Logic of Morgan Dollar values

Hi,

This is something I've thought about before, but an article on coinnews.com today brings it up again: Given that most Morgan dollars didn't really circulate and the actual rarity of most is numerically questionable relative to other series, why are Morgan Dollars priced so high?

The article states:

Are the prices really just held high because of the general interest and demand? Are they the highest-demand US series, and therefore the number of people competing for the thousands of good extant examples keep the price high, not to mention pervasive marketing from retailers?

http://www.coinweek.com/news/featur...f-silver-coins-part-1-dimes-and-half-dollars/

 

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I'd say it's demand. Look at the 09S VDB cent or the 16D dime...neither rare at all and both saved from day one, yet demand has pushed their value far above what it should be.
Guy

 

Demand is really high, I agree. But also with that demand is the fact that a large number, and no one may know the exact number, of Morgans were hoarded by the U.S. Mint because they were not well received by the public when they were released. Banks were receiving them back in exchange for either paper currency, or gold denominations.

It's believed, and estimated, that there were hundreds of millions of dollars worth of Morgans held in not only the vaults in the Philadelphia Mint, but also in vaults at the Federal Reserve, when the Mint simply ran out of room to store them.

Because of this hoard, there were bags full of Morgans that were not circulated as much, if at all, and were found to be in exquisite condition, save waffle toning patterns, and very slight bag marks.

The Morgan also has the most interesting history of all coinage in the U.S.

 

You also have to keep in mind that 350 million were authorized to be melted under the Pittman Act, but I believe the actual number melted was 270-300 million. No records were kept regarding the number per date/mintmark that went to the melting pot.

Chris

 

Really? I would not say they had the most interesting history myself. If you incorporate all of the history regarding the silver market during that timeframe as "morgan dollar history", then maybe. I prefer the history of items like the chain cent, the first half disme, or even the shenanigans of classic commemoratives to Morgan history.

To each his own I suppose.

To the OP, yes, the pricing is completely demand driven versus relative rarity of other US coins. Almost any SL half produced in the 1880's has a total mintage of less than the number of 1893s still available, yet are a fraction of the price.

Chris

 

My answer to that is yes. Morgan dollars are perhaps the most highly collected US coin series after the Lincoln Cent. Now add to that their history, the fact that each one contains almost an ounce of silver, that many of the key dates were melted, and that many dates can be had in high grade because they were never released to the public, and you have the perfect storm of demand, appeal and marketing all coming together to create very expensive coins, especially for the key dates.


Most collectors want a complete set of any series, aside from the 95 P which was only issued as a proof and is beyond the means of most average collectors, the 93 S Morgan is the king, it's the coin most collectors need, in any condition to complete their set.


You've got a lot of people willing to pay the premium for the King.

 

Are there any estimates on how many people collect US coins? It makes sense to me that even if some series, like the Morgans, are relatively common but universally collected the number of collectors greatly exceeds even the higher population numbers of the dollars.

 

You will get very fuzzy numbers if you ask how many Americans "collect" coins. The number will be astronomically high, as they will count every person who puts aside a bicentennial quarter, or a wheat cent. A much lower number would be who are serious collectors, (maybe defining as spending XXX per year on coins), a lower number still would be those who collect US coins, and still lower those who collect morgans. Then, from this population you still need to define those who collect by date and mintmark, and then how many can afford the pricetag of a 93s. Then you have your demand population, after taking out those who already have one.

I am just saying "how many US coin collectors?" can be a very misleading number, even if you find an answer. Any answer will have to be scrutinized on what level they are considering a "collector".

Chris

 

Very true. Thanks for the numbers. I knew what the mint estimated was high, but its technically untrue. If you consider anyone who keeps a coin for any reason a "collector", then I think 120 million is fair. This would be anyone who ever sees a wheat cent, a bicentennial quarter, or an Ike or SBA dollar and throws them in the junk drawer instead of spending them. To you and I that is not a collector, but could be construed as one.

 

there is a god. and you have learnt how to spell

Rediculous is dead long live ridiculous

 

now we will never know what you were trying to say

 

You need to buy the black sheep... Never go for the coins that thrive off of demand, unless of course you need to fill that hole in your Dansco.

-Brian

 

If saved from day #1 then why are there so many AG-3 merc dimes dated 1916-D ?

I'll agree the 1909-SVDB is easy in high grades

 

No demand no value look at the 3cent series.

 

1916-d dimes are found easily now, most werent saved until the early 1940's
Most are low grade, since they saw10-15 years of circulation

 

And with the SVDB it was announced in the newspapers that the coin was being changed to remove the initials just four days after they were introduced so a lot MORE were hoarded than would normally have been saved. This is why the SVDB is not a "rare" coin even though the mintage was very low. The 16-D dime on the other hand received no special notice other than being a first year of issue. At the time collecting by date and mintmark was not common so it didn't matter that much that the Denver dime had a low mintage. If it hadn't been a first year of issue it would be much rarer today than it is.