The item in question refers to a specific year of the American Silver Eagle bullion coin. This coin contains one troy ounce of .999 fine silver and has a face value of one dollar. It’s a popular collectible and investment vehicle, often sought after for its silver content, historical significance, and potential numismatic value. Examples can be found in both uncirculated and circulated condition, impacting their worth.
Issuance of this particular coin provides a tangible representation of precious metal ownership and offers a hedge against economic uncertainty. Furthermore, it serves as a piece of American history, marking a specific year in the Silver Eagle series, which began in 1986. Its appeal extends to collectors interested in completing a year set or those seeking a readily tradable silver asset.
The following discussion will explore factors influencing the value of this coin, including its condition, mintage figures, and market demand. We will also delve into its role within the broader precious metals market and its significance as a collectible item.
1. Silver Content
The intrinsic value of the 1987 Silver Eagle Dollar is fundamentally linked to its silver content. This coin is comprised of .999 fine silver, meaning it contains 99.9% pure silver. The market price of silver significantly impacts the coin’s base value, making it a tangible asset directly tied to the fluctuating precious metals market.
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Weight and Purity
The 1987 Silver Eagle Dollar contains one troy ounce of silver, weighing approximately 31.103 grams. The .999 fineness ensures that virtually all of its weight contributes to its silver value. This standardized weight and purity allow for straightforward valuation based on the prevailing spot price of silver.
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Impact of Silver Market Fluctuations
The coin’s value will rise and fall in accordance with movements in the silver market. Global economic conditions, industrial demand for silver, and investor sentiment all influence the spot price. Consequently, the 1987 Silver Eagle’s inherent worth is subject to constant change. For example, an increase in industrial demand for silver, driving prices upward, will directly translate to a higher intrinsic value for the coin.
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Silver as a Hedge Against Inflation
Silver is often considered a hedge against inflation and currency devaluation. During periods of economic uncertainty, investors may turn to precious metals like silver, increasing demand and potentially driving up prices. Holding a 1987 Silver Eagle Dollar can provide a degree of protection against the erosion of purchasing power in traditional currencies.
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Salvage Value vs. Numismatic Value
Even if a 1987 Silver Eagle Dollar is heavily worn or damaged, its silver content retains significant value. This represents its “salvage value.” However, a well-preserved coin can command a higher price due to numismatic factors, such as rarity and collectibility, which can exceed its base silver value. Thus, while silver content provides a floor for its worth, other factors can increase it.
In summary, the silver content is a foundational determinant of the 1987 Silver Eagle Dollar’s value. Its weight and purity provide a direct connection to the silver market, influencing its intrinsic worth and making it a potentially valuable asset. While market fluctuations affect the base value, it simultaneously offers protection against economic downturns. It’s essential to distinguish silver content-based valuation from other factors which influence the final valuation such as, its overall condition and numismatic appeal.
2. Mintage Figures
The mintage figure for the 1987 Silver Eagle Dollar represents the total number of coins produced that year. This quantity is a crucial factor influencing the coin’s scarcity and, consequently, its potential value within the numismatic market.
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Official Mintage Number
The United States Mint officially recorded the number of 1987 Silver Eagle Dollars produced. This figure serves as a baseline for determining the coin’s relative rarity compared to other years in the series. Lower mintage years often command higher premiums due to increased collector demand and limited availability.
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Impact on Scarcity and Value
A relatively low mintage figure for the 1987 Silver Eagle Dollar suggests a higher degree of scarcity. Collectors seeking to complete a year set of Silver Eagles will naturally gravitate towards rarer issues. The increased competition for a limited number of available coins drives up prices, particularly for coins in higher grades.
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Comparison to Other Years
Analyzing the mintage figure in comparison to other years in the Silver Eagle series provides valuable context. Years with significantly higher mintage numbers may be more common and readily available, impacting their collectibility and value. Understanding the historical context of mintage numbers aids in assessing the relative rarity of the 1987 issue.
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Effect of Bullion Demand
The mintage figure can also reflect the overall demand for silver bullion in 1987. High demand might lead to increased production, while lower demand could result in fewer coins being struck. Economic conditions and investor sentiment in 1987 likely influenced the decision-making process regarding mintage numbers.
