Look at 1 o'clock and 6 o'clock on the obverse. Straight graded. This is one that I "bought the holder instead of the coin". Now, looking for a replacement.
My answer upon reading the thread title was, "when it's a key date." Not saying I agree, but we all know things get overlooked when we're talking about expensive coins. I was kind of shocked to see that the coin in question is an 82 CC, in that condition. We're talking $100 or so. NGC should've BB'd that one.
Small rim dings are allowed on low circulated grades. I'd avoid them myself, but they are considered acceptable. Especially on key dates.
I think it got past because its a key date and is a low circ example, as others have mentioned. Luckily the next buyer will be there to buy the holder, not the coin, as that is how the market goes.
It’s a CC dollar, but it’s not a tough date within that group. You can find one in this grade without the rim issues, so why stress over this one. If it bothers you, pass.
82-CC is a bit of a condition rarity in F15. Most are uncirculated. The rim is too chewed up for my taste for a Morgan of any date, though. Live and learn.
I have never understood while a collector would buy a date and mint mark combination like this in Fine when can get get higher grade pieces for not that much more. A dealer explained to me that, as @messydesk said that the supply is actually low in this grade. The most extreme example of this is the 1885-CC. A circulated piece might sell for $195 while you cam buy an Unc. for $225.
I would do it for a few reasons. If: 1. I liked the look of circulated coins. Some people prefer to collect circulated coins, coins which had done their job. Some really like the "circulated cameo" look with the dark grey surfaces and lighter high points. If I were building a set with this look, I wouldn't want an MS-63. 2. I was trying to build a matched set on a budget. Sure, some coins have unusual price structures and are available for low premiums in high grades. However, there are just as many that get to astronomical prices. So, if I were trying to build a matched set, I'd have to base that around what I could afford for the key dates. If I can only afford an F or VF for a key date, I'd want all the coins in the set to be in that grade range - even if some of them are going to be very inexpensive. The key dates have to drive the set if I want it to be well matched. So yes, I agree that if you're trying to maximize grade for value, then buying an UNC might be your goal here. I've talked many times about buying the highest grade before the "big jump" - where the value graph seems to have an inflection point. However, not all collectors buy or collect that way.
People doing this with Morgan dollars invariably discover just how rare and expensive a wholesome VF 1898-O is. Poster child for the unusual price structures you mention.