Understanding “Junk” Silver
What is “Junk” Silver?
What is “junk” silver? “Junk” silver is a term used to describe pre-1965 coins that were made with 90% silver. These coins were in regular circulation before a specific date when their silver content was reduced or eliminated. Over time, the value of silver has risen from where it was in 1965. This has made these coins worth much more than their face value, because of their silver content.
Common Types of Junk Silver Coins
Dimes: Mercury dimes (1916-1945) and Roosevelt dimes (1946-1964).
Quarters: Washington quarters (1932-1964).
Half Dollars: Walking Liberty half dollars (1916-1947), Franklin half dollars (1948-1963), and Kennedy half dollars (1964).
40% Half Dollars: For a short period(1965-69), the government made Kennedy Half Dollars with 40% Silver.
Why is This a Good Investment?
Intrinsic Value: The silver in junk silver is what creates value. With each coin containing 90% silver, the value of these coins fluctuates with the market price of silver, providing a hedge against inflation and economic instability. These coins are valuable regardless of outside factors.
Liquidity: Junk silver coins are widely recognized and accepted. This makes them easy to sell or trade. Their widespread recognition ensures investors can quickly convert them to cash or goods. They are especially liquid because of their small denominations. Getting silver coins in such small quantities gives 90% silver an extra advantage if a person needed to barter with silver.
Affordability: Since these coins are not valued for their rarity or condition, they can often be purchased closer to the spot price of silver than bullion or collectible coins. This makes it accessible for smaller investors who want to enter the precious metals market without a significant premium. Junk Silver is a great way to get silver in smaller denominations while avoiding the premiums that come with buying silver bullion under one ounce.
Tangible Asset: Unlike stocks or bonds, junk silver is a physical asset. The performance of a government or company does not affect the value of silver. It is also a hack-proof asset, as it is “off the grid”. This physical nature provides a sense of security and stability.
Historical Significance: While not typically valued by collectors, these coins do have historical significance. They were part of everyday transactions in the past and serve as a reminder of the dangers of fiat currency.
Conclusion
Junk silver represents a practical, affordable, and historically significant way to invest in silver. Its intrinsic value, liquidity, and status as a tangible asset make it a safe way to invest in precious metals.
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