In summary, the mintage figure is a fundamental element in evaluating the 1987 Silver Eagle Dollar. Its scarcity compared to other issues greatly influences collector demand and, ultimately, its value. By considering mintage figures in the context of overall bullion demand and market dynamics, a more complete understanding of the coin’s significance can be achieved.
3. Condition Grading
Condition grading is a critical component in determining the value of a 1987 Silver Eagle Dollar. The grade assigned to a coin reflects its physical state, encompassing aspects such as surface preservation, luster, and the presence of any damage or wear. Professional grading services, like the Numismatic Guaranty Corporation (NGC) and the Professional Coin Grading Service (PCGS), employ standardized scales to assess these characteristics. A higher grade, such as Mint State (MS) 69 or 70, signifies a coin in pristine condition, exhibiting minimal to no imperfections visible under magnification. Such coins command significant premiums compared to those in lower grades. For instance, a 1987 Silver Eagle Dollar graded MS70 might fetch several times the price of an ungraded or lower-graded example.
The process of condition grading involves a meticulous examination of the coin’s surface. Factors assessed include the presence of scratches, hairlines, bag marks (minor abrasions caused by contact with other coins during minting), and evidence of handling. Luster, the reflective quality of the coin’s surface, is also a key consideration. A strong, original luster is highly desirable and contributes to a higher grade. The slightest imperfections can significantly impact the assigned grade and, consequently, the coin’s market value. An example would be a 1987 Silver Eagle Dollar exhibiting noticeable surface abrasions likely only achieving a grade of AU (Almost Uncirculated) at best, substantially decreasing its value relative to an MS graded coin.
In conclusion, condition grading is inextricably linked to the market value of the 1987 Silver Eagle Dollar. The assigned grade serves as an objective assessment of the coin’s physical state and significantly influences its collectibility and desirability. While silver content provides a baseline value, the condition grade dictates the premium a collector or investor is willing to pay. Understanding condition grading standards is, therefore, essential for anyone seeking to buy, sell, or appraise a 1987 Silver Eagle Dollar.
4. Market Demand
Market demand exerts a considerable influence on the valuation of the 1987 Silver Eagle Dollar. The intersection of collector interest, investor activity, and prevailing economic conditions directly shapes the desirability and, consequently, the price of this specific coin. Increased demand, fueled by factors such as a growing numismatic community or a surge in precious metals investment, invariably results in higher premiums over the intrinsic silver value.
One notable example is the periodic increase in demand linked to the coin’s anniversary. As milestone years are reached, the inherent nostalgia and heightened awareness can spur increased buying activity. This dynamic is further compounded by potential limited availability of higher-grade examples, intensifying competition among collectors. The practical significance of understanding market demand lies in the ability to anticipate price fluctuations and make informed investment decisions. For example, a collector observing a sustained increase in online auction prices for graded 1987 Silver Eagles might conclude that demand is rising and make a purchase before prices escalate further. Conversely, knowledge of a potential supply influx (e.g., the release of a large estate collection) might prompt a more cautious approach.
In essence, market demand acts as a dynamic force shaping the perceived value of the 1987 Silver Eagle Dollar. Monitoring market trends, tracking auction results, and staying abreast of numismatic news are critical strategies for participants seeking to capitalize on the ebb and flow of demand. Though predicting future market movements with certainty is impossible, a thorough understanding of the factors driving demand provides a substantial advantage in navigating the complexities of the coin market. It is essential to consider the interplay of market dynamics, silver content, and numismatic value for a complete understanding of the coin’s economic appeal.
5. Numismatic Value
Numismatic value, as it pertains to the 1987 Silver Eagle Dollar, represents the component of the coin’s overall worth that exceeds its intrinsic silver content. This additional value stems from factors such as rarity, condition, historical significance, and collector demand. The 1987 Silver Eagle Dollar, while containing a troy ounce of silver, may command a price significantly higher than the prevailing spot price of silver if it possesses desirable numismatic attributes. For example, a 1987 Silver Eagle Dollar graded MS70 by a reputable grading service will be more valuable than a circulated example, irrespective of their identical silver content. This difference highlights the impact of numismatic characteristics on value.
