worth more than $300,000.  The 1895-O and 1896-O MS-67s are worth around half a million.Other sought-after coins include anything minted in Carson City, especially 1889 – which is worth about $500,000 – and the 1892, 1895, 1903, and 1904 coins from San Francisco.

Read more about Peace silver dollars here.