Collecting Carson City Mint Morgan Silver Dollars

By Greg Reynolds for CoinWeek …..
 

The topic here is collecting Morgan Silver Dollars that were minted in Carson City, Nevada. The Nevada facility was established in 1870 and coins were last struck there in 1893. The Carson City Mint was closed from 1886 to 1888. Coins with a ‘CC’ mintmark on the reverse are scarcer than Morgans in general and only 13 coins are needed for a set, not including die varieties.

A vast quantity of Carson City Morgans were stored in government vaults for many decades. Laws requiring the production of large quantities of Morgan Dollars were enacted with the understanding that the United States Treasury Department would buy massive amounts of silver and that the resulting coins would remain in the possession of the Federal Government. This means that most survivors today are uncirculated and usually grade above MS60.

Why Collect ‘CC’ Morgan Dollars?

Yes, it would be less expensive to collect selected, super-common Morgan Silver Dollars like the 1881-S, 1882-S and 1921 issues. Most Morgans, though, are common and heavily promoted – even by marketing firms outside of the mainstream coin-collecting community. These firms charge prices higher than most knowledgeable collectors of U.S. coins would be willing to pay. Within the mainstream, Morgans are still relatively expensive, given their commonality. Of all 19th-century series of U.S. coins, Morgans are the most common. Tens of thousands, often hundreds of thousands, exist of almost all dates in the series.

A few CC Morgans are quite scarce in relative terms. Other Carson City Morgans are readily available to collectors on limited budgets and to each collector who wishes to find out how much he or she likes Morgans before committing an amount that is personally regarded as large.

Moreover, there is a mystique about the Carson City Mint. The history of a true U.S. Mint in a small city in a sparsely inhabited region during the period of the so-called ‘Wild West’ is fascinating.

Additionally, completing a set of 13 CC Morgans that are appealing for their respective certified grades is not difficult, though it is not extremely easy. It would take time to find pleasing coins for each date. A set of CC Morgans costs less than a complete set of San Francisco Mint Morgans and, of course, is much less costly than a set of the entire series. Besides, some collectors who complete sets of Carson City Morgans find that they become Morgan Dollar enthusiasts and will feel compelled to expand their collections.

Most collectors who complete CC Morgan sets, I figure, will ‘move on’ and collect other types of U.S. coins. Sometimes, when collectors find out that Morgans are extremely common, they tend toward series where many dates are scarce.

Other collectors are not concerned about commonality and overall rarity or even have a positive view of extremely common coins. John Brush of DLRC emphasizes that “many beginning and advanced collectors seem to prefer the size of Morgan Dollars and the fact that they are more readily available, even in key dates, than many other series simply due to the high mintage figures and the number of still-existing coins of most dates.”

It is certainly not my purpose here to discourage collectors from seeking to build a set of all Morgans dating from 1878 to 1904 and 1921, too. I am concerned that beginners are misled into thinking that Morgans are scarcer than they are in actuality. For many collectors, a set of 13 CC Morgans may be an enjoyable and educational experience, and, after completing such a set, each collector should then decide upon subsequent collecting objectives that are suitable for him or her.

It does not take much time or money to assemble a set of 13 CC Morgans. Such a set has a significant place in the traditions of coin collecting in the U.S. and is logical overall.

Grades and Prooflike Coins

Circulated coins tend to have noticeable wear. These are graded on a scale from zero to 60, usually with the following increments: Poor-01, Fair-02, About Good-03, Good-04, Good-06, Very Good-08, VG10, Fine-12, F15, Very Fine-20, VF25, VF30, VF35, Extremely Fine-40, EF45, Almost Uncirculated-50, AU53, AU55, and AU58.

Mint State coins are graded on an 11-point scale from 60 to 70. Morgans that grade 60 or 61 are typically ‘banged up’ from contact with other coins and/or have other noticeable issues.

Coins that grade MS63 are considered to be ‘Choice Uncirculated’; MS64 coins are ‘Very Choice’. Coins that grade 65 or higher are Gems. Technical issues include consideration of scratches and contact marks. Design detail, surface quality, and eye appeal are also factors that are considered when experts assign an overall numerical grade to a coin.

Attempts to explain grading criteria are usually misleading. There is a need to see coins in person, though viewing many images of the same issue in the same grade may be educational. Any one pair of images should not be regarded as particularly illuminating. Collectors should discuss grading criteria with experts. It is not possible to learn how to grade Gem-quality coins by reading. Identifying Prooflike Morgans, though, is not complicated.

In John Brush’s experience, there is a significant “number of collectors who just collect Prooflike and DMPL Morgans as well as people that prefer wildly-toned pieces.” By “wildly toned,” Brush is probably referring to kinds of bag toning that feature a multitude of atypical vibrant colors. This aspect of collecting Morgans is not appropriate for beginners; I refer those interested to my article on Super Premiums for Common Silver Dollars with Attractive Toning.

