Morgans selling on ebay for HUGE gains. Am I missing something?

I can get morgan silver dollars (from the melt bag) for $.50 over spot per coin. @ 29/oz a "roll" of 20 is worth $446.60. Now on ebay, 2 auctions that I see right now of 20 coins are going for $495 and $580!! thats gains of almost $140 (minus ebay & Paypal fees). Am I missing something, or is this easy money? http://shop.ebay.com/i.html?_nkw=20%20morgan%20silver%20dollars&_dmpt=Coins_US_Individual&_fln=1&_ssov=1&_trksid=p3286.c0.m282&_mPrRngCbx=1&_udlo=400&_udhi=

 

Log in or Sign up to hide this ad.

Looks like the average is $500. With eBay fees & Paypal, you'll be paying someone $10 to take them.
Prifit margin is too close unless they go for over $530.

 

I don't know if this is applicable to your post really, but I have been reading lately that the Morgans are on the move. I was advised to invest in "Common Date" Morgans in MS64 a few years back. The idea being that there is usually a lot of gap in price between a 64 and 65, thus in theory, the 64 has room to move up higher in value. Four years ago, I could find 64's in the $45-$55 range. Seen a big dealer in Numismatic News the other day asking $75.00. Checked around, and $75.00 seems to be the norm now. Visited a shop in Corvallis, Oregon last week, and they had melt Morgans and Peace dollars for $29.00 each.

 

Thanks mecha. Didn't realize how high the fees were.

I wouldn't be suprised if common date morgans made a "move". eBay has just showed me that some people are willing to pay up to $8 over spot per coin for a roll of 20. Usually, when sold individually, I don't see them reaching as high of a premium as when sold in lots of 20... (And some of these auctions are not all morgans. The one I used as an example had 15 morgans and 5 peace dollars).

There may be several other reasons why these are selling for such high prices. I know some people may not have access to a coin dealer, or one who sells 90% silver for below spot prices (+$.50 for Morgans) as they do here where I live.

I think its definately worth it to note the prices that these are reaching on eBay.

Thanks for the replys.

 

Morgans aren't bullion coins and contain value above and beyond bullion. If you want bullion prices, buy bullion pieces. Best answer I can give.
Guy

 

At my local coin coin shop dealer is selling average dates and quality for between $17.50 and
$21.00 per coin

 

Well, Silver Eagles are sometimes $3 bucks above melt. So investing in junk at good prices is also good, the problem, people on Ebay become POSSESSED to bid everything only worth scrap up to scrap price.

 

Many people enjoy collecting Morgans, and I agree that they are an attractive coin but... I don't understand the prices that people are willing to pay based on the mintage and condition of the coins I've looked at.

Folks say that they aren't bullion but when they are graded they are MS - uncirculated, just like all the current Silver Eagle Bullion coins. The Mintage sure looks like bullion to me.

The lowest mintage Morgan, 1885cc, at 228,000 according to my Red Book is kinda, almost low. The 1984CC with 1.136 Million mintage generally sells for $200++, approx. 8X the spot value of a 90% coin. That is a heck of a premium for coin with bag marks and dents, even if it is 125 YO.

There are lots of 90% Silver Proof commemoratives that don't even sell for spot. The Morgans sure have great marketing, and too high a premium for my liking.

 

Maybe it's the same reason a 58 Chevy in factory condition sells for over 80K today and was sold for 5K in 1958, yet we can buy a new car made yesterday for 14K. Mintage on a coin that is 100+ years old is not how many survive today. If 228,000 were minted, I imagine less than 20,000 survive today, meaning prices will be high. A modern ASE might have had 18 million minted, and of that I'd say at least 99% survive, and will so for many generations. You can't really factor in non-bullion coins with bullion issues and formulate a buying strategy because it will never work.
Guy

 

I consider them bullion when buying them from the "melt" bag at spot silver prices... costing less than an ASE. (which i also consider bullion.)

Does this make sense or am I off base here?

 

Wish I could find them for that around me. My son loves them but they want over melt value even for coins that are well beyond worn around here.

 

$29/oz for 90% silver, what rubes :too-funny:

 

Is that bad? Usually its about $.50 below spot for practically Uncirculated Kennedy halfs. Was 20X face last weekend when silver was $28.48, which comes out to about .50 below. I know theres better deals out there but also much worse.

 

I wouldn't spend more than $21. I just got 99.99% for $1 over spot.

 

21/ounce? wow

edit: ah you mean per morgan.. duh!

 

If you can buy 99.99% for $30 why buy 90% for $29?
I sell 80% for $18. Ebay price are nuts don't go by that.

 

If you can buy pre-21 Morgans in VG for $20, you can make a fortune. Wholesale Bid for common-dates is $24/ea. APMEX will buy any quantity at that price:

http://www.apmex.com/Product/161/1878_1904_Morgan_Silver_Dollars___VG___VF.aspx

APMEX pays $28 for each Morgan in AU:

http://www.apmex.com/Product/166/1878_1904_Morgan_Silver_Dollars___Almost_Uncirculated__.aspx