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.

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

Redfield Hoard Increased Collector Supply

By Paul M. Green, Numismatic News September 08, 2009

You do not simply dump 407,000 silver dollars into the market without making waves and the Redfield coins made waves at the time.

Of course collectors of the 1970s were well versed in the details of the 1962-1964 heavy release of millions of silver dollars from the Treasury. While the process of settling the Redfield estate and selling the coins was going on, the General Services Administration was also busily selling the leftover Carson City dollars that had been left in Treasury vaults after the Treasury had stopped redeeming Silver Certificates with silver dollars, meaning when it came to silver dollars this was probably a unique time in U.S. history both in terms of activity and in terms of information.

In some respects, the two decades starting about 1962 as the Treasury releases picked up momentum were probably too much for the market to absorb at the time. Eventually, all the coins involved were sold and today there are some willing to pay extra premiums for Carson City dollars from the GSA sales or dollars from the Redfield Hoard in their original holders as the importance of such sales has actually come to be appreciated more with the passage of time.

We have also come to appreciate more what a difference the dollars in the various hoards have made in terms of Morgan and Peace dollar availability today. There is simply no doubt that if there had not been bags sitting in Treasury vaults and the basement of the LaVere Redfield home you might well be faced with much higher prices and much less chance to acquire the dollars you want for your collection.

The GSA sales of Carson City dollars are well documented but things are not as clear with the Redfield Hoard. We have the total numbers and the reported sale price, but as Q. David Bowers suggests in his analysis in his book American Coin Treasures and Hoards, the actual breakdown of the 407,000 dollars is not known. He points out, “Contents of the Redfield silver dollar hoard were never made public.” Over time, however, reports especially from John Highfill’s Comprehensive U.S. Silver Dollar Encyclopedia, have emerged enabling us to at least get a better idea of the impact of the hoard on the market at the time and today.

Like so many hoards from the past, the actual facts regarding the LaVere Redfield hoard are not always clear. In fact, because of his personal lifestyle LaVere Redfield made it fairly easy to move from fact to something closer to Hollywood casting when it came to describing the man and his hoard.

The basic facts about LaVere Redfield are that he was born in Utah in 1897. While clerking in a department store in Idaho he met and married his wife Nell and the couple moved to Los Angeles where he made it big as a securities broker. By the late 1930s he was a millionaire with much of his money being invested in real estate, including a 51,000 acre spread near Reno, Nev., the city where he would later move and begin to amass his dollar hoard.

Redfield liked “hard assets” and in his Reno home there were bags of assorted types of U.S. coins although in reality he was no collector. He had some basic numismatic knowledge but realistically his goal was quantity especially in terms of silver dollars with quality being a very distant second.

Living in Reno gave him an advantage when it came to dollar bags as Reno at the time was the heart of the gambling industry in Nevada. Redfield would go to a local casino at times, but in this period bags and bags of silver dollars would be sent to Reno for use in the various casinos. Had he lived someplace else Redfield might have had a tougher time acquiring bag after bag of dollars, but in Reno a $1,000 bag of silver dollars was a very basic item found at the local banks or casinos.

It is possible and certainly it is tempting to paint Redfield as something of an odd loner along the lines of Howard Hughes. In fact, while he may have elements of that sitting in a house with a basement full of silver dollars and various canned goods apparently anticipating the worst, the fact is that he was married and he apparently did get out and around in Reno going to the casinos where he allegedly liked playing Blackjack.

At the local library he and Nell apparently were known for a special interest in travel films. Additionally there are reports that he was generous to those in need so despite the fact that he at least twice used bags full of currency at land auctions and had continuing troubles with the IRS, LaVere Redfield does not perfectly fit the mold of odd character waiting for the end of the world.

Just as it is hard to make general statements about Redfield and his life, it is also hard to make sweeping observations regarding what we believe were the dollars he assembled. In fact, his hoard was probably even larger than the 407,000 coins purchased and offered as Redfield coins as there were a couple reported burglaries of his home including one in 1963 that reportedly resulted in the loss of 100,000 dollars. Of course, that is a case where with something less than full accounting. We cannot be sure of the actual loss, although allegedly 1887-S and 1891 dates were among the dates involved and they began appearing at the gaming tables shortly after the theft.

It is worth remembering that in the 407,000 coins reported we have not a collection but a hoard. Redfield bought what was available, which explains the large number of mixed circulated coins as well as original Mint State $1,000 bags.

