Junk Silver Investing Basics
Coins like nickels, dimes, quarters and dollar pieces were once composed of 90 percent real silver. In western society, old silver coins that were once in circulation are often termed junk silver. When a coin has been used as currency, it loses all value other than the value of the silver contained therein.
Coins that never circulated as currency will have a historic or collectible value since they’re not worn or soiled. This increases their value above and beyond that of their silver content alone. To summarize, a junk silver coin’s value comes only from the silver content and not from any value it might have as being rare or collectible.
A silver investment brings several advantages. There are many reasons why people wish to invest in gold and silver today. Among them are: wild fluctuations of value in paper currency, worldwide economic instability, and the U.S. dollar’s rather uncertain future. You want to make a profit when you go into an investment. With junk silver you can very affordably get into the silver market or add it to your general portfolio.
Junk silver coins can be purchased by anybody, although it’s perfect for those who aren’t interested in investing a lot of cash. You can buy just a few single junk silver coins, or you can buy what is known as “bags.” A junk silver bag will have about 715 ounces of silver and a thousand dollar face value. Such bags will keep pretty close to silver’s spot value and save the purchasers the premium they might incur with other methods. A bag can even lag behind a drastic rise in spot value because of junk silver’s liquidity.
Survivalists tend to like junk silver. If the economy collapses or some other catastrophe occurs, survivalists are of the opinion that silver coins will be a good alternative for paper currency, because paper currency (which is not tied to anything of any actual value) will become worthless. Paper currency is also known as fiat currency. It is subject to hyperinflation and deflation. Silver, on the other hand, has a value of its own. For this reason, it will hold its value long after fiat currencies have fallen by the wayside.
To learn how valuable your junk silver coins are, use the face value and then divide 1.40 into it. After that, multiply what you get by silver’s current market value and the answer you get is what your silver coins are worth in today’s market.
Summary: Silver is utilized greatly in industry and manufacturing. It’s entirely possible that almost all of the silver that’s above ground (as much as 95%) has already been consumed by industry. This would leave only about 300 million ounces remaining from a total of 12 billion ounces of a above ground silver. That means this silver is gone forever and can’t be recovered. That, in combination with global instability circumstances, would seem to lead to a stable and sturdy, maybe even bullish, silver market.
There are many indications that there will be an upsurge in the price of silver. As with any type of investing, there is some risk to purchasing junk silver. Precious metals have generally held their value quite well over many years. Also, it seems not owning some gold or silver carries risks as well, considering the uncertainty of our monetary front-runners.