What is a trade dollar?

Answer 1

Towards the end of the 19th century a number of major economic powers issued "crown"-type coins of special weight and value for use in commerce with countries in the Far East. The US created its own "crown" coin called a Trade Dollar to be able to participate in the lucrative markets that were developing as Japan and China opened their economies to the West.

Trade dollars were slightly heavier than standard silver dollars (27.2 gm vs. 26.7) and were inscribed with their weight and purity, in much the same way that modern bullion coins have similar wording, as a way to advertise their intrinsic value. Many trade dollars also bear "chop marks" which are counterstamps added in Asia to certify the coins as genuine.

Circulation trade dollars were only minted during the years 1873-1878. When the price of silver collapsed the government stopped production except for proof versions sold to collectors; these continued until 1885.

Counterfeits

Trade dollars proved to be very popular in the Far East and carry with them an aura of romance and history. As a result many millions of fakes have been produced over the years. Some are nearly perfect copies so if you have a Trade Dollar it's very important to have it authenticated.