Deep Mirror Prooflike Morgan Dollars

The Epitome Of Old West Cartwheels – And A Great Value To Boot

Morgan dollars are arguably the most popular and widely collected U.S. coin of all, and Deep Mirror Prooflike (DMPL) specimens are the epitome of the minter’s craft. The hallmark of these coins are the gleaming mirror surfaces that they possess, which can range from moderately reflective with little or no contrast between the fields and devices to sublime ultra-deep mirror fields with snow-white devices that provide a profound black and white contrast. The latter variety is the most highly coveted of all the DMPL dollars. To expand upon the topic there are three distinct categories of Deep Mirror Prooflike Dollars, which are as follows.

Cameo Prooflike: This is a coin wherein the reflective finish is confined to the fields, while the devices retain the natural mint frost of the silver, providing a very striking contrast. Cameo prooflikes are the result of highly polished dies, which during the basining process, the field of the die was polished by holding the die face against a slowing revolving zinc lap that imparted a high polish to the fields while having no impact whatsoever upon the devices. The first several hundred coins struck from a freshly prepared die would produce cameo prooflikes, while the effect would diminish as more and more coins were struck from the same die.

Brilliant Prooflike: This is a coin wherein the reflective mirror finish is evident in both the fields and devices. The fields may be every bit as mirror-like as those found on a cameo prooflike but will seldom appear to be as deeply reflective due to the lack of contrast between the fields and devices.

Gray Brilliant Prooflike: The hallmark of a gray brilliant prooflike dollar is its subdued luster. Although adequately reflective to qualify for DMPL status, such specimens will not evidence the dazzling silvery brilliance of a cameo or brilliant prooflike dollar. As such, you may expect to find no contrast between the fields and devices whatsoever, although I did purchase a PCGS MS65 DMPL 1900-P last year at the 2005 FUN show that exhibited a rather obvious cameo effect and was the finest example of this date that I have ever encountered. Gray brilliant prooflike dollars are most often confined to the post-1900 issues, although there are earlier dates that sometimes exhibit gray brilliant prooflike characteristics. A final anomaly worth mention here, that impacts some of these later dates is the presence of die polishing hairlines in the fields that the less experienced DMPL collectors may mistake for whizzing or cleaning. I have personally encountered this anomaly on 1900-P, 1900-O, 1901-O, 1902-O, 1903-P and 1904-O dollars.

Regardless of the variety, these rare numismatic treasures are the product of freshly prepared, highly polished dies and are among the earliest strikes produced at the mint. As more and more coins were struck the mirror surface effect would gradually diminish culminating in frosty mint luster, which varied among dates from an almost satin sheen to coruscating luminescence.

To merely state that Deep Mirror Prooflike dollars are considerably more rare than their frosty brilliant uncirculated counterparts would be a gross understatement. As I was preparing the tables that follow, I discovered that MS65 DMPL’s accounted for a scant .019% of all the MS65 Morgan dollars certified by PCGS – that’s less than two-tenths of one percent, and when one compares the price differentials, it’s fairly easy to understand why I referred to them as “a great value to boot” in the subtitle

Without further adieu I would like to present two tables, one that is a comparative price and rarity analysis for PCGS MS65 and PCGS MS65 DMPL Morgan dollars and another that analyzes dollar value and population growth for PCGS MS65 DMPL dollars from September 1997 (when I first authored an article on the subject for the September 12, 1997 issue of the COIN DEALER newsletter MONTHLY SUPPLEMENT) through February 2006. For the compilation of these two in-depth analyses I utilized the 02/10/06 issue of the COIN DEALER newsletter (CDN) for price quotes as well as today’s (02/22/06) PCGS Online Population Report for the census figures.

Before I begin my discussion of the information presented above, I’d like to point out the fact that I intentionally did not include the current CDN MS65 DMPL bid price for the 1893-O and 1895-O dollars because there were no bid prices listed for either in the September 1997 issue of the CDN, rendering any price comparison based on this publication meaningless. Moreover, I omitted the CDN bid prices for eighteen other dates as well because no MS65 DMPL’s have been certified by PCGS thus far — I’ve always been amazed by published bid prices for non-existent coins. Oh well, it’s time to move on.

