The Story of Carson City Morgan Silver Dollars in GSA Holders

When this article was originally published, 144 years had passed since production of the first Morgan silver dollar. Even after that long period, the coin remained among the most widely collected U.S. issues. Adding to that appeal, Carson City Morgan dollars were often viewed by collectors as especially elusive prizes. Morgan dollars struck at the Nevada Carson City Mint between 1878 – 1885 and again from 1890 – 1893 were among the numismatic coins most sought after in the hobby. Their appeal partly reflected the limited Carson City Mint output and the generally worn condition of surviving examples. Many had reportedly circulated in Las Vegas slot machines, making mint-state or uncirculated pieces harder to locate.

Still, a small number of coins in uncirculated, mint condition emerged in a hoard discovery. Among that group, only the discovered Carson City silver dollars were placed in the distinctive Government Services Administration—GSA—holders.

Since high-grade examples can be difficult to locate, Carson City silver dollars in GSA holders drew particular collector interest. The coins were sealed in rigid plastic holders and were guaranteed authentic by the U.S. Mint.

Beyond the rigid plastic holder, these coins were sold by the Government Services Administration, or GSA, at auctions in the early 1970s for about $30 each. Their original presentation also included a hinged black box and a certificate of authenticity.

At the time of original publication, the article described the following: When originally published, this article invited readers to continue for background on how GSA Carson City silver dollars came to exist, how many coins by year were discovered at the New York Federal Reserve, their relative rarity and value, and the small distinctions that could influence the prices associated with these notably collectible coins.

Why Were GSA Holders Used Only for Carson City Silver Dollars?

GSA-housed Carson City silver dollars did not result from a deliberately planned program. Most were believed to have been melted or lost, then were discovered only after the U.S. Mint ended redemption of silver certificates for silver dollars, a program that ceased in 1964.

After that program ended, the Federal Reserve located a large cache of silver dollars whose existence had not previously been known. The hoard was estimated at 3,000,000 coins, including roughly 84% Carson City silver dollars. Put another way for readers following the arithmetic, nearly 2.5 million Carson City Morgan dollars were found. When this article was originally published, readers wanting more information about the effect coin hoards can have on values were directed to this article.

The share of Carson City dollars in the hoard, compared with each year’s total Carson City mintage, ranged from .17% to 84.6%. Because many Carson City dollars were thought to have been melted following the Pittman Act of 1918, the arrival of so many additional coins on the market clearly affected established coin prices.

Background on GSA Holders

Atlanta Gold & Coin had spoken with coin dealers and former dealers active during the 1970s about the discovery of this substantial hoard. With so many coins issued in GSA holders, and with the holders requiring considerable storage space, many dealers who bought them reportedly removed Carson City dollars from their cases and threw the cases away.

At the time of original publication, the article described the following: It is tempting to hope that most coins removed from their holders dated from 1882 – 1884, the most common issues. That was the hope, at least. More realistically, however, some likely came from years with fewer representatives in the hoard and could later have brought hundreds, or even thousands, of dollars more.

At the time this article was published, dealers were less likely to follow those same practices, although the holders and black boxes still occupied significant space. The original article noted that the holders most likely to be discarded then were those containing lower-quality coins, a distinction discussed in the following section.

Coins Found by Year

• The 1890-CC Morgan Dollar:

  As noted earlier, Morgan dollars struck at the Carson City Mint are much scarcer than issues made at most other mints.

  Somewhat ironically, the hoard yielded its smallest Carson City quantity from 1890: just 3,950 coins. Although 1890 produced more Carson City dollars than any other year, with a total mintage of 2.3 million, only 3,950 examples of the 1890 Carson City dollars appeared in the discovery. In GSA holders, that limited number made them relatively valuable and sought after. Since Carson City coins in good or better condition can be difficult to find, such examples were rare for 1890.

• The 1884-CC Morgan Dollar:

  The discovery raised the value of certain 1890 Carson City Morgan dollars, but it had the reverse effect on 1884 issues. Before the hoard was found, the 1884 Carson City dollars had been considered relatively scarce. Yet the discovery contained the largest group—962,000 coins. That represented nearly 85% of all 1884 Carson City dollars produced, showing they were more common than had been believed.

  Owners of 1884 Carson City dollars likely found the early 1970s release difficult: nearly one million coins entered the market, leaving this issue the most common and least valuable CC dollar. At the time of publication, they generally traded only modestly above raw uncirculated examples. Ouch!

That covers the two ends of the range and the hoard’s positive effect on 1890 coins, alongside its negative effect on 1884 coins. Many dates fell between those extremes. Substantial groups of 1882 and 1883 Carson City dollars were also identified and, unsurprisingly, then traded at rates similar to plentiful 1884 silver dollars.

