1886 Morgan Silver Dollar: The Ultimate Collector‘s Guide to Value and Rarity
As a lifelong collector and student of Morgan silver dollars, I‘ve always found 1886 to be one of the most intriguing and challenging dates in the series. Struck at three mints and with several elusive varieties, 1886 Morgans offer a little something for every collector‘s taste and budget.
But to truly understand the value and rarity of these classic 90% silver coins, we need to dig deeper than raw mintages and price charts. In this comprehensive guide, I‘ll share some of my numismatic insights and research to help you build a top-notch collection of 1886 Morgan dollars.
Table of Contents
- History and Background of the 1886 Morgan Dollar
- Mintages, Survival Rates, and Melt Losses
- Key Die Varieties of 1886 Morgan Dollars
- Population Reports and Condition Rarity Tables
- Grading 1886 Morgan Dollars and Avoiding Counterfeits
- Spectacular Examples and Auction Records
- Collecting Strategies and Market Outlook
- Frequently Asked Questions About 1886 Morgan Dollars
History and Background of the 1886 Morgan Dollar
1886 marked the 9th year of the Morgan dollar series, which began in 1878 following passage of the Bland-Allison Act. This law required the U.S. Treasury to buy up large quantities of domestically mined silver and coin it into silver dollars. It was largely a political move to appease Western mining interests, as the world was rapidly moving to the gold standard at the time.
The Morgan dollar was designed by George T. Morgan, an English engraver who came to the U.S. Mint in 1876. His elegant portrait of Liberty was reportedly modeled after Anna Willess Williams, a Philadelphia schoolteacher he met through a friend. The reverse features a perched eagle clutching arrows and an olive branch, surrounded by wreaths.
Over 31 million Morgan dollars were struck in 1886 across three mints: Philadelphia (no mintmark), New Orleans (O), and San Francisco (S). While this is a substantial number, it‘s important to remember that millions of Morgan dollars were later melted under the Pittman Act of 1918 when rising silver prices made the coins worth more as bullion than face value.
Mintages, Survival Rates, and Melt Losses
Here is a breakdown of the original mintages for 1886 Morgan dollars:
| Mint | Mintage | % of Total |
|---|---|---|
| P | 19,963,000 | 63.5% |
| O | 10,710,000 | 34.1% |
| S | 750,000 | 2.4% |
As you can see, Philadelphia accounted for nearly two-thirds of the production, with substantial mintages at New Orleans and much smaller output at San Francisco. But raw mintages only tell part of the story.
Many numismatic scholars estimate that between 48-64% of all Morgan dollars were melted under the Pittman Act. However, the survival rates varied considerably by date and mint. Q. David Bowers, one of the leading experts on silver dollars, provides these estimated survival rates for 1886 Morgans in his reference book Silver Dollars and Trade Dollars of the United States:
- 1886 P: 5-10%
- 1886 O: 3-4%
- 1886 S: 15-25%
This means that while 1886 S Morgans had by far the lowest mintage of the three issues, they actually have the highest survival rate. According to Bowers, the majority of 1886 S dollars were exported and saw little domestic circulation, protecting them from later melts. In contrast, huge quantities of 1886 O dollars were likely lost, leaving relatively few survivors compared to the original mintage.
Applying these survival estimates to the mintages above, here are the approximate numbers of 1886 Morgan dollars existing today across all grades:
- 1886 P: 1.1 to 1.8 million
- 1886 O: 360,000 to 430,000
- 1886 S: 115,000 to 190,000
Of course, these are just educated guesses. The true survival numbers could be higher or lower. But they give us a sense of the relative rarity of each issue. Now let‘s look at some of the most coveted die varieties of 1886 Morgans.
