By Charles Morgan and Hubert Walker for CoinWeek Notes …..
United States Enters the Bullion Coin Business with the 1986 American Silver Eagle
The American Silver Eagle (ASE) is a one-ounce silver bullion coin, produced by the United States Mint under the authority of the 1985 Liberty Coin Act (Public Law 99-61 – PDF Link).
Bullion coin programs had emerged around the world in the mid-to-late 20th century. South Africa introduced the first modern bullion coin, the Krugerrand, in 1967. Other nations introduced their own bullion issues over the following decades, and by the early 1980s, the United States had begun to take steps towards establishing its own program. Politicians’ and bureaucrats’ eyes turned to the silver held by the National Defense Stockpile (NDS).
Established in 1939, the NDS was (and is) a branch of the Defense Logistics Agency tasked with maintaining stocks of strategic resources, compiled to ensure access to necessary raw materials. In the 1980s, the NDS owned almost 140 million ounces of silver, held by the General Services Administration (GSA). But already by the ’70s, many had begun to feel that the DNS silver holdings exceeded any potential demand related to national defense, and multiple presidential administrations tried to sell the silver over the ensuing years.
Concerned that a glut from the NDS would drive silver prices down, Western senators and Congressional representatives opposed efforts to sell the stockpiled silver directly into the market. In the early 1980s, bullion coins were hit upon as a compromise. A 1982 New York Times story quoted a Government Accountability Office (GAO) report that described a bullion coin program as “an attractive alternative method” for selling stockpiled silver. The late senator James A. McClure (R–ID) had introduced legislation in both ’82 and ’83 to sell the stockpiled silver through a silver bullion coin program, but both bills died in committee.
On June 21, 1985, Senator McClure introduced the Liberty Coin Act as an amendment to the Statue of Liberty-Ellis Island Commemorative Coins Act, which authorized the striking and sale of bullion coins struck from silver purchased from the NDS. President Ronald W. Reagan signed the bill into law on July 9. The coin, which was to measure 40.6 millimeters in diameter and weigh 31.103 grams, had to “have a design (A) symbolic of liberty on the obverse side; and (B) and [an] eagle on the reverse side”[1] and contain an ounce of .999 fine silver. The coins were priced based on the market value of silver and the cost of striking, marketing, and distribution.
John M. Mercanti, a sculptor-engraver who joined the Mint’s staff in 1974 and would eventually become Chief Engraver in 2006, created the Heraldic Eagle design that would appear on the ASE reverse for 35 years. In his 2012 book American Silver Eagles: A Guide to the U.S. Bullion Coin Program, Mercanti says that the coin’s obverse design (featuring Adolph Weinman’s Liberty Walking from 1916) was predetermined – although he didn’t know by whom.[2] Research published later established that the choice to use the Weinman design on the American Silver Eagle, as well as the Saint-Gaudens double eagle obverse design on the American Gold Eagle, was made almost immediately as the Mint did not have time to develop designs from outside artists.
Though the reuse of a classic U.S. coin design instead of creating new art did encounter criticism. A 1986 NYT article quoted Weinman’s son Robert as saying:
“My dad’s Walking Liberty and Saint Gaudens’ Liberty gold coin served their purposes admirably in their time. But they should be put on the shelf and remembered as outstanding designs, period. To drag them out, dust off the embalming fluid and try to breathe new life into them is, I think, ridiculous and unnecessary.”
But even with the convenience of having a classic design ready to use, a series of technical challenges had to be overcome to get the coin to fully strike up, and by the time it was finally ready, 1986 was almost over. The first coins didn’t roll off the press until Secretary of the Treasury James Baker initiated Coin Press 105 at the United States Assay Office in San Francisco at a striking ceremony for the coin held on October 29, 1986.[3] A number of coins were struck for and by VIPs in attendance.
November sales totaled 1,400,000 pieces, and 3,696,000 American Silver Eagles were sold in December.[4]
“I don’t need a pick and shovel to start the San Francisco silver rush of 1986.” –Treasury Secretary James Baker at the October 29, 1986 striking ceremony for the first American Silver Eagles.
1986-dated Eagles were produced in two finishes: a bullion strike, which bore no mint mark but was struck exclusively at the San Francisco Mint (a fact the numismatic community did not know until a 2020 Freedom of Information Act (FOIA) request from Lee Minshull, Owner of Lee Minshull Rare Coins Inc., was fulfilled by the government, leading to a lengthy Coin World article by veteran numismatic journalist Paul Gilkes); and a Proof issue, which also was struck exclusively at San Francisco but did bear the ‘S’ mintmark.
Prooflike examples of the 1986 bullion strike are known. Over the decades, the Mint’s evolving Silver Eagle die preparation process has resulted in distinctive appearances that could offer some variety for a keen-eyed collector.
