They are generally lower priced than bullion coins. The name “junk silver coins” come form coin dealers because in there minds they have vary little collector value. There heart is in the rare and uncirculated coins. A little research, however, will show you that pre-1965 silver dollar coins are not a junk and are worth a investing in.
It is very rare to find pre-1965 silver dime, quarter, haft, dollar coins in circulation anymore as many people have searched for them and banks have started using automatic sorting machines that set the silver coins aside, but it is still good to know what you are looking at, and what you are looking for.
Although the junk silver dime coins are not very valuable to collectors, they do have value as because of their obvious silver content. Depending on the price of silver, the value can be quite substantial over face value for a worn out pre-1964 silver quarter or dime coin.
Junk silver coins are coin year 1964 and older in the US. Before 1965, silver coins were 90% silver and 10% copper. This was soon reduced to 40% silver content, and now coins have no silver content. This is why it is a good idea, if you are accumulating silver this way, to stick to the pre-1965 junk silver dime, quarter, haft and silver dollar coins.
Although there will be wear and tear on the junk silver coins -- scratch marks, nicks, and diminished detail or even the point that you cant even see the face -- the silver content is still usually about 99% intact, making these coins worth way more than their face value for their silver content. For those concerned with economic uncertainty, these junk silver coins make an ideal hedge or safe haven investment. The rainy day silver fund, I call it.
It is easy to obtain junk silver dollar or half coins. Dealers sell silver in lots, or “ junk silver bags” of varying price and size. You can buy a $1000 bag, all the way down to a $100 bag. You can even buy these junk silver coins in rolls. You are only restricted by your budget. You can even check the change in your pocket; you may be surprised at how much real silver you already have.
Old junk silver coins can also be found in many places, but be sure you know the current value of silver. Also, find out the weight of the coins you are buying. Buy it by pound or grams. Be aware there will always be some kind of mark-up (the dealer has to make a fair profit).
Coins that are minted 1965 though to the present time in the U.S. have little or no silver content (now that is junk). The junk silver content of various pre-1965 silver coins will be around 90%, but how do you know exactly how much silver that 90% represents in grams? Follow these guidelines:
Silver dollars contain 24.06 grams of silver, while half-dollars contain 11.25 grams of silver. Junk silver quarters contain 5.625 grams of silver, and dimes contain 2.25 grams. Following these guidelines will help to ensure you pay the least for your junk silver coins. You’ll find that the cliché, “One man’s junk is another man’s treasure,” has never been more true when it comes to junk silver dollar coins.
Research the value of each lot of coins ahead of time, before you contact the dealer. If you are careful, and do your due diligence, you will find that investing in junk silver coins is quite easy.