Among old coins, U.S. trade dollars have a unique history behind them in international affairs. Depending on their condition, they can also be worth quite a bit. Here’s what you should know about these pieces.

The History of the U.S. Trade Dollar

The U.S. Trade Dollar was first produced in 1873 in response to Chinese business owners’ preference for the Mexican peso. Because the peso had more silver than standard U.S. dollars, it was the preferred currency when Americans traded with Chinese businesses. However, this resulted in expensive broker fees for Americans who had to exchange dollars for pesos.

To counteract this, the federal government began producing trade dollars that could be used for overseas commerce. Comprised of 90% silver, the heftier weight of the trade dollar made it more popular than the peso. Trade dollars were circulated in the United States from 1873 until 1876 when an influx of silver production caused the domestic value of the coin to drop. Production ended in 1878.

Types & Values

Official U.S. Trade Dollars were minted from 1873 to 1878, but from 1879 to 1885, limited numbers of proof strikes were minted for collectors. It's believed that only five proofs of the 1885 coins exist, making these old coins worth millions today.

Trade dollars put in circulation from 1873 to 1878 may not be worth millions, but coins in good condition are still extremely valuable, in part because of an 1887 redemption program that allowed owners of trade dollars to redeem their coins for other currency. Highly graded, near-mint coins (MS68) can be worth hundreds of thousands of dollars. Lower-graded coins (MS60) are worth closer to $1,000.

Whether you have U.S. Trade Dollars or other old coins you’d like to sell, get a professional appraisal from Hawaiian Islands Stamp & Coin in Honolulu. President Don Medcalf boasts an extensive knowledge of collectible coins and paper money and was even elected President of the Stamp and Coin Dealers Association of Hawaii. To learn more about the company's products and appraisal services, visit them online or call (808) 531-6251.