Newbie question about future value of Morgans.

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docmike464

New Member
I like collecting Morgans and Peace Dollars. My question is if it is wiser right now with silver is this low to forgo the Morgans and concentrate on eagles and silver bullion? This is my reasoning. I believe like many silver will go high, one year, two years, five years who knows but I am in for the long term. If I buy an oz of silver now lets say for $20 and it goes to $100 one day thats great. If I buy a generic Morgan BU for say $40 today, when silver goes to $100 dollars the melt value of the Morgan will be about $77. Will the fact that it is a numismatic, cause it be worth more than that? Instead of the Morgan I could have bought two oz's of silver for the same price and have 2oz X $100 = $200 vs a Morgan that will probably be worth $77 dollars. Thats a $133 dollar value swing. Now multiplied by 10 or 50 and that's thousands of dollars. Is it better to sell off the Morgans and buy bullion? Am i seeing this right? or is there a flaw in this thinking? Comments appreciated!
 
Morgans should have better downside protection, but no way would I pay $40 for a generic silver dollar. Find out what Morgans sold for in April, 2011 and you should be able to better project what they would do at $100 silver.
 
docmike464 said:
I like collecting Morgans and Peace Dollars. My question is if it is wiser right now with silver is this low to forgo the Morgans and concentrate on eagles and silver bullion? This is my reasoning. I believe like many silver will go high, one year, two years, five years who knows but I am in for the long term. If I buy an oz of silver now lets say for $20 and it goes to $100 one day thats great. If I buy a generic Morgan BU for say $40 today, when silver goes to $100 dollars the melt value of the Morgan will be about $77. Will the fact that it is a numismatic, cause it be worth more than that? Instead of the Morgan I could have bought two oz's of silver for the same price and have 2oz X $100 = $200 vs a Morgan that will probably be worth $77 dollars. Thats a $133 dollar value swing. Now multiplied by 10 or 50 and that's thousands of dollars. Is it better to sell off the Morgans and buy bullion? Am i seeing this right? or is there a flaw in this thinking? Comments appreciated!
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I took 10 Morgan and 10 Peace dollars with me to the coin show yesterday, just common date but really nice uncirculated...just for that very purpose of turning them into cheap silver.
I got 35 each for the 10 Morgans, and 25 each for the 10 Peace....actually no cash was exchanged...he just gave me 3 brand new Scottsdale 10 0z Stackers....basically making them 200 each.

I was extremely happy to turn that common date roll of silver dollars into 30 oz's of premium Scottsdale stackers.
 
I would buy what you like to collect. That way no matter if spot goes up or down you have something you appreciate.
 
Thanks for your reply. I investigated and found that they did not have any significant premium over what they normally would have had. There was no spike in value of the Morgans. I am thinking that buying bullion at the best price possible is the key and if that means having to liquidate Morgans (Except the ones and really, really cannot replace) to buy more bullion is the key. Then once silver adjusts maybe buy back some Morgans. Still hashing out a plan. Any other ideas?
 
docmike464 said:
Thanks for your reply. I investigated and found that they did not have any significant premium over what they normally would have had. There was no spike in value of the Morgans. I am thinking that buying bullion at the best price possible is the key and if that means having to liquidate Morgans (Except the ones and really, really cannot replace) to buy more bullion is the key. Then once silver adjusts maybe buy back some Morgans. Still hashing out a plan. Any other ideas?
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Don't get rid of the ones you really like, that you will regret...I got top dollar for some CC's a while back...even so I kick myself in the rear for letting them go.
 
If you are in US, I wouldn't pay $40 for a generic/common Morgan/Peace. That's paying over the top, and you won't get ahead regardless buying modern bullion or old silver coin if you have to pay over the top.
 
+1 on the thought about $40 being over the top BU common date Morgans. Basing my read from prices in my area, that was overpriced by >20% when spot was ~$20. As said above, prices on decent Morgans don't drop as badly when spot tanks---they tend to drop slower and not as badly. IMO, the better time to buy BU-AU Morgans is when spot is up. Stay away when spot is down, because their prices stay higher and they're a less desirable buy.
 
If you are convinced that silver will go to da moon and you are convinced that you will not have to sell before it does and you are convinced that you can find a buyer who will pay you at least spot for your silver at the time you need to sell, swapping for blobs (common, non-denom, bullion bars and rounds) is fine.

Keep in mind though that we already know from at least one longer term stacker here in this forum that you can't always find a buyer for blobs and if you do, you may not even get spot for your blobs. At least with Morgans and Peace Dollars which are truly uncirculated and in very good condition, they will likely always be valued semi-numismatically if future sentiment mirrors past sentiment.



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