Is junk silver a good investment? If you’re one of the people who often ask this question, this article will benefit you. Junk silver refers to regularly distributed U.S. coins that have both a cash value (such as $5 for a nickel or $50 for a half-dollar coin) and a silver content.
This is in addition to the fact that they have a precious metal value because they were coined with 90% silver. It’s 35 percent or 40% in certain circumstances, but it’s always stable depending on the year and kind of coin.
For example, the Washington quarter, first issued in 1932 and from 1934 until 1964, has 90% silver. As a result, you may be sure that it will always be worth $0.25. However, if inflation makes $0.25 useless, or if the value of silver rises significantly compared to the dollar, it may be worth a lot more.
On the other hand, even if the value of the precious metal drops (for example, if enormous silver finds make it almost worthless), you still have cash worth $0.25.
Who Invests in Junk Silver?
People investing in junk silver are more likely to acquire firearms and prepare for the worst-case scenario. High inflation or a temporary disintegration of society is examples of this.
Others are just optimistic about silver and see this as a convenient way to acquire it in modest, readily measured amounts. Others may stumble into junk silver due to their hobby of going to garage sales or “picking” coins from estate sales.
This flourishes in situations when the vendors are unsure of what they have. They may also believe they are similar to current coins, which contain precious little metal instead of relying on minerals such as zinc or nickel.
Is Junk Silver a Good Investment?
Yes. Junk silver coins were formerly accepted as legal currency for everyday food, clothes, and fuel. People nowadays buy junk silver for various reasons, including investment and survival. Some of the reasons why junk silver is an excellent investment are as follows:
Junk Silver is the real deal.
Before 1965, the U.S. Mint produced dimes, quarters, and half-dollars that are easily recognized as “the genuine investment thing.” They don’t need to be analyzed to determine how much precious metal is in them.
They don’t need to be assessed by a professional for you to know what grade they are. You can find a buyer almost anyplace who understands that a $100 face-value package of these coins comprises 71.5 ounces of pure silver and will compensate you appropriately.
Junk Silver can be easily divided.
A bag of these coins may be quickly divided. These coins are 90% pure silver and may be used as ‘pocket change.’ Try it with a one-ounce gold coin or a 100-ounce silver bar.
There has never been a seizure of junk silver.
If you’re worried that the U.S. government may attempt to seize gold again, as Franklin Roosevelt tried in 1933, know that silver coins have never been confiscated. You are not required to reveal your ownership to anybody, even the government. You’re not necessary to lie about possessing them as well.
Junk Silver is efficient.
Most merchants offer these coins in bags with a face value of $1,000. They also divide these bags into ten bags of $100 face-value coins, putting them far more inexpensive. They’re also less difficult to store and liquidate when it’s time to sell. Every household should have a couple of these, according to us.
Junk Silver Investment: Major Facts
When melted, a bag of dimes or quarters yields around 715 ounces of pure silver due to wear. Junk silver coins are considered a ‘limited resource.’ They are no longer manufactured, and many of the bags have already been melted over time.
It has been permitted to melt down worthless U.S. silver coins since the late 1960s. Some may wonder whether the ancient silver coin from the United States would get recognized. If this were the case, you’d find them in your change.
You, on the other hand, do not. Because of the silver component, everyone recognizes they have a higher worth than legal currency.
Junk Silver Investment: Worth of Pre-1965 Silver Dimes and Quarters today
A junk silver dime is worth about the same now as it existed as ordinary money in terms of buying power. In absolute terms, a silver dime now is worth a lot more than its face value of ten cents.
The silver percentage of a silver dime is roughly 2.22 grams. Based on the current market price of $25.00 per ounce, it equates to around $1.79 in silver.
The silver content in pre-1965 quarters is 5.55 grams. With current prices of $25.00 per ounce, that’s a silver worth of $4.46. Sure silver dimes and quarters may have added collector value depending on mint markings and conditions.
This makes them an excellent choice for coin collectors. Most pre-1965 dimes and quarters, on the other hand, are sold as “junk” and trade for close to their innate melt value in silver. When the market for these items becomes constrained, premiums on buying worthless silver coins climb.
Frequently Asked Questions
Is Junk Investment good?
Yes. Aside from the benefits mentioned above, junk silver is an excellent investment for the following reasons:
- They are still considered legal tender. The money value of the coins may still be readily spent or deposited at banks.
- They are immediately identifiable and quantifiable. When compared to silver bars, people are less inclined to doubt their worth or suspect counterfeit.
- They’re easily split into minor amounts. Silver bars are generally one troy ounce or more in size. Furthermore, the cost of an ounce of silver now is roughly $20. You can trade in lower denominations with junk silver than this.
- Junk silver is simple to store and move. Many trash silver coins are often found in a simple Ziploc bag.
- They don’t have the same collectible value as a well-designed collector edition coin. This permits them to trade at a minimal to no premium above the silver’s intrinsic value.
- The network effect: junk silver’s appeal feeds on itself; many individuals collect it, which leads to a liquid market, which boosts its popularity.
What Are the Best Places to Look for Junk Silver?
Searching for junk silver on Amazon and Google can take you to various options for purchase. In addition, numerous jewelry stores, pawnshops, and precious metals brokers regularly purchase and sell worthless silver.
What is the unique approach to making a silver bullion investment?
Purchasing pre-1965 silver coins from the United States is one of the most popular methods to invest in silver bullion. Fractional silver bullion is defined as junk silver packets.
They make it simple for investors to add many ounces of silver to their portfolios. Unlike other silver U.S. coins for sale, Junk silver coins do not contain extra refining or minting expenses.
The term “junk silver coins” was used in the 1970s to characterize the typical circulation of U.S. silver coins that do not contain unusual coins.
What is the worth of a pound of junk silver?
All silver coins made before 1964 included 90% silver and 10% copper. Please note that the quantity of these coins is not taken into account in any price calculations; only the silver component is appraised!
Each dollar’s face value is equivalent to 715 ounces of silver. A complete junk silver bag ($1,000.00 face value) thus has 715 ounces of silver. There is no extra premium applied to the price of these coins because of their condition or collectible value.
Each purchase will include a wide range of minting dates and coin values. This kind of silver is available at Money Metals Exchange in $5.00 face value bags.
Is it possible to sell silver coins for scrap?
A trustworthy silver and gold broker or a local coin store may be your best choice. Obtain a price quotation from a possible buyer, then contact many to get the best deal. Bring your coins to a dealer or a broker. They’ll be tallied and scrutinized.
What is the value of an ounce of junk silver?
Except for the silver dollars (Morgan and Peace), which contain 0.7736 troy ounces (24.06 g) troy ounces of silver, every combination of 90% silver U.S. coins with a face value of $1.00 includes 0.715 troy ounces (22.2 g) of 99.9% silver (0.7234 troy ounces if uncirculated).
In conclusion, many American silver pieces issued before 1965 are considered junk silver today. Although these coins are not commemorative, they retain their worth and are an excellent addition to any investor’s portfolio.
Keep in mind that the silver content is what determines its total worth. Furthermore, the above highlight on “is junk silver a good investment” will aid you immensely.
I am Lavinia by name and a financial expert with a degree in finance from the University of Chicago. In my blog, I help people to educate by making wise choices regarding personal investment, basic banking, credit and debit card, business education, real estate, insurance, expenditures, etc.