Silver swindle: Counterfeit coin scam apparently reaches Peninsula

By JIM JOHNSON
Herald Salinas Bureau Posted: 05/05/2010 03:11:22 AM PDT Updated: 05/05/2010 08:35:51 AM PDT

Click photo to enlarge Nader Agha, owner of the Coin & Treasure Shoppe in Monterey, holds an… (VERN FISHER/The Herald)
An ongoing scam thought to be based in the San Francisco Bay Area involving the sale of “counterfeit” antique coins has apparently hit the Peninsula.

Peninsula developer Nader Agha, also a rare-coin dealer and owner of the Coin & Treasure Shoppe on Alvarado Street, last week purchased what he thought were three mint-condition U.S. Morgan Silver Dollar coins for $4,500 from a man who said he’d found them in an abandoned storage locker in Hollister. The silver dollars are generally regarded as one of the most popular precious coins among investors.

According to Agha, the man, who identified himself as Joel Silva and Jose Silva, returned the next day to sell Agha more of the coins. This time, the dealer decided to inspect the merchandise more closely and the man fled with an associate. Agha said he immediately called police.

Monterey police officer Kim Purcell confirmed that Agha had reported an alleged crime, but said the report was forwarded to the U.S. Secret Service because it involved a potential federal crime.

Purcell said local police wouldn’t release any details about the report, including a photo of the suspect, so they wouldn’t potentially compromise the Secret Service’s ongoing investigation. She said the Secret Service confirmed they have been investigating the counterfeit rare coin scam “for some time.”

Purcell said anyone dealing in rare coins should be aware that there may be someone pushing the counterfeit merchandise.

“This definitely sounds like something local coin dealers want to be aware of,” Purcell said.

Secret Service officials did not return phone calls from The Herald.

Agha said he later learned that the scam has netted several other victims, including some from as far away as Modesto. Other reports indicate the scam could have stretched all the way to Oregon. He said the scam is initially very believable and difficult to detect because the counterfeiters apparently splice two genuine antique silver dollars of considerably lesser value together to create the impression that they are more valuable, worth as much as tens of thousands of dollars. The coins, which are contained in protective plastic holders, even appear authentic under high-powered magnifiers, Agha said.

The counterfeiter also had the coins in a box from a well-known grading company, Professional Coin Grading Service of Southern California, according to Agha. A call to the company confirmed that the scam has been underway for some time, Agha said.

“This is very, very bad,” Agha said. “This not only undermines the confidence in PCGS but compromises all buyers and collectors’ confidence in the grading companies.”

According to David Stag, a Santa Rosa-based rare-coin dealer who does business all over the western U.S., the counterfeit scheme is believed to be part of a larger criminal conspiracy that has been in operation for at least seven months. Stag said he had seen 10 of the counterfeit coins himself in the past seven months and had even purchased them before realizing they weren’t authentic. He said he’d heard there had already been at least three arrests in connection with the scam.

According to Agha, his first experience with a counterfeit rare coin scam began late on the morning of April 28 when a man he described as African-American in his late 30s with braided hair entered his store. The man, who introduced himself as “Joel Silva,” told Agha he had discovered “very rare coins” after buying a self-storage locker in Hollister, and offered to sell them.

Agha said he had never seen such beautiful coins in his 40 years in the business, describing them as “phenomenal” and in mint condition, and said he was concerned they were stolen, not counterfeit. He paid the man with a $4,500 check, though he said his suspicions were further aroused when the man asked him to write the check to “Jose Silva.”

The man later cashed the check at Monterey County Bank, Agha said, and his image was captured on their video surveillance system.

The next day, Agha said the man called back and offered to sell more of the coins, and brought one of them by the store later that morning. When Agha pulled out a high-powered scope to inspect the coin more closely, the man immediately said he had to go to his car to get more coins and rare stamps.

Agha and an associate followed him out of the store and saw the man get into a white truck with another man and drive away quickly. Agha said he called police, as well as the grading company, and learned about the apparent extent of the scam. He said the man called back a few hours later and said he was coming by to pick up the coin, but never showed.

