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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Since 1982, the U.S. Mint has issued commemorative coins celebrating noteworthy people and American places, events, and institutions. The coins, which are authorized by acts of Congress, are produced in limited quantities and are not circulated.

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.

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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.

Read more about collecting silver dollars here.

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