The causes behind the numismatic value of a 1987 Silver Eagle Dollar are multifaceted. Low mintage figures relative to other years in the series can increase scarcity, driving up numismatic value. Historical events or anniversaries linked to the year 1987 may enhance collector interest. The coin’s condition, as certified by professional grading, is a primary determinant. Furthermore, the overall popularity of the Silver Eagle series itself contributes to the numismatic value of individual issues. The practical application of understanding numismatic value is crucial for collectors and investors. It enables them to differentiate between the coin’s inherent metal value and its potential as a collectible item. A dealer would use these factors to determine appropriate buy/sell pricing.
In conclusion, the numismatic value is an integral component of the 1987 Silver Eagle Dollar’s overall worth. While the coin’s silver content establishes a base value, factors such as rarity, condition, and collector demand can significantly elevate its market price. Recognizing these elements is essential for making informed decisions regarding the acquisition or disposal of 1987 Silver Eagle Dollars, acknowledging the coin as both a precious metal asset and a collectible artifact. The challenge for collectors lies in accurately assessing these numismatic factors and making predictions about future market trends.
6. Historical Context
The historical context of the 1987 Silver Eagle Dollar extends beyond its mere production date. The year 1987 marked a period of significant economic and geopolitical events that influenced both bullion markets and collector sentiment, factors which impact the coin’s present-day value and perception. For example, the stock market crash of October 1987, often referred to as “Black Monday,” led to increased investor interest in safe-haven assets, including precious metals. This heightened demand for silver, in turn, affected the circulation and potential hoarding of the 1987 Silver Eagle Dollar, potentially impacting the availability of uncirculated examples today. The prevailing economic climate, characterized by anxieties about inflation and currency stability, contributed to the coin’s initial appeal as a tangible store of value. Therefore, the historical context serves as a foundational element in understanding the coin’s intrinsic and numismatic significance.
Further contributing to the historical context is the ongoing Cold War. While in its late stages, geopolitical tensions still played a role in global economic activity. Investments in precious metals, including silver, could be viewed as a hedge against potential international instability. Also, the 1987 production run occurred early in the American Silver Eagle series, which commenced in 1986. This places the 1987 issue in a position of nascent collectibility. As the series matured, completing year sets became a prominent collecting goal, increasing demand for early issues. Practical significance lies in recognizing how these past events shaped both the coin’s production and its subsequent trajectory in the market. Understanding these influences allows collectors and investors to assess the coin within a wider narrative, potentially informing their decisions.
In conclusion, the historical context of the 1987 Silver Eagle Dollar is not merely background information; it is an integral component influencing its collectibility and potential value. The economic anxieties, geopolitical events, and the coin’s place within the evolving Silver Eagle series all contribute to its present-day significance. One challenge remains the difficulty in quantifying the precise impact of these historical factors. However, acknowledging their influence allows for a more informed and nuanced assessment of the 1987 Silver Eagle Dollar’s place in both numismatic and economic history. Recognizing this connection offers advantages in the current marketplace.
Frequently Asked Questions
The following questions address common inquiries and misconceptions regarding the 1987 Silver Eagle Dollar. The information provided aims to offer clarity and promote a deeper understanding of this numismatic item.
Question 1: What is the actual silver content of a 1987 Silver Eagle Dollar?
A 1987 Silver Eagle Dollar contains one troy ounce of .999 fine silver. This translates to 31.103 grams of pure silver. The remaining .1% is typically an alloy, often copper, added to enhance the coin’s durability and resistance to wear.
Question 2: How does the mintage figure affect the value of the 1987 Silver Eagle Dollar?
The mintage figure significantly influences the coin’s scarcity. Years with lower mintages are generally more valuable due to increased collector demand and limited supply. A lower mintage figure indicates a potentially rarer coin, commanding a higher premium in the numismatic market.
Question 3: What are the key criteria used to grade the condition of a 1987 Silver Eagle Dollar?
Condition grading assesses the coin’s physical state, examining surface preservation, luster, and the presence of wear, scratches, or bag marks. Professional grading services utilize standardized scales, such as the Sheldon scale, to assign a numerical grade reflecting the coin’s condition. Key factors include the presence of original mint luster and minimal imperfections visible under magnification.
Question 4: Why does the market demand fluctuate for the 1987 Silver Eagle Dollar?