Jim Johnson can be reached at 753-6753 or jjohnson@montereyherald.com.

The 1895 Morgan Dollar: The 1895 Morgan Dollar is known as the “King of the Morgan Dollars” because it is the rarest and most valuable of the entire Morgan Dollar series. PF-68 specimens of this rare coin have sold for upwards of $120,000 at auction.

According to U.S. Mint records, there were 12,000 regular circulation Morgan Dollars struck for 1895, and 880 Proof specimens struck. However, only 75 to 80 of the 1895 Morgans have been accounted for, all of them Proofs. Where did 12,000 plus coins go?

 A Mysterious Disappearance?: Numismatic scholars are divided in their opinions as to why the 12,000 business strike specimens of the 1895 Morgan Silver Dollar have vanished into history. Most believe that the coins were never minted in the first place, and that this notation in the Mint accounting ledgers is in error. Some believe that the coins were minted, but melted down for various reasons. I even read one theory that proposes the coins were lost at sea in a shipwreck.

Why is it Called the “Morgan” Dollar when it Depicts Lady Liberty?: Actually, the Morgan Dollar (so-called because it was designed by George T. Morgan) has been called much worse. When it first came out, it was an unpopular coin frequently derided as the “Buzzard Dollar” because of the shape of the eagle’s head and the eagle’s generally scrawny appearance. Another popular term for the Morgan was “Cartwheels.” The proper term for the coin type is the “Liberty Head” dollar.

Millions and Millions of Morgans!: Although the Morgan Dollar wasn’t very popular when it first came out, we know today that it is one of the most popular coin types in the entire U.S. coinage series. Why did this change?

The answer is, millions and millions of Morgans! More than half a billion Morgan Dollars were made between 1878 and 1904, largely because of a law called the Bland-Allison Act, passed by Congress in February of 1878, which mandated that the Treasury must buy 2 to 4 million troy ounces of silver per month!

The “Silver Dick” Lobby: The Treasury was forced to buy this incredible amount of silver, which was flowing out of the Comstock Lode in Nevada, because of a group of silver mine owners who had formed a lobbying group. Led by Congressman Richard “Silver Dick” Bland, the silver lobby was able to pass legislation that made the U.S. Treasury its biggest customer.

Of course, the Treasury had to do something with all this silver, so it had the Mint produce the Liberty Head, aka Morgan, Silver Dollars.

Morgan Dollars are Called the “Buzzard Dollars”: The Morgan Dollar wasn’t very popular. The eagle was considered ugly, and the coin was derisively called a “cartwheel” for its large size and weight, so the Morgan Dollars sat in government vaults for many years, languishing in obscurity. Hundreds of millions of them were melted down again through the years, and many, such as the 12,000 made in 1895, are unaccounted for. But there were still plenty of Morgans to go around, since they only circulated in a few small areas.

The Silver Certificate Secret: Sometime around 1960, certain coin dealers became aware that the Treasury was giving out Morgan Dollars that were more than 80 years old, on a dollar for dollar basis, in exchange for silver certificates. Many of the dealers were just after the silver bullion at lower-than-market cost, but others realized the potential collector value of these 60 to 80 year-old mint state silver dollars. Tens of millions of Morgans were bought at face value until 1964 when the Treasury shut this practice down.

The Public Finally Wakes up to the Beauty of the Morgan Dollar: The Treasury had about 2.9 million Morgans left in 1964, mostly scarce Carson City specimens, which the GSA put up for public sale via mail-bid auctions starting in 1972. By 1980, as the supplies dwindled, the public finally became interested in the beautiful Morgan Dollar. The real feeding frenzy came, however, when an amazing hoard of more than 400,000 Morgans was found in the basement of Nevada miser LaVere Redfield after his death in 1975.

Morgan Mania at Last: The Redfield find got a lot of publicity, and as the U.S. population had become a lot more familiar with the value of its silver coins in the years following the change from the silver coinage to the clad coinage, the Morgan Dollar finally came into its own as a popular collectible series. The publication of the “Comprehensive Catalog and Encyclopedia of Peace and Morgan Silver Dollars” by Leroy Van Allen and George Mallis, (the VAM book) also spurred significant collector interest in Morgans.

