Junk Silver

OK, so what is junk silver? Junk silver is used to describe certain US coins minted in 1964 and before which contain 90% silver content. These include quarters (the Washington quarter), dimes (both Mercury and Roosevelt) and half dollars (Franklin and the 1964 Kennedy).

There are older coins like Barber dimes or Morgan which have silver content, but are often not found outside of a coin store or online.

Coin collectors consider most junk silver coins to be "common date" which means that most have little numismatic value.

After 1964, dimes, quarters and halves were minted with different metals such as copper and nickel and if you look at the edge, you can see the different metal colors. These types of coins are called clads because they were originally clad in silver over a less expensive base metal.

The US government stopped using silver in coins after the cost of silver was prohibitive and because the silver was worth more than the "face value:" of the coin. In the years that followed, the government recalled and collected silver from circulation and melted much of it down. Those coins are gone forever making the remaining ones still in circulation, difficult, but fun to find!

Retailers, restaurant workers and others who handle cash and make change on a regular basis have been quietly reporting an increase in junk silver turning up in day to day transactions. Pre-1965 silver dimes, quarters, and half dollars have been found on tip trays, vending machines and store cash registers.

Why?

With the economy being the way it is and many people facing cutbacks in hours, layoffs and the constant need for cash, many are pilfering change jars, piggy banks and coin collections to make ends meet.

Some retailers are reporting finding several pre-1965 Roosevelt and Mercury dimes, old Washington quarters and Franklin halves in cash registers and vending machines!

A waitress reportedly received a handful of coins dimes, pennies and quarters as a tip. Her dismay turned to delight when the few coins turned out to be worth $27 in silver from a local coin shop!

So check that change carefully after visiting your local 7-11 or retail store. Who knows what might be in there?

Junk silver gets it's name from the numismatic value of the coin, not the silver value. Coin collectors want the highest graded coins only for their collections thus a worn out Mercury dime has little numismatic value to them, so they titled these common coins as "junk" silver.

However, their silver content has real value and that makes them worth finding.

Junk silver is identified by face value. So twenty pre-1965 U.S. silver quarters are identified as "5.00 face value".

Junk silver is valued by the current spot price of silver which can be tabulated by weight (90% of the coin weight) times the current per ounce price of silver.

If purchasing junk silver online, many ads for silver U.S. coins will specifically say the coins for sale are not "junk" but have numismatic value and may be "slabbed", that is, in a special coin protector. These coins will always have a higher price than common date junk silver coins.

With a first minting in 1932, the Washington quarter is still in use today. This is exciting as a "silver" Washington quarter resembles later "clad" Washington quarters which means that some of the more valuable version can be found in circulation. Each year, I have never failed to find one or two in pocket change.

The Washington quarter was minted with 90% silver total weight between 1932 and 1964. Later versions contain a copper core and and are nickle clad called cupronickel and are only worth the face value of twenty-five cents. A pre-1964 quarter, in April 2011 silver prices, is worth over seven dollars a piece!

As noted, there is a good chance you can still find a pre-1964 junk silver quarter in circulation, so keep an eye on that pocket change and check those dates!

Trivia: Did you know there were no Washington quarters minted in 1933 or 1975?

It is hardly junk by any means..

And in fact, it is widely regarded as one of the world's most transferable silver coins...

The Morgan Silver Dollar.

Minted between 1878 and 1904 (and briefly in 1921), the Morgan Silver Dollar was created from silver from the Comstock Lode in Nevada during that time period - the greatest silver strike in U.S. history.

Older Morgans are considered more valuable because many were melted to coin the 1921 version.

A Morgan will never turn up in pocket change, but many in Very Good condition are available online such as Ebay or at a coin dealer.

Good question. Use this graph below to determine how much silver is actually in those old coins!

Silver dollars contain 0.77344 Troy ounces of silver content
Half dollars contain 0.36169 Troy ounces silver content
Quarters contain 0.18084 Troy ounces silver content
Dimes contain 0.0723 Troy ounces silver content

These numbers might be slightly different for each coin because of wear.

The best rule of thumb, and the rule used by the coin and metal industry, is junk silver coins contain .715 ounces per dollar of silver.

So, one dollar in pre-1964 dimes has the same amount of silver as four pre-1964 quarters and two halves.

Pretty easy to remember!

eBay is a great place to purchase junk silver coins. However not all sales are equal.

When shopping eBay, look for junk silver or common date coins only and avoid collector coins, such as slabbed and minted coins.

Also, look for common coins such as those minted after 1960, namely, Roosevelt dimes, Washington quarters and the 1964 Kennedy half. Mercury dimes and Franklin halves are great coins, but are also sought by coin collectors, so the competition, and bidding, may be higher.

Proof sets are pretty, but they have a higher price than loose, common circulated coins. On that note, look for circulated condition junk silver coins as they are the best option for the money.

eBay is still a great place to purchase junk silver coins, but be aware of the best investment coins.

First minted in 1946 to honor the late President, Franklin D Roosevelt, this dime bearing his image replaced the Mercury head dime. Roosevelt dimes are still in use today, although the bust sizing has changed slightly in recent years.

Between 1946 and 1964, the Roosevelt dime was comprised of 90% silver and 10% copper. After 1964, the dime went to a composition coin of various other metals including copper and nickel. A dime weighs about 2.5 grams.

The current melt value of a pre-1964 Roosevelt dime is based upon spot silver prices currently available. That currently (April 2011) values a Roosevelt junk silver dime just under $3.00 a piece!

Junk silver is a great investment if you are new to precious metals in your portfolio.

First, they are legal tender and widely recognized. Unlike gold or silver bullion bars or rounds, all of us know what a quarter, dime or half dollar looks like.

Even if silver drops in value to nothing, the coin still has a face value making them real money!

