From Trade Silver to "Round Silver Ingots": Japanese Dragon Silver Witnesses a Century of Economic Ups and Downs in East Asia
The Meiji Restoration and the Birth of Dragon Silver: The Pursuit of International Trade Standards
Following Emperor Meiji's ascension to the throne in 1868 and the implementation of the Meiji Restoration, Japan actively sought modernization and aspired to integrate into the international economic system. In the mid-to-late 19th century, international trade in East Asia primarily relied on foreign silver coins such as Spanish and Mexican silver dollars. Therefore, the Japanese government decided to mint its own trade coins, modeled after these international standards.
In 1870, Japan purchased minting machinery from Hong Kong (which originally belonged to the Hong Kong Mint, which closed in 1868) and began minting its own silver coins. The design of these coins, especially the dragon on the obverse, was intended to make them more easily accepted by the cultures of East Asian regions such as China and Korea, as the dragon symbolizes authority and power.
The early one-yen silver coins (such as the "Sun Dragon Silver" from the third year of Meiji) and the **"Trade Silver"** minted between Meiji 8 and 10 (1875–1877) were for this purpose. The most distinctive feature of the Trade Silver series is the inscription "Trade Silver" on the reverse. The standard weight of this Trade Silver was set at 420 grains (approximately 27.22 grams), slightly heavier than the regular one-yen version (416 grains/26.96 grams). This was to precisely match the weight standard of the Mexican silver dollar, ensuring its smooth circulation in international trade.
The Gold Standard Shock: From Domestic Currency to the Devaluation of "Round Silver Ingots"
The status of the Dragon Silver as the de facto standard currency in Japan was challenged shortly after the Meiji Restoration. In 1897 (Meiji 30), the Japanese government passed the Currency Law, officially adopting the gold standard system in line with global trends.
This major reform directly changed the fate of Dragon Silver in Japan:
- Prohibited from circulation : From April 1, 1898 (Meiji 31), the 1-yen silver coin was prohibited from circulation in Japan.
- Status downgrade : Since it no longer has the status of legal tender, the value of the Dragon Silver in Japan has been greatly reduced. It can only be used as a carrier of the precious metal silver. Therefore, it is derogatoryly referred to by the Japanese government and the public as the **"round silver ingot"** (円形银块).
Meanwhile, to prevent domestic and foreign merchants from using the Dragon Silver for arbitrage (i.e., exchanging it for gold domestically), the Japanese government stamped the reverse side of approximately 20 million Dragon Silver coins planned for sale in China, Taiwan, and North Korea with the character "银" (silver). This stamp clearly indicated that these silver coins could not be exchanged for the later gold coin, one yen.
Colonial Currency and In-kind Collateral During Turbulent Times
Although the dragon silver was "abandoned" in Japan, it took on a new role in its colonies and spheres of influence. The Japanese government continued to mint dragon silver until 1914.
- Collateral in Taiwan : From the Japanese occupation of Taiwan in 1895, silver coins and subsidiary coins were the main currencies used in transactions. Even after they ceased circulation domestically in 1898, the Japanese government continued to mint one-yen silver coins and began exporting them to Taiwan in large quantities from 1901 (Meiji 34). These silver coins served primarily as collateral for the **newly issued gold yuan notes of the "Bank of Taiwan"**.
- A Cornerstone of Trust During Turbulent Times : The physical value of Japanese Dragon Silver Dollars was particularly prominent during the turbulent post-war era. For example, in 1949, after the collapse of the old Taiwan Dollar due to hyperinflation, the government, in order to rebuild public confidence in the paper currency, placed large quantities of Japanese Dragon Silver Dollars at the counters of the Bank of Taiwan. At that time, the government stipulated that three New Taiwan Dollars could be exchanged for one silver dollar. This demonstrated the stability of Dragon Silver Dollars as a physical hard currency during periods of credit crisis.
Market value and investment considerations
Today, Japanese dragon coins have become important historical collectibles. However, due to the total mintage of approximately 200 million standard one-yen coins, the market circulation is extremely high, resulting in generally low prices for dragon coins in ordinary condition.
The core factors influencing the value of Dragon Silver include:
-
Rare Editions : The truly "sky-high" prices are often concentrated in special editions with extremely limited releases, such as:
- Meiji 3rd year "Sun Dragon Silver" : Mintage approximately 3,685,049 pieces, average value approximately HKD 4,500 (price converted to Hong Kong dollars based on the exchange rate of the day).
- "Trade Silver" series : Total mintage of approximately 3 million pieces, with a higher price than the regular version.
- Very early versions , such as the Meiji 7th year edition (mintage of 942,006 pieces) and the Meiji 8th year edition (mintage of only 139,323 pieces), can fetch HKD 100,000 or more if in uncirculated condition.
-
Condition : Regardless of how common the version is, the condition level is the key to determining the price. Only coins in excellent condition (MS60 and above) can reach the high prices circulating online.
-
Authenticity Verification : Due to the booming trade in Dragon Silver coins, the market is flooded with counterfeit coins. Counterfeits often suffer from impure metal proportions (e.g., significantly insufficient weight; the standard for genuine coins is 26.96 grams, with an error margin of 1-2%), or poorly detailed graphics (e.g., blurry dragon scales, uneven edge teeth). Our "Ancient and Modern Treasure Appraisal" strongly advises collectors to be wary of items appearing to be in "perfect condition" or priced too low, and to conduct initial screening using methods such as year elimination, weight/size checks, and comparison of the obverse and reverse sides.
[Ancient and Modern Treasure Appraisal] Professional Treasure Buyback and Appraisal Services
Japanese dragon silver has witnessed the monetary epic of modern East Asia. From "dragon dollars" used in international trade to "silver ingots" abandoned in Japan, it is not only a collectible but also a microcosm of history.
If you possess Japanese Dragon Silver or any other valuable coins, whether rare or heirloom, "Ancient and Modern Appraisal" offers professional, impartial, and fast appraisal and acquisition services.
Contact us now to give your treasured collection its due value:
Contact information: WhatsApp: (852)98342057
Ancient and modern treasure appraisal , helping you trade with ease, based on integrity.