Wham VAM, Thank You Ma’am: The VAM book, so named for the initials of its authors, really boosted the values of Morgan Dollars into the big time. This book lists all of the known die varieties of the Morgan Dollar series, and got collectors to examine their coins more closely for detail. Coins that were previously valued based on a given year’s known mintage of X number of specimens, now had sub-categories of specimens for that year based on die varieties. These sub-categories were naturally more scarce than just any coin from that year, so collectors who might previously have been satisfied with one specimen from each year and mint, now had to have several from each to complete the “set.”

The Holy Grail of the Morgan Dollar Series:

For the rarest Morgan Dollar year/mint variety of them all, the 1895-plain, there are no business strike specimens known to exist. And even though 880 Proof specimens were struck according to Mint records, there are various estimates as to how many remain, ranging from 75 to 80, to upwards of 500! Some of the Proof specimens have been circulated, usually by accident because the Mint didn’t always package them so nicely as they do today, but no business strike example of the 1895 Morgan Silver Dollar has ever been found.

Is it out there? Possibly. If so, if it ever comes to light, it will be one of the most spectacular finds ever in American numismatics!

Come discuss Morgan Dollars with us in the Coin-Collectors Forum.

Special thanks to WackyWolf, a Forum member who offered corrections for this article.

J&T Coins LLC is now selling Generic bright white PCGS MS 62 Morgan Dollars. Offering these for sale individually and in lots of up to 100. Priced very competitively from $34.00 each.

For more information or to order click here or call J&T Coins LLC at 866-267-6024.

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.

CC Morgan Dollars

By thenevadamint

Morgan Coins & CC Morgans Investments

Morgan coins, morgan silver dollars, and cc morgans, despite all odds, have become a very popular and very solid investment you may want to consider – appreciating an average of 7 to 15% annual appreciation rate or more!

Morgan Coins – a Quick History

The first cc morgan coin was minted in Carson City in 1878 following the passage of the Bland-Alison Act requiring the US Treasury buy million of ounces of silver per month due to the mass amounts of silver coming out of the great Comstock Lode. Of course the Treasure had to so something with all this silver so it went on to strike over a half billion morgan coins, cc morgans, liberty heads and morgan silver dollars between 1878 and 1904 – with a last run in 1921.

Making $$$ with Morgan Coins & CC Morgans

When the cc morgan silver dollar first came out it was nick-named the “Buzzard Dollar” because the eagle looked grainy and it wasn’t very popular. So over the years millions upon millions of cc morgans were melted down – leaving limited quanities – and making for the perfect coin investment opportunity.

One coin analyst predicts the cc morgan silver dollars poised to increase the most in value in the next few years are the 1895 cc morgan, 1892-cc morgan, 1894 morgan coin, 1878-CC, and the 1883-CC. And if history is any indication, you can expect these rare cc morgan coins (especially the very popular carson city coins) to appreciate an average of 7 to 15% per year or more!

These five morgan coins have demonstrated over the years the strongest gains over a long period of time. And it is for this reason that you can expect these same coins to show a similar increase in value in the future IF you invest in MS-65 uncirculated quality or better.

Invest Only in High Grade CC Morgan Coins

Invest only what you can afford, but make it a point to only invest in the highest grade cc coins specimens. If you can afford to buy proof morgans, you should, because those have performed exceptionally well over the last fifteen years. The next best investments are the very high uncirculated MS-65 or better. Of course these high grade morgan dollars are pricey compared to MS-60 to MS-63, but their rarity virtually guarantees to make them a very good, high ROI investment.

Buy CC Morgans from a Reputable Source

Before you rush off to invest your hard-earned money in a MS-65 cc morgan, keep in mind not all dealers use the same grading standards and it is very much a “buy beware” situation. Only purchase cc coins that have been graded by a top-tier grading and that come in a top-tier grading service holder. Avoid all third-tier services like the plague.

