Why Is Junk Silver 0.715 Troy oz Per $1 Face Value?

Why Is Junk Silver 0.715 oz per $1 Face Value?

Although $1 in face value (FV) of junk silver is quoted at 0.715 troy ounces in the precious metals industry, the U.S. Mint’s specifications give $1 in face value of 90% silver coins an actual silver weight of 0.7234 troy ounces. This is because our industry standardizes junk silver at a slightly lower silver weight to account for the coins being worn down over time.

90% junk silver is a popular way to invest in silver. Prior to 1965, U.S. dimes, quarters, and half-dollars were minted using 90% silver. Silver weights were standardized by denomination, meaning that $1 in face value equals a set amount of silver, regardless of which of these coins are used to make it up.

According to the United States Mint’s coin weight specifications, $1 in face value of 90% U.S. silver coins contains a total of 0.7234 troy ounces of silver. But if you go to buy or sell $1 in face value of these same coins, you’re quoted 0.715 troy ounces. What gives?

On this page, learn more about why silver dealers quote junk silver lots at 0.715 troy ounces per $1 face value, how much silver is in junk silver, and more.

How Much Silver Is In Junk Silver?

Calculating the silver weight of a circulated U.S. 90% silver coin is easy, since Congress standardized weights in proportion to face value under the Coinage Acts of 1853 and 1873. In other words, since a 90% silver half-dollar is worth five times as much as a dime, it contains five times as much silver.

However, junk silver is traded at a slightly different silver weight than the specs published by the U.S. Mint. The difference between a junk silver coin’s minted silver weight and its quoted weight in the industry is called a wear allowance. 

Wear allowance isn’t an arbitrary number; a $1,000 face value bag of 90% junk silver weighs approximately 55.1 pounds as minted but will actually weigh about 54.5 pounds under the 0.715 standard. In other words, 0.715 troy oz per $1 face is not a random number dealers have decided on. It is convention, though. Dealers use the 0.715 troy ounce number informally, and it’s an average applied by most industry players. There’s no law saying dealers and sellers must agree to the 0.715 troy oz standard; it’s just a convention of the silver trade.

Here’s a breakdown of each 90% junk silver U.S. coin’s trade silver weight, minted weight in silver, and wear allowance. We’ve also included figures for $1, $100, and $1,000 face value packages, which also commonly use the trade weight standard of 0.715 troy ounces per $1 face value.

Junk Silver Content: As Minted vs. Trading Standard

Source: As-minted figures come from U.S. Mint published coin weights x .90. Wear allowance is the difference between as-minted and traded weights under the 0.715 basis.

Especially for smaller pieces of junk silver, the difference between minted silver weight and the 0.715 basis is minuscule. Even a full $1 face value lot of junk silver coins loses only 0.0084 troy ounces to wear allowance. The difference really comes into play when you’re dealing in $1,000 face value bags, where the wear allowance creates a difference of 8.4 troy ounces between the mint’s stated silver weight and the 0.715 per $1 face value standard.

Prices at coin shops and online bullion dealers are usually set using the standard of 0.715 troy ounces for $1 face value, 71.5 troy ounces for $100 face, and 715 troy ounces for $1,000 face. When you go to sell your junk silver, dealers will typically use face value and default to the 0.715 per $1 face standard.

Here’s Why Dealers Use 0.715 oz Instead of 0.7234

The last 90% silver circulating U.S. coins were dated 1964, around 62 years ago. Over decades of handling, these coins are worn down, and silver isn’t exempt from this process. Wearing on a silver coin begins at the high points and at the rims, which are the first points of contact when a coin is handled, thrown in a cash drawer, or rolled into a vending machine.

Dealers use 0.715 troy ounces instead of the U.S. Mint’s as-minted 0.7234 troy ounces to represent the silver weight of $1 face value of 90% silver coins to account for the silver worn down over decades of circulation.

Circulation Wear and Silver Content

Although coins do lose silver through decades of circulation, the typical silver loss on a worn coin is minimal. Per $1 face, the difference between a dealer’s 0.715 oz quote and the original silver content of 0.7234 oz is 0.0084 oz, or around 1.16%.

The difference becomes more significant when you’re dealing in very large amounts of junk silver. For a $1,000 bag, wear allowance drives a difference of around 8.4 troy ounces between the bag’s original silver weight and its current estimated weight used by dealers to set bid and ask prices.

