Morgan silver dollars, named after the designer – the engraver George T. Morgan, are one of the most popular classic U.S. silver coins sought after by investors and collectors. Their production spans from 1878 to 1921, covering a significant period of American history. This article will analyze the investment value and collection value of morgan silver dollars, and provide a complete guide on whether they are a good investment.
Morgan silver dollars have inherent silver value that appreciates over time
The silver value is the most intrinsic investment value of Morgan dollars. Each coin contains 0.77344 troy ounces of 90% fine silver. With the fluctuating silver spot price, the melt value of Morgan dollars changes accordingly. For example, with the current silver spot price around $20 per troy ounce, a Morgan dollar has a melt value about $15. So if you buy a common-date circulated Morgan dollar for less than $15, you are getting it for below melt value. As silver price potentially appreciates in the future, the silver value offers a downside protection for Morgan dollars investment.
Scarcity and condition determine the collectible value of Morgan silver dollars
While all Morgan dollars contain the same amount of silver, their collectible value varies greatly depending on mintage, scarcity and condition. The 1921 Morgan dollars have the highest mintage of over 86 million and are the most common, so they normally trade just at silver melt value. At the other end of the spectrum, the 1893-S Morgan dollar had a mintage of only 100,000, making it the key date of the series. Certified uncirculated 1893-S Morgans can sell for thousands of dollars. Other keys dates like 1879-CC, 1892-O, 1895 are also highly sought after by collectors. Besides the date and mintmark, the condition or grade also plays a big role. The same coins can worth vastly different prices in circulated condition versus uncirculated condition.
High liquidity makes Morgan silver dollars a relatively safe investment
Compared to some alternative silver investment options like silver bars and silver eagles, Morgan silver dollars benefit from more liquidity in the market. It is easier to find both buyers and sellers for Morgan dollars. Major coin dealers like APMEX, JM Bullion, SD Bullion, Modern Coin Mart all carry a good inventory of Morgan silver dollars. There are also consistently strong collector demands for nice-condition Morgans at coin shows and auctions. This makes Morgans rather convenient to sell when investors want to realize profit or cash out their positions.
Morgan silver dollar investment has outpaced inflation over long term
The long-term investment performance data shows that old U.S. rare coins have handsomely beaten inflation over the decades. Looking at the Morgan VAM-4 1880-S in MS65 grade as an example, its value has increased from around $700 in 1979 to around $4,500 in 2015, translating to an average annual return of 7.26% adjusted for inflation based on the Consumer Price Index, soundly beating the stock market. While past performance is no guarantee of future results, it demonstrates Morgan silver dollars in scarce condition have investment potential to maintain purchasing power against inflation.
In summary, Morgan silver dollars offer silver value downside protection, collectible value upside potential, high liquidity, and inflation-beating capability over long term. Common-date circulated Morgans can be bought at small premium over silver melt value, making them a relatively affordable investment. Scarce Morgans in nice collectible condition have more potential upside but also require more investment capital. Overall, Morgan silver dollars can be a good inclusion in a diversified precious metals investment portfolio.