More valuable than issues from 1882 – 1884, but generally trading at comparable levels to one another, were the 1880-cc, 1881-cc, and 1885-cc dollars. Similar quantities of each were found, ranging from 131,000 to 148,000. Nevertheless, some years gained value after the hoard’s discovery.

• The 1878-CC Morgan Dollar:

  At the time this article was published, these coins traded somewhat above several of the dates discussed so far, despite a total production of 2.2 million pieces. The hoard included 60,993 coins, equal to slightly less than 3% of the overall number produced.

• The 1891-CC and 1879-CC Morgan Dollars:At the time of original publication, the article described the following:

  Among other especially small hoard totals were the 1891-cc Morgan dollar, with 5,687 coins, and the 1879-cc Morgan, with 4,123 coins. Because they were scarce, GSA-holder examples traded at substantial premiums over unencapsulated coins. Though the count of 1879 Carson City dollars exceeded the 1890 total, it nevertheless sold for considerably more, regularly approaching twice the level of 1890 GSA dollars when originally published.

Small Differences in Holders and COAs

For a long time, collectors treated all GSA silver dollars as essentially alike. Over the years, however, they came to recognize subtle variations that can affect a coin’s value.

Not every Carson City silver dollar from the GSA hoard was brilliantly uncirculated. Quite a few displayed significant bag or handling marks, unattractive toning, or an overall appearance that did not match that of the more appealing pieces.

For that reason, the GSA divided the coins into two groups. Higher-end coins were encapsulated in holders marked “Uncirculated”, while holders for lower-condition pieces did not identify a condition. In addition, each higher-end coin received a numbered COA; lower-quality coins came with a blank COA.

As might be expected, the two groups traded at separate price levels. At the time of publication, some collectors were selective enough to invest only in coins accompanied by the “uncirculated” version.

Do COAs Make a Difference?

For most collectibles, certificates of authenticity—more often called “COAs”—help support the value of an investment. The same was true of GSA Carson City silver dollars, although for certain coins the COA carried more importance than it did for others.

Because GSA Carson City silver dollars dated 1878 and from 1880 – 1885 were fairly common, a COA was less crucial with those dates. A COA was still preferable, but the discount for a missing one was modest. At the time this article was published, offers were expected to be $10 – $25 lower for coins from those years without COAs.

By contrast, certificates of authenticity from 1879, 1890, and 1891 carry considerable importance and may influence the value of GSA coins by as much as $450. At first glance, a missing COA may not seem likely to create such a meaningful price difference. It nevertheless illustrates how strongly collectors value original government packaging when they acquire these pieces.

For that reason, the COA should be retained even when a coin is sent to NGC or PCGS for professional grading. It will be separate from the coin’s holder, yet a serious collector will often ask for this apparently minor paper document before proceeding with a purchase.

Certified GSA Carson City Silver Dollars

Certification can increase the value of GSA Carson City silver dollars, although this generally applies only to coins graded MS64 or higher. Most ungraded GSA silver dollars trade at rates comparable to pieces graded MS63 or below.

Historically, PCGS removed coins from their cases and indicated on the label that they came from the GSA hoard. NGC used a different method for certifying these coins: it kept the case intact and placed a “band” around it showing the number and letter grade. Collectors commonly call these “NGC banded” silver dollars. More recently, as originally reported in this article, PCGS developed special cases that hold coins within their holders and help protect the original case from damage.

As noted earlier, the COA remains important even when GSA silver dollars are submitted for certification. Certified examples without a COA generally trade at a discount, particularly coins produced in 1879, 1890, and 1891.

Summary

To summarize, this article covered the engaging history of the hoard’s discovery, its effect on the original values of many Carson City coins, and the many features of GSA Carson City Morgan silver dollars that help explain these collectible pieces. It also reviewed how the coins were distributed to the public and the coin-dealer community’s general dislike of the cases during the 1970s.

At the time of original publication, the article described the following: The article also presented general figures for every year of Carson City silver dollar found in the hoard, including issues uncovered in large quantities that consequently have tended to trade at lower levels.

It then examined the holders’ and COAs’ subtle differences, why COAs matter particularly for lower-mintage coins, and the ways certified examples can add value to coins that are already highly sought after.

When this article was originally published, Atlanta Gold & Coin Buyers described itself as knowledgeable about Carson City silver dollars, particularly GSA examples. The original article stated that the business had bought and sold thousands over the years and had the experience to help owners realize more for their coins. When it was published, readers ready to sell your Carson City silver dollars were invited to contact us for the stated best rates and industry-leading customer service.

At the time of publication, readers were invited to call at 678-498-6165!

Happy Treasure Hunting!