In my mind, it is a shame that these coins are called junk silver just because they served one country’s money system faithfully for so many years. But that is not all a bad thing for me, it means I can pick these silver relics up for a good price from people that believe the lie that they are indeed junk. My question is this, “Is silver junk?” No, you never see it thrown away by someone that knows the price of silver.
Here is a little test if you are not convinced that these coins are not still junk. Go out and buy some junk silver coins if that be in dimes, quarters, or half dollars. Then give a few to your kids or nieces and nephews. Just not to toddlers, you want get the good effect we are looking for here. I have yet to find ones of my generation or my kids’ generation to scoff at these coins. Their eyes get as big as saucers as they look at the coin laying in their hand. Kids don’t want to put them down because to them it is a treasure.
It gets even better when I give them a bit of an education. “You know, a Morgan dollar has a face value of just one dollar, yet it is worth fifteen dollars on the open market for the silver value and because they are very collectable.” That gets their attention as they grip the Morgan silver dollar coin in their sweaty little hands. A lot of times I then say, “Hey, silver is on the rise. I will buy the silver dollar back from you for $15 so you can buy some candy or something.” If they are wise and if I’ve taught them even briefly on investing, you can not pry that silver coin from them even with a crow bar.
This can be a lot of fun, and give them an education of our history. Junk silver coins make great gifts for Christmas or birthdays. If my kids do exceptionally well in math or history at school (according to their abilities of course), I find it to be a great opportunity to reward their hard work with a silver coin. It opens doors to more education.
One more way to use junk silver coins is to have your kids earn them. This is an excellent way to teach kids the concepts of having a work ethic, investing, and saving money all at the same time. Junk silver coins have a much better chance of making a return on your kids’ savings than the interest from the banks can at this time.
The nice thing about junk silver as an investment for kids is that they can hold their investment in their own hand. They can also watch the spot price of silver go up and down. You can show them some math again. For instance, one junk Morgan silver dollar coin = 26.73 grams. 1 ounce = 28.3495231 grams. So the Morgan contains 90 % percent silver and 10 percent copper. By weight that will work out to 0.715 of an ounce of pure silver. Now, times that by the spot price of the day and you will come up with the coin’s worth in silver. You can take this even further and work out the spot price of copper and find out what their investment is in the copper metal they have. This makes math fun.