What is a Junk Silver Coin?

Posted by Prime Star July 23, 2024

The name junk silver coins is used to describe the coins made of silver before 1965, primarily because it refers to their limited value as collectors’ items. Many of these coins, such as the war nickels, dimes, quarters, and half dollars, have been removed from circulation and replaced by base metals. They are not aesthetically pleasing, but they are made of valuable silver, which is why they are sought after by people interested in the metallic value of the coin rather than the relief or face value.

Best Place to Buy Junk Silver

At the time of the purchase, Junk silver coins are bought at face value from a local coin shop (LCS), which offers bags of junk silver coins for $25 a bag, while one bag contains dollars in face value. It is also possible to get rolls with a fixed number of a particular currency, for instance, 50 dimes or 40 quarters.

It is perfectly acceptable to search for a cheaper source of silver, but be careful with offers that might sound too good to be true. Some of the offers provided can be fake silver, with fewer counts than the quantity stated, or they can even be stolen items. Choose good-quality silver at a moderate price from highly rated coin dealers who provide accurate information about their products.

A reputable silver dealer has been in business for a long time, has a walk-in location, and provides customer education. Dealers who are members of organizations such as the National Coin & Bullion Association (ICTA), the National Inflation Association (NIA), the Certified Coin Exchange (CCE), the Professional Coin Grading Service (PCGS), the Numismatic Guaranty Company (NGC), and the American Numismatic Association should be sought.

Why Investors Choose Junk Silver?

Junk silver coins hold significant value for several reasons:

  1. Ease of Buying and Selling: It is easily identified and can be purchased from coin sellers, Internet sources, auctions, and estate sales. Selling it for cash or swapping it with other valuable metals is easy.
  2. Affordability and Accessibility: Due to the low premium over the spot price of silver, junk silver allows investors to buy relatively more silver than other bullion coins or bars. It is available in small denominations and is thus suitable for everyone’s pocket.
  3. Durability and Portability: Junk silver is made from tough metal, which makes it durable, as it does not rust easily. It can be kept safely or moved from one place to another without worrying about it getting destroyed or stolen.
  4. Intrinsic and Potential Value: Junk silver coins have some inherent value because they are made from silver and have legal tender status. Also, the values can be estimated owing to such aspects as supply and demand, inflation price, economic state, and geo-political situations. This gives Junk Silver the potential to grow in value, which makes it quite a reliable investment asset.

Which Coins are Junk Silver?

In actuality, the term junk silver coins pertains to a certain type of circulated coinage produced primarily before the beginning of the 1970s and used ubiquitously in commerce all across the country. 

These coins include:

  1. Barber Dime: This coin was in circulation from 1892 to 1916 and contained 90% silver.
  2. Mercury Dime: It was available between the years 1916 and 1945, and it consists of 90% silver.
  3. Roosevelt Dime: It was created in 1946, initially containing 90 % silver, and circulated until 1964.
  4. Barber Quarter: Was issued between 1892 and 1916 and comprised 90% of the content of silver.
  5. Liberty Quarter: Minted from 1916 to 1930 and was 90% silver.
  6. Washington Quarter: Produced from 1932 to 1964, composed of 90% silver.Barber Half Dollar: Silver coins struck at the Philadelphia mint from 1892 to 1915, containing 90% silver.
  7. Walking Liberty Half Dollar: Silver coinage made from 1916 to 1947 with a composition of 90% silver.
  8. Franklin Half Dollar: Bimetallic was introduced in 1948 with 90% guaranteed silver until 1963.
  9. Kennedy Half Dollar (90% Silver, 1964): These coins were produced in 1964 and were made of 90% silver.
  10. Morgan Dollar: With the 90% silver content minted from 1878 to 1921.
  11. Peace Dollar: Made between 1921 and 1935, the silver content of this coin is 90%.

    These junk silver coins are no longer in production due to the Coinage Act of 1965. This transition was driven by the economic principle known as “Gresham’s Law,” where coins with higher intrinsic value tend to be hoarded, leading to a shortage of coins in circulation.

    These coins circulate widely and show wear and tear, but they are valuable because of their silver content and rarity. People run to buy them due to their scarcity, and given our economic uncertainty, they act as investments. However, the face value of these coins remains unaltered, signifying that they would still be useful for any valuable metals collection.

    Conclusion

    Purchasing junk silver coins allows customers to legally tender U.S. silver at reasonable prices that bullion collectors would find interesting. Although known as ‘junk’ silver, all such coins with a pre-1965 mint date have silver worth and are cherished as a collector’s item. They are priced according to their weight and are available in dimes, quarters, halves, and differing amounts of silver. 

    Keep a keen eye on the prices of silver and ensure that you buy from an authentic source. This investment diversifies portfolios with tangible assets and potential returns, perfect for investors who want their investments to be secure and hold historical value.