Buying Silver Coins Under Spot
A lot of people would be very interested in buying silver coins at a discounted price. The good news is that there are some silver coins that you can actually do this with. These are 90% silver coin bags, which are commonly referred to as “junk silver bags.”
What Junk Silver Bags Are
Junk silver bags really aren’t junk. The term “junk” simply means that these silver coins have been circulated and thus they’re only in average condition. Therefore, these coins are only valued for the amount of silver they contain (usually around 90%), not for their collectible value. Usually these coins were made in or before 1964 when the amount of silver in coins was reduced to 40%. Some examples of these coins include Kennedy half-dollars, Roosevelt dimes and Washington quarters. Most dealers charge 1% under spot for these coins.
What To Expect From Junk Silver Coins
You should expect junk silver coins to look worn. They will usually have nicks and scratches on them too. However, you shouldn’t expect anything less from coins that are at least 40-years-old. This shouldn’t worry you though since it’s what’s inside of these coins that actually counts. Most of the time you will find that these coins are actually 99% silver, which is great news for any investor.
Where To Buy Junk Silver Coins
Junk silver coin bags can be easily purchased from a large, reputable online coin dealer. Of course, you should also be able to buy various sizes and denominations of these junk silver coin bags from your local coin shop too. As a final resort, you can try online auction web sites, which may save you even more money if you are careful.
Conclusion
Now that you know all about junk silver coins, the choice as to whether to purchase new coins (i.e. a newly minted, pristine condition American Silver Eagle coin) or to buy a bag of junk silver coins. Most of the time you’ll find that new coins actually cost 9% more than spot price while junk silver bags cost 1% under spot. Another consideration to make here is that whenever you do purchase junk silver bags you are actually getting 10% more silver than you’d get with the newly minted coins. This is great news for a lot of people who wish they had enough money to purchase and invest in silver coins.
