Junk Silver - Is It Worth Spending Money On?

Junk silver has a very misleading name, because to most people junk means something that is worthless and should be discarded. Junk silver coins value is far from worthless, but as coins valued by collectors they have no value and are considered junk or scrap. If your goal is silver investing rather than coin collecting, then these coins are anything but junk because the precious metal value is higher than the cost of the coins usually.

Gold and silver investments have increased dramatically in the last couple of years, because the price of these precious metals have hit record highs lately. Junk silver is a fantastic way for investors to get into the precious metals market without requiring large amounts of capital. There is no junk gold bullion market, but for silver investors this can be a great investment opportunity. With this option even a small amount of capital can be utilized effectively for most investors.

Doing the research and comparisons is important, even with junk silver. Look at the silver bullion spot price to determine the savings or benefits that you will see from the investment. If the spot price of silver is nineteen dollars an ounce then the junk silver price for this amount should be less. Often choosing the junk form of silver will allow you to save money without getting a lower quantity.

Wholesale silver bullion can often be found at a relatively low markup, and this metal is used in large amounts for industrial applications causing the demand to increase. Junk silver can help lower the cost of this metal investment, but it may be harder to sell these items because they are not a specified quality or quantity like certain bullion bars are. The type of coin, the silver content, and the manufacturer will also affect the liquidity of these investments. For some investors junk silver is ideal, while for others it can be a mistake.

Not every investor knows that in the old days prior to 1965, quarters, nickels and junk silver dimes used to contain 90% of pure silver. Nowadays you can purchase these coins in bags of various denominations value ranging from $1 to giant $1000 bags containing 715 troy ounces of premium quality silver. In addition, such investment is going to be deemed extremely cost effective since you will be paying literally pennies over the spot price of actual silver for them. Moreover, it's worth it buying junk silver coins to have in case of worst case scenario emergencies to pay for your basic survival necessities when the national currencies fail.

If you are one of many who were lucky to own bags of pre 1965 coins, now it's time to cash in. You can sell junk silver to your local precious metals dealer or search for a scrap metal or bullion refinery online.