Prooflike designations relate to grades, yet are not grades. Prooflike (PL) coins have mirror-like fields as a consequence of being among the few coins that were struck after a pair of dies was heavily polished. As more coins are struck, the effects on subsequent coins of such die polishing become less noticeable. Prooflike coins may have other characteristics that are similar to those of true Proofs, especially the contrast between reflective fields and white, frosted devices

Deep Mirror Prooflike (DMPL) Morgans feature mirrors that are thicker and have more depth than those of merely Prooflike Morgans. It is sometimes quite difficult to discern a dividing line between substantially Prooflike Morgans and DMPL Morgans. Single tests regarding the extent of reflectivity, such as holding a pen a certain number of inches from the surface, are curious but misleading, in my view. More than one factor should be taken into consideration before concluding that a particular Morgan is ‘Deep Mirror Prooflike’ (DMPL) rather than just ‘Prooflike (PL)’.

PCGS and NGC are the two leading grading services, and experts at both services designate specific Morgans as PL or DMPL. These designations, when assigned, appear on the labels, paper inserts inside the respective holders.

“Some of the more common CC dates can be found with especially wonderful, deeply reflective Prooflike or Deep Mirror Prooflike surfaces,” Mark Feld states. Mark was a full-time grader at NGC during most of the 1990s and has worked as a grader for a few of the leading dealers in the coin business, including Steve Ivy.

Collectors often think of a PL or DMPL designation as being part of a Morgan’s grade. An 1878-CC that is NGC-certified MS64 PL has a value of maybe $725, while an 1878-CC that is NGC-graded MS64 without such a designation may be worth an amount in the range of $560. Further, an 1878-CC that is NGC-certified MS64 DMPL would retail for around $2,100. Generally, PL and especially DMPL designations are worth substantial premiums, which vary considerably among dates.

The 13 Dates

The 13 dates of CC Morgans are listed here. I have placed NGC Price Guide values for EF40 grade coins in parentheses to provide an idea of collecting costs and relative prices. Lower-grade coins are less expensive and Gem mint state coins are much more expensive: 1878-CC ($101), 1879-CC ($720), 1880-CC ($264), 1881-CC ($410), 1882-CC ($104), 1883-CC ($103), 1884-CC ($114), 1885-CC ($506), 1889-CC ($2,840), 1890-CC ($155), 1891-CC ($132), 1892-CC ($498) and 1893-CC ($1,410). There are no Carson City Mint coins that date from 1886 to 1888.

It is not practical to provide information about each of these dates here. I discuss two of the least scarce CC Morgan issues, the 1878-CC and the 1882-CC, plus the scarcest, the 1889-CC.

1878-CC

Uncirculated (‘Mint State’) 1878-CC Morgans were released at face value by the U.S. Treasury Department in the 1940s, ’50s, and early ’60s. Large quantities were available to the general public from 1962 to 1964. Later, more than 60,000 1878-CC Morgans were distributed in GSA holders from 1972 to 1974 for prices substantially above face value.

I suggest that more than 250,000 1878-CC Morgans exist now. Most of these grade AU58 or higher.

This month so far, Heritage sold NGC graded 1878-CC Morgans in the following grades at the following respective prices: AG-03 $50, Good-06 $62, Fine-12 $79, Fine-15 $84, VF-20 $89, EF-40 $111.63, EF-45 $117.50, AU-50 $129.25, AU-58 $141, MS-61 $258.20, MS-62 $282, MS-63 $352.50, MS-64 $529.93, MS-64 PL $705, MS-65 $1527.50. All Morgan Dollar collectors could thus afford one. Collectors unwilling to spend more than $50 per coin probably should not be focusing on Morgan Dollars.

1882-CC

The 1882-CC issue is even more common than the 1878-CC. A collector should be able to quickly locate dozens from which to choose. At least 650,000 survive.

One of the most noteworthy 1882-CC Morgans is the one in the “Battle Born Collection” sold by Stack’s Bowers on August 9, 2012. It is PCGS-graded MS67 and is CAC-approved. On Aug. 9, it brought $10,351. In January 2004, ANR auctioned a PCGS-graded MS68 1882-CC for $43,700.

There are probably only a few thousand 1882-CC Morgans that experts at PCGS and NGC have designated, or would regard as being, ‘Deep Mirror Prooflike’ (DMPL). Usually, DMPL Morgans are not collected in grades below 64 as the contact marks that tend to characterize sub-64 Morgans are annoying when seen on very reflective surfaces.

In July 2012, Heritage auctioned two ‘MS64 DMPL’ coins: a PCGS-certified 1882-CC for $632.50 and an NGC-certified one for $661.25. The latter was in a GSA holder, which is worth a premium.

