Have you ever considered the idea of investing and trading in junk silver coins? Most would probably reply in the negative for this one. The reason is because most of us are only familiar with the investment value that can be found in precious silver coins, those that can be viewed as rare collectibles. It would surprise you however that so called junk silver coins are largely responsible for the success enjoyed by the silver industry as a whole, and as such can be a very profitable means for the savvy precious metals investor. Looking at it this way only goes to show that there is little 'junk' contained in investing in junk silver coins.
Junk silver coins are those that are defined by coins that are less than .999 fine; most typically associated with 90% silver coins. Silver rounds and bars as well can be said to differ from junk silver coins by having a substantially higher percentage of silver.
The value and power of junk silver coins lies in the fact that they are transacted in bulk. Whereas individual junk silver coins do not carry much value, these coins become highly sought after when sold in large quantities. Typical bag sizes include $100, $250, $500 and $1,000 bags containing anything from the variety of Mercury and Roosevelt dimes to Morgan and Peace dollars. Of course it might be useful to try to maintain the same coin types within a bag so as to simplify the transactions but it will not be absolutely necessary to do so. This is because it is ultimately the silver content that drives the price, so the exact type of coin in the bag would have little effect on the total price of the whole bag.
Here is an example of how you could sell junk silver coins. If you want to sell a $500 bag of Franklin half dollars then all you would need to do is fill the bag with 1,000 half dollar coins exactly. This is based on the fact that a single Franklin half dollar carries 90% in actual silver content; which translates to 0.36169 ounces of silver in each and every coin. So for our bag example we have 1000 coins and this would give us a total of 361.69 ounces of silver. If the silver spot price sat at $30 per ounce on a given day you then have a junk silver bag with a value of $10,850.70.
Because this is all based on the spot pricing of silver as it occurs, you would not expect to see the impact from the sale of a single coin. Bulk transactions of junk silver coins make it easier to benefit from changes in the spot pricing of silver as a precious metal sold by weight. Taking our $500 bag of Franklin half dollars a little further, you could effectively sell the same bag whose value was $10,850.70 - for a marked up price of $11,212.39 if the spot price were to jump to $31 an ounce the following day.
There is one point you need to consider when looking to buy or sell junk silver coins. The vast majority of coin dealers in this industry would not be willing to buy junk silver coins at the precise level of the silver spot price. This is because if they did it would limit their opportunities to make sustainable profits. So from this we can see that your only real task would be to find such silver coin buyers that can give you prices as close as possible to the spot price of silver. If you find such a dealer, hold on to them for you have a gem of a partner that will allow you to trade silver junk coins quite profitably indeed.
That is not to say that you should dismiss junk silver coins as lesser equivalents of their more prestigious coin counterparts. They have proven to be extremely profitable in most cases even though they contain smaller amounts of silver. The silver market in fact thrives because of 90% silver coins and for this reason investors should be more open to incorporating them into their portfolios, so as to take better advantage of the ever fluctuating spot price of silver.
Junk silver coins are those that are defined by coins that are less than .999 fine; most typically associated with 90% silver coins. Silver rounds and bars as well can be said to differ from junk silver coins by having a substantially higher percentage of silver.
The value and power of junk silver coins lies in the fact that they are transacted in bulk. Whereas individual junk silver coins do not carry much value, these coins become highly sought after when sold in large quantities. Typical bag sizes include $100, $250, $500 and $1,000 bags containing anything from the variety of Mercury and Roosevelt dimes to Morgan and Peace dollars. Of course it might be useful to try to maintain the same coin types within a bag so as to simplify the transactions but it will not be absolutely necessary to do so. This is because it is ultimately the silver content that drives the price, so the exact type of coin in the bag would have little effect on the total price of the whole bag.
Here is an example of how you could sell junk silver coins. If you want to sell a $500 bag of Franklin half dollars then all you would need to do is fill the bag with 1,000 half dollar coins exactly. This is based on the fact that a single Franklin half dollar carries 90% in actual silver content; which translates to 0.36169 ounces of silver in each and every coin. So for our bag example we have 1000 coins and this would give us a total of 361.69 ounces of silver. If the silver spot price sat at $30 per ounce on a given day you then have a junk silver bag with a value of $10,850.70.
Because this is all based on the spot pricing of silver as it occurs, you would not expect to see the impact from the sale of a single coin. Bulk transactions of junk silver coins make it easier to benefit from changes in the spot pricing of silver as a precious metal sold by weight. Taking our $500 bag of Franklin half dollars a little further, you could effectively sell the same bag whose value was $10,850.70 - for a marked up price of $11,212.39 if the spot price were to jump to $31 an ounce the following day.
There is one point you need to consider when looking to buy or sell junk silver coins. The vast majority of coin dealers in this industry would not be willing to buy junk silver coins at the precise level of the silver spot price. This is because if they did it would limit their opportunities to make sustainable profits. So from this we can see that your only real task would be to find such silver coin buyers that can give you prices as close as possible to the spot price of silver. If you find such a dealer, hold on to them for you have a gem of a partner that will allow you to trade silver junk coins quite profitably indeed.
That is not to say that you should dismiss junk silver coins as lesser equivalents of their more prestigious coin counterparts. They have proven to be extremely profitable in most cases even though they contain smaller amounts of silver. The silver market in fact thrives because of 90% silver coins and for this reason investors should be more open to incorporating them into their portfolios, so as to take better advantage of the ever fluctuating spot price of silver.
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