Discover why 90% silver coins aren’t really “junk” at all and why it may be a good investment or collector’s item
Are you an investor or collector who’s confused about “junk silver?” Are you wondering if the silver that you find is worth anything? If so, take a look below at what junk silver is and why it’s a good investment.
What is Junk Silver?
In the late 1970s, investors would buy a significant amount of rolled coins from local banks to collect valuable junk silver coins.
So, what is junk silver exactly?
The term “junk silver” is just a way to describe American coins that circulated before 1965. Over the years, these coins—which are 90 percent silver—eventually became harder to find, making collecting them more of a challenge.
Before 1969, the Canadian silver coin also contained a small amount of silver, but eventually fell out of circulation. The last silver coin put in circulation was the half dollar with Kennedy on it. Many people didn’t know that they were minted with 40 percent silver until 1970.
Although many people call these coins “junk silver,” it can be very misleading to an investor or collector. Rare coin dealers began using the label back in the early 1970s due to the coins not holding the hefty premiums of numismatic coins. However, their silver content makes them much more intrinsically valuable than junk.
2. Why Junk Silver Coins Aren’t Really “Junk”
Many American silver coins that were circulated before the year 1965 are now known as junk silver. These coins are not numismatic, but they still hold their value and are great for an investor’s portfolio.
Keep in mind, the content of the silver in a coin is what primarily determines its overall value. So in 1964 or before, all silver coins were minted with 10 percent copper and 90 percent silver. That means the face value of every silver dollar contains an estimated .715 ounces of real silver content.
For instance, a bag of 1,000 junk silver dollar coins may contain 715 ounces of silver with the face value of $1,000. You can multiply the number of ounces of silver by the metal’s current spot price to calculate its actual value.
It’s also important to realize that there are no extra premiums added to the pricing of silver junk coins found in the collectible value or condition.
The high intrinsic value of these coins relative to their face value caused them to quickly leave the marketplace when the cupro-nickel coins arrived. Though not officially designated as bullion coins, these 90% silver coins are, in fact, valued and traded for their bullion content.
Why Buy US 90% or 40% Silver Coins?
Many investors choose to purchase junk silver coins as bullion investments, while others get them for collecting purposes. Either way, junk silver helps to replace fears that investors have about the American dollar becoming worthless.
Another reason why investors and collectors buy junk silver for their portfolio is due to the history of the coin. Many of these coins are becoming harder to find as the years continue to move forward. Junk silver offers history, beauty, and a face value of the silver content to an investor or collector.
Junk Silver vs. Bullion Bars
Even though junk silver coins could be a perfect solution for your portfolio, sold at a premium price for 100 ounces per silver bar, junk silver coins hold better upside down price value than 99.9 fine silver bullion. Technically, due to their limited supply, this holds true when the market circulates 90 percent United States junk silver coins.
Then again, .999 fine bullion items are capable of being produced at any time; therefore, there are limits to how high the premiums of .999 silver bullion items can climb. To back the assertion that bags of US junk silver coins holds a better upside down potential than .999 real silver bullion items, let’s look at a little background history on junk coins.
History of Junk Silver Coins
Over the past four decades, when precious metal performed well, junk silver coins frequently arrive at premiums of 20 percent to 30 percent greater than spot prices. In the course of the Y2K scare, junk silver coins held a 50 percent premium above bullion products.
In the 1980s, after silver prices spiked to 50 ounces, industrial silver consumers applied high-quality organizational moves that reduced the industrial demand for silver. Furthermore, the higher increased prices of the 1970s had encouraged efforts to mine extra amounts of silver, as well as raise the recovery of silver within the secondary market.
As a result, in the 1980s, newly refined silver went beyond the industrial demand. Because of this, investors stayed away from buying silver until the market became strong again in 1987. For the most part, investors were mainly net sellers of silver. In spite of the 80’s market change, a large quantity of junk silver coins was refined and transformed into .999 fine silver bullion.
After learning about junk silver and its history, we hope that you understand the true potential and value of these types of coins. Investors and collectors alike can’t go wrong by adding these coins to their professional portfolio.
History of Junk Silver Coins
Buying silver is a simple, affordable way to fend off inflation and protect your financial future. While gold can be cost prohibitive, silver is more practical for regular investing. Purchasing silver bullion is as unique as each investor. Some people enjoy buying newly minted silver coins and rounds. Others enjoy the historical value of buying old US coins that contain silver, which is what Provident calls junk silver.
We sell 90% US junk silver coins and 40% silver coins in many different quantities. Order yours today!