Junk Silver: The Hidden Gem of Precious Metals Investing

Junk Silver: The Hidden Gem of Precious Metals Investing

When it comes to investing in precious metals, many investors automatically think of gold and silver coins or bars from well-known mints like the US Mint or the Royal Canadian Mint. However, there is another option that has been gaining popularity in recent years: junk silver. In this article, we’ll explore what junk silver is, its benefits, and why it should be considered as a viable investment option for precious metal enthusiasts.

What is Junk Silver?

Junk silver is a term used to describe pre-1965 US silver coins, also known as 90% silver coins or junk coins. These coins were minted by the United States Mint from 1794 to 1964, and were composed of 90% silver and 10% copper. Due to their low melt value and lack of collectibility, these coins were considered "junk" and were often sold for scrap metal or melted down.

Benefits of Junk Silver

So, why are junk silver coins becoming a popular investment option? Here are some benefits:

1. Lower Cost: Junk silver coins are often significantly cheaper than their counterpart coins, such as American Silver Eagles or Canadian Maple Leafs. This makes them an attractive option for investors on a budget or looking to diversify their precious metal portfolio.
2. Higher Silver Content: Junk silver coins contain a higher percentage of silver (90%) compared to many modern coins (0.999 fine), making them a more attractive option for investors seeking pure silver content.
3. Stackability: Junk silver coins are easily stackable, making them a great option for investors looking to accumulate a large quantity of silver.
4. Wide Acceptance: Junk silver coins are widely recognized and accepted by precious metal dealers, making them easy to buy, sell, or trade.
5. No Taxes: Unlike bullion coins, which are subject to sales taxes in some states, junk silver coins are considered collectibles and are not subject to taxes.

How to Invest in Junk Silver

Investing in junk silver is relatively simple:

1. Find a Dealer: Look for reputable dealers that sell junk silver coins, such as online precious metal retailers, coin shops, or auction houses.
2. Check Prices: Compare prices from different dealers to ensure you’re getting the best deal.
3. Consider Rolling: To simplify storage and handling, consider purchasing a "roll" of 20-50 coins.
4. Store Securely: Keep your junk silver coins in a safe, secure location, such as a safety deposit box or a fireproof safe.

Conclusion

Junk silver is a unique and attractive option for investors seeking a tangible, liquid, and relatively inexpensive way to invest in precious metals. With their high silver content, lower cost, and wide acceptance, junk silver coins offer a hidden gem of investing that shouldn’t be overlooked. So, the next time you’re considering adding to your precious metal portfolio, give junk silver a look.