The 1986 American Silver Eagle: A Popular Collector Coin and a Cautionary Tale of Vanishing Value
The American Silver Eagle is a bullion coin that is widely held as a commodity and traded as a collectible. Silver Eagles from any date are seen as interchangeable as a bullion play. However, as a collectible, the first-year issue 1986 bullion strike is usually offered at a 15% to 30% premium over generic issues from the series’ 37-year run. This premium places the 1986 issue on or near par with the scarcer bullion strike issues of 1995 and 1997.
With a mintage of 5,393,005 pieces, the 1986 American Silver Eagle should not be confused with a scarce or rare coin. For raw examples that are in especially nice condition, it is reasonable to pay a couple of dollars over spot. Otherwise, pass.
Certified examples, of course, cost more than raw ones, but their pricing history tells an interesting story.
To understand today’s pricing levels, we must first examine the certified Silver Eagle scene of 2013-15. Through the end of 2013, PCGS and NGC treated the 1986 American Silver Eagle (as well as other 1980s and early ’90s issues) differently. NGC held the majority market share and, in their census report, represented bullion strikes in MS69 and MS70 grades. While some dates were more challenging than others, none were prohibitively rare.
PCGS took a different approach. Although PCGS had lower submission numbers for American Silver Eagles, there were some dates where MS69 was the highest grade that submitters could reasonably expect to earn. The PCGS policy on certifying MS70 was so strict that some dates had no MS70 coins, and others had MS70 populations in the single digits.
The 1986 issue was one of the latter dates, and for a time, the PCGS population of MS70 coins was just three.
In February 2013, Heritage Auctions sold one of those three PCGS MS70 coins for the remarkable sum of $21,150. In an NGC white core holder, with a population of just over 1,200, the same coin would have sold for about $775. The Heritage sale was not an outlier. Two years later, with the population still at three, GreatCollections sold another 1986 PCGS MS70 for $22,000.
Then something changed. In the summer of 2015, PCGS certified 30 additional 1986 Silver Eagles as MS70, which lowered the price level to $5,000.
An insider bulk submitter informed us at the time that the company was now issuing grades it had previously withheld, which led to his company increasing the number of bulk submissions to PCGS. This is not to suggest that PCGS explicitly told him they would grade coins more leniently, but rather that his recent submissions were netting a handful of valuable MS70 coins.
The 1986 Silver Eagle was not the only conditionally rare date affected by this apparent shift in direction.
While the service has never explicitly stated that it would not grade American Silver Eagles at 70, we believe that the milk spotting issue may have significantly contributed to the company’s previous lack of perfect coins.
Through cert number analysis, we also observed that several of the low-pop 70 issues saw the 70-graded coins come in groupings from a handful of submissions. For one date, half of all 70s came from one “monster box,” and every coin in that box was represented after CoinWeek conducted a sequential cert number analysis.
Moving to the present day, we see that PCGS MS-70 Silver Eagles from 1986 have advanced to the point where NGC was in the fall of 2014. Current population data published on PCGS CoinFacts shows 1,793 MS-70s. CoinWeek’s market research places the price of these coins at between $750 and $800.
While we’re not in the habit of patting ourselves on the back when it comes to coin market analysis, we did predict a collapse in the 1986 MS-70 price after the 2013 Heritage sale, writing that “safer money could be probably be ‘invested’ elsewhere.” We held firm to that belief even when, in April 2015, GreatCollections sold another example for $22,000. We said the same thing about the record-breaking 1995-W American Silver Eagle, which we called a “burial coin” (meaning the owner would be “buried” in it at that price).
Now that we see a sustainable yield for MS-69 and MS-70 coins from both services, we believe that prices for PCGS- and NGC-certified Silver Eagles will approach equilibrium. NGC maintains a clear lead on the number of submissions, due in large part to the long-term relationships they have developed with major submitters of modern bullion material.
The 1986 American Silver Eagle and the Phantom “S” Mintmark Designation
Since the 2020 disclosure mentioned above that all Uncirculated strike American Silver Eagles came from the San Francisco Mint, the grading services have allowed submitters to market coins with the parenthetic “(S)” label. Coins in those holders are no different than the rest of the certified population. They do not warrant a special premium for the notation.
CoinWeek Notes’ August 2025 Price Analysis
This comprehensive analysis combines transaction data from February to August 2025 with critical historical and population data to provide a complete picture of the market for the 1986 American Silver Eagle in MS70 grade. The findings confirm that this coin’s value is no longer solely driven by its perfect grade, but by a complex interplay of market-making factors, including population, grading service, and unique pedigree.
Key Context: A Cautionary Tale of Vanishing Value
The 1986 American Silver Eagle, the first bullion coin in the series, is not a rare coin. With a mintage of over 5.3 million pieces, its numismatic premium in raw form is modest. However, its value in the top grade of MS70 has a turbulent history, as referenced by our section above.
