Q. David Bowers
Forgeries of Peace Dollars
Altered specimens of certain Peace dollar varieties have been made from time to time. 1928 Philadelphia Mint dollars are sometimes forged by removing the tiny S mintmark from the more common 1928-S issue (see John Kamin's comment under the 1928-S Peace dollar section in the present book). 1934-S dollars are sometimes faked by adding an S mintmark to a 1934 Philadelphia coin.
Scarce Peace dollars should always be examined carefully and should always be purchased from dealers guaranteeing their merchandise or should be purchased in PCGS, NGC, or ANACS holders.
Die Varieties of Peace Dollars
Design Differences
There are two major design differences among 1921-1935 Peace silver dollars and several minor ones. The information below is adapted from that given by Herbert Hicks in Error Variety News, January 1981 and February 1981; Walter Breen's Complete Encyclopedia of U.S. and Colonial Coins; and, in particular, the 3rd edition of Leroy C. Van Allen and A. George Mallis' Comprehensive Catalog and Encyclopedia of Morgan & Peace Dollars. The Roman numeral obverse designations and letter reverse designations are per Van Allen-Mallis:
I Obverse: High Relief type of 1921, all issues:
Head and features in higher relief than later years; obverse field (in particular) quite concave, unlike later years; rays on top of Miss Liberty's head thicker, andwithout three short rays between the first four long rays; headband differently configured, especially to right of the wave of hair crossing the band.
IA Obverse: High Relief. Used on early January 1922 High Relief business strike and Proof mintages only. Similar to 1921, not precisely identical. On the 1922, two short rays are added to the coronet, Land WE TRVST; hair details and feathers strengthened. Not in VAM.
II Obverse: Shallow Relief type of 1922-1928.
Shallower relief than preceding; obverse field almost flat; rays thinner and with three short rays between the first four longer rays; headband more prominent behind wave of hair.
III Obverse: As II, but with lettering thinner in motto IN GOD WE TRUST; tail to R in TRVST straighter than on preceding. Used in 1934 and 1935.
A Reverse: High Relief type of 1921, all issues:
Eagle and other features in slightly higher relief than used on later years; hook on eagle's beak less pronounced than on later issues; branch to right of eagle's feet splits closer to eagle than on later issues; mountain ranges at lower right are differently configured; four rays below ONE instead of three as seen on later issues; eight rays below eagle's tail instead of six; 21 rays to right of eagle instead of 19-1/2.
AA Reverse: Similar to 1921 High Relief, but with mountain range are changed in shape. Used only on High Relief 1922, early business strikes (most if not all melted) and a few Proofs. Not in VAM.
B Reverse: Shallow Relief type of 1922-1935.
Branch, rays, etc., different from preceding, as noted. Used on flat-relief 1922 Philadelphia Mint dollars, all other dollars 1922 to 1935-S except for some 1935-S. VAM describe two minor varieties of the B reverse:
B1 Reverse: Olive branch detached from eagle's foot; two hills to right of mountain crag; R in DOLLAR is short.
B2 Reverse: Olive branch is connected to eagle's foot,; three hills to right of mountain crag; R in DOLLAR longer than preceding and extends past vertical ray.
C Reverse: Same as general B type, but with fourth ray added below ONE and a seventh ray added below the eagle's tail. Used on some 1935-S dollars.
Minor Varieties
Within the Peace dollar series there are a couple dozen or so minor varieties differentiated by having different mintmark positions, slight doubling of let-tering or a design feature, etc. The Van Allen-Mallis text describes these in detail and illustrates most of them. None has captured the fancy of a significant number of collectors, most of whom are content to have just a single specimen of a given date or mintmark.
The Market and Prices
The Market In Recent Years
The market in Peace dollars is very volatile and has been subject to wild speculative swings in the past. In The Morgan and Peace Dollar Textbook, Wayne Miller wrote that during the fever market from about 1978 to March 1980 Peace dollars were probably the most sought after series in all of numismatics. Bid levels in the Coin Dealer Newsletter increased 500% to 1,000% for most dates in the series in just a few years.
However, with the overall decline in the coin market during 1980-1982 the demand for Peace dollars diminished significantly. Most of this decrease in demand was due to the fact that during the weak coin market buyers became much more fussy and quit buying Mint State Peace dollars because of the poor quality of most dates in the series. Also, many Peace dollars had risen past the $100 to $200 per coin level in gem grade.
For a long period of time during the mid-1980s Peace dollars were out of the limelight. More than anything else, grading was a prime problem. There was little consistency, and one seller's MS-65 might not be as nice as another vendor's MS-63. With the advent of PCGS in 1986 and NGC in 1987, certified grading helped create interest. Peace dollars became an investment medium, as many dates were available in quantity to promoters. Prices went up, and up, and up. By spring 1989, a peak was achieved, and many knowledgeable observers scratched their heads in wonderment as common Philadelphia Mint Peace dollars of the 1922-1925 years, in grades less than MS-65, sold for close to $200 each in some in-stances. Then came the crash.
In 1991, David Hall noted that certain common date Philadelphia Mint Peace dollars in MS-64 grade were selling for only 9%-that's right, just 9%-of the market highs achieved a couple of years earlier! Of course, the market highs were based on a speculative fever in which common coins were promoted more heavily than rare ones, for the promoters had common coins in great supply. This was done in anticipation of "Wall Street money" descending upon the coin market, something that never happened, at least not to a significant extent. When the passion had passed, the prices of MS-64 dollars subsided to what was probably closer to their true value.
As popular investment interest in Peace dollars waxes and wanes over the years, prices will probably rise and fall. From time to time the promotion of a particular variety will also have an influence. However, the long-term trend will probably be upward. I like to think of market cycles as a saw blade on edge, slanting upward. There are peaks and dips, but over a span of years the prices of most dates and mintmarks increase.
For investment in Peace dollars I recommend building a collection of the 24 different major varieties, not buying quantities of a particular date or mintmark. If you want to invest more money once your set of Peace dollars is finished, start a second set, or consider starting a collection of trade dollars, or large cents, or something else.