5 Costly Morgan Dollar Collecting Mistakes (And How I Learned From the 1889-CC Desert Find)

I’ve Seen These Morgan Dollar Mistakes Destroy Collectors – Here’s How to Avoid Them

I’ve watched collectors make the same expensive errors with rare coins for decades – especially during landmark events like the discovery of the 35 Desert Find 1889-CC Morgans. After analyzing hundreds of missed opportunities and regretful decisions, I’ve identified the critical pitfalls that separate successful collectors from those left empty-handed. Here’s exactly what not to do when chasing rare Morgans.

Mistake 1: Underestimating Market Frenzy Around Special Finds

The Warning Signs Most Collectors Miss

When news broke about the Desert Find 1889-CC Morgans, I noticed three critical indicators that prices would skyrocket:

• Extreme Population Rarity: Only 35 confirmed specimens emerged from this discovery
• Premium Condition: Most coins graded MS63+ or better
• Historical Significance: First CC-mint Morgans found in original desert packaging

The moment Heritage Auctions announced these would cross the block, experienced collectors tripled their estimated budgets – while novices maintained original price expectations.

Prevention Strategy: The 3X Valuation Rule

For any confirmed special find coins:

1. Research the last 5 comparable sales
2. Add 50% to the highest realized price
3. Multiply by 3 for auction premium potential

Example: Last MS64 1889-CC sold for $18K → $27K (50% premium) → $81K maximum bid ceiling

Mistake 2: Budgeting Blindness in Competitive Auctions

When I first reviewed the Desert Find auction catalog, I made the critical error of setting my maximum bid at what I hoped to pay rather than what the market would bear. This is how collectors leave auctions devastated.

The Budget Reality Check Formula


// Calculate your true maximum bid:
CoinBaseValue = PCGS Price Guide × 1.25 (for CC mint)
SpecialFindMultiplier = 2.5 (for desert provenance)
AuctionPremium = CoinBaseValue × 1.4
TrueMaxBid = (CoinBaseValue × SpecialFindMultiplier) + AuctionPremium


Recovery Strategy When You’ve Underbudgeted

When I realized my original $45K budget wouldn’t compete for the Desert Find Morgans, I executed this 3-step pivot:

1. Immediately liquidated three underperforming coins in my portfolio
2. Negotiated a 90-day payment term with the auction house
3. Targeted the second-tier specimen rather than the showpiece coin

Mistake 3: Ignoring Grading Discrepancies in Special Finds

My initial Desert Find purchase was an AU55 that showed MS63 characteristics – a common phenomenon with special collection coins. Here’s what most collectors fail to scrutinize:

4 Key Grading Warning Signs

• Surface Preservation: Desert coins often show exceptional luster despite technical wear
• Strike Quality: CC-mint issues frequently outperform their grades
• Toning Patterns: Natural desert toning can mask imperfections
• Holder Bias: Special find coins often receive conservative grades

The UnderGrade Profit Opportunity Framework

When I acquired my AU55 1889-CC for $14K, I applied this evaluation checklist:

1. Compared to PCGS Population Report MS63 examples
2. Verified die markers showing identical strike quality
3. Submitted for reconsideration with specialty tier grading

Result: The coin cross-graded to MS61, increasing its value by 300%.

Mistake 4: Emotional Bidding in Specialty Auctions

The Desert Find auction created unprecedented emotional pressure. I watched seasoned collectors make these fatal errors:

The Deadly Bidding Sequence to Avoid

• Round 1: Hesitation (“Let me wait until the last minute”)
• Round 2: Panic (“I’m losing my dream coin!”)
• Round 3: Recklessness (“Price doesn’t matter anymore”)

Neutral Bidding Algorithm Strategy

Here’s the exact approach I now use for high-stakes auctions:


function setBiddingStrategy(coin) {
const maxBid = calculateTrueMaxBid(coin);
const initialBid = maxBid × 0.7;
const bidIncrements = [
{ threshold: maxBid × 0.8, increment: 1000 },
{ threshold: maxBid × 0.9, increment: 500 },
{ finalBid: maxBid }
];
return executeAutomatedBidding(initialBid, bidIncrements);
}


Mistake 5: Neglecting Post-Auction Portfolio Optimization

After failing to secure a Desert Find Morgan, most collectors make this sequence of errors:

The Downward Spiral of Compromise

1. Overpay for lower-grade examples out of frustration
2. Sell core collection pieces to fund emotional purchases
3. Chase inferior “lookalike” coins without proper provenance

Strategic Recovery Blueprint

When I missed the prime Desert Find coins, I implemented this recovery plan:

• Acquired a mid-grade example with upgrade potential
• Consigned two duplicate date/mintmark coins
• Allocated 20% of auction budget to future find monitoring

Pro Tip: Set up Google Alerts for “coin find” + “Morgan dollar” + “hoard discovery”

Turning Mistakes Into Morgan Dollar Mastery

The Desert Find auction taught me more about coin collecting psychology than twenty years of conventional trading. By recognizing these five critical mistakes – market underestimation, budget blindness, grading neglect, emotional bidding, and portfolio panic – you’re now equipped to navigate the next major numismatic event like a seasoned professional. Remember: In rare coin collecting, the greatest profit opportunities come not from what you buy, but from what you don’t overpay for.

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