My 1881 E. Pluribus unum one dollar coin is coated with protective coating is it worth more?

Question

It has a yellowish color to the coating. Is that because of the age of the coin? And if the coating on this coin has preserved it in some way is it worth anything?

Answer 1

If it has a protective coating, it would most likely be worth less.  Most of the time cleaning or altering the natural 'finish' of a coin will decrease its value to colectors.  Most collectors and dealers will put coins in protective holders to keep them safe from damage.  If it isn't a coating, it may be tarnish.  This usually decreases the value of a coin as well, but some collectors like colorful tarnish (called toning) on coins.  That said, yellow usually isn't a desired color.  The coin's value would depend on a number of other factors as well:

Condition:  How much wear is on the coin (if any)?  This greatly determines the value.  The less wear there is, the more valuable the coin is.

Date and Mint: You mentioned that is a 1881 Silver dollar but the mint the coin was made at also needs to be determined to know how valuable it is.  There were 4 mints that made dollars in 1881 and the mint mark, if there is one, is a small letter(s) on the back of the coin (the side with the Eagle on it) under the wreath and over the 'D' in Dollar:

No letter - Philadelphia

CC - Carson City

O - New Orleans

S - San Francisco

I would suggest taking it to a local coin dealer to help you determine what it is worth.