No great shock. It did grade 65. The nick on the upper left side of the obverse is nowhere as big as as it is pictured. Without the nick, the coin is easily a 66 or even possibly a 67. It is nice, just the way it is. Pictures do exaggerate marks on Morgan Dollars. Given that it is in a fatty, the grading was more conservative back then.
Thanks for the explanation. In the photos the field nick stood out like a sore thumb to me. In hand, much different.
As I said, it looks much nicer in hand. Shine light right into the face of 99% of Morgans, and you get contact marks. You dwell on individual bagmarks too much. Even super gem Morgans have them.
I think this is the battle between those who collect and love a specific series and those who don't. These marks are expected on Morgan's and those of us who love and collect them understand what a gem coin is and what it's not. Those with just a passing interest in the series just don't understand the expectations of it. The same can be true of early coppers, seated coinage, Lincolns, or any other series...each have their own unique characteristics that devoted collectors understand and collectors with a passing interest don't.