Collecting Morgan Silver Dollars

Morgan Silver Dollars are among the best lovedThe 1918 Pittman Act once again required silver
and most collectible of all American coins. Theirto be melted down for the production of coins.
history is a fascinating one, which adds to theirOver 270 million coins were melted down.
appeal.In 1921, production of Morgan Silver dollars
In 1859, the Comstock Load from Virginia City,resumed briefly and 86 million coins were struck.
Nevada was made public. With a payload of moreBut by the end of the year, the design of the
that $400 million worth of gold and silver, thenew Peace Dollar was finalized and production of
discovery drove down the price of silverthat coin began in December.
significantly.Yet another Silver Act, this one in 1942, required
In order to prop up the price of silver, thethe melting of silver coins and millions of coins
Bland-Allison Act of 1878 required the U.S.were converted to bullion. As many as eight out
Treasury to purchase $2 to $4 million worth ofof ten Morgan Silver Dollars may have been
silver bullion every month. The bullion would thenmelted down, which is why the value of these
be used to mint coins.coins is no longer tied to the number produced.
Named for the Chief Engraver of the U.S. Mint,Even coins with an original issue of more than a
George T. Morgan, the new silver dollar coin wasmillion are valuable.
designed by him. The design, which depicts theBy the early 1960s, the U.S. Government had a
head of Lady Liberty on the obverse and ansurplus of silver dollars on hand. So they began
eagle on the reverse, is beautiful and is as popularselling Treasury Bags of a thousand coins for
today as when it was first issued.$1,000. Many rare coins were discovered in these
Today, beginning collectors can find affordablelots, and collectors began buying up the bags.
Morgan Silver Dollars with which to begin collecting.Several coins that had not been circulated and
And serious investors can pursue rare coins in thewere consequently rare -- such as the 1903-O
six figures.uncirculated silver dollar -- resurfaced and their
By 1890, there was still a glut of silver, so thevalue plummeted.
Hayes Administration passed the Sherman SilverThe General Services Administration sold off the
Purchase Act, which required the government torest of the government's Morgan Silver Dollars,
buy $4.5 million of silver a month. Treasury Billsincluding coins minted in Carson City, in the early
were issued that could be redeemed for gold or1970s. Packaged in black plastic holders, these
silver.coins are known as GSAs and they are very
Holders of the T-bills redeemed their bonds forcollectible.
precious metals in such large numbers thatWith only 100,000 business strikes, the Morgan
government reserves of gold and silver wereSilver Dollar minted in San Francisco in 1893 was
dramatically depleted, causing a financial panic. Thethe lowest mintage produced. Today, an MS-67
1893 repeal of the Sherman Silver Purchase Actgrade coin is worth over $1 million. Other valuable
caused the production of silver dollars to slowcoins are the 1893-O proof, the 1895-O and
way down.1896-O MS67s, and almost anything minted in
By 1904, the supply of bullion for silver dollars ranCarson City.
out and production ceased for fourteen years.