Do you know what coin is the most frequently collected? In U.S. currency, it is the Lincoln penny, but the second most collected coin is the Morgan silver dollar. This one comes with a fascinating story too, and it helps to explain why it is also one of the rare coins that should be used as a form of investment.
As rare coins go, the Morgan silver dollars have an odd background. They were used by the United States government to control prices in the global silver market beginning around 1878. Because too many “lodes” of silver had been discovered, there was a literal flood of the metal available. This drove prices down, and so the U.S. government decided to consume vast quantities of this metal by minting dollar coins from it.
What they did with the coins is what drove prices back up, however, because they never put the coins into circulation. A huge majority of them were made, and then sent into storage at the same sites. This created a situation that we can witness today and which makes some of the Morgans extremely rare coins.
What happened was that the coins that did sit in storage vaults for many decades were either melted down to make new coins, or released in mint condition to the collectors of the world almost a full century or more after they were made. As an example, in a single year a certain number of coins are on the official record as being minted. The records show how many of those coins were released into circulation and how many were destroyed.
This indicates if some of those coins are truly scarce. When they are owned in good condition, they are far more valuable than their silver content or other examples of the same coins, and thus a great investment.
Rare Coins Save the Day
Therefore, that means that there were remarkably rare coins among the Morgan dollars, but that also means that there were some that were made in great abundance. These too are rare coins, but can often be worth little more than the silver content they contain.
What is so great about even these coins is the fact that they can increase in value when part of a larger collection. So, the Morgan silver dollars can be acquired for very little money by someone who wants to build a collection or own a specific amount of silver. They can also become even more valuable when they are part of a complete collection from a given year or location.
That means that investors looking to really up the value of the portfolio can begin to do so through the purchase of rare Morgan dollars, but they can also have some fun too. They can choose a mint location to focus their collecting efforts, they can go for the rarest of the coins to ensure increasing value, or they can just try to make their collection as complete as possible.
The way to get started is to contact a dealer in these coins and to ensure you are getting exactly what you paid for!