He could not have been expected to know which bags might be better and which would be ordinary as at the time even the best numismatic scholars were in the dark as to what dates were actually sitting in vaults in what numbers and what dates had been melted in large numbers under the terms of the Pittman Act of 1918. Even if he had tried to hand select better dates, he would not have managed much of a success rate. Of course, Redfield did not try. He just wanted dollars and he got them.

In the Highfill book the dates seen as the most heavily represented in the hoard included the 1881-S, 1880-S, 1879-S, 1878-S, 1882-S, 1896, 1897, 1897-S and 1890-S.

The group is not surprising. The fact that most are San Francisco dates is natural as Reno would basically get it’s $1,000 bags from San Francisco, which quite naturally during his lifetime had primarily San Francisco Morgans.

Carson City dollars around 1900 were shipped either to San Francisco or to the Treasury in Washington, D.C., leaving San Francisco coins the dominant cartwheels in the West.

Eventually New Orleans dollars would also be shipped to Washington and interestingly enough there were apparently no New Orleans Morgan dollars in the Redfield Hoard.

In the case of the few Philadelphia dates seen most often in the hoard we have three dates that are later and which are generally seen as available in Mint State.

The next group in terms of numbers included the 1883-S, 1886-S, 1887-S, 1888-S, 1889-S, 1890, 1890-CC, 1891, 1891-S, 1892-CC, 1893-CC, 1896-S, 1898-S, 1899-S, 1900-S, 1902-S, 1903 and 1921-S.

There are some interesting dates in this group, which included dates found in fewer than 10 bags and others where only a few were present. The fact that there are 1890 dates from Carson City with the exception of the 1891-CC, which was also found but in very small numbers, is interesting as there were very few Carson City dates from the 1890s in the GSA sales.

It would appear that these last dates from Carson City unlike the dates from the first half of the 1880s were shipped from Carson City to San Francisco around 1900, but not to Washington in the sorts of numbers we saw in the case of a date like the 1884-CC.

In fact, the only date seen in the Redfield Hoard that was also seen in significant numbers in the GSA sale was the 1885-CC and it was found in very small numbers in the Redfield Hoard, so it appears that when the dollars of Carson City were shipped out of Carson City, the dates of the 1890s were shipped to San Francisco and later to Reno where they ended up in the Redfield basement.

Some of the other dates are interesting as well. The 1883-S is a date that can be found as it had a mintage of more than six million, but the 1883-S is oftentimes found with bag marks. Some of those bag marks could have well been a result of the indifferent handling the bags received in transit or even in the short trip from the Reno bank to the Redfield home.

The matter of condition is an important one as the general view of the Redfield dollars is that while Mint State they are frequently in lower Mint State grades. It is tempting to blame him but some of the dates were simply not made that well. There was also reportedly a fiasco of sorts after his death as a counting machine apparently damaged some of the coins, including some better dates.

One date where the Redfield Hoard reportedly had nice examples was the 657,000 mintage 1888-S as the report is that there were at least 5,000 examples of the 1888-S and many of them were prooflike. That is significant. With a low mintage and being relatively tough in Mint State in the case of the 1888-S, it appears that the Redfield Hoard made a significant difference in the availability of top quality examples today.

Another date where numbers from the Redfield Hoard have probably made a difference is the 1903-S, which is much tougher in Mint State than many realize. With any Mint State 1903-S costing thousands of dollars, it is likely that those already high prices would be much higher if there had not been at least some in the Redfield Hoard.

There were a few other dates that were found in the Redfield Hoard, but not in bag quantities. Those dates include the 1885-CC, 1891-CC, 1892, 1893, 1895-S and the 1879-CC in the smallest numbers of all.

The dates found only in small numbers include some top dates. The 1892 had a mintage of 1,036,000, so it was not heavily produced and the numbers we have today tend to be poorly struck. It’s an ironic situation as there had been bags paid out in the 1950s and 1960s but not many were saved and the Redfield Hoard has at least helped to add to the numbers even if in a small way.

The 1893 with a mintage of just 378,000 is simply scarce and it is somewhat surprising that the Redfield Hoard would have any examples of a low mintage Philadelphia date, but when you start with such a low mintage any additional coins help a supply that is unlikely to ever be enough.

