by Kevin Thalersmith

Created on: April 10, 2010

Silver has been considered a precious metal ever since the Ancient Greeks first used it to make a new invention called coinage.  Its use as a form of currency has faded in today’s world of fiat and digital currency.  That doesn’t mean silver has lost most of its uses.  In addition to serving as an industrial metal, many investors buy silver as a hedge against inflation.  There are many different ways to invest in silver, with junk silver being a large part of this type of investment.

What is Junk Silver

Junk Silver includes any coin whose value is derived only from the value of the silver in the coin.  This usually comes when a coin’s condition is so low that it loses any collectible value.  The only value left is the metal the coin was made of.  In the United States, pre-1964 Roosevelt Dimes, Washington Quarters, and Kennedy Half Dollars contained 90% silver and are the most popular junk silver coins.  Kennedy Half Dollars from 1965-1970 are also popular, but only contain 40% silver.  Some older coins can also count as junk silver, but only if they are in really poor condition.  Many countries have silver bullion coins who sell just for their silver value, but these aren’t included in junk silver.

Places to Buy Junk Silver

There are three main ways to acquire junk silver: through physical dealers, through internet dealers, and by finding the silver coins in change.  Searching through rolls of coins for ones made of silver is by far the cheapest way of finding junk silver.  Buyers can get rolls through their local bank and get the coins for face value.  This option is best done by people with an interest in coin collecting.  Searching through many rolls of coins can be tedious and occupies a large block of time.  It isn’t for everyone.

The other two ways to buy coins involve purchasing them, whether it’s in-person or online.  No matter where coins are purchases, it is important to remember that almost no junk silver will be purchased at its melt value.  Sellers make money from the difference between the price they charge and the melt value of the coins they sell.  The difference between the selling price and the melt value depends on the seller.  Online sellers usually have a lower spread since they don’t have the overhead of a physical dealer.  Some the biggest sellers of silver coins are online dealers and eBay sellers. 

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