Junk Silver Coins For Sale?

Posted By Collectorcity on November 27, 2011 | 0 comments

The coin collector investor looking for silver coins for sale is usually seeking rare currency such as error coins, or other types of collector coins that frequently make the coin news. In a similar vein, the coin collector who wants to sell surplus items from their collection to silver coin dealers might imagine that only coins in good condition are likely to find buyers. It is true that in past years silver coin dealers usually only took an interest in high or average grade silver coins, but all this has changed with the recent increase in the price of gold and silver coins. For example, in 1990 silver was selling for an average of about $4 per ounce. In the course of the following two decades the average price of silver increased five-fold. This major upsurge in silver prices has brought about a radical change to market in US silver coins.

What Determines the Price of Silver Numismatic Coins?
Both gold coin prices and the prices of silver coins for sale are determined by three principal factors: whether or not these coins fall into the category of rare currency, the grade of the coins, and the weight of the gold and silver in these coins multiplied by current gold and silver market prices. Rare US coins made of gold and silver and in excellent condition occupy the highest rung on the collector coins ladder. Lower down the rungs are numismatic coins that have fewer points in their favor, for example, silver coins for sale from years with high mintage levels and many surviving examples in the hands of silver coin dealers and the private coin collector.

The Junk Silver Mine
Not so long ago silver numismatic coins in poor condition would hardly have been of any interest to the average coin collector with the exceptions of error coins and other types of rare US coins. If you took your poor condition silver coins to silver coin dealers, as soon as they recognized there were no examples of rare currency included they would have been reluctant to buy these coins from you. In today’s market the rise in the price of silver has caused silver coin dealers to take an interest in silver coins for sale regardless of their condition and rarity. It is worthwhile for the silver coin dealers to buy silver coins even in poor condition since their price as bullion has given them a coin value independent of any coin collector interest. Thus the poor condition but high silver content coins known popularly known as “junk silver” have began to make the coin news.

Which US Coins have Silver Content?
You do not have to go back far in time to find silver coins in regular circulation in the United States. A range of mid-twentieth century dimes, quarters and half dollars are characterized by a high mintage with relatively little to interest the coin collector in terms of rare currency. However, the silver coin dealers have not been slow in recognizing the value of these coins in terms of bullion. Up until 1964 US silver coins were made of 90% silver, and between 1964 and 1970 Kennedy half dollars were still produced with 40% silver content. This high silver content translates into valuable bags of junk silver coins for sale.

Buying and Selling Junk Silver
Junk silver coins for sale are often purchased in bags. A bag with a nominal face value of $1,000 usually contains about 715 ounces of silver. Bags of silver quarters and other US silver coins increase are bought and sold via online auction sites and silver coin dealers. Their value is closely linked to the spot price of silver and so if this price rises by five per cent, that $1,000 bag of silver quarters is going to increase in value to approximately $1,050. Although there is not a radical difference between the prices of bags of different silver coin denominations, the half dollar bags are more popular simply because these coins have a higher silver content and their smaller mintage figures.

While most of the people interested in junk silver coins for sale are buying because they plan on selling these coins when a further rise in the silver price makes it worth their while, apparently some of them are buying with the idea of keeping these coins against a collapse in America’s paper currency. The average coin collector cannot imagine a scenario where they might be paying for provisions with silver quarters again but for some purchasers of silver coins for sale this scenario is a realistic possibility. We only need to look back a short while to see how the fears of the banking system collapsing in the millennium year (2000) spurred a significant increase in junk silver purchases. However, once these fears were proved to be unfounded the price of bags of junk silver coins plummeted.

The market for junk US silver coins like all other markets has its risks of downturn as well as the attractive prospects of a good profit on a further rise in silver prices. Yet judging by the number of buyers seeking out bags of junk silver coins for sale, investors seem to believe that silver prices are going to continue to rise and make these purchases a good deal.

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