When this article was originally published, Atlanta Gold & Coin described a discussion with a repeat customer about whether American silver eagles or Morgan silver dollars better suited his long-term goals, risk tolerance, and time horizon. The article noted that there are many parallels between coin dealers and investment advisors and expressed Atlanta Gold & Coin’s view that coin dealers had a fiduciary responsibility to customers’ interests rather than steering them toward our highest profit margin items. What follows is the original article’s summary of the discussion, factors considered, and the customer’s eventual choice.
The customer described in the original article had only recently begun buying and collecting coins. His interest in silver began at Christmas, when he received several Morgan silver dollars and immediately became enthusiastic about them. He later contacted Atlanta Gold & Coin, at the time of publication, to schedule an appointment to expand his Morgan dollar collection. He said he appreciated their historical significance and also wanted silver as an inflation hedge. Although he then intended to buy Morgan dollars, the article said Atlanta Gold & Coin also discussed lower-premium alternatives, including American silver eagles and 90% silver coins, if inflation hedging was the main purpose.
A few weeks after the first purchase, the customer again contacted Atlanta Gold & Coin and expressed interest in another silver-coin purchase. This time, he was willing to consider choices other than Morgan silver dollars. The original article said the discussion covered the pros and cons of Morgan dollars and American silver eagles so he could reach an informed decision. Its brief summary of that conversation follows:
Morgan Silver Dollars
- At the time of original publication, the article described the following: Pros. Morgan silver dollars are among the most attractive and collectible coins made by the U.S. Mint, and arguably by world mints more broadly. Both silver-bullion investors and coin collectors seek them, making them highly marketable. Many were melted over the years, so original mintage totals do not accurately show how many still exist. Key-date Morgan dollars especially can sell for many multiples of the coins’ underlying silver content.
- Cons. Morgan silver dollars have broad appeal and collectible value, so they generally carry a meaningful premium over melt value. They also contain less silver than American silver eagles: .774 troy ounces. Demand and premiums can move in cycles, making market awareness important. The original article further warned that counterfeit Morgan silver dollars are floating around the market, meaning purchasers without strong counterfeit-detection skills or a trusted local dealer could buy worthless coins.
American Silver Eagles
- Pros. American silver eagles are the United States’ official silver bullion coin. Nearly one billion had been produced since 1986, making them one of the most extensively minted modern silver coins. The original article reported record sales of 43 million ounces in the preceding year and said the pace in 2014 had not slowed. It explained that greater production and circulation can broaden the potential market at sale. Each eagle contains exactly one troy ounce of silver, simplifying value calculations, and replicas existed but were reportedly far less prevalent than counterfeit Morgan dollars.
- Cons. Although American silver eagle premiums were lower than Morgan dollar premiums, they remained higher than some alternatives, including 90% silver coins. The original article said that if silver rose to $100 or more per ounce, as many silver experts were then predicting, eagles might not sell for more than generic rounds and bars. In other words, a seller might not realize a premium, depending on silver’s price at that time.
After considering the advantages and drawbacks of Morgan silver dollars and American silver eagles, the customer decided that inflation hedging was his main reason for purchasing silver coins. The original article reported that he therefore bought several rolls of American silver eagles. He intended to retain his Morgan dollars and hoped they would appreciate over time as silver prices rose and more accurate information about coin survivorship emerged.
In conclusion, the original article recommended assessing the reasons for purchasing silver coins before entering a transaction. In the example above, the customer concluded that American silver eagles better fit his purpose because he primarily viewed them as an inflation hedge. It also acknowledged that many collectors prefer Morgan silver dollars. The article advised readers to evaluate choices and reasons objectively, and not allow a dealer or broker focused on personal interests to pressure them into a decision they did not fully accept.