Sadly, in the case of the Redfield Hoard dollars we do not have much reliable information when it comes to precisely the grade the coins might be if graded by a grading service today. Standards have changed.

That really matters in the case of the 1895-S. Actually the 1895-S with a mintage of 400,000 is just plain tough, anyway, but this is one of the dates that seemed to have had more than its share of trouble in transit as the majority of examples of the 1895-S come with bag marks and many times lots of them.

When you couple an already small supply because of a low mintage and then have many of them being “baggy” in appearance, even a small number of nicer ones from a place like the Redfield Hoard could have made a significant difference, although we really do not know if the Redfield examples were exceptions to the general rule or just added to the supply of baggy examples of this tough date.

Trying to explain the presence of a few examples of the 1879-CC is perhaps the most difficult task of all. Even having just a few is enough to make you expect that maybe Redfield had paid premium prices for a few coins, although that was not likely.

What we know is that the 1879-CC tends to pop up in places where they are not expected but never in any numbers. It only had a mintage of 756,000 and there is some expectation that a number were melted. The GSA sales had just 4,123 examples of the 1879-CC and the Redfield Hoard apparently had a few.

In both cases the numbers are small and they send a mixed message in that the 1879-CC when the Carson City coins were shipped to other vaults apparently went in two directions with some finding their way to San Francisco while a few ended up in Washington.

As one of the toughest of the Carson City dates, we have to be thankful for any examples of the 1879-CC and while not numerous LaVere Redfield apparently at least added a few to the supply for the collectors of today.

The Redfield Hoard was not limited to Morgan dollars. The Peace dollar holdings while important were basically limited to dates from San Francisco probably suggesting that unlike Morgans where bags from various mints had been scattered around the country over the course of decades, the Peace dollars produced at one facility tended to stay in that facility and geographical area.

As a result, the Redfield Hoard Peace dollars are basically all from San Francisco starting with the largest number, which was the 1922-S. Also found in large numbers were the 1923-S, 1926-S and 1935-S.

There were lesser quantities of the 1928-S, 1927-S, 1925-S and 1924-S. It is worth noting that the 1925-S and 1928-S tend to be the most expensive Peace dollars today in MS-65, although there are very real doubts as to whether the Redfield Hoard contributed any coins to the supply of those or other dates in top grades as many of the San Francisco Peace dollars in the hoard were reported poorly struck and just to make matters worse Highfill reports that in the case of the 1928-S the faulty counting machine left many examples with deep scratches.

Naturally without the chances to examine each of the 407,000 individually it is hard to know precisely what impact the Redfield Hoard dollars have had on the supply in a certain grade. Even so, the dates involved and the numbers make it very clear that the Redfield Hoard had a significant impact and is responsible for a large number of the silver dollars being traded today. Each one of those dollars has a special story to tell as part of a fascinating and important hoard.

GSA Carson City Silver Dollars: A History as Tumultuous as That of the Morgan Silver Dollar Itself

March, 1964. Day after day, long lines of anxious coin buyers form outside the Federal Reserve Building in Washington, D.C. Each is hoping that his $1,000 purchase of an unopened bag of 1,000 U.S. Silver Dollars will result in what amounts to a modern day treasure trove worth many thousands of dollars.

 

The outpouring of silver dollars from the U.S. Treasury continues at a staggering pace until it is finally brought to a halt on March 26, 1964. On that day, the Secretary of the Treasury, C. Douglas Dillon, suspends the exchange of silver dollars for silver certificates. Americans can no longer use their greenbacks for the one-to-one purchase of silver dollars from the Treasury!

 

What had brought us to this important event in the history of the U.S. Silver Dollar?

 

From its beginning, the U.S. Silver Dollar was the focus of fierce battles between politicians representing western silver mining interests and those promoting gold as our monetary standard. Throughout its checkered history massive production of the coins was interspersed with the melting of millions of pieces to finance war efforts or for international silver sales to our allies. For its part, the general public had little interest in using the coin in daily commerce due to its size and weight. In fact, after their mintage, most silver dollars were simply bagged and shipped to Washington for storage. At times, the stock of silver dollars sitting in Treasury vaults reached into the hundreds of millions.

 

Despite a decided lack of interest in the coins on the part of the general public, there were those who enjoyed collecting silver dollars. The coins were also popular as Christmas gifts and were therefore often released in bag quantities to banks around the country in the months leading up to the holiday. It was the result of one of these pre-Christmas releases that the history of the Morgan Dollar was changed forever.

