Junk Silver 101: A Brief Overview of Junk Silver
Junk Silver is a term used to describe old, circulated silver coins that are valued primarily for their silver content rather than their collectible or numismatic value. Despite the term “junk,” these coins hold significant value due to their precious metal content.
Junk silver coins offer a practical way to invest in precious metals, combining affordability with the intrinsic value of silver. Whether for investment or as a hedge against economic instability, these coins remain a popular choice for a diverse range of investors.
The term “junk” does not indicate the condition of the coins, but rather signifies that they’re value is derived primarily from their metal content rather than any collectible or face value. These coins have no significant numismatic or collector value above their bullion content.
Why are Coins No Longer Made from Silver?
Many people today have little understanding of the history of precious metals as money, let alone any direct memories of when silver coins where in circulation. Precious metals investors, coin collectors, numismatists, silver stackers and history buffs use the term for describing US coins that were minted prior to the 1965 debasement.
This follows the economic principle of Gresham’s Law, which states that “bad money drives out good.”
As the silver content in coins was reduced, people began hoarding the older, more valuable silver coins and spending the newer ones.
Junk silver coins are easily recognizable and frequently traded among bullion dealers, investors, and those seeking a reliable store of value.
When minted, these coins were made from an 90% pure silver alloy. Today, they are a store of value that is sold by coin dealers, antique dealers, pawn shops, and online precious metals dealers, often at a small premium over their melt value.
They are very recognizable and are frequently traded among bullion dealers, investors, preppers due to their ease of liquidity.
Silver dollar coins, particularly the Morgan Silver Dollar and the Peace Silver Dollar are often excluded from junk silver unless they are very worn, damaged or consider in cull condition. Collectors are usually willing to pay a premium for antique silver dollar coins.
How much is junk silver worth?
The value of these coins is based on the intrinsic value of the amount of silver each coin contains. The word “Junk” refers only to the coins not having any value to collectors. Junk Silver is not considered scrap.
In the United States, dollar, half-dollar, quarter and dime coins that were minted prior to 1965 contained 90% silver.
Why You Should Buy Junk Silver
Investing in precious metals is an excellent way to set aside money for a rainy day and provides more stability for saving cash than putting money into a savings account with a bank.
Buying Junk Silver is also a top priority for those concerned with preparing for some sort of disaster, whether financial or societal collapse. Junk Silver is real money. Each coin is fractional silver that can be used for trade and barter in the event that it may be needed.
Before you buy junk silver it is important to familiarize yourself with the various types. Having some basic knowledge, such as which years’ coins were minted with silver and which ones weren’t will help prevent you from making major mistakes when you buy junk silver.
The most common types of junk silver coins will also have the lowest premium over the silver spot price. The two most common coins you’ll find for junk silver are the Roosevelt Dime and the Washington Quarter.
Monetary Value of Junk Silver
Bags of junk silver come in a variety of face value bags from online bullion dealers. Most dealers will carry $10 Face Value bags, $50 Face Value bags, $100 Face Value bags and $1,000 Face Value bags.
When first minted, a $100 Face Value bag of 90 percent silver coins would contain 72.3 troy ounces of silver. Through normal circulation, the coins will have some natural wear and tear that causes a slight amount of silver to wear away. It’s commonly accepted that a $100 Face Value bag of junk silver coins today will contain roughly 71.5 troy ounces of silver.
Types of Junk Silver
In the United States prior to 1965, many of the coins in circulation were minted from an alloy that contained 90% silver. There are many coins from this time that are collected and have numismatic value in addition to their intrinsic metal value.
Circulated coins minted before 1965 that contain 90% silver that have little to no numismatic value to collectors are commonly referred to as Junk Silver.
For US Coinage, there are 3 basic types of Junk Silver:
- 90% Silver – Dollar coins, half-dollars, quarters and dimes minted prior to 1965.
- 40% Silver – Kennedy Half-dollar coins minted from 1965 until 1969.
- 35% Silver – Nickel coins minted during certain years of World War II, from 1942 until 1945.
In 1965, the US Mint and Treasury departments began minted coins that were made from clad copper. Of those minted before 1965, dimes, quarters, half dollars and dollar coins were minted in 90% silver. From 1965 until 1970 Kennedy Half Dollars were minted in an alloy containing 40% silver.
From 1942 until 1945, nickel coins were minted in an alloy that contained 35% silver.