Writing in the September 12, 1997 issue of the COIN DEALER newsletter MONTHLY SUPPLEMENT I said that MS65 Deep Mirror Prooflike Morgan Dollars represented one of the most undervalued areas of the rare coin marketplace at the time. Since then the overall DMPL market has increased in value on average of 47.6%, which is not all that impressive when one considers the time frame involved, nine years and five months to be more precise. However, a number of the more readily available dates (nineteen different issues to be exact) turned in very respectable performances ranging from a 104.8% gain to a whopping 393.3% increase over nine and a half years, led by the ever popular Carson City dollars. The best part is that these coins were available and you could have acquired all of them with just a little effort and a reliable source.

Okay, hindsight is always 20/20 so where do we stand today? I don’t have a crystal ball or seer stones so I have to rely upon my intuition and experience, which tells me that many DMPL dollars are still undervalued today, some of them grossly so. One only has to ferret out the issues with the most promise. Now I don’t fancy myself as an investment advisor, nor do I wish to become one – I’m just a coin dealer who’s actively participated in this market for over thirty-three years and feel that I am in a position to provide you with the type of information that will help you to make a informed, prudent decision on your own behalf. Having said that, the population figures presented above reveals that the supply of PCGS certified MS65 DMPL dollars has increased by just 1,382 coins over the past nine and a half years. Now here’s the really interesting part. The fact is, nearly eighty percent of that increase in supply (1,051 coins) can be attributed to just ten of the most common dates within the series, which tells me that there’s plenty of gold in them hills to be mined. Moreover, a number of lower population, yet still relatively obtainable and not overly expensive issues are beckoning – dates that lagged behind the CC’s and common dates in terms of appreciation over the past decade.

I prefer to approach the acquisition of DMPL dollars from a collector’s point of view, but I am aware that there are those among you who may choose to view it from a primarily financial perspective. Although I don’t personally endorse this approach, the two tables above can be excellent tools to use for the purpose of identifying the issues with the most promise. As a general rule of thumb begin by eliminating those dates that have posted the largest gains already, as well as any issues that aren’t realistically available due to extremely low population numbers. Next, carefully study the comparative price and rarity analysis for MS65 and MS65 DMPL dollars and then target coins with favorable rarity/premium ratios — for example, the PCGS MS65 DMPL 1886-P dollar. This particular issue has a total PCGS population of 118 coins (reasonable availability), shows an 88.6% nine and a half year return (significantly lower than the best performers) and a very favorable rarity/premium ratio (a rarity factor of 99.2X compared with a premium factor of just 5.0X). In the end, half of the formula that leads to success will be availability, because even if everything else falls into line — if you can’t buy the coin, you won’t be able to participate. The other half of the formula is staying power. If you don’t posses the means that will allow you to choose the time to sell, you just may come up wanting.

