1881 Silver Dollar Value: The Ultimate Collector‘s Guide

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1881 Morgan silver dollar obverse and reverse

Introduction

For many numismatists, the Morgan silver dollar series represents the pinnacle of U.S. coinage artistry and history. And within that iconic series, the coins struck in 1881 offer some of the most intriguing and accessible options for collectors of all budgets and interests.

In this comprehensive guide, we‘ll dive deep into the 1881 Morgan dollar, examining its historical context, mintages, varieties, and values. Whether you‘re a seasoned silver dollar specialist or just starting to explore this fascinating series, you‘ll find valuable insights and actionable advice to build and enjoy your collection.

The Morgan Dollar Series: A Political and Economic Backstory

To fully appreciate the 1881 Morgan dollar, it‘s essential to understand the complex political and monetary forces that shaped the series. In the 1870s, the U.S. was still grappling with the economic fallout of the Civil War and the "Crime of ‘73" – the Coinage Act of 1873 that demonetized silver and put the country on a de facto gold standard.

Western mining interests and agrarian Populists pushed for the free coinage of silver to inflate the money supply and aid debtors. The result was the Bland-Allison Act of 1878, a compromise measure that required the U.S. Treasury to purchase between $2 million and $4 million worth of silver each month to be coined into silver dollars.

The task of designing those dollars fell to British-born engraver George T. Morgan, who created the now-iconic Liberty Head motif. And so the Morgan dollar was born, with production beginning in 1878 and continuing through 1904, plus one more mintage in 1921.

Over the course of the series, a staggering 657 million Morgan dollars were struck across five mints. However, in a strange twist of fate, millions of those coins sat untouched in Treasury vaults for decades until they were discovered and released in the 1950s and 60s. This so-called "Treasury Hoard" helped make the Morgan dollar one of the most widely collected U.S. coins today.

1881 Morgan Dollar Mintages and Statistics

1881 was a busy year for Morgan dollar production, with a total mintage of nearly 28 million coins across four mints:

Mint Mintage % of Total
Philadelphia 9,163,000 32.8%
San Francisco 12,760,000 45.6%
New Orleans 5,708,000 20.4%
Carson City 296,000 1.1%
Total 27,927,000 100%

As you can see, the San Francisco mint was the clear winner in terms of output, accounting for nearly half of all 1881 Morgans struck. Philadelphia came in second with about a third of the total, while New Orleans was a distant third.

The Carson City mint, known for producing some of the series‘ most coveted issues, had by far the lowest mintage at just 296,000 coins. That relative scarcity makes the 1881-CC a key date and prime target for collectors.

Interestingly, some portion of the 1881-S mintage – possibly up to half – remained in Treasury and bank vaults until the 1950s and 60s. This discovery of original 80-year-old bags greatly increased the supply of mint state 1881-S dollars, making them one of the most plentiful issues in high grade today.

Beyond the circulation strikes, the Philadelphia mint also produced 984 proof 1881 Morgan dollars specially struck for collectors. These coins display deeply mirrored fields, razor-sharp details, and exceptional eye appeal when well-preserved.

So how many of these millions of coins have survived to the present day? While no one knows for certain, numismatic experts have made some educated estimates based on populations in major third-party grading services:

Issue Estimated Survival PCGS/NGC Pop (MS60+)
1881 175,000-300,000 77,576
1881-CC 10,000-25,000 9,834
1881-O 250,000-400,000 45,689
1881-S 1,000,000-2,000,000 272,411

As these numbers show, even the most "common" 1881 Morgan dollar is still scarce in the grand scheme of things. Only a tiny fraction of the original mintages have been certified in mint state grades, and even fewer remain in pristine MS65 condition or better.

Case Study: The Mighty 1881-S Morgan

To illustrate the depth and complexities of 1881 Morgan dollar collecting, let‘s take a closer look at the series‘ undisputed king: the 1881-S.

Struck to the tune of 12.7 million coins, the 1881-S might seem like an odd choice to highlight. But that massive mintage belies the issue‘s true scarcity and value in high grade.

You see, the vast majority of 1881-S dollars hit hard in circulation across the Wild West. Many others were melted over the years, either in the early 20th century when silver dollars fell out of favor, or in 1918 under the Pittman Act, which called for hundreds of millions of Morgans to be converted to bullion.

As a result, only a small percentage of the original mintage survived, mostly in low circulated grades. But here‘s where the story takes a fascinating turn.

In the early 1960s, LaVere Redfield, a reclusive Nevada multimillionaire, passed away with some 400,000 Morgan dollars in his basement vault. Among that epic stash were numerous original 1,000-coin bags of uncirculated 1881-S dollars.

Other hoards like the Continental Bank find also contained thousands of mint state 1881-S Morgans. These discoveries completely reshaped the market for the issue, turning what was once a semi-key date into the quintessential type coin of the series in gem condition.

Today, the 1881-S is by far the most plentiful Morgan dollar in high grade, with over 130,000 coins certified in MS65 or better by PCGS and NGC. That might sound like a lot, but it‘s still just a drop in the bucket compared to the original mintage. And in a series where grade is everything, the 1881-S offers collectors the chance to own a spectacular gem without breaking the bank.

In MS65, the 1881-S routinely sells for around $200. Step up to MS66, and you‘re looking at $400-$500. Even in ultra-grade MS67, the coin is obtainable for most budgets at $2,000-$3,000.

