Expert: Dmitry Livshits - 10/5/2009

Question
QUESTION: Hi

We do have a Trade Dollar coin from the Meiji 9 period (see attached pictures).
Is it possible for you to tell us the price collectors - if at all - would pay for this coin?

Many thanks for looking into this.

Andreas

ANSWER: Hi Andreas,
Genuine pieces like this are very rare, they start at $500 for a coin with significant wear, and go as high as $3,000+ for a coin in mint condition. However, the real coins are very rare and counterfeits and replicas are very common. No collector would buy such a coin unless it was professionally graded and certified by one of the three major companies (NGC, PCGC, ANACS). The reference weight for this coin is right around 27 grams. One that has wear may be up to a gram lighter, but one that is less than 26 grams is most likely not genuine. I must say that from the photograph of your coin, the color and surface looks very suspicious and not consistent for an 1870's coin.
If you post a follow-up with a picture of the other side I can provide a more detailed analysis.
Thanks for the question! =)

---------- FOLLOW-UP ----------

QUESTION: Hi Dmitry

Many thanks for your quick answer.
Attached please find the picture of the coin's other side.
As for the colour: it is a dark yellow, not as shiny as the pictures might suggest.
We do have silver looking "Trade Dollars" as well. Those coins are less heavy than the one we are talking about and the ornaments, numbers etc. show less details than this coin here.
Look very much forward to reading another answer.
Thanks much!

Andreas


ANSWER: Hi again Andreas,
The detail in the characters, the rim and denticles around the rim look very good. If the coin is a counterfeit, it's a very high quality one. Since there is only minor signs of wear, this coin should be right around the full 27.2 grams. If it's even 1/10 of a gram heavier or more than 3/10th lighter, then again it's would be highly suspicious.
The color is quite unusual, but that may be explained by gilding. I've seen plenty of old coin that had been coated with a layer of gold for whatever reason. As the gilding wears off, it leaves a faint brass look to the surface of a silver coin.
Such a coating does not hurt the value of a genuine high grade example too significantly. I would estimate 10% less, compared to 25% or more for even a light cleaning or scratch.
If graded by one of the previously mentioned companies, it may only be certified genuine without a grade. This is a common practice for rare coins that have an altered surface or cleaning. In this case I would estimate the coin at right around $1,000 at auction.
All this being said, I am slightly bothered by the rough look around parts of the edge on on some of the features, especially the lotus and leaves on the reverse. This roughness is usually left over from air bubbles that form during the casting process, which is the preferred process for counterfeiters. A high quality cast counterfeit that is equal in wieght is considered a "bullion" counterfeit, which would have still been accepted in trade for it's silver value. Such an item will be in the $50-$100 range on the current market.
Thanks again for the questions! =)

---------- FOLLOW-UP ----------

QUESTION: Hi Dmitry
Thanks again for your quick answer. Please allow for a last question: we checked the coin's weight at two different places, both said the same: 22.2 grams - which means the coin is less than 2/10th lighter than the full 27.2 grams. What does this weight tells you?
Thanks again for your answer!
All best
Andreas

Answer
Based on that weight I would say you have a brass-alloy cast counterfeit. It still has some value as a "study" piece, which many serious dealers like to acquire for their own research and comparisons. As I mentioned before, this is a very finely cast piece with very few of the usual signs of casting. By the picture, many seasoned collectors would assume it's genuine just by the sharpness of the design. The weight is really the most reliable method. Due to different metals having specific density, it is virtually impossible to preserve the size and weight of an item while changing the material.
You can actually pick up a good pocket-size electronic scale for under $20. Certainly worth having if you handle a lot of silver coins.
Thanks again for your question, best of luck with future hunting! =)