For the past 30 years, I have collected, invested in, bought, sold, and assisted countless clients in assembling completed sets, mint sets, and date runs of the infamous and legendary Morgan Silver Dollar.
In the world of United States Rare Coins, the Morgan Silver Dollar is unquestionably the most popular and most collected United States coin worldwide, at least as far as silver coins go, thus their title as the "King of America's Coins."
Few silver coins, if any, command the popularity, admiration, demand, and investment potential as the Morgan Silver Dollar. Minted from 1878 to 1904, and once again in 1921, this iconic American silver coin holds immense historical significance, boasting a rich legacy and allure that continues to captivate collectors and investors to this day.
In this blog post, we will explore the historical significance, value, and investment potential of the Morgan Silver Dollar, and why it remains a timeless treasure and what makes them so attractive to collectors and investors.
Historical Significance:
The Morgan Silver Dollars rise to prominence and eventual introduction into American coinage circulation actually began nine years before its debut. In 1859, the largest silver vein the world had ever seen was discovered in foothills of the Sierra Nevada mountains near Virginia City, Nevada. The infamous Comstock Lode.
The Morgan Silver Dollars introduction was a result of the controversial Bland-Allison Act of 1878, which mandated the US Treasury to purchase a fixed quantity of 2 to 4 million ounces per month of domestically mined silver ore and mint it into silver dollars.
The Morgan Dollar is named after its designer, George T. Morgan. It's design showcases Lady Liberty on the obverse, with an eagle and wreath on the reverse. It embodies the spirit of the American West and symbolizes the economic growth, industrialization, and exploration of the late 19th and early 20th centuries.
The Morgan Silver Dollar captures a pivotal period in American history, making it a cherished American symbol of a bygone era.
Value:
The Morgan Silver Dollar's value lies in its intrinsic worth as an iconic silver coin, especially as you climb the rare coin grading scale in higher Uncirculated Mint State condition.
Composed of 90% silver and 10% copper, each coin contains 0.77344 ounces of pure silver. As such, the market value of a Morgan Silver Dollar in higher Mint State condition is not tied to the fluctuating price of silver bullion. Their intrinsic value is tied to their historical significance, scarcity, and rarity.
These rare silver coins offer a hedge against inflation, high interest rates, domestic and global economic uncertainties, along with growth and preservation of wealth.
Furthermore, their rarity, condition, and historical significance contribute to their numismatic value, which far exceeds their silver content. Certain key dates, mintmarks, and variations are highly sought after and command premium prices in the rare coin market.
Investment Potential:
As an investment asset, the Morgan Silver Dollar has demonstrated remarkable potential. Over the past few decades, these coins have consistently appreciated in value, especially those in higher certified Uncirculated Mint State condition with unique attributes, such as beautiful eye-appeal toning.
With a robust collector and investor base and a finite fixed supply, demand for Morgan Silver Dollars remains strong. With 96 date and mintmarks in the standard series, investors can choose between acquiring individual key-date coins or building a carefully curated collection that spans various dates, mintmarks, and grades.
Moreover, working with a Numismatic expert such as Minuteman Rare Coin Numismatics is essential to guide and assist you in acquiring the "right" coins and helping you avoid mistakes.
Investing in authenticated, graded, and certified coins by reputable third-party grading services such as Certified Acceptance Corporation (CAC), Professional Coin Grading Service (PCGS), and Numismatic Guaranty Company (NGC) provides the collector and investor assurance, trust, and confidence. It also adds credibility, enhances liquidity, and protects against counterfeits.
The best Morgan Silver Dollar coins to invest in are high grade, key-dates with low mintages and low survival rates, especially in higher Uncirculated Mint State condition. There are exceptions to this rule due to any given coins scarcity and rarity in ALL grades.
Influencing Factors of The Morgan Silver Dollars Value:
Several factors influence the value of Morgan Silver Dollars. Rarity is a key driver, coins with low mintages, low survival rates, and specific mintmarks, such as coins like the 1895-O, 1893-S, and 1889-CC, are hard coins to find even in lower Mint State condition and command premium prices, due to their scarcity and rarity.
The condition, or grade of a coin, significantly affects its value. Coins in higher grades like Gem Mint State (MS) 65 and above are the most desirable among collectors and investors and offer the most potential for price appreciation and growth in value.
