Investing in the History of the Morgan Silver Dollar

The Morgan silver dollar has played a big part in the history of the United States. Having been minted and used for circulation from 1878 to 1904, stopped and then minted again in 1921. The Morgan silver coin is valuable both for its base material and its historical value. As a collector, you may be interested in the Morgan Dollar for it’s historical past. That hunger to not only know more, but to invest in its history and therefore reliability, is probably what lead you here today.

Let’s talk about the history, why it’s a reliable investment and the material itself. We will follow the Morgan Silver Dollar trends of the past, present and future.

History Repeating Itself – The Interesting Past

The 1873 Coinage Act caused the United States to have its currency directly tied to Gold, since Silver was then demonetized. This sudden move, impacted the economy greatly. Farmers now had to pay more due to the increases in interest rates. Interest rates were directly affected by the decrease in the money supply. Farmers were negatively affected, this was attributed to farming’s inherent heavy cost, due capital-intensive operations in agriculture. Some would say that the actions taken by the Coinage Act was the beginning of the end of the dollar’s strength – not true in many cases.  Once demonetized, silver plummeted and in the meantime, the Coinage Act continued to further drained the GUSTO! Out of the American economy, pushing it into an even deeper recession.

To help buoy the economy, as well as calm the farmers and miners, the Bland-Allison Act in 1877 was enacted. The Bland-Allison Act returned the United States to a bimetallic standard country, with coins using both Gold and Silver.

Due to the specific clauses in the legislation of the Bland-Allison Act in 1877, the Treasury was forced to buy silver every month at around two million dollars of silver, with the price being tied at 16 ounces of silver for 1 ounce of gold. During this time, a big silver mining boom followed with the discovery of rich silver veins in Nevada and other states. This led to the flooding of silver in the market which was then dumped into the treasury. This contributed further to inflation and therefore, a deep recession. With such a crippling recession, the minting of silver was stopped in 1893. The silver reserves were then minted again in 1918 and buying and minting silver was resumed shortly in 1921. This was short lived, it was eventually stopped for good.

The Morgan Silver Dollar

The Morgan Silver Dollar is the result of the Bland–Allison Act and is designed by George Morgan. A Morgan Dollar is 90% Silver and 10% copper, being termed as Cartwheels because of their dimensions. This is an aesthetic coin reminiscent of cowboys slinging guns, the sound of trains and the wild west.

The Morgan Silver Dollar is dubbed as the King of Silver Coins due to its popularity and its purity. While some silver coins are much purer, no other coin carries a much bigger historical value and aesthetic.

Silver: Not All That Glitters is Gold

Silver by itself is already a great store of value as well as being an important industrial material. This stable and constant demand is proven by how the price of silver moves. In fact, the price of silver is trading at a stable and tight range for 2017. This was highlited in the “Trends of Gold & Silver After the New Administration”. Silver opened in the year at around $15.50 per ounce and entered the 2017 high of $18.50 per ounce at around April 2017. Silver then ended the year at around $17.19. As of February 2018, the price of silver has hit the resistance levels and is going down, and if the trading price range is still valid, the price of silver should still reliably continue its sideways movement in the market.

What does this mean for your Morgan Silver Dollars? Barring any global negative event, silver should continue to remain in a reliable trading range which means that Morgan Dollars at the minimum can have a stable price and even have a higher chance to increase since the value of its collectability goes higher.

If you are interested in investing in silver, now is the time to think about your options. With the recent volatile stock market we are experiencing in 2018. And investor fears of inflation, can cause the price of silver to increase when they all begin to hedge in order to protect their assets.  Having a Morgan Silver Dollars makes a much better investment, it contains both inherent silver value and the added worth of being collectible. Plus, historically, when the dollar weakens, the price for precious metals goes up.

The Future of the Morgan Silver Dollar

As what can be seen in the price chart of silver above, any financial investment related to silver can be deemed as a safe haven for storage of value. What the Morgan Silver Dollar adds is its historical and aesthetic characteristic. As more collectors become enamored with historical coins, the market for Morgan Silver Dollars grows. This makes the Morgan Silver Dollar a great investment tool.

The Numismatic value of the Morgan Silver Dollar is quite high. With a sizeable yet limited numbers in the market, the Morgan Silver Dollar is a great way to fight against inflation with a long time tested metal.