Expert: PAPAJACK - 3/10/2008

Question
I am a early beginner. I recently went to a antique store to hunt for coins. In the glass display case I saw about ten different morgan silver dollars. They were priced about $200. Are they all that expensive? I am on a very tight budget but want one very badly!

Answer
Hello Chris,                           

Morgan dollars are very beautiful coins and always interested me as well. The coins you saw might have been very high grade or rare issues or they might have been over-priced.
The Morgan dollars are plentiful for more than half of the dates they were issued and sell at all prices. An un-circulated 1921 Philadelphia issue should sell from $20 to $35 dollars.
So coins with different dates and mint marks will sell for different prices according to the grade or state of preservation. You need to do a little research on the coins before you buy any.
Always find out all about the coin you are buying, Read the book before you buy. Always buy from reputable dealers most will give you a 15 day return policy.

Also an antique store is not always familiar enough with coin selling, dealing or pricing. Try to get to a coin show near you. There will be many dealers that have many Morgan Dollars in stock they want to sell.

Here is a quick description of what sets a coins value.
Coins are valued on a scale from 1 to 70. And on how rare a coin is. With no or little experience it is sometimes easier letting another collector look at them, and even most coin shops will help for free on one or two pieces.
 
In each series of coin type like the Morgan Dollar there are some quick reference points of wear to be seen on the high points that are known to show wear first.
Most of these are covered in the RED BOOK titled A GUIDE BOOK of UNITED STATES COINS - by R. S. Yeoman. If you can borrow a copy it will help. The grading details it describes at the start of each coin series is taken from the American Numismatic Association Standard. And uses the 1 to 70 scale recognized by all professionals since the 1970's. However the prices in the book are not accurate but can be used to see what coins are more valuable simply by looking at the values in the same column.

Most circulated coins range from Good (grade-G4) to Almost Uncirculated (grade-AU50) on the scale.

Here's a quick wear/Grading guideline:

GOOD or Grade 4 :
Letters and date clear no feathers on reverse but no wear to the outside rim from letters.

VERY GOOD or Grade 8:
Normal wear, flat looking, very little sharpness remains but all major details visible.

FINE or Grade 12:
All details strong and definition remains on some high areas of the coin.  

VERY FINE or Grade 20:   
Two thirds of hairlines show. Ear is well defined. Feathers on eagle’s breast worn.

EXTREMELY FINE or Grade 40:  
All hairlines are strong. Only slight wear on eagle’s breast and wing tips. Some Original Mint Luster shows.

MINT STATE Grades 60 TO 70:
STRICTLY NEVER CIRCULATED.  NO TRACE OF WEAR. Nice luster on coin.

The Morgan Type silver dollars are 90% silver. This makes the value of an extremely worn coin still worth 11 to 14 times its face value just due to the precious metal content as of today’s market. Depending on the state of preservation (or Grade) and the Mint Mark (if any) they can vary greatly in value. Common issue dates in circulated condition are plentiful. These are approximate values for common date and mints circulated coins.

As an example for an 1888 dollar made at 3 mints one catalog has a listing;
Very Good (Grade-8) = $16.00 for the Philadelphia and New Orleans issue and the San Francisco issue = $65
Fine (grade-12) = $17.00 for the Philadelphia and New Orleans issue but San Francisco issue = $120
Very Fine (grade-20) = $18.00 for the Philadelphia and New Orleans issue but San Francisco issue = $140
Extremely Fine (grade-40) = $19.00 for the Philadelphia and New Orleans issue but San Francisco issue = $190
Almost Uncirculated (grade-50) = $23.00 for the Philadelphia and New Orleans issue but San Francisco issue = $225

Now in Mint State grades from 60 to 70 the prices are higher but you can see for yourself how it can vary from grade to grade and mint to mint.

I hope this helps a bit.  Always feel free to write me again for any assistance I may provide.

Good Luck

PapaJack