PCGS The Standart for the Rare Coin Industry

Let's look at the prices of the 1892-S dollar in various grades, from well-worn (VG-8) to superb Uncirculated (MS-65). These figures are taken from the Coin Dealer Newsletter, issue of September 10, 1993, and indicate average prices dealers were willing to pay at the time: 1892-S $1: VG-8 $10.50, F-12 $12.00; VF-20 $32.00; EF-40 $95.00; AU-50 $2,300.00; MS-60 (Uncirculated, minimum quality; bid price, no ask price given) $7,600.00; MS-63 (bid price) $25,000; MS-64 (bid price) $32,500; and MS-65 $45,000.

Stated in a spectacular manner, an MS-65 1892-S dollar is worth 4,285 times the price of a VG-8 example. In other words, one can buy 4,285 specimens in VG-8 grade for the price of a single MS-65!

This study brings up another point, one which will be discussed later: sometimes a very small difference in grade can make a very big difference in price. An MS-65 1892-S silver dollar at $45,000 is $12,500 more expensive than an MS-64 coin at $32,500. Obviously, it becomes quite important in a transaction of this magnitude to know if a coin offered as MS-65 is really in that grade; that is, if the same coin offered as MS-65 today will be bought as MS-65 by someone else in the future.

As a comparison, let's look at prices for the 1881-S Morgan dollar, a coin which is very common in all grades, including Uncirculated: VG-8 7.50; F-12 $8.50; VF-20 $9.00; EF-40 $10.00; AU-50 $11; MS-60 $15; MS-63 $37; MS-64 $46; and MS-65 $104.

Price is one thing and availability may be something else entirely. In 1980, I endeavored to buy an MS-65 1892-S Morgan silver dollar. Although I was quite willing to pay $80,000, the bid price at the time (which declined by 1992 to $45,000), none was offered, and even if I had been willing to pay $100,000, I doubt if one could have been located. Even today in the mid-1990s, I am not at all sure that an instant offer of $100,000 would yield a decent MS-65 coin of this variety. At the same time, by making a few telephone calls I could buy a carload of MS-65 1881-S dollars.