The bestselling silver bullion coin in history is the American Silver Eagle. Since its introduction in 1986, the US Mint has produced and sold far more than 650 million 1 oz silver Eagles to investors and collectors.

The success of the silver Eagle is due to the trust that it has engendered through four decades of service to the investing public. As a silver bullion coin investor, you are bound to encounter them frequently.

This page is your guide to this primary coin in the silver market. We will cover the history, design(s), and why the silver Eagle is such an important coin to investors and collectors, regardless of their experience level.

Origins: The Liberty Coin Act of 1985

The notion of bullion coinage began, more or less, in 1967. South Africa’s introduction of the gold Krugerrand created a brand new market for private investors.

The Republic of South Africa enjoyed a virtual monopoly on bullion sales until 1979 and continued to dominate the gold bullion coin market through the first half of the 1980s. However, although the use of silver coins stretched thousands of years into history, there was no real silver equivalent to the Krugerrand until the debut of the Mexican Libertad in 1982.

Mexico’s neighbor to the north finally decided to move forward with its own silver bullion program three years later. In order to commemorate the centennial of the Statue of Liberty, to reduce its silver stockpile, and to generate revenue, the US Congress passed the Liberty Coin Act on July 9, 1985. The Act authorized the US Mint to produce an official one-ounce silver bullion coin.

The inaugural Silver Eagles debuted to the public in November 1986. The coins appeared in both bullion and proof versions. A third style, burnished, appeared in 2006 as a commemoration of the coin’s 20th anniversary. No matter which, the coins are created using .999 fine silver.

One of the most interesting parts of the Liberty Coin Act is the fact that the Mint is required to strike enough Silver Eagles to meet the demand for them. There is no cap on the number that the Mint can make, and it must make them available to the public at all times unless there is literally no supply of silver available.

The Silver Eagles were an immediate hit. In their first year alone, investors purchased nearly 5.4 million of them.

Demand for them has remained quite strong in the past four decades. No single year has ever sold fewer than 3.6 million (1996), and collectors have bought more than 11 million Silver Eagles annually since 2008.

There are many reasons why the Silver Eagle has been popular since its debut. However, one of the primary reasons is certainly its beloved design(s).

Design: Walking Liberty and the Heraldic Eagle

The obverse of the Silver Eagle pays homage to one of the most celebrated coin designs in American history. The “front” of the coin is a version of the Walking Liberty design first used on the half dollar in 1916.

Adolph A. Weinman’s design features the goddess Liberty facing the left edge of the coin. Lady Liberty is striding confidently toward a sunrise with the American flag draped over her shoulders.

In her left hand, she holds a bundle of oak and laurel branches. These two symbols combine to indicate strength, endurance, victory, and honor – among other attributes. Lady Liberty’s right hand stretches toward the horizon, emblematic of the country looking to the future.

This design was part of circulating coinage in the US until 1947. However, the Silver Eagle program revived the design in 1986 in order to pay tribute and nod to the past with the new coin.

The Reverses

The American Silver Eagle has sported two designs over the course of its production run. They are designated as Type 1 and Type 2.

• Type 1 (1986 – 2021): The Heraldic Eagle – This first reverse design came from John Mercanti, who stood as Chief Engraver of the US Mint in 1986. The design depicts an American bald eagle facing to the left of the coin behind the heraldic shield of the nation. There are arrows of war in one of the eagle’s talons, and an olive branch is clutched in the other – while 13 stars form a triangle above. This depiction is not meant to be realistic – it is much closer in character to the designs you’d see on a shield or family crest.
• Type 2 (2021 – present): The Soaring Eagle – The reverse of the Silver Eagle received a redesign in honor of the coin’s 35th anniversary. Visual artist Emily Damstra created a much more realistic image of the bald eagle. Its wings are extended in flight, and an oak branch is clutched in both talons beneath. This design remains the image on the reverse of the American Silver Eagle to the present day.

Neither type of Silver Eagle is particularly more or less valuable than the other, on average. However, the lower mintage years can come with slightly elevated premiums for the simple reason that they are slightly rarer.

You may also see premiums on the two Silver Eagle releases from 2021. Collectors work very hard to have both Type I and Type 2 Silver Eagles in their sets.

Specifications at a Glance

*West Point is the primary mint location

The Three Versions: Bullion, Proof, and Burnished

As we mentioned, there are three different versions of the Silver Eagle that investors and collectors can purchase. Whether you’re new to coin investing or if you need a refresher, here are the differences between the three.

Bullion (Uncirculated)

The “standard” version of the coin is the bullion (uncirculated) version. This type of American Silver Eagle is produced without any cap on its mintage. If you want to purchase this coin, it is a matter of law that this coin be made available to you.

