Junk silver

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Junk silver is an informal term used in the United States for any silver coin which is in only fair condition and has no collectable value above the value of the silver it contains. Such coins are popular amongst those seeking to invest in silver, particularly in small amounts. The word "junk" refers only to the value of the coins as a numismatic collectable and not to the actual condition of the coins; junk silver is not necessarily scrap silver.

The most commonly collected junk silver pieces are U.S. dimes, quarters, and half dollars, minted in or before 1964 and theoretically extending back to the Barber period. These coins had a 90% silver composition ("coin silver"), and when minted contained 0.7234 troy ounces of silver per dollar of face value. Less common as junk silver are half dollars from 1965-1970, which contained 40% silver. Peace Dollars and late Morgan Dollars in especially poor condition may also be collected for their silver value, but are also less common. Junk silver can still be found in casinos.

Junk silver coins may be a desirable method of investing in silver for several reasons:

Low premiums

Junk silver can often be purchased for little or no premium over the spot price of silver, particularly during periods of economic stability.

Legal tender

Junk U.S. coins remain legal tender, and will always be worth at least their face value, regardless of the price of silver.

Recognition

Though not as common as they once were, junk silver coins are still somewhat well-known, and may be less likely to have their value disputed than silver bars or rounds.

Divisibility

Junk silver coins can be easily spent or traded in small amounts; as of June 2006, the silver in a silver dime was worth less than US$0.75. In contrast, silver bullion coins and bars are rarely smaller than one ounce, while gold and other precious metals are highly valued in even minuscule amounts.

For some of these reasons, junk silver is popular among survivalists. In the event of a crisis or catastrophe during which traditional currency collapses, it is speculated that silver coins could provide a viable alternative, temporarily or indefinitely.

[edit] External links

• Junk Silver - What is junk silver and why is it important?
• Coinflation - Gives the current metal value US and Canadian silver coins