As you begin your quest to seek out and acquire the sleeper date DMPL dollars, or wish to become a serious collector and/or student of these magnificent cartwheels, a brief discussion of the shortcomings and inequities of price guides seems appropriate at this time in order for you to equip yourself with a sound and realistic approach to gathering relevant price information. For instance, the September 1997 issue of the CDN reported the bid price for a MS65 DMPL 1887-S Morgan Dollar to be $4,700, however, neither PCGS nor NGC had certified a single piece so that number bore very little importance in the real world. The next summer PCGS graded the first MS65 DMPL 1887-S dollar, which immediately sold to a knowledgeable dealer for $21,500 (establishing a legitimate wholesale value). I was working with a prominent DMPL dollar collector at the time and acquired the coin for $22,500 (upping the wholesale level a bit further) and resold it to him for about fifteen percent more. More recently, I purchased a 1900-P PCGS MS65 DMPL dollar (Lot 11808) at the 2005 FUN Signature Sale for $18,400 while the CDN bid was and still is reported to be $8,500. The very next month at the February 2005 Long Beach Signature Sale I bought a PCGS MS65 DMPL 1881-O dollar (Lot 7222) for $27,600 – CDN bid was $12,300 and a PCGS MS65 DMPL 1889-S dollar (Lot 7253) for $20,7000 against a CDN bid price of $7,500. And earlier this month at the February 2006 Long Beach Signature Sale I acquired a PCGS MS65 DMPL 1899-S dollar (Lot 2315) for $12,650 versus a reported CDN bid price of $6,800. By the way, all of these coins have been sold to a very fussy and knowledgeable collector who will eventually complete one of the most incredible prooflike and deep mirror prooflike dollar sets ever assembled. The point that I am attempting to make is that although the weekly price guides do a fairly reasonable job of reporting wholesale prices for frequently traded and easily monitored generic issues, oftentimes they fall woefully short of providing relevant price quotes for the more infrequently traded rare coins (and scarce low population DMPL’s certainly fall into that category). So my suggestion is to arm yourself with the latest census information and circumvent the price sheets by going directly to the source of the action – major rare coin auctions. Most auction houses maintain archives of prices realized from their sales, but none are better and easier to use than the Permanent Auction Archives provided by Heritage Galleries (and they’re not even paying me for this plug).

And now a thought to ponder for those of you who can’t help but be attracted to this market by the idea that significant financial gains may be possible. According to the June 2, 1989 issue of the CERTIFIED COIN DEALER newsletter, representative of the last major coin market peak, a common date 1880-S PCGS MS65 DMPL dollar (593 coins certified thus far) was bid at $2,135. Today that same coin is bid at $525, less than 25% of its previous high water mark. A somewhat better date dollar, 1896-P (118 pieces certified by PCGS as MS 65 DMPL) was bid at $3,750 and is now bid at $1,000 — seventy five percent below its previous high. I’m not implying nor am I attempting to convince you in any way that DMPL dollars are somehow guaranteed to meet or exceed their previous high bid prices, because past performance should never be used as the sole barometer by which to gauge future profitability. However, history has been known to repeat itself and who’s to say that it won’t again? The point I am trying to convey here is the possibility that high quality deep mirror prooflike dollars may indeed represent great value at this point in time – followed with an excellent suggestion (even if I do say so myself) and four caveats thrown in for good measure.

SUGGESTION: Become a collector first and foremost. You’ll gain a much greater understanding and appreciation for the coins themselves, soak up knowledge like a sponge and you won’t worry nearly as much about intermediate price swings in the market because you will be too busy focused upon the long-term goal of building your collection, be it a complete set or any number of subsets listed in the PCGS Set Registry. When one has a genuine fondness and enthusiasm for his collection, he is more likely to select the most advantageous time to sell. Year after year after year, it’s the real collector who profits the most in the end.

CAVEAT #1: Never, I mean NEVER purchase uncertified DMPL dollars — and then I recommend that most people stick with those graded by PCGS. I’m not attempting to cast aspersions on the capabilities of the good folks at NGC or ANACS to properly quantify a dollar as a DMPL (I’ve purchased many really fine coins in their respective holders), however, the marketplace definitely seems to favor those graded by PCGS with significantly higher market values than those certified by other top flight third-party grading services.

