Junk Silver Coins are a common term for circulated coinage minted with silver. In the United States, silver coinage was in circulation before 1965.
Silver bullion was used in the minting of all dimes, quarters, half-dollars, and dollar coins before 1965. The silver in these coins is 90% pure silver.
Nickel coins minted from 1942 to 1945 contained 35% silver content because the other metals were needed for the military efforts in World War II.
The Kennedy Half-dollar coins minted between 1965 and 1969 were minted with 40% silver.
These coins minted with 90%, 40%, and 35% silver content are called junk silver because of their intrinsic worth.
Why buy junk silver?
- Junk is genuine bullion. Each $1 face value of 90% junk silver dimes, quarters, and half-dollars contains .715 troy ounces of silver and is commonly accepted based on its intrinsic value.
- Unlike other forms of bullion, Junk Silver is not commonly subjected to counterfeiting. Junk silver does not have any numismatic value to collectors. It is collected as a store of value purely for the silver content. It is easy to buy junk silver.
- Junk silver is fractional silver and is easily dividable. It doesn’t carry the same premiums as other fractional silver bullion. Junk silver can easily be split up and sold or traded if necessary. It can make bartering and trading for goods and services much more accessible than other forms of silver and gold bullion because of its fractional nature.
- Junk silver has never been subject to government confiscation. In 1933, President Roosevelt ordered the government to seize all gold coins held by citizens. Those who failed to do so were subject to criminal penalties, fines, and prison. When copper-clad coinage was introduced in 1965, many people hoarded the 90% silver coins.
- Junk silver is easy and convenient to store and doesn’t require special holders, containers, or storage methods. It can be stored like any coinage, and many investors keep it in standard paper bankrolls.
- Junk silver carries a lower premium over the spot price than other silver or gold bullion products. The cost of junk silver is based purely on the silver content. With each $1 face value containing .715 troy ounces of silver.
- Most coin dealers, pawn shops, or other places that trade in silver bullion will often have bags of junk silver for sale. Bags containing $100 face value or $1000 face value are typical. For making smaller buys as a way to store wealth, smaller increments can easily be found. Many dealers sell $5 face value rolls of silver dimes or rolls of quarters containing $10 face value. It is easy to buy junk silver any time you have extra money.
- Junk silver with a lower silver content, such as war nickels (35% silver content) and Kennedy half-dollars from 1965 to 1969 (40% silver content), can often be bought for less than the spot price. Some investors consider the lower silver content less desirable than other forms of bullion, which can lead to significantly lower premiums.
- Junk silver is easy to liquidate and sell. Just as junk silver is readily available and easily bought, it can be sold just as quickly. Any local coin shop pawn shop will readily buy junk silver if you need to sell it.