Acquiring Junk

Posted by Ricardo W.
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You've seen them, probably played with them, and more than likely, spent them because they serve as legal tender.  But they do have unique qualities about them that people tend to overlook.  The title "junk silver" can be misleading for those who are unfamiliar about the true meaning and value of the coins.  So what is junk silver & why is it important?

Junk silver are used coins that have been in circulation  prior to 1965 and contains 90% silver. This is not scrap metal because the coins value is based solely on its silver content.

In 1965, Congress passed the Coinage Act which eliminated silver from all dimes, quarters, & half-dollars and replaced it with  copper and nickel. The reason for this was the rising price of silver-which led to coin shortages. As you can see, these "junk coins" are now valuable coins in the collectible market due to its history and silver make up.

For the bullion market, junk silver has become a good choice among investors and survivalist for a few of reasons:
  1. They have lower premiums since the value is based only on its silver content.
  2. Easy to barter and trade for everyday items if there is a currency collapse.
  3. A hedge against inflation. A 1964 silver quarter was $.25 (in 1964), but today it's worth $4!

Before You Purchase...

Look in your piggy banks, coin jars, car seats, sofa cushions, purses, etc. for loose change!  Check the dates of your quarters & dimes before you spend them or take them to a coin exchange.

Talk to your parents, grandparents, aunts, and uncles to see if they have any pre-1965 coins.  My father-in-law knew I was interested in purchasing silver and gave me his junk silver to get started.  This is a great way to gain knowledge on why they began collecting the coins and what it means to them.  And...if you're nice, they may let you have one!

If you decide to buy junk silver, I will tell you that it is sold by face value-ranging from $100-$1,000 bags. Remember:  The face value is essentially legal tender and can still be used today. 
Example:  A $5 dollar bag of junk silver consists of 20 quarters, BUT the silver content is actually worth $92!

Whether you are buying junk silver for an investment or collecting them for fun, make sure you get educated first!  Determine "why" you want to obtain these coins, then make a sound plan to purchase them.  There are plenty of books out here to help you get started on acquiring these wonderful assets.  Remember: "Have fun"!