Key Die Varieties of 1886 Morgan Dollars
Morgan dollars are avidly collected by VAM variety, which refers to the Comprehensive Catalog of Morgan & Peace Dollars by Leroy Van Allen and A. George Mallis. Many of these varieties were created by minute differences in the die-making process, and some are much rarer than others. Here are a few of the most desirable 1886 Morgan VAMs:
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1886 O VAM-2A "Hot Lips" – This dramatic doubled die obverse creates the appearance of Miss Liberty having "hot lips". One of the most popular and valuable 1886 varieties, with gem examples selling for over $20,000.
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1886 P VAM-1B "Scarface" – Caused by a large die gouge or partial clash mark on Liberty‘s cheek. A neat and affordable variety in lower grades.
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1886 S VAM-1C "Tilted Reverse" – The reverse die was misaligned by about 5 degrees when striking these coins, making them appear tilted. Scarce in high grade and popular with variety specialists.
For most collectors, these esoteric varieties are "cherrypicking" opportunities rather than "must-haves". But they definitely add some spice to collecting 1886 Morgans! Speaking of grade, let‘s dive into some population data.
Population Reports and Condition Rarity Tables
Two services dominate the rare coin grading market: Professional Coin Grading Service (PCGS) and Numismatic Guaranty Corporation (NGC). They‘ve graded hundreds of thousands of Morgan dollars over the years. Here are the combined PCGS and NGC population figures for 1886 Morgans in each mint and condition range as of August 2022:
| Grade | 1886 P | 1886 O | 1886 S |
|---|---|---|---|
| MS60-62 | 2,453 | 214 | 2,325 |
| MS63 | 2,339 | 314 | 1,714 |
| MS64 | 3,189 | 380 | 1,569 |
| MS65 | 1,087 | 100 | 264 |
| MS66 | 81 | 12 | 16 |
| MS67 | 7 | 1 | 3 |
As you can see, gem uncirculated examples are very scarce for all three issues, especially in grades above MS66. This is partly due to the bagmarks and scuffs most Morgans acquired from being jostled around in bank vaults over the decades.
Since these population figures represent "certified" Morgan dollars, the actual number of surviving uncirculated coins is likely 2-5 times higher when accounting for "raw" examples. But there‘s no denying that 1886 Morgans in pristine condition are true condition rarities.
Grading 1886 Morgan Dollars and Avoiding Counterfeits
If you want to build a meaningful collection of 1886 Morgan dollars, you‘ll need to develop your grading eye. While only actual coin grading has market value, knowing the difference between AU, MS63, and MS65 will help you make smarter purchasing decisions and get more enjoyment out of your coins.
Some key factors to look at when grading Morgan dollars include:
- The number, severity, and location of bagmarks and scuffs
- The quality of the luster – is it frosty and undisturbed or dull?
- Surface preservation – are there any hairlines, scratches or cleaning evidence?
- Strike sharpness, especially on the eagle‘s breast feathers and Liberty‘s hair
- Eye appeal – does the coin have attractive toning? Is the look "fresh" or tired?
However, don‘t get too caught up in technical grade. A choice AU coin with nice color can be much more desirable than a so-so MS63. Buy the coin, not the slab.
Be cautious of counterfeit and altered 1886 Morgan dollars as well. Key warning signs include an artificial "glossy" look, mushy details in the design, and incorrect weights/diameters. Stick with certified PCGS or NGC coins from reputable dealers. If a deal seems too good to be true, it probably is.
Spectacular Examples and Auction Records
What are the "finest known" 1886 Morgan dollars? Here are some of the top examples to ever cross the auction block, along with commentary:
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PCGS MS68 1886 P Morgan dollar (11/2004) – $22,425 – An immaculate gem with swirling cartwheel luster and untoned silver-white surfaces. It ranks as the single finest 1886 P graded by PCGS. An amazing coin!
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PCGS MS67+ CAC 1886 O Morgan dollar (1/2022) – $780,000 – One of just 2 in this grade at PCGS with none finer. The Eliasberg/Stickney specimen, it‘s one of the most valuable Morgan dollars of any date. This extraordinary coin shows a razor-sharp strike, satiny luster, and gorgeous iridescent toning.
