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 Replies: 25 / Views: 2,894 |
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Pillar of the Community
United States
3843 Posts |
Silver Dollar Prices More Resiliant To Declines In Silver? Back when silver was at this price (low to mid $14s) in 2009 the prices of circulated Morgan & Peace dollars was much lower. I remember tubs of these coins being offered at $14 each. Are lower grade Morgan dollars much more popular today or is this another bubble that will be corrected in time. At the LCS in my area they are currently selling circulated common date Morgan & Peace dollars starting at $23 and going up from there. Your thoughts? Joe2007 |
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Pillar of the Community
United States
7375 Posts |
I think you have a point although I just did a recent search on ebay for recent sales of common circulated Peace dollars, and they are still going for less than $20 if you have the time and patience. Not sure about LCS's though, your're probably right. |
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Pillar of the Community
United States
5825 Posts |
Common date Morgans are quite affected by the silver spot, particularly if circulated.
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Valued Member
United States
343 Posts |
I've noticed the same prices at my LCS, with pre-1900 starting at 30.
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Pillar of the Community
United States
3343 Posts |
I think it's popularity more than anything - for gifts, the large size, the discontinued demomination, etc. The lower denomination 90% trade at bullion, though sometimes halves get a slight premium over quarters and dimes.
"Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
Edited by thq
12/04/2015 4:12 pm
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Valued Member
United States
467 Posts |
I was getting XF lightly dipped Morgans back then at 21, 22 when spot was 14, I was new to buying at the time so most of these Morgans are retoning now, but still have good eye appeal. VG and F at the time were going for 2-3 over spot. Haven't been there in awhile, but I think we still see 12ish, and will be looking at these again when the pricing is correct. I always rather buy xf commons for 6 or 7 over, they sell so much better on ebay. |
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Bedrock of the Community
Australia
21788 Posts |
A silver dollar has two component values to get an overall value.
1. the spot silver value, and
2. the numismatic premium value, added to the silver value.
Each component value has it's own market forces operating on it.
Same applies to all coins that have an underlying metal value (mainly silver and gold coins).
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Pillar of the Community
 United States
3843 Posts |
Quote:
the numismatic premium value I agree sel_691. I'm just unsure that the current numismatic premium that we are currently seeing on lower grade silver dollars is justified. There are literally tons of them out there and I'm not sure if something minted in such high quantities and so widely available can remain at such high premiums. I wonder if these coins are selling well at $20+ or if they are sitting unsold in dealers inventories. Junk silver premiums over spot have risen too, although not to the levels that common Morgan & Peace dollars are. I can't believe that all of that is numismatic premium. I think once silver prices maintain some level of certainty for a prolonged period of time, the large premiums that we have been seeing will subside. Edited by Joe2007
12/04/2015 6:47 pm
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Bedrock of the Community
Australia
21788 Posts |
Current market demand can and does dictate both the bullion component and the numismatic premium component.
The best way of analyzing the variation of these two components is to look at the market trends for each.
Overall silver dollar prices for condition and rarity can be found. The historic spot silver price is very well charted.
The numismatic premium component can be derived by subtracting the spot bullion value from the ovearll coin value.
The numismatic premium value can thus also be charted and a value for it at a particular point in the price history can be found.
There is never a constant ratio of bullion value to numismatic premium value over time, for a particular coin.
So I can easily understand why the question by the OP was asked.
Edited by sel_69l
12/05/2015 07:27 am
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Pillar of the Community
United States
819 Posts |
so I should buy all of the Peace dollars that my LCS is asking 17 dollars each. |
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Pillar of the Community
United States
7375 Posts |
That's 17X face. Is that a good deal for Peace dollars? Are they considered junk silver? Edited by edweather
12/04/2015 9:33 pm
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Pillar of the Community
United States
3843 Posts |
Quote:so I should buy all of the Peace dollars that my LCS is asking 17 dollars each. I believe that $17 is a decent deal for Peace dollars although I'm not sure I could advocate for purchasing many at that price. The LCS I mentioned in my opening post was purchasing a bunch of Morgans from a lady when I walked in a few weeks ago and was buying them from her for $13 each. That seemed a bit low seeing that they were offering them for sale for $23. Nothing against coin dealers, I know that they need to make a living but it kind of underscored the margins on these. |
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Pillar of the Community
United States
819 Posts |
edweather I wouldnt call them junk. but what do I know. may have to go pick some up tomorrow.
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Pillar of the Community
United States
7375 Posts |
Yeah, I think they fall above the junk category. Sounds like a good deal.
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Bedrock of the Community
United States
17884 Posts |
Silver dollars do rise and fall I value due to the spot metal price, When silver rises they rise right along with it, but as rises the premium over spot tends to decline. When silver falls the prices of the dollars falls as well but at a slower rate and the premium increases. But once the spot price stops falling the price of the dollars will continue to slowly fall and the premium will gradually reduce.
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Pillar of the Community
United States
1450 Posts |
Large gold coins really fall and rise with the spot market. If you look at historic values they have a long way to fall to get back to average price over last 40 years. Silver just does not have as long a way to fall even though the prices could fall 50% from here depending on many variables.
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Replies: 25 / Views: 2,894 |
Posted 12/04/2015 3:00 pm