How much silver a junk 90% coin loses depends on its age and circulation. Because junk silver bags mix coins from the 1910s all the way up to 1964, the silver loss per coin can range from nearly nothing to noticeably more than average.

Why the Silver Industry Uses an Average

The silver industry uses the 0.715 per $1 face value rule for practical reasons. Junk silver is traded in fungible units based on face value: $1, $10, $100, $500, $1,000. By settling on a single fixed figure per $1 face, dealers can quickly quote bags using multiples of face without having to carefully inspect each bag to assess its degree of wear and actual silver weight.

This rule goes both ways, too. Both buyers and sellers use the same 0.715 oz estimate for each $1 in face value. The wear allowance applied to a given face value of junk silver adds nothing to a trader’s round-trip cost, which is the difference between what you pay for a bag of junk silver and what you receive for it when selling.

What 0.715 Means When Buying or Selling

Because the 0.715 oz per $1 face value is the standard rule used by both buyers and sellers in the silver trade, you don’t really lose or gain anything from wear allowance when buying or selling junk silver. When you buy junk silver, prices are calculated based on 0.715 troy oz per $1 face value. Likewise, when you go to sell, your dealer’s offer is calculated using 0.715 troy oz per $1 face.

Practically, new investors should understand the 0.715 convention in order to better understand offers and appraise their own silver collection. Every $1 in face value equals 0.715 troy ounces in this market. To find the total amount of silver in your lot of 90% junk silver coins, multiply its face value by 0.715.

What Coins Does Wear Allowance Apply To?

The 0.715 per $1 face value rule for wear allowance only applies to 90% silver dimes, quarters, and half dollars. 40% half dollars are quoted at 0.1479 troy oz per coin, and 90% silver dollars (Peace and Morgan) are standardized in the silver market at 0.7734 troy oz per coin.

An Industry Convention: Wear allowance is applied to coins to account for silver loss due to circulation. These numbers are not legally established or regulated, but they are used by most dealers trading junk silver.

Morgan and Peace dollars are not considered junk 90% silver. Because of investor demand, common silver dollars tend to retail for higher premiums over melt than most junk silver coins.

Frequently Asked Questions About Wear Allowance and 0.715 oz Junk Silver

Why Is Junk Silver Priced at 0.715 oz per $1 Face Value?

Junk silver is priced using a silver weight of 0.715 troy oz per $1 face value to account for metal loss due to wear. Coins lose metal over time when circulated, so the silver trade uses 0.715 troy oz per $1 face rather than the as-minted silver weight of 0.7234 troy oz.

How Much Silver Is in a $1,000 Face Value Bag?

A $1,000 face value bag of silver technically contained 723.4 troy ounces of silver when minted, but the silver trade counts a $1,000 bag as containing 715 troy ounces to account for metal loss from wear. Depending on circulation and wear across the coins in the bag, the actual silver weight won’t be 715 troy ounces, but 715 is used as a standard weight for both buyers and sellers.

How Much Junk Silver Is Equal to One Troy Ounce?

$1.40 in face value of junk 90% silver coins is equal to about one troy ounce of silver (1.001 troy oz). This is often called the $1.40 rule, and it allows buyers and sellers to quickly estimate the amount of silver of a lot of junk silver coins.

Do Uncirculated Pre-1965 Coins Contain More Silver?

Uncirculated pre-1965 silver coins typically contain more silver than circulated ones, but only by a negligible amount. Uncirculated coins tend to trade at a premium compared to circulated coins due to their condition, rather than their higher silver content.

Does the 0.715 Rule Apply to Silver Dollars or 40% Halves?

The 0.715 rule does not apply to silver dollars or 40% silver half dollars. 90% silver dollars are sold based on a silver weight of 0.7734 troy oz per coin, and 40% silver half dollars are sold based on a silver weight of 0.1479 troy oz per coin.

Final Thoughts: Why Is Junk Silver 0.715 oz per $1 Face Value?

In the silver trade, junk 90% silver is calculated using a standard of 0.715 troy ounces of silver per $1 in face value. This is less than the as-minted silver weight of any given junk silver coin. The 0.715 rule is used to account for metal loss due to wear among circulating coins.

You might also be interested in:

• Junk Silver Vs. Silver Bullion
• How Much Silver Is in a US Coin?
• Silver Melt Value Guide

Back to "Bullion Academy"