Understanding Junk Silver Price

Understanding Junk Silver Price

From John Smith

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"Junk silver" can be misinterpreted as waste or impure silver; however, that is a myth! Before 1965, U.S. coins were made of 90% silver. They are called Junk Silver Coins because their value is not in their face value or physical condition but in their silver content. Although they are not typically classified as numismatic coins, such pieces remain valuable and are suitable for investment portfolios. 

This post will navigate you to American Junk Silver, its types, and its present pricing.

Types of Junk Silver

"Junk silver" generally includes four key coin types based on the content percentage of silver and are valued on their silver content:

  • 90% Silver: These Junk Silver Coins are pre-1965 minted dimes, quarters, and half dollars of the United States of America.

  • 40% Silver: 1965–1969 Kennedy Half Dollars, 1971-1976 San Francisco Mint Eisenhower dollars, and 1976-S Washington Quarters and Kennedy Half Dollar proofs. However, Ike Dollars and other 1976-S proof coins may have a premium over the actual face value because of their silver content.

  • 35% Silver War Nickels: Jefferson Nickels from 1942-1945 (with large "P, D, or S" over Monticello) contains 35% silver, as nickel was diverted for military use during WWII.

  • 80% Canadian Silver: Canadian dimes, quarters, and half dollars minted before 1968, when Canada stopped issuing silver coins.

Factors Influencing Junk Silver Prices

Here are the main factors that impact the junk silver price-

Primary factors that influence the price of silver include supply and demand. Silver is used chiefly in industrial applications, accounting for 65% of the world's consumption rate, while the global supply is still restricted. 

With increased demand, especially as silver is incorporated into new technologies such as solar technology, the price will continue to increase. Conversely, a halt in silver mining could lead to temporary price surges as supply dwindles.

Silver, from time to time, mirrors the fluctuations in gold prices. In the past, when gold went up in price or came down, that also happened to silver. This co-relationship is well captured by the silver/gold ratio, meaning that gold prices are a useful predictor for the future movements of silver prices. While the movement of gold prices is relatively low, it strongly influences the junk silver price.

Today, there is a lot of silver scrap from coins, jewelry, and outdated film material because technological improvements have decreased the usage of silver in industries like photography. By boosting supply in the coin and scrap markets, the availability of this scrap silver, often meant for melting, impacts silver's market value.

How to Calculate the Value of Junk Silver

Face value is the stamped value of a coin in terms of lawful money of the United States, such as the one-dollar face value of a Silver Eagle. Technically, you could pay for a good or service with it at a store; however, you would actually be paying out more since the piece's value lies in the silver's worth.

Melt value is based on the intrinsic value of the metal content in the particular coin. The premium is the amount over the melt value the sellers demand. This depends on the physical state of the coin, the grade, the year of minting, and whether it is a rare issue. Legal tender Junk Silver Coins generally have the highest premiums. If you see an offer like "$5 over the spot," it means the seller is adding a $5 premium to the coin's melt value.

To determine the total value of your Junk Silver Coins, simply multiply their weight by the current silver price. For example, if you have 71.5 troy ounces of silver and the spot price is $33.96 per ounce, the calculation would be:

71.5 x 33.96 = 2,428.14.

So, your junk silver would be worth $2,428.14 at the current spot price of silver.

Where to Sell Junk Silver Coins

To determine where to sell your junk silver coins, you must consider each choice's advantages and disadvantages. Here's a breakdown of four standard selling options:

  • Local Coin Shop: If you are in a rush to sell an item, then a coin or pawn shop will give you a direct sale in a short time. They have experts present who can immediately assess your coins when you bring them. Although convenient, keep in mind that the return may be lower as these shops factor in their resale margins.

  • Online Marketplace: Offering your junk silver coins on eBay or other coin auction sites is also a good idea, as this exposes your portfolio to many people, enabling you to fetch better prices. However, success is highly dependent on the quality of the photos of the coins and descriptions given. Be mindful of fees and shipping costs, which can reduce your net profit.

  • Investors or Silver Stackers: Socializing with silver stackers or investors opens up the possibility of better returns if the price of silver increases. Such buyers mainly buy large quantities of junk silver coins and are usually concerned with their future value. Sellers can easily find interested buyers by engaging with silver-stacking communities.

Conclusion

In conclusion, junk silver coins have much value in today's economy for their silver content and would make a great addition to any person's investment portfolio. Whether selling locally, online, or to reputable dealers, your choice should align with your financial goals and desired return. 

Stay informed about market trends and spot prices to maximize your profits.

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