The 1878 Morgan silver dollar stands as a cornerstone of American numismatics, captivating collectors with its historical significance and potential for substantial financial value. As we delve into the world of these iconic coins, we'll uncover the factors that make them so highly prized and explore their worth in today's market.
Historical Context: The Birth of a Numismatic Legend
The Morgan dollar series emerged during a tumultuous period in U.S. monetary policy. Following the controversial Coinage Act of 1873, which effectively demonetized silver, Western mining interests lobbied heavily for a return to silver coinage. Their efforts culminated in the Bland-Allison Act of 1878, mandating the Treasury to purchase significant quantities of silver for minting into dollars.
This legislation set the stage for the Morgan dollar's introduction, with the first coins struck in March 1878. Production quickly ramped up across three mint facilities:
- Philadelphia (no mint mark)
- San Francisco ("S" mint mark)
- Carson City ("CC" mint mark)
Design Elements: A Closer Look
Obverse Features
- Portrait of Lady Liberty, based on Philadelphia teacher Anna Willess Williams
- "E PLURIBUS UNUM" motto above
- Date (1878) below
- 13 stars representing the original colonies
Reverse Features
- American eagle with outstretched wings
- "UNITED STATES OF AMERICA" along the top edge
- "ONE DOLLAR" below the eagle
- "IN GOD WE TRUST" above the eagle
Technical Specifications
- Composition: 90% silver, 10% copper
- Weight: 26.73 grams
- Diameter: 38.1 millimeters
- Silver content: 0.7734 troy ounces
The Fascinating Tail Feather Varieties
One of the most intriguing aspects of 1878 Morgans is the variation in the eagle's tail feathers on the reverse:
- Eight Tail Feathers (8TF): The initial design, quickly replaced due to criticism that the eagle appeared weak and scrawny.
- Seven Tail Feathers (7TF): The more common variety, introduced to address the concerns with the 8TF design.
- Seven Over Eight Tail Feathers (7/8TF): A fascinating transitional variety where seven feathers were engraved over the original eight.
Factors Influencing 1878 Morgan Dollar Values
Several key elements determine the value of an 1878 Morgan dollar:
- Mint Mark: Carson City (CC) coins generally command higher premiums due to lower mintage and historical appeal.
- Condition: Coins in higher grades (MS65 and above) can be exponentially more valuable.
- Tail Feather Variety: Eight Tail Feather coins are scarcer and often more valuable.
- Strike Quality: Prooflike (PL) and Deep Mirror Prooflike (DMPL) specimens carry significant premiums.
- Errors and Varieties: Certain die varieties and errors can substantially increase a coin's value.
Comprehensive Value Guide
1878 Philadelphia (No Mint Mark)
| Variety | G-4 | VF-20 | XF-40 | MS-60 | MS-63 | MS-65 | MS-67 |
|---|---|---|---|---|---|---|---|
| 7TF | $40 | $60 | $90 | $145 | $225 | $800 | $35,000+ |
| 8TF | $50 | $100 | $150 | $310 | $525 | $2,700 | $72,500+ |
| 7/8TF | $55 | $110 | $165 | $340 | $575 | $3,000 | $80,000+ |
1878-S (San Francisco)
| Grade | Value |
|---|---|
| G-4 to XF-40 | $38 – $62 |
| MS-60 to MS-63 | $85 – $140 |
| MS-65 | $400 |
| MS-67 | $10,750+ |
1878-CC (Carson City)
| Grade | Value |
|---|---|
| G-4 to XF-40 | $150 – $300 |
| MS-60 to MS-63 | $525 – $700 |
| MS-65 | $2,400 |
| MS-67 | $68,000+ |
Prooflike and Deep Mirror Prooflike Premiums
Prooflike (PL) and Deep Mirror Prooflike (DMPL) coins can command significant premiums over standard strikes. For example:
| 1878-P 7TF | Standard | Prooflike | DMPL |
|---|---|---|---|
| MS-63 | $225 | $400 | $750 |
| MS-65 | $800 | $2,850 | $6,500 |
| MS-67 | $35,000+ | $65,000+ | $100,000+ |
Rare Varieties and Errors to Watch For
- 1878 7/8 Tail Feathers: Both strong and weak overdate varieties exist
- 1878 Doubled Die Obverse: Look for doubling on Liberty's earlobe and hair
- 1878-CC Weak CC: The CC mintmark appears faint on some specimens
- 1878 Doubled Arrows: Doubling visible on the arrow feathers
- 1878 Doubled Liberty: Doubling on Liberty's profile, particularly noticeable on the lips
Expert Collecting Tips
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Authentication is Crucial: Given the high value of 1878 Morgans, consider professional grading for high-grade or rare varieties. Third-party grading services like PCGS or NGC provide authenticity and grade certainty.
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Study Die Varieties: Familiarize yourself with the subtle differences in tail feather designs and other varieties. Resources like the "Comprehensive Catalog and Encyclopedia of Morgan & Peace Dollars" by Leroy Van Allen and A. George Mallis are invaluable.
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Condition is Paramount: Mint State coins, especially those MS65 and above, often see exponential increases in value. A single grade point can mean thousands of dollars in value difference.
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Consider Carson City: While pricier, CC Morgans often hold their value well due to their historical significance and lower mintages. The 1878-CC had a mintage of just 2,212,000 compared to 9,759,000 for the Philadelphia mint.
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Look Beyond Grade: Prooflike and DMPL coins can offer substantial premiums, even at lower mint state grades. The reflective surfaces and contrasting devices make these coins particularly attractive to collectors.
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Cherrypicking Opportunities: Armed with a loupe and knowledge, you may find valuable varieties in dealer inventories or at coin shows priced as common examples.
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Preservation is Key: Use non-PVC flips or holders and handle coins by their edges to maintain their condition and value.
Market Trends and Future Outlook
The market for 1878 Morgan dollars remains robust, driven by several factors:
- Historical Significance: As the first year of issue, 1878 Morgans hold special appeal for collectors building type sets or focusing on the Morgan series.
- Silver Content: With 0.7734 oz of pure silver, these coins have inherent precious metal value, providing a floor for their worth.
- Scarcity of High Grades: Gem quality specimens (MS65+) are increasingly rare, driving up prices as population reports confirm their scarcity.
- Growing Numismatic Interest: The coin collecting hobby continues to attract new enthusiasts, supporting demand for key dates like 1878.
Long-term price trends for 1878 Morgans have generally been positive, outpacing inflation for many grades and varieties. For example, an MS-65 1878 8TF Morgan has increased from an average value of $1,250 in 2000 to over $2,700 today, representing a compound annual growth rate of about 3.8%.
However, as with any collectible market, fluctuations can occur. The 2008 financial crisis temporarily depressed prices, while the recent surge in precious metals has boosted interest in silver coins like the Morgan dollar.
Conclusion: A Timeless Numismatic Treasure
The 1878 Morgan silver dollar offers a compelling blend of historical importance, numismatic interest, and potential financial value. Whether you're a seasoned collector or just starting your journey into coin collecting, these coins provide a tangible link to an important era in American monetary history.
Remember that condition is paramount in determining value, and subtle differences in varieties can lead to significant price disparities. As you explore the world of 1878 Morgans, take the time to educate yourself, handle coins carefully, and consider professional grading for valuable specimens.
With their enduring appeal, limited supply, and the ongoing interest in American numismatics, 1878 Morgan dollars are likely to remain prized collectibles for generations to come. Whether you're drawn to their historical significance, their beautiful design, or their potential for appreciation, these iconic silver dollars continue to captivate collectors and investors alike.
