It is an American Silver Eagle, issued by the U.S. Mint. Nominally one dollar, today, they retail for about $20 or more. Yours a bit worse for wear as a collectible, but still an ounce of silver, good hard money. Yours is a Proof, struck in San Francisco - small S on the reverse above the E in FINE. Only 1.4 million were made. Retail is about $40 for a San Francisco Proof variety. But others here can tell you more about the whether the coin is better than it looks.
It is a 1986S American Silver Eagle 1oz Silver coin. Your coin is a proof....ah heck, @kaparthy beat me to it... There were 1,446,778 Proofs minted that year.
Its pretty rare, for an ase, compared to other years. keeper. get it graded. they have recondition option too, its still my opinion only.
I would imagine it would be cheaper to just buy another already graded than to send that one in, restored, graded low, etc. You BIN for $75 or play bid and get one cheaper.
It is called an "impaired proof". It has been damaged from someone carrying it around in their pocket, then cleaning it when it got dirty. Worth a bit over its intrinsic (silver melt) value now.
Not rare with a mintage as such and to its condition the fees would be a waste of money to send in for grading. One would be better not to advise other posters if one does not know what they are talking about! Impaired proof value melt.