• Top Tier – PCGS and NGC
• Second Tier – ANACS and ICG
• Third Tier – All others, including ACG, INB, NTC, PCI, SEGS, SGS, etc.

Bottom line: Morgan coins and cc coins which are in PCGS and NGC slabs or holder are worth much more than coins in slabs from any of the other minor grading services, because PCGS and NGC have consistent, exacting, and largely non-subjective standards for grading.

Buy CC Morgan Coins on eBay

So what are you waiting for? Venture on over to eBay and find yourself a cc morgan silver dollar treasure today because we’re talking money in the bank!

J&T Coins LLC is now selling the 2010 1 oz Silver American Eagles.

Prices are as low as spot silver plus $2.10, per coin and include shipping and insurance in the USA.

To order call 866-267-6024.

Plenty S-Mint Morgans Remain Affordable

By Tom LaMarre, Coins Magazine

December 22, 2009

The Bland-Allison Act of 1878 gave a big boost to the San Francisco Mint. The law revived the standard silver dollar and required huge annual mintages. The Sherman Silver Purchase Act of 1890 and the Pittman Act of 1921 picked up where the Bland-Allison Act left off.

As a result, San Francisco’s silver dollar production topped the Philadelphia Mint’s in some years. Many dates are still expensive today.

The San Francisco Mint turned out#mce_temp_url#, the first year of the Morgan design. An About Uncirculated-50 1878-S is valued at less than $40.

By 1880, 18 million silver dollars were stored in the San Francisco Mint. One proposal called for them to be shipped to the East, at an estimated cost of $20,000 for every 2 million coins.

But the Philadelphia Mint had its own stockpile of dollars, and the Treasury vaults were at the bursting point.

The 1880-S dollar had a mintage of nearly 9 million. A Mint State-60 example is valued at $36, according to Coin Prices.

Another common date is the 1881-S, which is usually found well struck. Coin Prices lists it at less than $20 in About Uncirculated-50.

Heavy demand for silver dollars was reported in December 1891. Most of the Christmas coins were probably spent, but enough of them have survived that an MS-60 1891-S dollar can be purchased for less than $60.

Counterfeit silver dollars were found circulating in San Francisco in 1897. In most circulated grades, a genuine 1897-S dollar is valued at less than $20.

In 1898, Treasury officials made an arrangement with J. & W. Seligman & Co., which controlled the Anglo-California Bank of San Francisco. The bank received consignments of silver from Mexico, Central and South America and British Columbia at the rate of 10 million ounces a year.

The bank agreed to turn the silver over to the San Francisco Mint in exchange for a certificate of deposit. The bullion was then used to strike silver dollars.

Some of those 1898-S dollars may have been among the coins stolen by the San Francisco city treasurer in 1898, causing a scandal.

By the end of the year, the San Francisco Mint had struck more than 4 million silver dollars. High grade survivors are scarce, but you should be able to find a Fine-12 1898-S for around $25.

The San Francisco Mint’s greatest Morgan dollar year came in 1921, when it turned out more than 21 million. They were the first San Francisco dollars since 1904.

“The first of the resumed coinage of silver dollars, dated 1921, were released from the San Francisco Mint on May 9, on instructions from Washington to supply requests for small quantities,” Farran Zerbe wrote from San Francisco in a letter dated May 10, 1921. “Distribution was limited to not more than 100 in one lot.”

“Silver dollars, seldom seen in most parts of the country, continue in common circulation in San Francisco,” Zerbe added. “It is presumed a large release of the new dollars would drive the old ones from circulation.

“The new dollars are particularly to take the place of those melted to assist our allies in the war and therefore restore silver certificates to circulation.”

More than 21 million 1921-S dollars were struck.

An AU-50 example sells for around $20.

 

By Harry Miller, Numismatic News

December 08, 2009

In the past week we have had the U.S. Mint stop delivery of silver Eagles first and then gold Eagles. This has caused a rise in the premium of coins available for immediate delivery; however, word is deliveries will resume in about two weeks. Many believe this is an attempt to slow the market down by curbing the off take of physical delivery. Another indication of that are the discounts on methods of holding paper forms of bullion such as ETFs.

