I think it's a Mint State coin, but depending on the cheek it sure looks like it'd see MS64 in a slab. That makes it a $200+ coin given that 1891-S is a conditional rarity above MS63. The VAM, although R-6, isn't especially collectible and (at the moment) probably wouldn't add to the value.
I dunno. MS63? $100. MS64? $200. You'd want your total investment, including the slab, to allow a profit on resale if you're going to slab it. Either way, I'd hold this one for 5 years while interest in VAMming picks up.
In my opinion, it's inevitable. Morgans are readily available, big and attractive. Their sheer numbers make them a more accessible target for collectors than anything except Lincolns, maybe. If the hobby expands, Morgans will follow suit.
It's my guess that, in this economy, there are many people seriously studying coins as a "safer" investment vehicle. Among them are some who will catch the collecting bug. Either way, I'm expecting Morgan demand, and therefore VAMming, to experience an upswing.