What are Junk Silver Coins and How to Invest in Them?

One of the most popular silver coin investment options is junk silver coins, but there appears to be some confusion as to what constitutes a junk silver coin and how best to invest in them.

Before we go further, let’s define junk silver coins.  Junk silver coins are most commonly associated with 90% silver U.S. dimes, quarters, and half dollars minted prior to 1965.  They are essentially common date circulated condition coins that have no value beyond the coin’s silver content.

Other coins that may be referred to as junk silver coins are 40% Kennedy half dollars minted from 1965 – 1970, 35% silver war nickels minted from 1942 – 1945, and 80% Canadian silver dimes, quarters, half dollars, and silver dollars minted in 1967 or earlier.

Now that we’ve identified what constitutes junk silver coins, we’ll now discuss how best to invest in these coins.  If you’re selling junk silver coins, you should expect to receive less than the silver content of the coins, as the silver coin dealer to whom you’re selling silver coins will be buying these coins for their silver content.

When buying junk silver coins, your goal should be to try and purchase silver coins for as close to the melt value of the coins as possible.  A reasonable premium for junk silver coins is 5% over the spot price of silver.  When buying silver coins in bulk, you may be able to reduce the premium that you pay for these coins further.  Establishing a relationship with your coin dealer can help you to not only receive preferred pricing, but also to receive first dibs on new inventory that they receive.

A good strategy is to periodically invest in junk silver coins so that you can reduce the average price of your coins.  This is commonly referred to as dollar cost averaging, and is the approach that most individual take when investing in the stock or bond market through a 401(k).

In summary, before you buy or sell junk silver coins, do your due diligence to find silver coin dealers that are willing to pay more for your silver coins and sell them for less.  Invest on a regular basis and establish a relationship with your coin dealer to receive the best prices and priority on new inventory that they receive.

If you have any questions, or are interested in buying or selling junk silver coins at the best   prices, contact Atlanta Gold and Coin Buyers today at 404-236-9744.  We look forward to hearing from you and earning your business.

 

 

Tony Davis
Tony Davis