We again have higher premiums on proof gold Eagles, which are steadily going into many retirement programs and increases in many premiums of earlier U.S. gold type coins.

Morgan and Peace dollars are stable with a few minor negative adjustments in some high end items, but the market tone seems to have changed to a much more positive one. There is heavy demand for circulated common date issues and brisk trading in low to mid-range mint state coins. This is evidenced by the lack of any discounting on bulk deals in the wholesale markets and at shows.

Proof sets and Mint sets are stable with only positive movement over the last two weeks. Pre-1965 sets and many silver quarter sets now have a floor because melt value is near dealer bids.

Hayward man for allegedly passing counterfeit coins

By By Peter Hegarty Staff Writer

Publication: Contra Costa Times (California)

Date: Thursday, October 15 2009

You are viewing page 1

The scam seems discovery-proof and puts coin dealers on edge.

Here’s how it works: Take a valuable coin, cut it along the edge so that it’s split front and back, then attach one of the pieces to another cut from a different coin.

The idea is to mix mint and year marks to create coins

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that appear more valuable.

It worked at least once for suspect Roberto Blas Rodriguez, 32, police said, netting him $75,000 from an Alameda coin dealer during a single transaction.

Patrol officers arrested Rodriguez Oct. 7 after he returned to The Silver Baron on Park Street to allegedly sell more of the vintage Morgan silver dollars.

The Hayward resident was booked on suspicion of burglary and violating trademark law. He is currently free on $45,000 bail.

“We are not sure where the coins were doctored,” Alameda police detective Lorenzo Graham said. “It could have been in China. But it also could have been somewhere in the United States.”

The investigation that culminated with the arrest of Rodriguez began last month, when the U.S. Secret Service contacted Alameda police to get background on a residential burglary that took place last year.

Coins stolen during that burglary ended up at a Fremont jewelry store, which offered them for sale online.

The actual owner of the coins, however, discovered the sale while surfing the Internet and notified authorities.

While jewelry store employees did not face charges they thought they had acquired the coins legitimately Fremont investigators arrested two men on suspicion of fencing the items at the business.

One of them was a family member of Rodriguez, Graham said.

Along with seeking background on the burglary, the secret service tipped off Alameda police that someone may be passing altered coins at local businesses, Graham said.

“The coins that I purchased appeared to be very high grade,” said Larry Bovo, owner of the Silver Baron.

The Morgan dollars were encased individually in sealed plastic “capsules” with a notice from Professional Coin Grading Service, an organization that authenticates and grades rare and valuable coins.

Investigators suspect the grading numbers sealed inside the containers were also fake.

Morgan silver dollars were minted from 1878 to 1904, as well as in 1921, and each can now sometimes sell for thousands of dollars.

“They were in capsules that appeared to be genuine and from the P.C.G.S, the top grading service in the country,” Bovo said about the coins he purchased Oct. 1.

Bovo contacted police when he became suspicious of the items, Graham said.

Police arrested Rodriguez after he returned to the store to allegedly sell more coins.

Steve Suzio, an owner of the Oakland Coin & Jewelry Exchange on Broadway, said he knew about the altered coin scam.

“There’s been reports about it,” Suzio said. “It seems that they’re also manufacturing the plastic cases for the coins and then taking them on the open market. It’s something dealers need to be aware of when someone offers to sell them what appear to be valuable coins.”

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In 1873, the then-current American dollar coin was legislated out of existence. No one seemed to mourn its passing.

When a new silver dollar arrived on the scene in 1878, no one seemed to welcome its return. There simply was not much clamoring among the American public for a heavy, nearly palm-sized dollar coin. But the Morgan Dollar was never a people’s coin.

