Are you wondering what is junk silver and if you should invest in it? Get your complete guide to investing in junk silver here and diversify your portfolio now.
From the late 1700s through the 1960s, the United States minted many of its coins out of silver. But starting in 1965, ordinary coins were no longer made out of silver, and silver coinage was quickly scooped up out of circulation. These coins quickly became known as “junk silver.”
Is junk silver worth investing in today? What do you need to be aware of when you invest? Read on for everything you need to know about investing in junk silver coins!
What is Junk Silver?
Junk silver coins are essentially coins like quarters and dimes that were minted before 1965. Some half dollars are also considered junk silver, depending on their year. These coins are composed of 90% silver, making them excellent investments for people looking to get into precious metals.
The term “junk” throws some people off, but it doesn’t mean that these coins are worthless! Rather, it means that these coins don’t have much extra value besides their silver content.
This is in contrast with what are known as “numismatic coins” or numismatics. These numismatic coins have more value because of their age, condition, design, or other features. While the silver content will also help the price, it often isn’t the main determinant of a numismatic coin’s value.
Are Junk Silver Coins Worth Buying?
Yes, junk silver coins can make great investments! As with any investment, you need to do your research and try to buy when the price of junk silver is low. There’s a lot of potential with junk silver, but there are also a lot of pitfalls that can trip you up.
Because of the higher premiums associated with buying and selling precious metals, you should view junk silver as a long-term investment. You’re likely to make some gains over the long run, but in the short term, any profits you make will get eaten up by the premiums associated with selling and buying junk silver.
Additionally, many experts recommend that investors stay away from numismatics, particularly while they’re new to precious metal investing. There’s a lot more to learn when investing in old collectibles, and a lot more chances to be scammed. Until you learn a lot about coins and their values, stick with junk silver!
Dangers to Avoid
There are several pitfalls that trip up many people when they start investing in precious metals and junk silver. Learn from their mistakes so that you can avoid them!
One common mistake is getting fooled by how rare or valuable certain coins are. Many dealers and telemarketers will try to sell you on just how rare or valuable a coin is, and convince you that its value can only increase. Don’t let them talk you into buying rare coins!
Even if these coins gain value, many of these people are selling you the coins at a huge markup. You won’t make much money, if any, if you pay their scam-level prices!
You also want to ensure that your coins come from trustworthy sources. Aside from fake coins, you also want to be wary of markups and extra premiums on silver coins.
That’s why it’s also recommended that you buy your junk silver in bulk! Getting junk silver bags will help you reduce your costs, and if you buy from a reputable dealer like Only Gold, ensure you’re only getting legitimate coins.
Order Your Silver Coins Today!
Junk silver can be a great way to diversify your investments and get into the precious metals market. And on top of that, old coins are fun to collect no matter who you are!
So if you’d like to learn more about junk silver coins, or you’re interested in ordering some for your investments, contact us! We’re happy to help you with all your precious metal needs.