Market demand is influenced by several factors, including collector interest, investor activity, and prevailing economic conditions. Milestone anniversaries, trends in precious metals markets, and the overall popularity of the Silver Eagle series contribute to fluctuations in demand. External factors such as economic uncertainties may influence the demand.
Question 5: What contributes to the numismatic value of the 1987 Silver Eagle Dollar beyond its silver content?
Numismatic value arises from factors such as rarity, condition, historical significance, and collector demand. A coin in exceptional condition, certified by a reputable grading service, commands a higher premium due to its scarcity and aesthetic appeal. Factors beyond silver content add to overall value.
Question 6: How did historical events in 1987 impact the value of this coin?
Events such as the stock market crash of October 1987 (“Black Monday”) increased investor interest in safe-haven assets, potentially affecting the demand and circulation of the 1987 Silver Eagle Dollar. The economic climate of that year, coupled with its early place in the American Silver Eagle series, contributes to the coin’s historical significance.
These FAQs provide fundamental insights into the various facets of the 1987 Silver Eagle Dollar. A comprehensive understanding of these elements is crucial for anyone interested in collecting, investing in, or simply learning more about this coin.
The next section will delve into strategies for buying and selling the 1987 Silver Eagle Dollar.
Tips for Acquiring or Selling a 1987 Silver Eagle Dollar
The following guidelines are intended to assist individuals engaging in the purchase or sale of a 1987 Silver Eagle Dollar. Due diligence and a comprehensive understanding of the market are paramount.
Tip 1: Determine the Intrinsic Value. Establish the current spot price of silver per troy ounce. This provides a baseline for assessing the coin’s worth, ensuring that any offer received is at least equivalent to the metal content value.
Tip 2: Assess the Coin’s Condition. Examine the coin for any signs of wear, damage, or imperfections. Utilize high-resolution images or, if possible, conduct a physical inspection. Familiarize yourself with grading standards to estimate the coin’s grade and potential premium.
Tip 3: Research Mintage Figures and Market Demand. Understand the 1987 Silver Eagle Dollar’s mintage numbers relative to other years in the series. Track recent auction results and online sales data to gauge current market demand. This information aids in determining a fair purchase or sale price.
Tip 4: Consider Professional Grading. For higher-grade coins, submitting to a reputable grading service such as NGC or PCGS is advisable. A certified grade enhances buyer confidence and can potentially increase the coin’s resale value. Recognize associated grading fees before proceeding.
Tip 5: Verify Authenticity. Be vigilant against counterfeit coins. Purchase from reputable dealers with established track records. Examine the coin for inconsistencies in design, weight, and dimensions. Utilize online resources to compare the coin against known authentic examples.
Tip 6: Compare Prices from Multiple Sources. Obtain quotes from various dealers and online marketplaces before committing to a purchase or sale. This ensures competitive pricing and mitigates the risk of overpaying or underselling. Account for transaction fees, shipping costs, and insurance.
Tip 7: Factor in Economic Conditions. Be aware of broader economic trends that may influence the price of silver and precious metals. Periods of economic uncertainty may lead to increased demand, potentially driving up prices. Time your purchase or sale accordingly.
Adhering to these tips will facilitate a more informed and strategic approach to acquiring or selling a 1987 Silver Eagle Dollar. Prudent research and a critical evaluation of market conditions are essential for maximizing potential gains and minimizing risks.
The subsequent section concludes this exploration of the 1987 Silver Eagle Dollar, summarizing key findings and offering final observations.
Conclusion
This exploration of the 1987 Silver Eagle Dollar has revealed the coin’s multifaceted nature. The analysis encompassed the coin’s silver content, mintage figures, condition grading standards, market demand, numismatic value, and historical context. Each of these elements contributes to the coin’s overall worth and significance, extending beyond its intrinsic metal value. The 1987 Silver Eagle Dollar serves as both a tangible asset tied to precious metals markets and a collectible artifact reflecting economic and historical events. The valuation of this coin requires careful consideration of these interconnected factors.
The information presented provides a foundation for informed decision-making regarding the acquisition, sale, or appraisal of this particular coin. Continued vigilance regarding market trends and further research into specific areas of interest are encouraged. The enduring appeal of the 1987 Silver Eagle Dollar lies in its combination of intrinsic value and numismatic collectibility, ensuring its continued relevance in the precious metals and numismatic communities.