The bullion version of the Eagle is struck a single time through the press, and neither mint imprints a mint mark. The blanks used are the standard silver blanks and bear no special finish or preparation.

Interestingly, you cannot buy these coins directly from the US Mint. They are sold only through authorized dealers. You can buy individual coins, in tubes of 20, or in Monster Boxes containing 500 Silver Eagles.

This version of the coin is best for investors who want to buy the most cost-effective version of the American Silver Eagle. It is generally the least expensive of the three, so it is also quite ideal for first-time investors or those new to silver investing.

Proof

The proof Silver Eagle has been part of the product line since the beginning of its service in 1986. It is a collectible version of the coin that, in contrast to the bullion version of the coin, you buy directly from the US Mint.

Proof versions of any coin are unmistakable because of their unique appearance. The raised design elements (the “reliefs”) of the coin have a frosted look, while the stamped parts of the coin (the “fields”) have a mirrored finish.

The mint achieves this look through a combination of techniques. Each of the blanks is prepared and washed with specific procedures, and all of the dies are polished by hand. Furthermore, every proof coin is stamped multiple times in order to achieve the correct level of sharp detail.

Unlike the bullion versions of the Silver Eagle, proof Silver Eagles are minted with mint marks from their producing facilities. So, each of them will feature either the W of the West Point Mint or the S of the San Francisco Mint.

These coins are never meant as anything but collectibles. They are meant to be stored carefully in optimal environments in order to preserve their pristine conditions.

As a result, they bear significantly higher premiums than the bullion versions of the Silver Eagle. In particular, 5-year or 10-year anniversary proofs – years ending with sixes or ones – tend to draw the most collector interest and be the most valuable of the group.

Lastly, there is one year in which demand for bullion Silver Eagles did not leave enough capacity for the Mint to produce proofs or burnished versions. If you find a proof or burnished Silver Eagle stamped with the year 2009, it is a privately-created version by a third party, not an official product of the US Mint.

However, the legend of the 1943-D Bronze Cent tells us that coins officially made by mistake often rise to become some of the most valuable coins in existence. So, were you to discover a genuine 2009 proof Silver Eagle that somehow got made, it would be a white whale of coin collecting. Don’t hold your breath, though – nobody has found one or mentioned one’s existence yet.

Burnished

A third version of the American Silver Eagle that you can purchase is the burnished (uncirculated) version. This version was introduced in 2006 as a celebration of the coin’s 20th anniversary, and has been a limited part of its offerings ever since. However, due to demand for the other two versions, there are no official issues of burnished Silver Eagles in 2009 or 2010.

With burnishing, the silver blanks are scrubbed with a light abrasive material in order to create a distinctive finish. The result of the scrubbing is a coin surface that is non-reflective and matte-like in appearance.

Burnished Silver Eagles represent a sort of middle ground between bullion and proof versions in terms of the premiums you can expect to pay. They appeal to collectors who want something different, but don’t want to come all the way out of pocket for the proof.

Almost all burnished Silver Eagles are the product of the West Point Mint and bear the requisite W mint mark. However, the San Francisco Mint did produce a burnished Silver Eagle in a single year – 2011. Needless to say, a 2011-S burnished Silver Eagle is quite rare and is likely to draw a heavy premium.

Why Silver Eagles Command Higher Premiums

If you go to buy an American Silver Eagle, you’ll notice that similarly-sized and pure silver coins seem to cost less. Indeed, among silver bullion coins, Silver Eagles tend to command higher premiums. So, the question is – why?

First of all, the US Mint charges its own premium to its authorized providers. In turn, each provider passes along the premium from the Mint and places an additional bit on top for themselves.

Second, there’s no denying the name recognition and confidence that an official product of the United States sports, both domestically and abroad. Every single precious metals dealer on the planet knows the American Silver Eagle the minute that they see them, and each one can instantly verify the coin’s authenticity based upon the well-known design elements.

Furthermore, the American Silver Eagle is one of only a few coins that is eligible for placement in an individual retirement account, or IRA. So, long-term investors can easily add the hedging qualities of precious metals to their accounts in a way that they might not otherwise be able.

All of these factors add up to a tremendous amount of liquidity associated with the Silver Eagle. Thus, the premium reflects the unmatched ease by which a person may buy and sell Silver Eagles at a fair price.

American Silver Eagles are one of the best bets when it comes to preserving the value of your investment in precious metals. A purchase of one (or several) of these coins is almost always a defensible use of investment funds.

We are more than happy to help you acquire American Silver Eagles here at JM Bullion. However, with their universality and liquidity, we must encourage you to shop around before you make a purchase. As long as the dealer is a reputable one, there’s nothing wrong with trying to find the best deal.