 

During the late 1950’s and early 1960’s, most mint state Morgan Silver Dollars traded among collectors for a small premium over face value. However, there were a few rare dates thought to have been mostly lost in the silver melts of previous decades and these traded at prices of several hundred dollars or more. One date, the 1903-O, was considered to be a major rarity and if one was lucky enough to ever have an opportunity to buy one, he could expect to pay a whooping $1500 for a mint state example! Most major coin dealers of the day had never even seen a mint state example of this date much less had the opportunity to own or handle one.

 

In November of 1962, the U.S. rare coin market was rocked by almost unbelievable news. Several dates previously considered exceedingly rare were discovered in bag quantities during the annual pre-Christmas release by the Treasury. Among those dates was the much-desired 1903-O! Obviously, after the release of this key date in bag quantities, its lofty price adjusted quickly to the new market realities. However, the die was cast.

 

Overall interest in Morgan Dollars skyrocketed, and with the publication of the news that important rare date coins were being released from the Treasury vaults, the rush was on. Now, after putting a stop to the unprecedented run on the Treasury’s holdings, auditors would soon discover that the remaining stock consisted of only about 3,000 bags of uncirculated coins, mostly from the Carson City Mint.

 

While the rare coin market digested the many thousands of bags of newly-released silver dollars, the politicians set about trying to decide how to liquidate the remaining Treasury holdings of nearly 3 million silver dollars. Almost every idea imaginable was discussed including the melting of the coins for sale as bullion! Fortunately, this outrageous idea was scrapped. After many years of debate, it was decided to sell the coins to the general public through a series of mail-bid sales to be conducted by the General Services Administration, or GSA. It was believed that this would be a fair and equitable manner in which to distribute the coins to U.S. citizens.

 

President Richard M. Nixon signed a bill on December 31, 1970 authorizing the sale of the Treasury’s holdings of silver dollars and on December 6, 1971, official custody of the coins was finally transferred to the U.S. Bullion Depository at West Point, NY where the GSA accepted trusteeship. After nearly a year of counting, sorting, and packaging of the coins by the GSA staff, the details of the first mail-bid sale were finally released on October 31, 1972.

 

A series of five sales of the Carson City Silver Dollars were held with the final sale closing on June 30, 1974. Despite a massive advertising campaign on the part of the GSA, the silver dollar sales were definitely met with lukewarm interest and poor results. Anticipating much greater demand than actually realized, the GSA had stipulated that each customer could purchase only one example of each date represented in the sale. While dates such as the 1879-CC, 1890-CC, and 1891-CC quickly sold out, most others went begging.

 

When the dust finally settled on that last sale of 1974, nearly one million of the Carson City silver dollars remained unsold!

 

As one might expect with a governmental promotion the size of the GSA sale, critics were numerous and quite outspoken. Many coin dealers were angered with the notion that the U.S. government was “now in the coin business”. Some complained that the coins were being promoted to buyers with limited numismatic experience and that with the minimum bid prices offered by the GSA, most buyers would be ‘buried’ in the coins. One prominent New York City coin dealer even petitioned the Securities & Exchange Commission to investigate claims in GSA sales literature that the coins represented ‘a sound investment’. At that time, coin dealers were discouraged from using such claims in their promotional literature.

 

The issue of the remaining coins lay dormant for a number of years until it was again brought before the U.S. Congress in early 1977. Finally, in March of 1979, legislation was signed into law by President Jimmy Carter authorizing the GSA to sell the remaining Carson City silver dollars still in its possession.

 

In July of 1979, the GSA announced preliminary plans to offer the nearly one million remaining Carson City silver dollars in another round of mail-bid sales set to begin in early 1980. Along with this announcement, the GSA commented that over 25,000 requests for information had already been received from interested parties. A September press release noted that interest was running extremely high with over 130,000 post card requests from collectors to be added to the GSA mailing list.

 

All indications were that interest in the upcoming mail-bid sale would be unlike that of any other to date. Remember the sales of the 1970’s? Only 1 coin per date per customer had been allowed. How would the GSA allocate coins in this sale? Amazingly, despite the indications of strong bidder interest, the GSA set the minimum number of coins per bidder at 500!

