Coin Collecting

The Top Five Morgan Silver Dollars

Why waste everyone’s time? Let’s skip the appetizers and get to the meaty stuff right now: The Morgan silver dollars poised to increase the most in value in the years ahead are the 1895, 1892-CC, 1894, 1878-CC, and the 1883-CC. Pretty bold prediction, eh? At this point, the reader now has three options: (1) Stop reading and act upon this information, (2) Stop reading and get on with life, or (3) Continue on, evaluate the analytical approach to identify the “Top Five” Morgan dollars, and then implement a variation of (1) or (2) above. If you’ve gotten this far, we encourage you to continue on with option (3).

First, a little background info on the Morgan silver dollar…

Morgan Silver Dollar
Photo credit: celticpixl / Foter / CC BY-SA

The Morgan silver dollar is today one of the most popular of all collector coins. First minted in 1878 following the passage of the Bland-Alison Act, the new dollar was named after its designer, George T. Morgan. Political pressure by powerful silver mining companies, in a gambit to stabilize the price of their commodity at artificially high levels, created the impetus driving the legislative action. Bland-Alison led to the overproduction of silver dollars, resulting in millions of these unused “cartwheels” languishing in bank and Treasury vaults. Indeed, few coins have ever been released under more dubious circumstances than Morgan silver dollars. Minting continued until 1904, and then again for one more year in 1921, when the series finally came to a close.

For decades thereafter, Morgan dollars were largely snubbed by hobbyists. Many dates, including those in mint state condition, could be obtained for as little as $1.00. This situation shifted dramatically in 1962, when the US government began selling original 1000-piece silver dollar Treasury bags to the public at face value. Stories of rare dollar finds circulated widely, touching off a veritable Morgan mania. Within a matter of months, all but a small fraction of the federally owned coins were transferred from government vaults to private hands, consequently expanding the Morgan dollar collector base far beyond anything seen previously.

Since then, Morgan silver dollars have proudly perched themselves atop the catbird seat of the numismatic world. Their physical size, availability, beauty, and historical significance have consistently attracted herds of new buyers. Numerous boom-turned-bust cycles have come and gone, sometimes driven by pure speculative motives, but from a long-term perspective, most Morgan dollar prices have trended somewhat positive.

Unlike some controversial promoters in the past, I do not propose purchasing Morgan silver dollars simply as investment vehicles. However, for collectors hoping to satisfy their numismatic yearnings AND acquire coins destined to be worth substantially more in the future, Morgan dollars do present a few opportunities. As noted above, as a whole, Morgans have gained moderately in value over the years. The crucial challenge, then, is to identify which members of this series have enjoyed the best growth patterns in the past. The underlying logic is clear: coins that have demonstrated the strongest gains over a long period of time are the coins best positioned to show similar price advancements with the continued passage of time.

In order to measure past performance and thus visualize Morgans most likely headed toward a bullish future, I developed a systematic approach. First, I researched individual Morgan dollar retail prices as they existed in 1950, for a broad range of conditions, and entered this data on a computer spreadsheet. Moving forward in time, values from the years 1980, 1995, and 2000 were likewise recorded. Finally, estimated selling prices in 2005 were juxtaposed with counterpart data from those earlier years. Because grading terminology has evolved over the 55 year period, certain assumptions were made to progressively track price movements throughout the time spectrum (e.g. an “Uncirculated” value in 1950 is equivalent to the “MS-60” of today).

For each date and condition, compounded annual return rates were computed from 1950 to 2005. [Editorial note: compounded annual return rate is the accepted yardstick for comparing investment performance. Of course, coins do not grow at a guaranteed uniform rate, such as bonds do, but if a coin is purchased at a certain price, and that price is compared with the value of the coin at some later date, the compounded annual return rate can be calculated for the time period in between]. Return rate computations were made from 1980 to 2005, 1995 to 2005, and 2000 to 2005. For each Morgan dollar, the data was placed in tabular format. Next, I calculated a “composite” score for each date by averaging all the compounded return rates computed for that date. I then ranked all the “composite” scores. The Morgan silver dollars with the highest scores are as follows:

Date: Score:
1895 11.37
1892-CC 10.54
1894 10.43
1878-CC 10.28
1883-CC 10.25

So, it would appear, based on past performance over a period of 55 years, the 1895 is the Morgan silver dollar with the best hope of appreciating significantly in the years ahead, followed by the 1892-CC, 1894, 1878-CC, and 1883-CC. Not surprisingly, dollars of the Carson City Mint occupy 13 of the top 16 positions, thanks to persistent collectors scrambling for bona fide artifacts of the romantic American West. On the opposite end of the rankings, Morgan silver dollars having the bleakest long term prospects include the 1898, 1899-O, 1884, and the 1888-O, followed by the 1897 coming in dead last with a score of 2.66.

Anyone whose dual objective is to acquire Morgan silver dollars with a bullish future ought to begin looking at the “Top Five” above. Purchase coins in the best condition you can afford, but be sure the coins are clean, problem-free, and CERTIFIED by a reputable grading service. Be prepared to hold for at least five years. Morgan dollars have skyrocketed in value in the last three years, so some cooling off may be in order before the next upward cycle.

If a polling firm were to survey the population of US coin collectors, it is very possible that Morgan silver dollars would win the vote as the most appealing coin in American coinage history. These beautiful coins have been the heartbeat of the hobby for many years, with no retreat in sight. Ironically, these same coins spent the better part of a century hidden away in government vaults, unseen, unwanted, and unloved. My, how times have changed!

Coin Collections and State Quarters

Coin collections are getting more and more popular these days. A lot of people are already into collecting coins. You see, this hobby is interesting and can be considered an excellent pastime. If you want to start your very own coin collection and you have no idea where to begin, you should check out the State Quarters.

What are State Quarters all about?
Back in 1997, an act was approved and it was called Fifty State Quarter Program. The program started in that same year and run through 2008. The Act is quite popular and in fact, it is the most well-known minted series of coins in the US Mint history.

In 1998, five state quarters were released and it continued for a period of ten years. Every 10 weeks, a quarter was released.

The program also devised a new and unique method of issuing coins – the state quarters were issued based on the year they became part of the US. The state quarters are minted and you can see George Washington’s image at the obverse or front side while on the reverse or back side, you will find a noteworthy design about the specific state.

The program ended in 2008 and after that, the coins were again designed normally, with the reverse side having an eagle design.

Don’t you think collecting these coins is worthy?

You will find it harder to obtain the coins now the program is over because the coins will be considered collectors items and it will be a bit costly on your part.

So, what makes these minted coins different?

Each state chose a unique design which is of great importance to it and the current governor of the state determined the process of selection. Some of the states designated a certain design committee while other states held contests among the residents who came up with a significant and unique design. Some states posted various designs of the coin in their official site and the residents simply placed online votes and the coin that gets the highest votes win.

The coins are greatly in demand and besides, these coins will not be minted ever again. The price of these state quarters will naturally increase as years pass and currently, some of the older state coins amounts to $1 each or even more depending on its condition. Some coin collectors are also into ‘error coins’ collection and these flawed coins can cost more or less $500 each.

The program of State Quarters definitely gained extreme popularity in the US and some people were into some sort of business revolving on the said minted coins. Coin holders are popular and coin collectors can purchase them so that they can keep their collections in an attractive holder.

Youngsters and old alike can now start collecting coins through the State Quarters. If you want, you can inquire at your local state office and see if the coins are still available.