Historical significance, such as coins tied to notable events or eras, can elevate their worth. For instance, the Morgan Dollar has a strong connection to one of the most legendary eras in United States history, the "Wild West" of the late 1800s and millions of collectors and investors from around the world are fascinated with this era.
Finally, market trends, collector and investor sentiment, and economic factors can impact the overall value of any rare coin series.
The Pittman Act of 1918: A Catalyst for the Current Value and Demand for the Morgan Silver Dollar:
The Morgan Silver Dollars value and prominence in today's rare coin market was greatly influenced by an act of Congress passed in 1918—the Pittman Act. The Pittman Act of 1918 had an enormous impact on the value of the Morgan Silver dollar as it stands today in 2023.
The Pittman Act of 1918 was enacted in response to Great Britain's economic crisis and the rising silver prices during and after World War I. This legislation was named after Senator Key Pittman, a Nevada Democrat and advocate for silver coinage. The act aimed to stabilize the silver market by authorizing the melting of 350 million Morgan Silver dollars to be converted into bars of silver bullion.
The Pittman Act's Impact on the Morgan Silver Dollar:
Increased Scarcity:
By authorizing the mass melting of the Morgan Silver dollar, the Pittman Act reduced the overall available supply of the Morgan Dollar in circulation and coins held as reserves in U.S. Treasury and bank vaults, along with coins stored in vaults at the Mints they were originally produced.
This, in turn, severely impacted their scarcity and rarity. As a result, the surviving Morgan Silver dollars, especially in higher Uncirculated Mint State condition have become highly sought-after by collectors and investors over the past few decades, continuing to drive up their value over time.
Loss of Historic Coinage:
The mass melting of the Morgan Dollar under the provisions of the Pittman Act led to the loss of a significant portion of historic American coinage. Over 600 million Morgan Dollars were minted for circulation before 1918. The Pittman Act authorized 350 million Morgans to be melted down into bullion. Ultimately, 270 million Morgan Dollars went into the melting pot. That represents almost HALF, as in 50% of all Morgan Silver Dollars produced up until that time!
Although the act sought to stabilize the silver market both foreign and domestically in a tumultuous time during WWI, it unintentionally resulted in the destruction of many numismatic treasures. The loss of these historical coins has further contributed to the increased value of the surviving Morgans to this day.
New Design and Composition:
The silver bullion that wasn't used to bail out the British economy during WWI, were mandated to be re-minted into new silver dollars. However, the silver content of the new coins was reduced from 90% to 40% silver. The resulting coins, known as Peace Silver dollars, were created to commemorate the end of WWI, it had a different design and composition than the Morgan Dollar.
This key distinction enhanced the appeal of the remaining Morgan Dollar survivors, as collectors and investors began to recognize their unique place in history.
Collectible Appeal:
The combination of increased scarcity and significant loss of historic coinage has bolstered the Morgan's collectible and investment appeal.
Decades ago, collectors and investors began to recognize the intrinsic and historical value of these coins, leading to a surge in demand.
Today, the Morgan Silver dollar remains one of, if not the most popular and widely collected coins among numismatists, collectors, and investors worldwide.
The Morgan Silver Dollars Value in 2024:
The Morgan Silver dollar continues to command significant premiums in the United States Rare Coin market due to its historical significance and limited supply. The value of individual Morgan Silver dollars varies based on factors such as mint mark, condition, rarity, and date. Some rare and highly sought-after issues fetch substantial prices.
The Pittman Act of 1918 had a profound impact on the value and enduring appeal of the Morgan Silver dollar. While the act aimed to stabilize the silver market during a tumultuous period, it inadvertently contributed to the increased rarity and collectible appeal of the Morgan Dollar.
Ultimately, the scarcity resulting from the melting of these coins and the loss of these historic coins forever, have played a significant role in shaping their value as it stands today in 2023.
Today, the Morgan Silver dollar is a testament to American history and a prized possession for collectors and investors globally.
They are a reminder of an era of growth and progress. Their allure as a collectible and investment asset is rooted in its historical significance, scarcity, rarity, intrinsic and numismatic value, and solid proven track record of growth in value and price appreciation.
Whether you are a passionate coin collector, a savvy investor, or someone seeking a tangible connection to the past, the Morgan Silver Dollar provides the potential of both financial rewards and the sense of pride in ownership of authentic iconic American symbols of historical legacy. With its enduring appeal, this timeless treasure continues to shine in the world of numismatics.
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