 

During November of 1979, the GSA released formal sales literature and even included pre-sale minimum bid prices for the upcoming sale. For those of us who remember late 1979 and its relevance to the rare coin market, this period was represented by extreme price volatility in the silver market. Was it wise for the GSA to be publishing pre-sale minimum bid pricing so far in advance of the actual sale? Well, one can guess the outcome.

 

On January 2, slightly more than a month before the announced sale date of February 8, 1980, GSA Commissioner Ray Markon was forced to retract those pre-announced bid prices “due to volatility in the silver market”. Buyers were instead instructed to call a toll-free number that would be activated once the bid process opened in order to get an up-to-the-minute minimum bid price for the coins being offered. However, the damage had been done. Many bidders, using order forms with previously-published incorrect minimum bid prices, would later underbid on dates of their choice.

 

As if changing the published minimum bid price weren’t maddening enough, the GSA had yet another surprise in its bag of tricks. On February 21, thirteen days after the commencement of the bidding process, the GSA announced that it was going to change the minimum number of coins allowed per bidder. Due to unexpected demand, and in order to allow for a more equitable distribution of the remaining silver dollars, only 35 coins per customer, not 500 per customer as originally advertised, would be allotted to each bidder.

 

Many bidders ended up with no coins at all and I’ve often wondered if those who mailed their bids in early with a requested minimum greater than 35 coins were not excluded altogether. Reaction was swift, and predictable. Complaints poured into local and national newspapers, industry-related magazines and periodicals, and most importantly, into the U.S. Congress. Even before the final sale in July of 1980 disposed of the remaining Carson City silver dollars in the GSA’s possession, hearings before the U.S. Congress were already being planned in Washington. While the sales of the 1970’s were marked by a decided lack of interest on the part of the buying public, the GSA sales of 1980 can only be described as chaotic.

 

 

THE GREAT GSA CRACK-OUT

 

As quickly as the first GSA CC dollars were mailed to winning bidders, they began to appear at coins shows around the country. And if history does indeed repeat itself, then the GSA CC dollars were due for much more tumult.

 

I’ve asked numerous dealers about their experiences with GSA CC dollars in the years immediately following their release for public bidding. Many commented that they believed the coins, housed in their original GSA holders and boxes, were simply too bulky to transport to shows or to store easily at their shops. They preferred to carry their inventory in double-row boxes, each coin housed in a flexible plastic “flip” or in plastic tubes each holding twenty coins. And besides, so many of the coins were entering the marketplace that they carried no noticeable premium in their original GSA holders.

 

It was often said that the sound of the coins being “whacked out” of their GSA holders could be heard across the bourse floor at major shows as dealers prepared to pack their inventory. One dealer told me of seeing trash bins filled with discarded GSA cases at the end of major shows.

 

However, in my opinion, no single event since their release has had a greater impact on the population of GSA coins in their original holders than the introduction of third party grading and encapsulation.

 

When PCGS and NGC introduced their grading services during the mid 1980’s, the rare coin marketplace changed dramatically. Dealers and collectors alike quickly accepted the innovative ideas of the two companies. But, in order to receive their grade and other company-offered guarantees, both companies required that a coin be encapsulated in their tamper-resistant plastic holders. As if that weren’t bad enough news for GSA CC dollars, other, more subtle factors combined to put additional pressure on the remaining population of GSA coins.

 

Soon after PCGS introduced its encapsulation service, some dealers believed that CC dollars were being ‘rewarded’ with a grade that was as much as a full point higher than coins from other mints in comparable physical condition. Whether this was true or not, for many dealers it was worth the risk of cracking out every GSA CC dollar that had a ‘shot’ at a higher grade. And crack them out they did!

 

For its part, NGC gained a reputation as favoring beautifully toned coins. Again, the result was the same. Many beautifully toned GSA CC dollars are now lost forever to the GSA collector.

 

But all GSA news is not bad news. GSA CC dollars have recently gained remarkably in popularity and many dealers have begun to realize that the coins are often worth more in the original holder. I believe that the pace of GSA crack-outs has definitely subsided.

 

And there’s more good news. At this year’s FUN Show, NGC unveiled its new grading service for GSA CC dollars. The new service seems to be gaining in popularity, but only time will tell if it will ultimately become a marketing success. If nothing else, perhaps it will extend the life of a few more GSA CC dollars…
at least for a while.

 

 

Copyright 1993, Bryan Sonnier
bsonnier@mindspring.com

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