Numismatic Opportunities Amid Soaring Gold And Silver Prices

The huge increases in gold and silver prices over the past three years have boosted the prices of gold and silver coins that were largely traded on the basis of their precious metal content. Many coins, such as common-date U.S. Morgan and Peace Silver Dollars and $5 to $20 Pre-1934 U.S. Gold issues, have risen in price, while the scarcer issues have tended to lose a lot of the “numismatic premium.”  In addition, prices have tended to rise in lower-grade issues to a greater degree than for higher-grade specimens.

Here are a couple of quick examples. At the beginning of June 1989, the Greysheet bid for a Type 3 $20 Liberty in Extremely Fine condition at $392, while a Gem Mint State-65 piece was bid at $13,250. At the COMEX close on Friday, Dec. 26, 2025, the company where I work was quoting a retail selling price for the Extremely Fine Type 3 $20 Liberty at $4,710, while our retail price in MS-65 quality was less than 8 percent higher at $5,080! The 1881-S Morgan Dollar at the beginning of June 1989 was bid at $60 in Choice Mint State-63 quality, while the Gem MS-65 example was bid at $525. As of Friday last week, our company’s retail selling prices for the 1881-S Morgan in MS-63 and MS-65 condition were $90 and $182, respectively.

Today, Morgans such as the 1896, 1898, 1900, 1900-O, 1901-0, and 1902-0 that were bid at the beginning of June 1989 at prices ranging from $675 to $1,275 can today be purchased close to or at the exact same price as the 1881-S. That is true even though the combined PCGS and NGC populations for all pieces graded MS-65 or higher for the 1881-S date are more than seven to more than 13 times greater than the populations of these other dates.

If you look at the $20 St Gaudens series, the 1924 date has a combined PCGS and NGC population in Choice Mint State-63 and higher grades that is more than 100 times that for the 1911, 1912, and 1913 issues in the same quality. Yet you can acquire these much scarcer issues in MS-63 condition for maybe only 5 percent to 10 percent more than you would pay for the MS-63 1924 date.

At some point, gold and silver prices will plateau, though that may not happen until they reach far higher levels than they are today. Once the gold and silver markets attain a relative equilibrium, I anticipate that at least some of the past numismatic premiums above the price of common date issues will return.

You can access the PCGS and NGC populations online to conduct your own analysis to identify significantly scarcer coins that you can acquire today at or close to prices of the common dates in the same grade.  Further, some coins in higher grade may also someday regain some of their past higher collector premium above lower quality examples. By holding such opportunities for the long term, you may not only share in the rise in value of the silver or gold content, but may also see bonus appreciation with the return of some numismatic premium.

Last time I asked—Why did the U.S. Mint cease striking 40 percent Silver Half Dollars for circulation after 1969?  The Coinage Act of 1965 removed all silver from circulating dimes and quarters and reduced the silver content of half dollars from 90 percent to 40 percent. Sections 301 to 303 of this law established a Joint Commission on the Coinage in the federal Executive Branch. Chaired by the Treasury Secretary, the Joint Commission included the Commerce Secretary, the Budget Director, the Mint director, six members each of the U.S. House of Representatives and the U.S. Senate, plus eight public members who did not have any financial conflicts of interest. This Commission was to make periodic recommendations to the president, the Treasury Secretary, and Congress on issues included in the Coinage Act of 1965.  In 1969, with the value of the silver content in the 40 percent silver half dollars approaching face value, the Joint Commission recommended that silver be removed from the half dollars. In a bill signed into law on Dec. 31, 1970, both the Kennedy half dollars and the new Eisenhower dollars to be put into circulation starting in 1971 were specified to have no silver content.

Here is this week’s question. What U.S. coin denomination has been struck for circulation in the greatest number of years? Come back next week for the answer.

Patrick A. Heller was honored as a 2019 FUN Numismatic Ambassador. He is also the recipient of the American Numismatic Association 2018 Glenn Smedley Memorial Service Award, the 2017 Exemplary Service Award, the 2012 Harry Forman National Dealer of the Year Award, and the 2008 Presidential Award. Over the years, he has also been honored by the Numismatic Literary Guild, Professional Numismatists Guild, National Coin & Bullion Association, and the Michigan State Numismatic Society. He is the communications officer of Liberty Coin Service in Lansing, Michigan, and writes “Liberty’s Outlook,” a monthly newsletter on rare coins and precious metals subjects. He now volunteers with the National Coin & Bullion Association as its Industry Issues Advisor.  Past newsletter issues can be viewed at www.libertycoinservice.com. Some of his radio commentaries, "Things You ‘Know’ That Just Aren’t So,” and “Important News You Need To Know,” can be heard at 8:45 a.m. Wednesday and Friday mornings on 1320-AM WILS in Lansing (which streams live and becomes part of the audio archives posted at www.1320wils.com).

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