First, some background. The mint makes silver proof dollars for collectors. Circulating coins are called business strikes and numismatists think of them as a separate group. Each proof is struck two or more times between specially prepared dies that produce a frosted design and a mirror-like background. Multiple striking enhances the details. The coins are then encased in hard plastic holders and mounted in velvet-covered presentation boxes. Each coin comes with a certificate of authenticity that details physical characteristics and declares the piece to be 99.9% silver. The front of the coin depicts Liberty striding toward the sunrise. She is carrying branches of laurel and oak, symbolizing civil and military glory. It's the same Adolph Weinman design that was used on U.S. half dollars between 1916 and 1947. The back carries John Mercanti's heraldic eagle, an olive branch in its right talon and arrows in its left.

Over the years, the coins have been made at three different locations. Between 1986 and 1992, they were struck at the San Francisco mint. The Philadelphia facility then handled the work, until 2000. Since 2001, the proof eagles have come from the West Point mint. In 1995, West Point made a relatively small number of proof dollars for a limited production set containing four gold American Eagle proofs and the silver coin. The 2006 20th anniversary offering consisted of a regular proof (West Point), a reverse proof (mirror-like design & frosted background, Philadelphia) and a burnished, uncirculated business strike (West Point). Small "S", "P", or "W" mint marks are part of the reverse design. They are located just to the left of the eagle's tail.

The number of coins produced varied from year to year, as did the original mint price. Production started strong. San Francisco struck over 1.4 million proofs in 1986. Mintages declined steadily, though, reaching a 1994 series low of just over 370,000. Since then, the numbers have risen back toward the 700,00-800,000 level. The mint sells each new coin in the year it is made and then stops. In 1986, the government got $21 per coin. Since then, mint prices have risen slowly to $31.95 (2008). The 1995 five-coin set originally went for $999, but it's probably fair to equate the cost of the 1995 West Point silver eagle to the Philadelphia version ($23). The 2006 three-coin set originally sold for $100 and one might arbitrarily say that the two proofs ran $35 each. Bought from the mint, then, the 25 silver proofs in the American Eagle line cost $628.80.

Once the mint stops offering a yearly coin, dealers and collectors sell them to each other and prices rise. Figuring current values on the basis of average Internet auction levels, common dates are selling for 50%-170% more than the original mint price tags. Relative rarity also affects the market. Lower mintage pieces from the mid-1990s are better by 400%-800%. The 1995 West Point dollar is a particularly rare (30,125 total) coin and one sees good quality certified copies going for around $4,600. Omitting the 1995W from the group leaves 24 coins that originally cost $605.80 and now sell for about $1840. That's an improvement of more than 200%, so far. That's what my brothers got and I'll bet it beats the cheese out of all the back yard grilling utensils and magazine subscriptions I could have sent. Note that I did buy the 1995 West Point set for myself. Merry Christmas to me, too!

Larry Schutts has invested in high grade collectibles for over twenty years and recently opened an online Collectible Investment Store.