As of August 21, 2025, the populations are:
- NGC MS70: 6,150
- PCGS MS70: 2,211
- CAC MS70: 109
The continued growth in these numbers—with populations increasing by 4-13% in the past six months—reinforces the “cautionary tale” that value driven by temporary scarcity can vanish as supply enters the market.
Statistical Breakdown of Current Market Activity
The analysis of 42 eBay transactions from February to August 2025 provides a clear statistical snapshot of today’s market. The mean price is $927.43, but with a high standard deviation of $218.20, indicating a wide range of prices driven by specific factors.
1. Price by Grading Service
The long-standing price premium for PCGS examples has effectively disappeared. Statistical analysis confirms that prices for NGC and PCGS examples are now statistically comparable, approaching a state of equilibrium.
The one CACG-graded transaction stands out. While a single data point, its high price aligns with the company’s stricter grading standards and its very low population, which is less than 2% of NGC’s.
2. Price by Signature Label
The most significant price premiums are directly tied to special signature labels, which add a unique numismatic pedigree to the coins.
- John Mercanti Signature: The designer of the coin’s reverse, John Mercanti, is the most prevalent premium in the data. These coins sold for an average of $1,033.10, a 23% premium over coins with a standard, “plain” label.
- Other Signatures: Other rarities, such as the single transaction for a coin with a signature from former U.S. Treasurer Anna Cabral ($1,695) or a Witterbrick label ($1,500), underscore the market’s willingness to pay for rare pedigree.
- Plain Labels: Standard examples with no special label have a mean price of $839.64, serving as the baseline for the coin’s value.
3. Price by Sale Type
The method of sale also significantly impacts the final price.
- Auctions: Auctions, where competitive bidding occurs, averaged $826.53.
- Buy It Now (BIN): BIN listings, often used for premium examples or by sellers seeking a fixed price, averaged $1,005.85, an 18% premium over auction sales.
This shows that competitive bidding tends to establish a more realistic market price, while fixed-price sales capture a premium for convenience and highly desirable coins.
Conclusions and Recommendations
The market for the 1986 American Silver Eagle MS70 has achieved a new equilibrium. Its value is no longer defined by artificial scarcity but by a sustainable baseline price that hovers around the $850 median. The data clearly shows that collectors are prioritizing unique pedigrees, with signature labels and the rarity of the CAC grade driving premiums of 20% to over 50%.
For collectors, this analysis suggests:
- Fair Value: A fair price for a standard NGC or PCGS MS70 coin is in the $800-$900 range.
- Premium for Pedigree: Examples with desirable signature labels, particularly the popular John Mercanti series, consistently command a premium.
- Risk Mitigation: The coin’s history serves as a potent reminder that premiums built on manufactured rarity can collapse. The continued growth in MS70 populations, particularly from NGC, suggests that the market should be closely monitored for any signs of price softening.
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Market Data and Noteworthy Specimens
Top Population: PCGS MS70 (2,211, 8/2025), NGC MS70 (6,150, 8/2025), and CAC MS70 (109, 8/2025).
- NGC MS70: eBay, August 20, 2025 – $1,695. Anna Cabral Signature label. Buy It Now.
- NGC MS70: eBay, August 20, 2025 – $1,515.15. John Mercanti Signature label. Buy It Now.
- PCGS MS70: eBay, August 19, 2025 – $825. Buy It Now.
- NGC MS70: eBay, August 16, 2025 – $999.99. Buy It Now.
- NGC MS70: eBay, August 12, 2025 – $819. 1 Bid.
- NGC MS70: eBay, August 11, 2025 – $842.79. Buy It Now.
- NGC MS70: eBay, August 8, 2025 – $710. 2 bids.
- NGC MS70: eBay, August 7, 2025 – $1,095. John Mercanti Signature label. Buy It Now.
- NGC MS70: eBay, August 5, 2025 – $786.21. Buy It Now.
- NGC MS70: eBay, August 4, 2025 – $785. 22 bids.
- NGC MS70: eBay, August 3, 2025 – $835. Old holder. 3 bids.
- NGC MS70: eBay, August 1, 2025 – $788. Ken Bressett Signature label. Buy It Now.
- NGC MS70: eBay, July 30, 2025 – $819. Buy It Now.
- NGC MS70: eBay, July 23, 2025 – $899. John Mercanti Signature label. 47 bids.
- NGC MS70: eBay, July 19, 2025 – $673. 17 bids.
- NGC MS70: eBay, July 19, 2025 – $990. John Mercanti Signature label. 63 bids.
- NGC MS70: eBay, July 18, 2025 – $1,100. John Mercanti Signature label. Buy It Now.
