Before You Invest in Morgan Dollars, Consider These Points

Close-Up of Lady Liberty on a Morgan Silver Dollar
Heritage Auction Galleries

Morgan silver dollars have become very popular as an investment vehicle for coin collectors because they cost a reasonable amount of money to buy, have performed very well in the past as an investment, and are beautiful to behold. But like any investment, you must do your homework first if you expect to come out ahead over dealer profits, inflation, rare coin appreciation in general, and knowing which specimens to buy in particular to ensure that you don't take a loss instead.

Morgan Dollars in General

As a rule, you must remember that common date Morgan silver dollars that grade below AU-50 is only worth their silver bullion value. Of course, there are a few exceptions, especially for Morgan Dollars minted at Carson City, but most Morgan dollars on the market today never circulated as regular coinage. The main reason is that the U.S. Mint produced hundreds of millions of Morgans during the 1800s than what was needed to meet the demands of commerce, so they sat in vaults for over 100 years.

Illustration of Morgan dollars in a case
Illustration: The Spruce / Julie Bang

Most Morgan Dollars Never Circulated

The United States Mint made more than half a billion Morgan Dollars between 1878 and 1904. Although nearly 3/4 of these were melted down before being issued, most Morgans in the marketplace today didn't even leave the U.S. Treasury vaults until 1960. So before investing in them, you should learn more about the history of the Morgan Dollar, which makes a fascinating story.

The bottom line is that Morgan Dollars in Uncirculated grades are extremely common, so be aware of this fact when you buy Morgan dollars. Unfortunately, some people try to increase the value of their Morgan dollars by cleaning them. Learn how to identify cleaned coins, so you don't end up buying a "lemon" for your collection.

Buy the Book Before You Buy the Coin

One thing that less-than-honest dealers might attempt to do is try to lead you to believe that just because the Morgan Dollar is 60 to 80 years old, the fact that it's in Mint State makes it very valuable. The truth is that MS-63 specimens for about half the mint/date combinations sell for $35 to $70 each. Telemarketers are getting $350 to $700 for the same coins! Which is the better investment? Obviously, getting the Red Book and learning the actual market values of Morgans is critical.

Invest in Only the Highest Grade Morgan Dollars

Because most of the Morgan dollar coins exist in higher grades than most other series, you should invest in only the highest grade specimens. If you can afford to buy Proof Morgan silver dollars, you should do so because those have performed very well as investments. The following best investments are the very high grade, MS-65, or better coins. They are pricey compared to MS-60 to MS-63, but their incredible rarity in the age of encapsulated coins makes them a good investment.

Remember to Consider the Source

Another essential item to consider when investing in rare coins, including Morgan silver dollars, is to find who is providing the coin grade. The price difference between MS-63 and MS-65 is significant, and not all dealers and grading services have the same grading standards. Coins in slabs from PCGS and NGC are worth more than coins in slabs from certain minor grading services. This price difference is because PCGS and NGC have consistent, exacting, and largely non-subjective standards for grading.

Store Your Morgan Dollars in a Vault You Control

Finally, once you've made the informed decision to invest in a given Morgan silver dollar, always take delivery of your coins in person. Don't fall for dealer assurances that they will store your coins for you and keep them in a secure vault. Instead, find another dealer if the dealer cannot produce the coins you're buying in a leading third-party grading company slab.

If you don't have a proper built-in, fireproof vault to store your investments, put them in a safety deposit box. If you will keep your coins in a private residence, take necessary precautions to protect your investment. Your safe should be burglar resistant, fireproof, and permanently anchored to the floor. Additionally, your safe should be in an environmentally controlled area. Avoid basements and attics where the changes in temperature and moisture can damage your coins. Finally, always remember that Morgan silver dollars can be your future retirement, so don't let them get stolen by a thief.

Edited by: James Bucki