Collecting silver coins gives you a chance to have coins in your collection which only have the potential of increasing in value because of their condition, rarity and age, but they have precious metal value as well.
A lot of people collect silver coins just because of their intrinsic value with no thought to whether or not they will increase in numismatic value at some point.
Junk silver coins have also been an investment choice for some.
Investing in Junk Silver
Many people even include junk silver coins in their collecting for investing purposes with the intent of selling them so they can enlarge their silver coin collection. They are a good investment choice because they are composed of ninety percent silver rather than forty percent as are currently minted silver coins.
In fact, since 1965, dimes, quarters and half dollars or silver dollars have just forty percent silver, which makes then much less valuable then the coins made before this time period.
People often overlook a junk silver coin; however it is a great choice when you think of the investment long-term, because you will definitely be getting a lot in return for your investment.
Junk silver coins are often sold by their face value, so you will get what you pay for. There is a lot of silver in these coins and they won’t diminish in value.
Determining Junk Silver from Collectibles
Junk silver is actually an informal term for any silver coins which are in fair condition and do not have collectible or numismatic value more than the value of bullion of the silver they have in them.
The term junk just refers to the value of the coins as collectibles, and not the true value of the coins.
Junk silver is not considered scrap silver necessarily. Since these coins were produced before 1965, you have a fairly easy way to determine which coins are and which are not junk silver coins.
Why Buying Bulk is Smart
Since bulk silver coins were created before 1965, there are no fees that are associated with buying them like there would be with silver ingots or bars.
They will be legal tender anywhere they can be spent if you need them for that reason, and the content in each silver coin is guaranteed by the Mint of the United States to contain ninety percent pure silver and just ten percent of copper.
The Popularity of Junk Silver Coins is Rising
It used to be that most people overlooked junk silver coins, but they are becoming more and more popular to invest in. Most people still don’t understand the benefits which can be gained with this investment choice which is fairly easy.
The Benefits of Investing in Junk Silver Coins
Since the United States Dollar has so much uncertainty for its future value and the stability of the economic world is not looking well, people have been investing more in silver and gold as an insurance for the highly fluctuation values of paper currency.
Investments are made with the goal of making money off of them. Junk silver coins are a fairly low cost way to get into the silver market or to add it to your investment and savings portfolio.
Plus, people invest in junk silver coins with the intention of selling them so they can invest back into their silver coin collection.
There are several aspects to silver coin collecting that are worth looking into if you are interested in collecting these coins for whatever reason you intend them for.
As you can see, investing in junk silver coins has its benefits both as a long-term investment and as a way to invest back into your overall collection of silver coins.
By Mike Ferreira on July 7th, 2013