- NGC MS70: eBay, July 7, 2025 – $899.99. Buy It Now.
- NGC MS70: eBay, July 6, 2025 – $805. Old holder. 2 bids.
- NGC MS70: eBay, June 29, 2025 – $995. John Mercanti Signature label. 1 bid.
- NGC MS70: eBay, June 26, 2025 – 850. John Mercanti Signature label. 1 bid.
- NGC MS70: eBay, June 23, 2025 – $850. Buy It Now.
- NGC MS70: eBay, June 22, 2025 – $670. 30 bids.
- PCGS MS70: eBay, June 20, 2025 – $800. Buy It Now.
- NGC MS70: eBay, June 20, 2025 – $1,050. John Mercanti Signature label. Buy It Now.
- PCGS MS70: eBay, June 12, 2025 – $850. Buy It Now.
- NGC MS70: eBay, June 12, 2025 – $1,095. John Mercanti Signature label. Buy It Now.
- PCGS MS70: eBay, June 10, 2025 – $921. John Mercanti Signature label. 8 bids.
- NGC MS70: eBay, June 8, 2025 – $795. Old Holder. 1 bid.
- NGC MS70: eBay, June 8, 2025 – $775. Buy It Now
- NGC MS70: eBay, June 7, 2025 – $912. John Mercanti Signature label. 24 bids.
- NGC MS70: eBay, May 31, 2025 – $775. 22 bids.
- NGC MS70: eBay, May 28, 2025 – $825. Old Holder. Buy It Now.
- CACG MS70: eBay, May 23, 2025 – $1,500. Witterbrick. Buy It Now.
- NGC MS70: eBay, February 16, 2025 – $799.
- NGC MS70: eBay, February 14, 2025 – $1,149.
- PCGS MS70: eBay, February 13, 2025 – $907. 28 bids.
- PCGS MS70: eBay, February 13, 2025 – $985.
- NGC MS70: eBay, February 13, 2025 – $795.
- NGC MS70: eBay, February 11, 2025 – $1,086,75.
- NGC MS70: eBay, February 10, 2025 – 975. John Mercanti signature label.
- NGC MS70: eBay, February 9, 2025 – $710. 24 bids.
Design
Obverse:
Adolph A. Weinman’s Lady Liberty is depicted mid stride. She is seen as a full-body figure, dressed in a flowing gown, and draped with a large billowing American flag. She holds laurel and oak branches in her left hand that symbolize the civil and military glories of America, respectively. As Liberty strides confidently towards the rising sun, she also reaches out and presents a welcoming and open hand. So large is Lady Liberty that she is superimposed over the obverse legend LIBERTY ringing the obverse – in fact, she obscures half of the “BE” and almost the entire “R”. Above Liberty’s outstretched rear foot is the motto IN GOD WE TRUST and below her is the date 1986.
The design bears a notable resemblance to sculptor Oscar Roty’s The Sower, a common image on French coins. Numismatist Roger Burdette posited in his book Renaissance of American Coinage (2007) that this was not a coincidence and while Adolph Weinman did not directly copy, he did derive significant inspiration from Roty’s work. Weinman’s Liberty Walking design quickly became one of America’s most iconic numismatic images and would be used with minor modifications on the American Silver Eagle bullion coin starting in 1986.
Reverse:
John Mercanti’s Heraldic Eagle is positioned at the center of the reverse. Clutched in its beak is a ribbon that bears the motto E PLURIBUS UNUM. Above its head is a constellation of 13 stars configured in an upside-down pyramid formation. Wrapping around the design is the legend UNITED STATES OF AMERICA (top), and the fineness and denomination 1 OZ. FINE SILVER. ONE DOLLAR (bottom).
Edge:
The edge of the 1986 American Silver Eagle bullion coin is reeded.
Coin Specifications
| American Silver Eagle Bullion Coin | |
| Year of Issue: | 1986 |
| Mintage: | 5,393,005 |
| Alloy: | .999 silver |
| Weight: | 31.10 g |
| Diameter: | 40.60 mm |
| Edge: | Reeded |
| OBV Designer: | Adolph A. Weinman |
| REV Designer: | John M. Mercanti |
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Notes
[1] “Liberty Coin Act” (PL 99-61, July 9, 1985). 99th Congress. 99 STAT. 113.
[2] Mercanti, John. American Silver Eagles: A Guide to the U.S. Bullion Coin Program. Whitman Publishing, LLC. Atlanta, Georgia. 2012. 24, 29-31.
[3] Rochette, Ed. “Sales Start Slowly for the New Silver Eagle Dollars”, Chicago Sun-Times. December 28, 1986.
[4] http://www.usmint.gov/about_the_mint/index.cfm?action=PreciousMetals&type=bullion. First accessed 1/31/15.
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