The impetus for the Morgan Dollar came from America’s richest silver strike, the great Comstock lode in northern Nevada. The vein of silver was so thick and so rich that a million dollars of silver a week was coming from the Comstock mines. There had to be a market for this river of silver or the bustling Nevada economy would collapse. The Federal government was the obvious customer for all this silver and lobbyists successfully shepherded the new silver dollar into existence with the passage of the Bland-Allsion Act in 1878. Passed over the veto of President Rutherford B. Hayes, Bland-Allison required the United States Treasury to purchase between $2 and $4 million worth of silver bullion per month and coin it into silver dollars.

The new silver dollar was designed by George T. Morgan. The 31-year old Morgan was brought from his native England to serve as “Special Engraver” for the director of the Philadelphia Mint, Henry R. Linderman, in 1876. Ordinarily, coin design was left to the Chief Engraver, then William Barber. A sham competition between the two men was staged and, as the protege of the Director of the Mint, Morgan’s design was chosen. On the front of the coin Morgan created a head of Lady Liberty, based on his Philadelphia schoolteacher-model Anna Willess Williams, and graced the back with a rather underfed eagle.

Ironically, Linderman left the Mint later that year to look after his failing health, Barber’s son Charles succeeded him to Chief Engraver and Morgan was demoted to Assistant Engraver. He would remain in that position, his career stalled, for over 40 years. When he finally ascended to Chief Engraver of the United States Mint, George T. Morgan was over 70 years old. The Morgan Dollar was the only American coin he ever designed.

The first Morgan Dollars were struck on March 11, 1878, less than two weeks after the coin was authorized by Congress, at 3:17 in the afternoon on Press #4 in Philadelphia. It is currently is on display at the Hayes Library and Museaum in Fremont, Ohio. It had a metallic content of 90% silver and 10% copper. While most of the Morgan Dollars were minted in Philadelphia, a small mint was established in Carson City, Nevada to also press the coins near the source of the Comstock lode. The mine, however, played out shortly thereafter and the Carson City mint closed forever in 1893. The Morgan Dollars minted in Carson City are rare and highly collectible today.

More than 500 million Morgan Dollars were minted until production stopped in 1904, after the statutary 25-year run for a coin design. The silver dollars were never really popular – most were circulated in the sparsely populated West – and huge stockpiles were on hand. In 1918, more than 270 million Morgan Dollars were melted down to provide war-time silver for Great Britain. In 1921 another 86 million Morgan Dollars were coined but production was halted in 1922 for the commemorative Peace Dollar to mark the end of World War I. The design was so popular it became the regular silver dollar and no more Morgan Dollars were ver minted.

In death, as in life, the Morgan Dollar was ignored by the public. The silver dollar was not a collector favorite, either, as the smaller denominations were easier to afford. Millions more were melted down for their silver content, especially when silver prices rose. Finally, in 1972, the General Services Administration auctioned off a lot of 2.9 million scarce Carson City Morgan Dollars it had squirrelled in its vaults. Suddenly the Morgan Dollar was hot among collectors.

And then LaVere Redfield died. Redfield was a stock and real estate investor who made millions in Reno, Nevada. Redfield distrusted paper money and didn’t have much confidence in banks, either. When possible, he tried to convert his cash into “hard money.” He set his eye on the Morgan Dollar with its 90% silver content. Silver dollars were readily available at banks throughout the 1930s, 1940s and 1950s and Redfield bought them whenever he could. As he bought them, he put the silver dollars in bags and stored them in his basement. He was not a coin collector and didn’t take much notice of the bags as he piled them under his house. He would eventually wind up with 400 bags filled with about 1,000 silver dollars each.

Redfield died in 1974 and while doing an appraisal of his estate, the Internal Revenue Service uncovered the stash of silver dollar-stuffed bags. The story goes that Redfield placed a note of the treasure asking the discover not to alert the IRS of the hoard. The total of 411,000 silver dollars – weighing 11 tons – were put for auction and fetched $7.3 million, the largest documented numismatic transaction in history.

Now the Morgan Dollar had genuine star status in the coin world. The dealers who purchased the Redfield hoard gradually dispersed the silver dollars into the collecting community, further stimulating interest in the coin. Today, the Morgan Dollar, ignored in circulation, is one of the most famous and desired American coins in existence.

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