The 1903-O Morgan Dollar Mystery: A Lesson in Supply vs. Demand

The 1903-O Morgan dollar mystery provides an opportunity to examine how the Law of Supply & Demand impacts pricing of collectible coins, specifically Morgan dollar values.

In 1903, the New Orleans Mint issued nearly 4.5 million silver dollars. This, by no means, was a small mintage. Yet, for decades, few collectors or dealers had ever encountered a 1903-O Morgan dollar.

It was widely theorized nearly all of the 1903-O dollars were among the 270 million dollars melted in 1918 under the auspices of the Pittman Act.

Every Morgan dollar specialist wanted a 1903-O example for their collection, but fewer than 10 were known to exist. High demand for a extremely small supply catapulted the 1903-O to the highest echelon of values in the Morgan dollar world.

Starting in October of 1962, the truth about the actual rarity of the 1903-O was unveiled. That month, the federal government began opening long-sealed vaults for the purpose of distributing unused silver dollars to the public.

Among the hoards being released was the 1903-O. Hundreds of thousands of them! The mystery on the fate of the 1903-O Morgan population was now solved. Many of them never left the Treasury Department!

Despite continued solid demand for the 1903-O, a vastly increased supply caused prices to dramatically crash. What was once selling for $500 to $1500 could be had for a mere $15.00!

As the story of the 1903-O confirms, the Law of Supply & Demand governs coin pricing, just as it does in all free markets.

Learn more at:
https://www.rarecoins101.com/
https://www.rarecoins101.com/when-do-coins-become-valuable.html

Sources:
PCGS: 1903-O $1 (Regular Strike)
https://www.pcgs.com/coinfacts/coin/1903-o-1/7286

“The Silver Dollar of 1903, O Mint”: Howard R. Newcomb, a Detroit collector
The Numismatist, July 1925.

“Rare Special” 1903-O Morgan dollar advertisement:
Coin World Magazine: 10-20-1960, Sidney, OH

“Mint Releases Scarce dates; Silver Dollars Take Plunge”:
Coin World Magazine 12-14-1962, Sidney, OH

1893-S and 1903-O Morgan dollar values from 1950 to 2024
Various “Redbooks” and Coin World estimated values.

President Kennedy addressing nation of missiles in Cuba:
National Archives and Records Administration
https://archive.org/details/gov.archives.arc.51510

Images:

George T. Morgan
https://commons.wikimedia.org/wiki/File:George_T_Morgan_sitting.jpg
Alexbikesphilly, CC BY-SA 4.0 https://creativecommons.org/licenses/by-sa/4.0, via Wikimedia Commons

New Orleans Mint (public domain)
https://jenikirbyhistory.getarchive.net/media/1907-nomintpostcard-f95571
https://www.loc.gov/pictures/item/2005693130/

Mystified man
https://pixabay.com/

Coin Images:

1893-S and 1903-O Morgan dollars
Stack’s Bowers. https://stacksbowers.com/

2021 Morgan Dollar
U.S. Mint. https://www.usmint.gov/

Sound effects/Music:
Pixabay. https://pixabay.com/