Rare Dollar Coin
January 10, 2010 - Collector’s coins are often used as a hedge against inflation and a means of creating wealth; rare coins are often superior to investment in gold and silver bullion for these reasons. An additional feature of investing in collector’s coins is the history involved, such as is the case of a rare dollar coin, the 1804 dollar. The 1804 rare dollar coin is often referred to as the King of America coin. One sold at auction in 1999 for $4 Million.
Only a handful of these coins ever existed. Because many US silver dollars were beings shipped to the West Indies and China where they were used in trade, the government quit minting silver dollars after 1804. In 1834, President Jackson ordered the minting of a few 1804 silver dollars to give as gifts to foreign dignitaries. He chose 1804 because it was the last year that the mint produced silver dollars. However, the mint did not produce any dollars with an 1804 date; all silver dollars minted in 1804 bore a date of 1803 or before, since it was a common practice to reuse older dies to avoid the painful process of creating new ones.
Because the steel dies used to mint coins were very expensive, mint employees of the young country saved money by using a die until it broke. In 1834 when President Andrew Jackson wanted to send a set of 1804 coins to the King of Siam and the Imam of Muscat, no 1804 dated dollars existed. The Mint proceeded to make a new die and produce just a few coins. Today, only fifteen such coins are known to exist; several are in the national coin collection in the Smithsonian Institute and a few others scattered among other collections.
This rare dollar coin shows the strength of the collector’s coin market. High quality coins with historical significance can command high prices, and their scarcity makes working with a coin exchange the best method for finding them. Buying rare coins is most secure when using a service that only deals with certified rare coins.
Shawn Penny
Senior Staff Writer - Rare-Coin.org
