President Reagan Introduces American Eagle Silver Dollars
The Official Return of Gold & Silver Coins in 1986
The American Eagle bullion programs began with one pivotal law in 1985—then changed the precious metals market forever.
In 1985, President Ronald Reagan signed into law the Liberty Coin Act, authorizing the United States Mint to produce official silver and gold bullion coins for American investors. These landmark measures gave birth to the American Silver Eagle and American Gold Eagle programs, both first released in 1986—marking the modern return of U.S. government-issued precious metal coinage for private ownership.
Why the American Silver Eagle Was Created
The American Silver Eagle was specifically designed to reduce the massive U.S. government silver stockpile. Congress directed the Treasury to strike one-ounce coins of .999 fine silver using metal held in federal reserves, effectively converting stored bullion into investment-grade legal-tender coinage. The law defined the coin’s weight, purity, design, legal-tender status, and a pricing formula tied directly to the market price of silver.
What began as a structured liquidation of surplus silver reserves became the most successful silver bullion coin program in the world.
Today, the rising price of silver is due to the wide distribution of the excess silver supply to collectors and investors. In coming years, as physical silver supplies are in short supply there is no doubt that millions of the American Silver Eagles will be melted into silver bars where they will be meet industrial supply needs.
The Authorization of the American Gold Eagle
At the same time, the Gold Bullion Coin Act authorized production of American Gold Eagles in four denominations—1 oz, 1/2 oz, 1/4 oz, and 1/10 oz—struck in durable 22-karat gold (.9167 fine). Unlike the silver program, the gold was required to come from newly mined domestic sources, supporting American mining while restoring official U.S. gold coinage to the investing public.
Together, the Silver and Gold Eagle programs reestablished a direct link between American citizens and government-backed precious metal ownership.
Editors Among the First to Introduce American Eagles
The creators of this website were among the first introduce the new American Eagle silver dollars in mid-1986 and the gold coins in late 1986. As an early adopter, they were responsible for selling hundreds of millions of American Eagle Silver Dollars at times when silver was trading from under $5.00 an ounce.
Those collectors and investors who hoarded away early both silver and gold have proven to be handsomely rewarded in recent years.
From Government Surplus to Global Silver Tightness
The landscape today is dramatically different. The once-vast U.S. silver stockpile that initially supplied the Silver Eagle program has long since been depleted. Global demand for physical silver—fueled by investors, solar energy expansion, electronics manufacturing, medical technology, and defense applications—has tightened supplies worldwide.
In recent years, policymakers have increasingly recognized precious and industrial metals as vital to national security and advanced technologies. Discussions surrounding domestic sourcing, critical minerals, and supply-chain resilience have elevated silver’s profile as a strategically important material in the modern economy.