Rare Coin Projections
Good Years for Morgan Silver Dollars
Among some of the most lucrative rare coin investments that are easily accessible to consumers are Morgan silver dollars. Rare coin projections routinely feature this coin prominently as one that is increasingly rare and of value to collectors. Much of this value is associated with small production levels in some mintings, a large number of recognized variants, historical interest and the heavy levels of destruction that these coins have been subject to when the price of silver rises significantly.
The United States wasn't a major producer of silver in the early 19th century. While gold had been discovered in the Gold Rush that really heated up in 1850, it was nearly 20 years until the discovery of the massive deposits of silver in Nevada called the Comstock Lode. Nearly $400 million in inflation-adjusted dollars worth of gold and silver were removed in just twenty years of fevered mining operations.
As a result of that discovery that depressed silver prices to the face value of previous silver dollars such as the Seated Liberty dollar and the quite rare Gorbrechet dollar, the Morgan Dollar was first minted in 1878 in accordance with the Bland-Allison Act of the same year. The act required silver to be purchased from American mines at market value, instead of being tied to a fractional price of gold (or rare gold coins).
Designed by George T. Morgan, who would later go on to create several other precious metal coins and become the Chief Engraver (until his death in 1925) of the US Mint, the Morgan dollar was created to disseminate and help subsidize the silver mining industry that was starting to loose steam as the Comstock Lode was depleted.
The coin features a very classical Lady Liberty (rare coins are replete with examples of her) in profile on the obverse. On the reverse, an eagle with wings outstretched and holding both arrows and olive branches can be seen against a field of stars and a laurel wreath. In the nearly quarter century that the Morgan dollar was minted, it was struck at no less than five US Mint locations, including:
Philadelphia (no mark)
Carson City (CC)
Denver (D)
New Orleans (O)
San Francisco (S)
Production shifted around considerably between years and mints, with no particular mint's coinage being particularly more valuable over the entire run of the coin. Rare coin projections are based upon the number of coins produced at each mint in a given year, but also the average and exceptional conditions that have been demonstrated to exist from coins that have been certified and brought up for auction. This gives a relative value for each coin based upon what coins still exist.
While he initial run of Morgan silver dollars ran until 1904, the Pittman act of 1919 was responsible for a single year revival of this coin in 1921. Among the variations of Morgan dollars that collectors looking to buy rare coins should be on the lookout for are the un-circulated coins that were found by the General Services Administration (GSA) and released on the market when silver prices spiked in the 1970s. Several other Morgan dollar hoards have been discovered.
Additionally, the “VAM variants” (named for the researchers who cataloged variations in Morgan and Peace silver dollars) include several famous dates. While there are several thousand recognized VAMs, missing tail feathers, mint marks and numbers stamped over in mint mistakes. Particularly shiny examples of the coins are also referred to as being proof, proof-like (PL), and deeply mirrored proof-like (DPL). All variations are highly collectible by those who purchase rare coins.
Significant dates include:
1889-CC
1893-S
1895 (proof)
1892-S
1879-CC
1884-S
1921 (proof)
While all Morgan silver dollars are collectible and have been since the 1960s, rare coin projections show some series' coins selling for tens of thousand of dollars each in un-circulated (MS-60 and higher) condition. Other dates pay out a few hundred dollars for an un-circulated Morgan dollar from more numerous dates.
Arthur McGuire
March 1, 2009