CAVEAT #2: Not all Deep Mirror Prooflike dollars are created equal regardless of the stated designation on the insert and that’s why it is so vitally important not to become paralyzed by the plasitc — holder that is (which is blind acceptance of the grade and/or designation printed on the insert inside of the holder). A surprising number of people are afflicted with this variety of paralysis and there are plenty of sellers more than willing to take advantage of that fact, but let’s get back on point. There is a significant divergence of quality, depth of reflectivity and other significant factors associated with eye appeal from coin to coin within the same grading service. Know the difference and/or your limitations. If you are new to the field of DMPL dollar collecting, or just want an edge when it comes to locating special coins for your set, I would encourage you to align yourself with a seasoned professional who has a long-standing reputation as an expert and is a reliable source of top quality coins in this particular field of numismatic endeavor. NOTE: It’s worth mentioning here that in the past year PCGS has become more stringent in regard to the depth of mirror required for a coin to qualify for the DMPL designation. Six inches or more of clear reflectivity used to be the generally accepted standard but now it appears that PCGS requires at least eight inches of clear reflectivity before it will bestow DMPL status on a Morgan dollar. In the final analysis ALL of the major third-party grading services have certified silver dollars as DMPL that clearly do not deserve the designation — and I’m certain that occasional mistakes will continue to be made (after all, human beings are grading the coins). Your best defense is to purchase coins where there is little or no doubt as to its DMPL status. If you lack the confidence and/or ability to do so, either align yourself with a recognized expert who can assist you with your acquisitions and (hopefully) educate you along the way — or, don’t play in this particular sandbox. I know I said essentially the same thing at the beginning of this paragraph but it bore repeating here.

CAVEAT #3: Never buy DMPL dollars SIGHT-UNSEEN for any reason whatsoever. Just because the holder says it is — and the price is cheap, doesn’t necessarily make it so. Many so-called bargains turn out to be burials in the end.

CAVEAT #4: Don’t naively believe every claim concerning rarity, price history and value made by the seller. Take it upon yourself to research the abundance of factual, statistical data available today (such as the PCGS and NGC Online Population Reports) in order to make an intelligent, educated decision. I would also encourage you to take advantage of the Heritage Galleries Permanent Auction Archives online. I have consistently found it to be one of the most reliable sources for pertinent pricing information for DMPL dollars, particularly in regard to the more rare issues as well as the higher graded (MS66 or better) specimens.

I hope that you enjoyed this discussion of the deep mirror prooflike Morgan dollar market and it is my sincere desire that you will find both tables to be useful tools in determining which specific coins will best suit your particular collecting interests and goals. I’ve been enamored with these large and fascinating silver coins since my mother and uncle would bring them home from Las Vegas in the mid-1950’s and I hope that you come to enjoy them as much as I do. Since the early 1970’s I have bought and sold many of the finest known prooflike and deep mirror prooflike dollars in existence. I’ll never forget the thrill of buying the Bruce Todd 1901-P Morgan dollar (a fully struck bright gleaming brilliant prooflike) from David Hall in the mid- 1970’s for $5,000. And then there were the monster ultra-deep mirror black and white cameo prooflike 1895-O and 1895-S dollars, purchased at $7,500 and $6,000 each respectively that I partnered with my old friend and fellow coin dealer Nick Buzolich. We subsequently marketed both coins to Bruce Amspacher along with many other Morgan dollar rarities. The 1895-S alone sold to Bruce for $26,000 in 1981, and that was following the coin market collapse of 1980. Moreover, Nick and I were the first dealers allowed to cherry pick a bag of prooflike 1890-CC dollars from the legendary Redfield hoard and we paid dearly for the privilege at $85 apiece! That certainly sounds cheap by today’s standard, but it took us well over a year before we were able to sell any of them for $105 each. By the way, I was fortunate enough to encounter the Bruce Todd 1901-P brilliant prooflike dollar at the ANA Convention held in San Francisco in July 2005. It made its first appearance on the market since I sold it to Bruce way back in 1976 and was conservatively graded MS63 PL by PCGS. Furthermore, it sold for $40,000 between dealers at the show. As I’m certain you can tell by now, I absolutely love DMPL dollars and thank the good Lord every day that He has allowed me the privilege of being one of the early market participants and pioneers exploring this exciting area of numismatics. My life is certainly richer as a result of the longstanding friendships established and all of the wonderful memories that are directly attributable to the pursuit and study of deep mirror prooflike dollars. As Bob Hope once said (or should I say, as he once sung), thanks for the memory.