1889-CC

Indisputably, the 1889-CC is not just the scarcest Carson City Mint Morgan, it is one of the three keys to the Morgan Dollar series. The 1885-CC is also relatively costly in low grades. An 1885-CC in Good-04 grade costs as much as $300 at retail, while the 1889-CC may retail for around $500 in Good-04 grade. In EF40, an 1889-CC would retail for more than $2,000, while an EF40-grade 1885-CC would probably retail for around $500. Only one other CC Mint Morgan, the 1893-CC, costs more than $1,000 in EF40. In grades higher than MS60, 1889-CC Morgans become dramatically expensive.

In August 2011, Stack’s Bowers auctioned a PCGS-graded MS62 1889-CC for $25,875. In June 2012, Heritage sold two with this same certification: one for $25,300 and the other, which is CAC-approved, for $29,900.

Well-worn 1889-CC Morgans are much less costly. In September 2011, Stack’s Bowers sold an NGC-graded AG03 1889-CC for $345. In November 2010, this firm auctioned an NGC-graded VG08 coin for $489.

In late 2012, Heritage sold a few 1889-CC Morgans, including two Fine-grade coins: a PCGS-graded Fine-15 coin for $881.25 and an NGC-certified 1889-CC of the same grade for $822.50. Two NGC-graded VF25 1889-CC Morgans were auctioned: the first for $1,116.25 and the second for $1,057.50. A heavily worn, not-gradable 1889-CC could probably be found for less than $300.

GSA Holders

From 1972 to 1974, and again in 1979, the General Services Administration (GSA) publicly sold quantities of Morgans, mostly Carson City issues. There was little public interest in these GSA sales. It is noteworthy now that most of the CC Morgans sold by the GSA were sealed in hard plastic holders. Each such coin could not be removed without breaking the holder. There were also some sealed in soft holders.

Many collectors pay premiums for coins in original GSA holders. In Jan. 2003, NGC began to grade coins that remained sealed in such holders. After a coin is submitted to NGC in a GSA holder, a band with information about the coin, including the grade assigned by NGC, is placed around the holder.

In Carson City Morgan Dollars: Featuring the Coins of the GSA Hoard (Whitman) by Adam Crum, Selby Ungar, and Jeff Oxman, there is a great deal of information relating to NGC-graded Morgans in GSA holders and historical information about these GSA sales. While the authors emphasize coins in GSA holders, they also cover the history of the Carson City Mint, the history of Morgan Dollars, coins in NGC holders, and popular die varieties.

Although this book serves as a price guide, estimated values for Carson City Morgan Dollars in GSA holders may also be found on the NGC website. Auction prices realized for NGC-certified Morgans in GSA holders are listed in Heritage, Stack’s Bowers, and Goldberg records.

In the past, I was not impressed with the idea of collecting Morgans in GSA holders. I now have a much more positive perspective. When a Morgan silver dollar is found sealed in a genuine GSA holder, it is evident that it has not been dipped or cleaned since the 1970s, and that it has never been doctored. As coin doctors have, on numerous occasions, successfully deceived experts at NGC and PCGS, the fact that these Morgans in GSA holders were sealed by the U.S. Government, probably before 1974, is important.

“While puttying is not a huge issue with Morgans,” John Brush encounters many Morgans that “have been a bit overly-dipped and some that have been ‘thumbed’ to remove hairlines.”

“For experts, these are fairly noticeable and the grading services have gotten better at spotting these issues as well,” John maintains. “As for artificial toning, there are Morgans that exist with this issue that are still in [PCGS or NGC] holders. The grading services have also gotten much stricter regarding toned coins and this has slowed down the number of artificially toned coins [coming] on the market.”

Concluding Thoughts

To those who collect Morgans, I recommend buying coins that have naturally toned, at least to an extent, though are not wildly toned or especially vivid. Shades of russet and assorted spots or patches of rich blue colors naturally appear on Morgan Dollars. Somewhat frequently, apricot or peach colors naturally appear as well, though usually accompanying russet shades in small bands, patches, or rings. It would not be a good idea to buy a Morgan that is entirely peach-colored. Distinguishing natural toning from artificial toning can sometimes be difficult.

A collector who regrets buying a specific coin may sell it and replace it with another. Morgan Dollars in NGC or PCGS holders are easy to sell at competitive prices. There is a vast market for PCGS- and NGC-certified Morgans, with many active dealers. In PCGS or NGC holders, Carson City Morgan Dollars are among the most liquid of all classic U.S. coins.

Beginners may wish to start with circulated Carson City Morgan Dollars or with uncirculated (MS) coins that they find to be relatively inexpensive. It is a good idea to direct questions at experts. Carefully viewing high-resolution images of coins–assuming one cannot see them in person–is important. Putting together a set of 13 CC Morgans is a lot of fun.

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