On the flip side, if the dollar continues to fall in value, precious metals like the silver found in these coins will go up in value. Junk silver is a great hedge against inflation.

What's more, unlike bonds, stocks or CD's, a buyer can walk into a coin store and purchase junk silver without any identification or paper trail.

Junk silver can be easily found and purchased from a coin or precious metals dealer or online, such as on eBay.

Silver is a commodity and the price changes frequently depending upon supply and demand. Check out Kitco's current silver spot price!

The Walking Liberty half dollar coin is considered one of the finest and most beautiful U.S. coins ever minted. Designed by Adolph Weinman, the Walking Liberty was minted between 1916 and 1947.

The "Walker" as it is sometimes called was a half dollar, fifty cent coin comprised of 90% silver. While not found in circulation often, they do appear sometimes in fifty cent rolls which are obtained at banks as they are the same size as the current Kennedy half dollar and it's predecessor, the Franklin half which was in circulation from 1948 to 1963.

Walking Liberty halves can be purchased online on eBay or from a reputable coin shop. With silver priced in the mid $30's as of May 2011, the silver value of one of these coins is nearly thirteen dollars!

The Mercury dime as the coin used before the current Roosevelt dime was introduced in 1946. Featuring Liberty in a winged cap, many assumed incorrectly that the image was the Roman god, Mercury, hence the name.

The Mercury dime is the same size and weight as its successor and contains 90% silver for an April 2011 silver value of just over three dollars. Before turning in your Mercury dimes for melt value, check those dates! There are several dates, such as 1916-D, 1921-D and others which have a higher value to numismatic collectors.

The Mercury dime, while the same size as the current Roosevelt dime, rarely shows up in circulation. But as always the case, familiarize yourself with these coins in the event someone inadvertently puts on in the Coinstar or vending machine!

Post-1964 U.S coins are referred to in the industry as "clads". Since 1964, they have contained only a minor amount of silver and are mainly comprised of zinc, nickel and copper

There are some exceptions. Kennedy halves minted between 1965 and 1970 contain 40% silver. Many dealers offer these coins as well as pre-1964 junk silver. Also, Eisenhower dollar coins minted between 1971 and 1976, but only sold as collectible, not general circulation coins, also contain 40% silver.

The Franklin Half Dollar is both an interesting and attractive US minted coin which contains 90% real silver. Minted between 1948 and 1963, each year contains real silver. The Franklin half dollar features the image of Benjamin Franklin on the obverse and a liberty bell on the reverse.

The Franklin half replaced the Walking Liberty half dollar which had been in circulation since 1916. The half dollar is a large coin weighing in at 12.5 grams which makes the silver content valued in April 2011 at just over fourteen dollars.

The Franklin half is nearly impossible to find in circulation as it differs from the current Kennedy half dollar. However, because of the high price of silver, many Franklin halves are coming out of the coin jar and collections and brought in to coin stores. Also, some Franklin halves turn up occasionally as they are redeemed inadvertently with other coins at banks and coin machines.

You bet! And it is the most exciting way to find junk silver!

A pre-1964 silver dime is worth more than a dollar in silver value, but only .10 in face value. What a "mini lottery"!

Where else can I find junk silver?

Use cash for all small purchases. That way you will be getting change back which may contain US silver coins.

Check pocket change regularly. Real silver coins often look and sound different when striking against other coins.

If you have some extra cash after pay day, buy a few rolls of quarter or halves at the bank. Open and check for pre-1964 coins and when done, simply roll back up and return to the bank!

Be on the lookout for lost coins both at home and when out and about. Many of us will walk right past loose change on the ground wihtout noticing it so look carefully. Good places to look are on the floor of the supermarket check out line, in coin return slots of payphones and vending machines.

Check out the old coin jar, piggy bank or other places where coins might be stored at home.

Ask! Whenever you are at the bank, ask the teller if they have any old interesting coins which may have come their way.

Minted just two short months after the tragic death of John F Kennedy, this coin replaced the Franklin half in 1964. The introduction of the Kennedy half coincided with the Federal Government's decision to no longer mint 90% silver US coins the following year.

The Kennedy half was the same size as the Franklin half and weighs about 12.5 grams with a silver content worth a little over fourteen dollars in April 2011. The Kennedy half is still in circulation, albeit, the clad or composition, non-silver version. This means that many 1964 silver versions might still be in circulation as they look exactly like lesser valued versions.

Between 1965 and 1968, Kennedy half dollars contained 40% silver which includes the coin as junk silver. These years are often found in circulation. Some junk silver searchers will purchase several hundred dollars worth of Kennedy halves at face value from the bank and sort through them and often find several between the years 1965 and 1968 and one or two from 1964.

Because of the late President's popularity, Kennedy halves did not circulate as well as other coins and to this day are rarely given in change - you have to ask!

How can a "nickel" have silver? During World War II, the metal nickel was needed for the war effort so for a few short years, silver was one component in minting nickels.

War nickels are not 90% silver, but are only 40%. Besides the date, a mint letter P was added to the obverse of the coin. While some speculated the War Nickel would be removed from circulation, it remained.

The War Nickel can still be found in pocket change, although there are probably very few left 65 years after the war. Based upon April 2011 silver prices around $45.00 an ounce, a War Nickel can be worth as much as $2.62 each in melt value.

April 2011

Silver prices are going through the roof and right now are over $40.00 an ounce and expected to only head higher.

Silver coins and prices have been in the news increasingly lately. Here are some interesting stories.

Sales of new 5-Ounce US Mint Silver coins delayed. The new America the Beautiful silver coin weighs in at 5 ounces, but buyers are complaining about premiums being charged by some dealers. For now, the coins are on hold while the Mint investigates.

In the meantime, US Silver Eagles are expericing all time highs in purchase.