Why are cull Morgan and Peace Dollars so expensive?

You can pretty much get a dollar face value of junk silver for $15 any time ($13 recently), without even negotiating. I get why VG+ 90% silver dollars cost $20-$23, but what the heck is the reason for cull silver dollars to cost more than any other junk silver? Who is collecting worn down, scratched, cleaned silver dollars?

 

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i was wondering the same thing. my LCS sells 90% silver coins for about 13.5-14x face, but cull peace dollars are $24 and cull morgans are $25. (all are buy 4 get one free though)

 

Yeah, other coins with 90% silver are worth way less.

 

For starters there is more silver in a dollar than in two halves or four quarters, but not enough to account for the common value difference, which can be attributed to the obvious: people are, and have long been, willing to pay more for them.

 

The simple reason is that they are impressive, historical coins that appeal to far more people than coin collectors, people who would not let cleaning, scratches or wear bother them all that much.

Potential buyers could be anyone from people who want an unusual flipping coin for heads/tails, through Wild West fans to someone who owns an old dollar slot machine.

In Britain I could sell a bucket full of your 'culls' in a very short time, and they would not in general be going to people who were all that fussy about the niceties of condition. The market may be supported by people buying up all they can find for export. It could be worthwhile.

It would, however, be virtually impossible to sell any here that were not in the lower price brackets because there is not the specialised collector support, and any in plastic boxes would have the boxes thrown away at once.

 

They shouldn't be much more than a dollar or so if thy are cull or slightly better. I'm not talking about key dates, but dollars are always going to be and should worth a premium over melt. There are just more dollar collectors in the world than any other denomination.

 

I was thinking something similar to this. I've seen cull Morgans with $85 asking prices around the touristy parts of London, and also seen what I'd consider high-end Morgans selling for about 20% under what someone would ask on eBay. Go figure.

 

Because people who buy these are stupid, and the people who sell them are laughing all the way to the bank. So, in the hobby we know as numismatics, I have little regard for either group.

Chris

 

Because people who buy these are stupid

How is it stupid to have a piece of American history you can carry round in your pocket? Or something you can show your kids and make up all sorts of unlikely stories about Great Grandpa the train robber and his hoard?

It can be hard to face, but there are loads of people with other priorities than coin collecting. Sheesh, I'm not American, and I have only spent a few months there altogether, but I like the silver dollar and its history and I can appreciate a fine MS example but for myself and a jillion other buyers, the magic is not in the silly numbers game but in the thing itself, and who knows if that well worn dollars has not been touched by some historical figure at sometime as part of that wear.

Oh, and a five dollar profit on a coin does not lead a dealer to a life of luxury at the expense of mug punters. You need rather a lot of small profits just to cover the overhead and inventory costs to make available those choicer coins that you seem to think are the only ones worthwhile.

 

Come on, Chris. Is everyone that doesn't agree with any of your opinions stupid? Are you the only smart person in this world?

 

Over the top, isn't it?

 

Silver dollars always have more value. We all like them. One more silver dollar...

 

Makes sense to me... thanks for that feedback. For stacking purposes I guess they just have to be avoided. They are beautiful coins, though... I have a several nice specimens of each that I really enjoy owning, including the Morgan in my profile photo.

 

Being smart and having common sense are two different animals. Would you pay $200K for a house that is worth only $175K?

Chris

 

At the end of the day and no matter what the purchase may be, the buyer makes the ultimate decision about worth. You may agree or you may disagree.

That's common sense, my friend.

P.S. Regarding your house question, know what happens when you ask 2 (or 3 or 4 or 5. . .) different appraisers to value a house?

 

Would you pay $200K for a house that is worth only $175K?

Well, yes, if, for example,it was somewhere that had an intangible value to me, a childhood home or suchlike. To get just that particular house, I'd pay a bit more than I'd pay for a similar house down the street. It would have more real value for me.

The same applies to your 'culls', they have real value to the buyers not limited to a narrow purist numismatic value.

There is no contradiction here. Or any lack of smartness or common sense. I'd say the world view that admits more than one narrow set of values is the smarter option.

 

You can't compare 25k spread to a coin that is a few dollars more than you would pay for it, most people just buy one to have because they are cool looking anyways. To call people stupid for buying a badass peice of history for 20 bucks is rather rude. Especially since you probably stopped at Starbucks for a 5 dollar coffee this morning

 

I fell into the stupid category cause I bought 4 silver dollars this week not slabbed or graded.. just run of the mill 1878 1833 and two others.. dates are readable but some wear on coins... oh well..........guess I have to go to London if ever want my monies back I paid 95.00 dollars with shipping added there too.............

 

Easy bud. What if one of these people are reading your post? They are likely to seek out a bridge.

 

Is that overvaluation based a strong demand from a demographic that hoards weapons and food? If so, then there's a 'fear premium' at work. If dealers aren't paying more, then it's just a gouge.

Some cull Morgans make nice 'little gifts' treasured by kids, so perhaps it's a niche consumer product that's affordable too.