Junk Silver Coins, also known as US 90% Silver Coins, generally refers to old US currency coins whose valued is based on the silver bullion value of the silver content they contain. These are 90% silver coins minted by the US Government pre-1965 (half dollars, quarters, and dimes). New investors often incorrectly correlate the term junk silver to the condition of the coin. In actuality, 90% silver coins can come in a variety of conditions from near brilliant uncirculated (BU) to circulated (worn). US 90% silver coins are sought after based on both their silver content and currency value.
Benefits of Investing in 90% Silver Coins
Like the American Silver Eagle Coins, 90% Junk Silver Coins are still official US currency and thus can be used as a means of legal tender face value payment yet it is often saved and held for the long term given the silver bullion value contained within them.
Old US silver coins were once commonplace and formally part of our nation’s standard circulation coinage. Beginning from the signing of the 1792 Coinage Act continuing until silver was formally removed from large circulation coin strikes by the 1965 Coinage Act.
These formerly circulating United States silver coins are sometimes referred to as: Constitutional Silver Coins, Junk Silver Coins, pre 1964 silver coins, pre 1965 silver coins, 90% Silver Coins, or 40% Silver Coins (struck from 1965 - 1970).
In the modern silver bullion coin industry, older once circulated silver coins are often sold in ‘face bags’ which measure the total ’legal tender’ face value each bag contains. The vast majority of Junk Silver Coins traded here at SD Bullion are 90% silver coins stuck and issued before 1965.
90% Silver Coin Supplies are a Leading Indicator of Silver Demand
Seasoned silver investors often associate 90% as a leading indicator of silver investment demand. Because 90% US silver coins have not been minted since 1964, they are typically the first silver precious metal coin to indicate a shortage of silver supplies during a period of increased silver demand. For example, during the peak of the 2008 Financial Crisis, silver bullion supply shortages led to 90% Junk Silver Coin price premiums of up to 40% above the then fluctuating silver spot price.
Conversely when financial markets are calm and physical silver bullion supplies are loose and ready for immediate delivery, older junk silver coins can reach price levels at or very close to the fluctuating silver spot price. When selling older 40% or 90% silver coinage to silver bullion dealers during normal calm market periods, you should expect to receive a bid or offer price slightly lower than the fluctuating silver spot price.
40% Silver US Half Dollars - includes Kennedy Half Dollars minted between 1965-1970 and also 1976
35% Silver War Nickels- minted 1942-1945
Available Junk 90% Silver Face Bags of $1, $100, $500, and $1000 on Sale
You can buy 90% Junk Silver Face Bags in increments as little as $1 face value. Each $1 face value contains .715 ounces of silver.
You can also buy 90% Silver Coins in bulk increments of $100 Face Value, $500 Face Value, and $1000 Face Value.
Why do people buy and save Constitutional Silver Coins?
Both old US 40% and 90% silver coins are still legal tender today but they are most actively traded based on their overall silver content and not their legal tender face values. Many silver savers like owning these old US silver coins for potential use in direct barter or trade. For example small old US 90% silver dimes contain about 2.25 grams of silver in each coin. In a financial crisis, many contend these small denomination silver coins could come in handy when purchasing everyday goods and services.
Yet the largest most important reasons people buy and hold old US Constitutional Silver Coins for the long term is the fact their precious silver content has proven to be a good hedge against ongoing fiat currency debasement and purchasing power loss. In short, silver retains its value over the long term allowing holders to keep a portion of their wealth in these private, tangible, legal tender, precious metal silver coins of our forefathers.
The Doc's Take on 90% Constitutional Silver Coins
Owning 90% Junk Silver Coins is often part of a diversified precious metal investment portfolio. It is primarily sought after by silver investors for its currency value and as a hedge against the possibility of an economic or currency collapse.
Because of its smaller denominations, it provides a way to barter for everyday items during a period of survival. Old US Silver Coins also better maintain their values vs fiat currency over the long term, due to their precious metal content.
Have additional questions on selling or buying 90% Junk Silver Coins? Call our bullion trading desk at 1-800-294-8732.