Silver dollars are one of the most collectible and liquid coins in the coin market today. They also rank among the most valuable coins in the world. A silver dollar recently broke the record as the world’s most expensive coin sold at auction, while others sell for millions of dollars. This is not a bad thing, because a coin, normally considered to be worth $1.00, can have such a huge price
What is a Silver Dollar?
US silver dollars are coins minted by the United States Mint. The first silver dollar coin was minted in 1794. These coins are composed of 90% silver and 10% copper. They were liquidated at a value of $1.00.
The history of US silver coins is quite interesting, as these coins were created when the country adopted a silver standard based on the Spanish dollar in 1785. According to precious metals analyst Dave Krenzler:
“This silver standard was legally mandated by the Mint and Coinage Act of 1782. This established the silver US dollar as the official currency unit.”.
The US pegged the dollar to the Spanish dollar and divided it into 100 cents. The Coinage Act allowed coins to be minted denominated in cents and dollars.
The journey for the silver dollar was not easy
Though the silver dollar had a good start, there were some major events that hindered these coins. The first major problem was the Coinage Act of 1873. This act stopped the process of minting silver into coins, which had previously been mandated by the state for more than 100 years.
Then in 1878, the Bland-Allison Act came into effect which compelled the Treasury to purchase a specific amount of silver every month and coin it into dollar coins.
However, just a few years later in 1890, the Sherman Silver Purchase Act was passed that resulted in the huge increase of dollar coins supply. Then the production declined for several years and in 1904 the US suspended the production of silver dollars.
World War II and the Pittman Act. Following World War I, the Pittman Act was passed and then another law known as the Peace Act, in 1921. Silver dollars began being minted. The coin only existed for a short period of time; then, an end came to its production during World War II. Subsequent to this, silver coin mintage resumed in the 1970s with the Eisenhower dollar.
The Mint produced coins with various designs until 2011. Since 2012, the Mint only produces coins for collectors, and the coins are no longer in general circulation. The designs of these coins and the story behind them are very interesting. This is why silver dollars are considered one of the most collectible coins nowadays.
Why is it called the Silver Eagle, if it’s the silver dollar?
The American Silver Eagle coin, a special kind of silver coin, is named the Silver Eagle.
This particular coin is actually the official investment-grade, silver bullion coin of the United States. It is attractive due to its being one troy ounce in weight, which converts to about 31.1 grams, and containing 99.9% pure silver.
The American Silver Eagle was approved by the “Liberty Coin Act” in the year 1985, and this coin was minted for the first time in the year 1986. The coin has a very famous “Walking Liberty” design on its obverse and an image of the American national bird “Bald Eagle” on its reverse.
Another specialty of this coin is that it has been authenticated by the US government, that is to say, that its weight, purity, and silver content are fully guaranteed. Because of this the American Silver Eagle coin has become the most traded silver coin in the world.
Coins made before 2012 are face-valued at $1. However, these coins normally sell for a bit more than the current spot price of silver. This is not only because of the amount of silver contained in the coin but also its collectible value.
For collectors, special edition or “proof” coins can be very valuable. However, because these coins are new, their value can.
The 1794 “Flowing Hair” May have been the first silver dollar the US Mint in Philadelphia produced. The coin gets its name from the flowing hair of Lady Liberty on one face.
In 2013, an auction sold a 1794 “Flowing Hair” dollar for $10,016,875 — the rarest coin ever issued within the silver dollar series.
Coin collector Bruce Morelan purchased the coin at the record price. He sold it in 2022 for $12 million to the firm Great Collections, which bought it at that price for one of its clients.
The Mint only minted 1,758 silver dollars in its first run. Any coins from that year that are still in existence today are highly prized by collectors.
Estimates by collectors say that there are only between 120 and 130 of the 1794 “Flowing Hair” coins left. Any one of them would likely sell for a multi-million dollar price if they were to ever hit the market.
The 1787 Brasher Doubloon is a famous silver coin. It sold at auction in January 2021. It sold for an astonishing $9.36m, given its elite-level rarity and collectibility.
The next most collectable silver dollars include the Morgan Dollars and the Peace Dollars. Among the key coin features which make the Morgan dollar so collectable are its distinct mint marketing and intricate designs.
Morgan Dollars have been sold for great sums, including one 1889-CC Morgan Silver Dollar coin selling for $881,250 in 2013. On the other hand, one of the highest-selling Peace Dollars was a 1922 Pattern Peace Dollar that sold for $325,000 in 2014.
How to avoid buying counterfeit coins
Collecting coins is one of the popular hobbies and also a good investment. As with other precious commodities, you must be careful and vigilant for fakes and replicas.
There is rampant misinformation on coins online. You have to be very careful in your efforts to bid. People have made common coins and marketed as rare as well as expensive coins at online auctions.
To avoid buying fraudulent coins, start by being aware of the traditional size of the coin you’re buying. Check the diameter, thickness, and weight of the coin. A counterfeit coin will likely be the wrong size or weight.
If you’re interested in the purchase of a valuable or rare coin, look for certified coins. Experienced third parties will verify the authenticity of individual coins for you. They can easily spot fake coins and can warn you if needed.
Conclusion:
The value of silver will fluctuate constantly, thereby affecting the general price of them in the market. In addition, some silver dollars are extremely rare and so sought after that they will fetch much more than the spot price of silver at the auction house. If you are fortunate enough to own one of these very rare silver dollars, you could very well be holding a piece of American history.
FAQS:
What makes silver dollars valuable?
Silver dollars are highly valuable due to their historical significance, rarity, and intricate designs.
Which of the silver dollars is worth the most today?
The 1794 “Flowing Hair” dollar, the first silver dollar produced by the U.S. Mint, is the most expensive today.