What Is Junk Silver – And Should You Be Buying It?

 

What is Junk Silver? 

Despite the name, junk silver isn’t really junk at all. What is junk silver? “Junk” silver, also called Constitutional silver, describes circulated U.S. coins that contain real silver. Modern American coins, including half-dollars, quarters, and dimes, contain no silver. Prior to 1965, however, many circulating U.S. coins were minted using 90% pure silver. The Coinage Act of 1965 removed silver content from U.S. coinage, but real silver coins are still sometimes pulled from circulation by savvy stackers who know what to look for. 

More importantly, some investors buy and sell exclusively junk silver coins to build their silver portfolios. Buying junk silver in bulk can be a cheap way to invest in silver compared to new silver bullion coins, rounds, or bars. Because junk silver coins resemble normal, albeit old, coins, you can also sometimes find them at garage sales, local thrift shops, and even in your change after making a purchase! 

So what’s the deal with junk silver? Is it really worth stacking, or should you focus your efforts on modern silver bullion coins, bars, and rounds? 

Keep reading – this page is your one-stop shop for information and investing tips on junk silver. 

How to Find and Identify Junk Silver

Spotting junk silver coins is actually quite easy. Whether you plan on investing in junk silver through an authorized precious metal dealer or you just want to search through your coin jar for hidden silvery gems, the first thing you need to know is which types of U.S. coins can be made from silver. 

Which coins are silver? Four types of circulated American coins were made from real silver prior to 1965: 

• Dimes 
• Quarters
• Half-Dollars
• Silver Dollars

Not all dimes, quarters, half-dollars, and dollar coins are made from real silver. Only coins from these categories minted before 1965 contain real silver. After Congress passed the Coinage Act of 1965, the U.S. Mint stopped using actual silver to create standard circulating coins. Instead, modern dimes, quarters, half-dollars, and dollar coins are minted using alloys of inexpensive metals, like copper, zinc, and nickel. 

If you find a dime, quarter, half-dollar, or dollar coin minted before 1965, chances are you have 90% pure silver on your hands. 

Junk Silver – Good Investment Or a Waste of Money? 

Is junk silver really a good investment? Many silver stackers swear by junk silver, and there’s a good reason why. Most junk silver coins are heavily circulated and valued for little more than their silver melt value, meaning that they may sell for a small premium over spot price. In other words, junk silver is considered a good way to invest in silver because it’s a cost-effective product category. 

Another benefit to investing in junk silver is the collectability and history that these coins offer. When you buy junk silver, you’ll receive an actual, circulated coin containing real silver. Your junk silver coins have been used by real people to purchase goods and services, and each junk silver coin comes from its own period of U.S. history – and offers its own story. 

Not all junk silver is cheap. Coins that are from early American history or kept in excellent condition may sell for a hefty premium over spot price, which can eat into your profits while you invest. How do you find cheap junk silver? Online precious metals dealers, such as Hero Bullion, sell junk silver for low premiums over spot price. Buying bulk lots of junk silver from auctions, estate sales, or thrift shops can also help you build your silver portfolio without breaking the bank. 

Careful – Some Junk Silver Coins Might Not be Junky At All! 

Numismatic value is another aspect of a junk silver coin that can saddle it with higher premiums over spot price. Numismatic value refers to value added to a coin or investment based on its age, collectability, rarity, or condition. When investors talk about buying junk silver, they’re usually referring to common pre-1965 circulation coins, like the 1960 U.S. quarter. 

Are junk silver coins valuable? Certain pre-1965 silver coins can be far more valuable than their silver content, especially if they’re rare, uncirculated, or include mint-made errors. Some of the most expensive silver dollars in history sell for hundreds of thousands of dollars, making them a poor investment option for stackers who want to maximize the amount of pure silver they get for their money. 

For junk silver investors, investing in silver is a volume game. The goal is to get as much silver as possible while spending a minimal amount of cash on premiums. If this is your perspective, be sure to stay away from exceptionally old, rare, or valuable circulated coins. Remember – you just want the coins for their silver! 

Junk Silver Vs. Bullion – What Type of Silver Will You Stack?

Junk silver and silver bullion are two common ways to invest in the precious metal. You already know all about junk silver, but what is silver bullion? Silver bullion refers to high purity silver products, including coins, bars, or rounds, that are meant for investors. Many silver bullion coins, including the American Silver Eagle (pictured below), include face values, but they’re meant for investors instead of commerce. 

Is junk silver the best way to invest in silver? Junk silver isn’t necessarily a better way to invest in silver than silver bullion, but buying junk silver comes with a few notable advantages. 

First, junk silver can be an inexpensive way to invest in precious metals. When you buy common junk silver coins, you’ll often pay little more than the coin(s) total melt value in silver. For silver investors who want to score as much silver as possible for their cash, the affordability of junk silver makes the product type a great option.

Second, junk silver is fun to collect because you can sometimes find it out in the wild. Believe it or not, some pre-1965 silver coins are still in circulation. We’ve heard countless stories of silver stackers finding old silver dimes, quarters, or even half-dollars in their change. Occasionally, you might even find silver dollars being sold for less than spot price at garage sales or thrift stores! 

Perhaps the biggest benefit of buying junk silver is that it’s fun. Unlike beautiful, perfect modern bullion coins, junk silver coins are usually weathered, worn down, and circulated. They show their age – and why shouldn’t they? Some junk silver coins have been around for more than 100 years, meaning that they’ve probably changed hands thousands of times.

The history hidden behind old coins is one of the most fascinating things about coin collecting. When you add the fun of junk silver with the low premiums junk silver coins usually offer, it’s clear why this method of stacking silver has always been so popular. 

Still, investing in modern silver bullion products comes with benefits as well. In the chart below, we’ll compare junk silver to silver bullion to figure out the true best way to invest. 

Junk Silver	Silver Bullion
On average, lower premiums over spot price	Highly collectable
Hard to resell at a premium	Easy to resell to investors/dealers
High variety of designs	Instantly recognizable
Historical interest and value	High premiums over spot price (sometimes)

Final Thoughts: Is Junk Silver the Best Way To Invest? 

Junk silver, or American coins minted before 1965, is a unique way to invest in silver. In addition to being more affordable and offering lower premiums than some modern silver bullion investments, junk silver is a favorite of investors who love to study the history, designs, and variations of America’s rich coinage history. 

At the end of the day, it’s up to you to decide how you want to build your silver portfolio. Junk silver offers competitive premiums, historical interest, and a wide variety, but some investors prefer the new look, high purity, and brilliant shine of a fresh silver bullion coin. 

However you decide to stack, Hero Bullion has your back. We sell hundreds of junk silver and silver bullion products, and our industry-leading prices help you expand your stack without emptying your wallet! 

You might also be interested in: 

• Is Junk Silver a Good Investment?
• How Much Junk Silver Should I Own?
• Why Stack Junk Silver?