But the real show-stoppers are the handful of 1881-S dollars that have been graded MS68. To date, PCGS has certified just 16 coins in that magical grade, with NGC adding 5 more. The finest known, a glorious PCGS MS68+ CAC , realized an astounding $45,825 in a 2022 auction.

That result underscores the immense pressure on quality within the Morgan series. For an issue as common as the 1881-S, only the most elite examples are truly rare and valuable. But thanks to those mid-century hoards, even collectors of modest means can own a piece of numismatic history in high grade.

Die Varieties and Errors

Like every Morgan dollar issue, the 1881 coins come with a host of minor die variations that make collecting them endlessly fascinating. Many of these variants were cataloged by Leroy Van Allen and A. George Mallis in their seminal work, "The Comprehensive Catalog and Encyclopedia of Morgan & Peace Dollars".

For the 1881 Philadelphia issue alone, VAM lists over 100 different die marriages, identified by minute differences in the dies used to strike the coins. Some of these are merely interesting footnotes, while others are highly sought-after rarities.

Perhaps the most famous 1881 Morgan variety is the so-called "Horeshoe" N reverse, known on both the New Orleans and San Francisco issues. This distinctive die gouge creates a U-shaped blob inside the second N of "ONE" on the reverse, resembling a horseshoe.

The 1881-O "Horeshoe" N is a legendary rarity, with only 3-5 examples known to exist. The discovery coin, graded PCGS MS62, sold for a staggering $44,062 back in 2014. Another example in NGC MS61 brought $38,187 in 2015.

The 1881-S "Horeshoe" N, while not quite as rare, is still a major prize for variety specialists. Only a dozen or so coins have been identified, with the finest graded PCGS MS67CAC selling for $108,000 in 2021.

Other notable 1881 Morgan varieties include the 1881-S "Doubled Reverse", where the lettering on the back of the coin appears blurry or doubled due to a misaligned die. There‘s also the 1881-O "Oval O", where the second O in the mintmark has an elongated oval shape.

Beyond these major listed varieties are countless other minor die cracks, gouges, and aberrations that make each 1881 Morgan dollar unique. For the dedicated variety collector, there‘s always another discovery waiting to be made.

Collecting Strategies and Recommendations

So with all these options and price points, where should you start your 1881 Morgan dollar collection? Here are a few key strategies to consider:

  1. Focus on quality over quantity. In a series as widely collected as Morgan dollars, true rarity and value lies in top-notch condition. Don‘t be tempted to buy a bunch of low-grade coins just to fill holes in your album. Instead, save up for the best examples you can afford, even if that means having a smaller set.

  2. Explore different collecting themes. There‘s no one "right" way to collect 1881 Morgans. You could focus on a single mint, assemble a complete 4-coin set, cherrypick exceptional toned coins, or dive deep into die varieties. Follow your interests and set achievable goals.

  3. Buy certified coins from reputable dealers. As with any valuable collectible, counterfeits and "coin doctoring" can be a risk with high-grade Morgan dollars. Stick with coins graded by PCGS or NGC and sold by well-established dealers to ensure authenticity and quality.

  4. Consider good value plays. Look for issues that seem undervalued relative to their rarity and eye appeal. For instance, an 1881-CC in MS65 might be a smarter buy than a more common date in MS67, even though the latter is technically graded higher. Use population reports and auction data to inform your decisions.

  5. Be patient and enjoy the hunt. Building a great Morgan dollar set takes time, knowledge, and persistence. Don‘t rush into purchases or get discouraged if you‘re outbid on a key coin. Savor the process of learning about the series and wait for the right coins at the right prices.

Investing in 1881 Morgan Dollars

Given their history and popularity, Morgan dollars make an appealing choice for coin investors and speculators. The series has a track record of steady price appreciation over the long term, especially for scarce dates and high-grade examples.

That said, the market for Morgans is not without its risks and pitfalls. Prices can be volatile, especially during economic downturns when discretionary spending dries up. There‘s also the ever-present threat of counterfeit or doctored coins eroding confidence in the market.

As an investment vehicle, 1881 Morgan dollars offer a few key advantages. For one, they‘re widely traded and have a deep, liquid market, making them relatively easy to buy and sell. They also offer diversification potential, as their prices don‘t always move in lockstep with stocks, bonds, or bullion.

From a scarcity perspective, the 1881-CC is probably the most obvious candidate for investment. With a mintage under 300,000 and far fewer surviving in mint state, it‘s one of the rarest Morgan dollars overall. Prices for the issue have marched steadily upward over the past few decades, with nice uncirculated examples appreciating by 200-300%.

The 1881-O is another date to watch, especially in higher grades. While not as rare as the Carson City issue, it‘s still significantly tougher than the 1881-S and commands strong premiums in MS65 and above. A choice uncirculated 1881-O with great eye appeal can be an excellent store of value.

Ultimately, though, the best reason to invest in 1881 Morgan dollars may be sheer pride of ownership. These are historic, tangible artifacts from the Wild West era that you can hold in your hand and appreciate for their artistry and beauty. In an age of digital assets and cryptocurrency, there‘s something uniquely satisfying about owning a heavy silver coin that‘s stood the test of time.

Whether you approach the series as a collector, investor, or both, 1881 Morgan dollars offer endless opportunities for discovery and enjoyment. By arming yourself with knowledge and a discerning eye, you can build a collection that will be the envy of other numismatists and a treasured legacy for generations to come.

Key References and Resources

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