More About US Silver Trade Dollar

There's more about the US Silver Trade Dollar. It was the only coin which was not minted for circulation in the US. In response to pressure from miners who were having trouble selling their excessive supply of silver in a downward market, Congress approved the mintage of the US Trade Dollar which began in 1873, continuing up to 1885. However, it was not just a matter of pleasing the miners.

The Trade Dollar was to be America's key to unlock the riches of the Orient. In those times, the demand for silver in China was very high and most Chinese traders would only accept silver coins as payment for goods. The main competitor would be the Mexican Silver Eagle Dollar. Against the Mexican Dollar which weighed 416 grains, the US Trade Dollar weighed a rather enticing 420 grains. The creators of the US Trade Dollar were so confident of this advantage that the words "420 GRAINS, 900 FINE." were proudly proclaimed on the reverse of the coin.

Initially, the US silver Trade Dollar gained the upper hand in the Far East. However, it didn't take long for the Chinese to figure out that the Mexican Dollar had a slightly higher content of silver than the US Trade Dollar. It was something that the creators of the US Trade Dollar had overlooked or miscalculated. With a diameter of 38.1 mm and thickness of 3.1 mm, the US Silver Trade Dollar was composed of 90% silver and 10% copper. On the other hand, the Mexican Dollar had a silver composition of 90.3%, which meant it contained more silver, thus, more desirable.

Out of a total of about 36 million US Silver Trade Dollars minted, more than 27 million US Silver Trade dollars were used in trades with various Asian countries. In Asia, Trade dollars were accepted at bullion value of around USD 0.80. Back in the US, Congress approved the Trade Dollar for domestic payments not exceeding five dollars. Soon, millions of US Silver Trader Dollars found their way back to the US, mostly bought by employers at USD 0.83 or less, then used to pay the salaries of workers at face value. Of course, the workers didn't get a fair deal and problems brewed.

As such, the US Trade Dollar became the only US coin to lose its legal tender status. Overall, it was quite a failure but that was a long time ago. Now, the situation is different. If you have silver to sell, you can get the best rates for silver. Just make sure you contact the best silver buyer!