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PCGS MS68 1886 S Morgan dollar (10/2007) – $69,000 – The highest graded 1886 S by a full point, this coin has remarkable surfaces for a Morgan dollar. Notice the total absence of distracting marks on Liberty‘s cheek and neck. Spectacular quality!
While these mind-boggling prices are out of reach for most collectors, there are still plenty of satisfying ways to collect 1886 Morgan dollars without spending a fortune.
Collecting Strategies and Market Outlook
One popular way to collect 1886 Morgan dollars is as part of a complete date set from 1878-1904 (and 1921). This allows you to obtain nice examples of each date without breaking the bank, while appreciating the unique qualities of each mint and year. An 1886 P in MS63 only costs around $85 retail, while a flashy MS65 is about $475.
If you‘re on a tight budget, you could assemble a year set of 1886 Morgans in circulated grades (VF-AU). Maybe splurge a little more on a nice 1886 S. Such a set can display well and be built for under $500 with patience.
More advanced collectors often focus on a specific mint for 1886 Morgans and try to acquire the finest known examples. An 1886 O "Hot Lips" set showcasing the different die stages would be challenging and exciting to build, although some deep pockets are required!
In terms of investment potential, I think high-grade 1886 Morgans will always have a strong collector base, especially the scarce 1886 O and S issues. Gem examples with eye-appealing toning can make for savvy long-term purchases. That said, Morgans ride the silver bullion waves like any other U.S. silver coin. Don‘t expect them to massively outpace spot prices over time.
The keys are to buy quality for the grade, hold out for coins that speak to you, and don‘t overpay in hot markets. If you can do that, I believe you‘ll be well-positioned to enjoy 1886 Morgans for years to come.
Frequently Asked Questions About 1886 Morgan Dollars
To wrap up, let me address some common questions I get about 1886 Morgan dollars as a coin dealer and collector:
Q: Is an 1886 Morgan dollar rare?
A: 1886 Morgans are not rare in the absolute sense, but some issues like the 1886 S and all three mints in high grades are scarce to rare. "Rare" is a relative term in numismatics.
Q: What‘s the most valuable 1886 Morgan dollar?
A: The finest known 1886 O Morgan graded PCGS MS67+ CAC sold for $780,000 in 2022. However, gem 1886 Morgans typically sell in the $500 to $20,000 range depending on the issue and grade.
Q: Are 1886 Morgan dollars 90% silver?
A: Yes, all 1886 Morgan dollars are composed of 90% silver and 10% copper, with a net silver weight of 0.77344 troy ounces per coin.
Q: How much is an uncirculated 1886 Morgan dollar worth?
A: Uncirculated 1886 Morgan dollars are worth anywhere from $65 to $200,000+ based on the mint, grade, and eye appeal. Most Mint State examples trade in the $75 to $500 range.
Q: Where is the mint mark on an 1886 Morgan dollar?
A: You‘ll find the "O" or "S" mint mark on the reverse of the coin, just below the eagle‘s tail feathers. Philadelphia-minted coins have no mint mark.
I hope you‘ve enjoyed this deep dive into 1886 Morgan dollars. Remember, collecting coins is about the journey, not just the destination. Take your time to appreciate the history, artistry, and stories behind each coin. Until next time, happy collecting!
References
- Bowers, Q. David. Silver Dollars and Trade Dollars of the United States. Bowers & Merena Galleries, 1993.
- PCGS CoinFacts. "Morgan Dollar (1878-1921)". Accessed August 9, 2022. https://www.pcgs.com/coinfacts/category/dollars/morgan-dollars-1878-1921/744
- Newman, Eric. The Comprehensive U.S. Silver Dollar Encyclopedia. Zyrus Press, 2016.
- Yeoman, R.S. A Guide Book of United States Coins. Whitman Publishing, 2022.
