Before You Invest in Morgan Dollars, Consider These Points

By Susan Headley, About.com Guide

Morgan Dollars have become very popular as an investment vehicle for coin collectors because they cost a reasonable amount of money to buy, have performed very well in the past as an investment, and are beautiful to behold. But like any investment, you must do your homework first if you expect to come out ahead over dealer profits, inflation, rare coin appreciation in general, and knowing which specimens to buy in particular, to ensure that you don’t take a loss inctead.

Morgan Dollars in General

The first thing you need to keep in mind about Morgan Dollars is that specimens that grade below AU-50 are, as a rule, only worth their silver bullion value. Of course, there are a few exceptions, especially for Morgan Dollars minted at Carson City, but most Morgan Dollars on the market today never circulated as regular coinage. The main reason for this is that the Mint produced hundreds of millions more Morgans during the 1800′s than were needed for circulation, so they sat in vaults.

Most Morgan Dollars Never Circulated

More than half a billion Morgan Dollars were minted between 1878 and 1904, and although nearly 3/4 of these were melted back down before being issued, the majority of the Morgans in the marketplace today didn’t even leave the Mint until 1960. You can learn more about the history of the Morgan Dollar, which makes a fascinating story.

The bottom line is that Morgan Dollars in Uncirculated grades are very, very common, so be aware of this when you go to buy Morgans.

Buy the Book Before You Buy the Coin

One thing that less-than-honest dealers might attempt to do is try to lead you to believe that just because the Morgan Dollar is 60 to 80 years old, the fact that it’s in Mint State makes it very valuable. The truth is that MS-63 specimens for about half the mint/date combinations sell for $35 to $70 each. Telemarketers are getting $350 to $700 for the same coins! Which is the better investment? Obviously, getting the Red Book and learning the true market values of Morgans is critical.

Invest in Only the Highest Grade Morgan Dollars

Because the Morgan Dollar series exists in generally higher grades than most other series, you should invest in only the highest grade specimens. If you can afford to buy Proof Morgans, you should, because those have performed very well over the last fifteen years. The next best investments are the very high grade, MS-65 or better. They are pricey compared to MS-60 to MS-63, but their incredible rarity in the age of encapsulation make them a good investment.

Remember to Consider the Source

Another very important thing to consider when investing in rare coins, including Morgan Dollars, is to consider the source of the grade. The price difference between MS-63 and MS-65 is significant, and not all dealers and grading services have the same grading standards. In fact, coins which are in slabs from PCGS and NGC are worth more than coins in slabs from certain minor grading services, because PCGS and NGC have consistent, exacting, and largely non-subjective standards for grading.

Store Your Morgan Dollars in a Vault You Control

Finally, once you’ve made the informed decision to invest in a given coin, always take delivery of your coins! Don’t fall for dealer assurances that your coins will be kept safe for you. If the dealer cannot produce the individual coin you’re buying, in a major grading company slab, find another dealer. If you don’t have a proper built-in, fireproof vault to store your investments in, put them in a safety deposit box. Always remember that Morgan Dollars can be your future, so don’t lose them.

Morgan Silver Dollar

The Morgan Silver dollar is a popular commodity among collectors. Many find coin collecting to be an enjoyable pastime and also provides the collector with increases in monetary value. Coins are collected both for their nostalgic and historical properties, as well as for investing reasons. The Morgan Silver dollar is rich in a history that can be likened to that of Cinderella, by way of a rags to riches tale. In order to fully understand the value of these coins, people must understand the history surrounding them.

George T. Morgan is credited with the design of the Morgan Silver dollar. He developed the obverse and reverse sides on coinage, this being the separate images that appear on both sides. On the obverse side of the coin is a portrait of ‘Lady Liberty’. In fact, as the story goes, a woman by the name of Anna Williams sat for her portrait to be taken, and later gained national acclaim as ‘Miss Liberty’. Near Lady Liberty’s neck, Morgan’s monogram can be seen. The reverse side of the coin bears the likeness of eagle which is grasping olive branches and arrows in each of its feet. Olive branches denote peace, arrows war, and both combined signified a new era for the United States, one that symbolized a time and peace and military prowess.

The Morgan Silver dollars have a precious metal content which roughly comes to 24 grams of the metal per coin. They were minted from 1878 to 1904, and then again for one year, 1921. The coins were not popular when they were first created, in fact, much criticism existed as people thought that the head of the eagle looked rather scraggly and in fact, looked like that of a buzzard, hence bestowing upon the coin the nickname of ‘Buzzard Dollar’. The dollars were not authorized until the year 1878 with the passing of the Bland-Allison Act. This law required that two to upwards of four million ounces of silver be bought by the United States Treasury every month. The Treasury became the biggest buyer of the coinage, however, this also led to the coin’s unpopularity as the act resulted in the production of half a million Morgan Dollars.

The metal dollars were commonly used in daily commerce both nationwide and around the world and in some cases became known as the Liberty Head dollar. A shortage of silver in 1904 brought about the end of production for the coins. Over two hundred million Morgan dollars were melted down into bars. This and subsequent melting contributed to the rarity of Morgan Silver dollars minted in certain years causing the collection appeal and value of the remaining dollars to increase exponentially. A small number of the dollars, seventeen percent to be exact, remained intact. The preservation of this seventeen percent is due to the passing of the Pittman Act in 1918. This law set up the prevention of melting coins down to bullion exceeding three million, and in fact due to this law almost that many silver dollars were, in fact, re-minted.

The value in Morgan Silver dollar prices are dependent on not only the quality of the coinage, but also on where the individual coins were minted. By looking at the reverse side, the one with the eagle, mint markers can be seen in between the D and O in the word dollar. A single letter denotes where the coin was minted, and if no letters can be seen, the coin was minted in Philadelphia. The most valuable and highest Morgan Silver dollar prices reside with those minted in Carson City, Nevada. This is due to the fact they are of low mintage. This was due to an error in production. Twelve thousand were scheduled to be minted and a mere 800 were actually recorded. This led to much speculation as to what happened to the missing twelve thousand, some even believed a romanticized notion that the coins had been lost at sea.

Morgan Silver dollar prices both rose and gained in public interest when over four hundred thousand dollars worth of the coins were found in the basement of the home of LaVere Redfield. This discovery enticed many collectors who vied over possession of the coins and eventually led to an auction, with the winner posting a bid of over seven million. Value by way of prices continue to rise as they are collected worldwide and valuable due to the precious metal content and beauty in design. Many investors believe there is a level of security in the investing of coins during times of economic unrest, and precious metals are an excellent investment due to a continual demand and short supply. One of the main characteristics of the Morgan Silver dollar, despite containing the precious metal, are the fine detailing of the images that appear on both sides of the coins. The most valuable of the coins have almost a mirror like affect on both the obverse and reverse. Standard Morgan Silver dollar prices are around thirteen dollars per coin, however, different coins have different values. For example, one minted in 1887 in San Francisco can easily sell on the current market for around one hundred dollars, while a silver dollar minted in 1885 from Carson City can sell for over five hundred.

The shimmer of precious metals and the nostalgic pastime of collecting can be enough to lure people into the appeal found in Morgan Silver dollar prices. However, one should be careful to prevent becoming caught up in earthly riches, “Lay not up for yourselves treasures upon earth… but lay up for yourselves treasures in heaven… for where your treasure is, there will your heart be also” (Matthew 6: 19, 20-21). Wise collectors can both appreciate the value in the collectible and appreciate what can be represented by way of history as every coin tells a story.

For more information: http://www.christianet.com/bullion