With the Coinage Act of 1965, United States coins were changed forever. Gone were the days of silver and gold coins, and in their place came coins made of copper and nickel. But even though those silver coins were no longer made, they didn’t go away!
In fact, many people saved these so-called junk silver coins, and even today, people still buy and sell them. So, what makes a junk silver coin, and are they good investments for you? Read on for everything you need to know about these silver coins!
What Are Junk Silver Coins?
The term junk silver can be confusing to a lot of people. There are a couple of key things that will put a coin in this category, though sometimes the definition can be a little fuzzy depending on who’s classifying the coins.
The first thing you should know is that the term “junk” doesn’t mean the coins are worthless! Rather, these are coins that aren’t worth much more than their inherent silver value.
All quarters, dimes, half dollars, and dollars minted before 1965 were silver. Many of these older coins are worth a lot to collectors today, such as a rare silver dollar sold this year. These are known as “numismatic” coins, which means they have value because of their year, condition, design, and other features, in addition to their silver value.
A junk silver coin is still silver, but it doesn’t really have any additional value. They’re often relatively newer and in poor condition, making them not very valuable to coin collectors. However, because they’re so easy to identify and have set amounts of silver in them, they’re great coins for investments!
How Can You Get Them?
There are a few keyways you can get junk silver coins to add to your collection or investment portfolio. Each method has its own drawbacks and benefits, including the costs and time involved.
The cheapest but most time-consuming method of getting junk silver coins is to search through change for the occasional silver coin. Many people buy rolls and boxes of coins from the bank for this exact purpose! However, it takes a long time to find many silver coins, and many folks find that their rate of return isn’t worth the effort.
Even if you don’t buy rolls to search through, it’s always worth looking through your change for the occasional silver. Don’t be fooled into thinking all your coins are valuable because they’re silver-colored! The best way to tell if a coin is silver is by looking at the date to see if it’s from 1964 or earlier.
Many people will shop online or at their Local Coin Shop (LCS) for junk silver coins. These also have their own pros and cons.
An LCS can give you a lot of good information on coins and be a great resource for starting out. However, they often charge a premium on their coins. They also sometimes have a more limited selection of coins than what many investors are looking for.
That’s why many investors turn to online stores to get their silver coins. There is more selection available online, and it’s easier to shop around and compare prices. You must be wary of scams and shady deals though!
Do They Make Good Investments?
Yes, silver coins make great investments! But as with any investment, you need to research and learn how to invest wisely.
Junk silver coins not only reflect the day-to-day silver market price, but also peoples’ fears about the economy. A general trend is that as people fear the economy failing, they buy junk silver as a means of insurance against financial collapse. Because junk silver coins aren’t tied to the US dollar anymore, their value is free to fluctuate independently of what the dollar does.
Even if you’re not worried about economic collapse or inflation of the dollar, other people are! There’s a real benefit to investing in things that people panic-buy, and you’re unlikely to lose money in the long term with junk silver.
As with other precious metals, you should invest in silver with the plan of making this a long-term investment. It’s very hard to beat the premiums on buying and selling silver coins in a short amount of time!
What to Keep in Mind When Buying and Selling
When you start trying to buy or sell silver coins, remember that there are a lot of scammers out there who will try to trick you. Be wary of “amazing” deals offering “rare” coins for high prices. You don’t want to pay premium prices for regular silver coins!
Also, be careful of people trying to pay you almost nothing for your coins. Just because some of them look like the coins we still use today doesn’t make them worthless!
That’s why educating yourself on coins and coin values is so important. You can pick up a coin book from your local bookstore or even the library and start flipping through it to get an idea of coin values. You don’t have to become an expert, but it’s a good way to start learning which coins are valuable!
Even if you find legitimate sellers online or in your area, you also want to keep in mind the prices you’ll pay. Buying individual coins often comes at a higher cost, which is why many investors prefer to buy their junk silver in bulk.
That’s why companies like CMI are so great for serious investors. They require a minimum purchase for all their orders, which ensures they can provide a much lower cost per ounce. You can buy silver coins with them for a far lower price than what you can get almost anywhere else!
Purchase Silver Coins Today
Junk silver coins can make a great, safe investment to help diversify your portfolio. But as with any investment, they take time and knowledge to reach their full potential!
So, if you’d like to learn more about silver coins, or you’d like to purchase some for yourself, contact us! We’d be happy to help you figure out all your precious metal needs and make sure you’re satisfied with your investments.