1996 American Silver Eagle : A Collector’s Guide

By Charles Morgan and Hubert Walker for CoinWeek Notes …..
 

The nadir of American Silver Eagle bullion sales was reached in 1996, when the United States Mint reported sales of just 3,603,386 coins. Year-to-year, sales had been about half of the program’s 1987 peak, when 11,446,778 coins were minted. 1987 was the first full year of production, and demand for the government-backed bullion coin was steady and predictable every year thereafter.

The average spot price of silver for 1996 was $5.20 as the market for the precious metal had flatlined for two years straight and was heading down for 1997. The Mint’s numismatic offerings underperformed in 1996; commemorative issues were unpopular, and Proof sales were down by 50%. The only saving grace was the sell-out of the 1996-P American Silver Eagle Proof and the 1996-W Roosevelt Dime, which was a “freemium” bonus coin found in the 1996 Uncirculated Coin Set.

How Much Are 1996 American Silver Eagles Worth?

The 1996 American Silver Eagle was sold in Monster Boxes as a one-ounce government-issued legal-tender bullion coin. Loose, for at least the first few years after its issue, the coin carried the standard premium of a few dollars over spot and traded as generic bullion.

This is no longer the case, as the 1996 American Silver Eagle is now considered a “dated” coin in the series–even the Guide Book shows a numismatic premium. It’s reasonable to assume that several boxes of 1996-dated coins are held by investors ignorant of the secondary market and the potential premium of this date. When these are sold, however, the purchasers will know and process the coins accordingly.

In its raw form, the 1996 American Silver Eagle trades for about $50 – $55 at retail. Collectors should avoid coins that have been mishandled, coins with ugly toning or excessive spotting, and coins sold in slabs as BRILLIANT UNCIRCULATED. The latter were likely submitted in bulk and did not qualify for the minimum grade of MS69. Mint State 69 coins are ubiquitous and sell for a small premium over raw, typically no more than $10 to $15 more.

Let’s talk about MS70s.

It is important to remember that the explosive growth in the mainstream collecting of Silver Eagles did not occur until NGC–and later, PCGS–began to accept bulk submissions from leading market makers. Before this, most graded coins offered by TV coin shows would have been slabbed by either ICG or ANACS.

NGC and PCGS grading Silver Eagles gave the series (and the assigned grades) a new level of legitimacy. But it also opened the door for critical misunderstandings on the part of collectors. We’ve written in the past about the concept of conditional rarity. It’s an important topic that should be front of mind for coin investors. When the graded population of a coin is too small to represent the extant population accurately, collectors misconstrue the data.

This can lead to disastrous financial losses, as seen in the table above. On September 11, 2009, an NGC MS70 coin from the “Thrifty Scot Collection” sold for a record price of $21,850. While at the time we could not locate the contemporaneous NGC 70 population, by 2010, the firm had certified over 125 examples and MS70s were selling for less than $5,000. In 2024, the “Thrifty Scot” coin might sell for $1,500.

No examples were certified by PCGS when former Chief Engraver John Mercanti’s American Silver Eagle: A Guide to the U.S. Bullion Coin Program was first published in 2012. This book was produced with heavy involvement from Michael “Miles” Standish and used by Standish to mass market the coin and promote the PCGS brand. PCGS was vexed by the milk spot issue with early Silver Eagles and had grown reluctant to certify “problem” dates as 70s. It was only after the United States Mint acknowledged that the problem may be traced back to the production process that this policy began to change.

When we last studied the issue for CoinWeek’s 2014 American Silver Eagle Price Guide, the PCGS MS70 population remained at zero while NGC’s had risen to 168. To that point, a minuscule 0.14% of all coins submitted to NGC for encapsulation earned their top grade.

In the 10 years since, the landscape has changed. PCGS has reversed its previous policy and will now certify coins as MS70 with the caveat that its grade guarantee does not cover milk spots that develop after encapsulation. As of this publication (August 8, 2024), PCGS reports 288 MS70s, NGC reports 773, and CAC Grading (CACG), a new full-service company, has graded six.

Since 2014, an average of 3,700 1996 American Silver Eagles have been submitted to a leading grading service for encapsulation every year; most grade MS69.

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Market Data and Noteworthy Specimens

Top Population: PCGS MS70 (288, 8/2024), NGC MS70 (773, 4/2024), and CAC MS70 (6, 8/2024).

• PCGS MS70 #34112488: Heritage Auctions, October 7, 2024, Lot TBD – View. Heavily milk-spotted. QA sticker.
• NGC MS70 #5866010-015: “The Citizen Bold Collection,” Heritage Auctions, September 11, 2024, Lot TBD – View. John Mercanti signature label. Heavily milk-spotted.
• NGC MS70 #4853053-002: Stack’s Bowers, March 28, 2024, Lot 7781 – $1,560. Two hits on fourth ray. Planchet flaw touching the fifth ray. On the reverse, there is a rim hit above E in STATES.

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Design

Obverse:

Artist 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 reaches out and presents a welcoming open hand. Lady Liberty is superimposed over the obverse legend LIBERTY ringing the obverse, obscuring half of the “BE” and almost the entire “R”. Above Liberty’s outstretched rear foot is the motto IN GOD WE TRUST; below her is the date 1996.

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:

United States Mint Chief Engraver John Mercanti’s Heraldic Eagle is positioned at the center of the reverse. Clutched in its beak is a ribbon bearing the motto E PLURIBUS UNUM. Above its head is a constellation of 13 stars configured in an upside-down pyramid formation. The legend (top) UNITED STATES OF AMERICA is wrapped around the design and the fineness and denomination (bottom) 1 OZ. FINE SILVER. ONE DOLLAR.

Edge:

The edge of the 1996 American Silver Eagle bullion coin is reeded.

Coin Specifications

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