Silver Bullion Coins

Silver bullion coins can be acquired in four different ways, and some are more fun than others:

U.S. coins minted prior to 1965 (and Kennedy halves between 1965 and 1970) are 90% (and 40% respectively) silver. Although most were taken out of circulation, they pop up in your change or in cash drawers from time to time.

Many foreign countries minted coins in silver and either are lying around in people's houses, are still in circulation or are minted occasionally for commemorative purposes.

The U.S. Mint still produces commemorative silver sets and other silver bullion coins like the Silver Eagle which can be bought from the Mint, found at coin dealers, or in people's collections.

Also, there are smelters and bullion producers that sell bullion stamped with their own brands. These can be bought directly from the producers or from silver bullion coin exchanges.

Oh, and check out Ebay. People are always selling off silver bullion coins, and you might be able to get a big lot for a fair BuyItNow price, or get a steal at auction.

Read more about the new book Now Invest in Silver and find other articles about silver collecting.

Finding silver U.S. coins nowadays is pretty tough. Prior to 1965, all coins except the penny and nickel were silver clad, made up of 90% silver. When the government decided these were too expensive, they announced that the coins would cease to be made of silver and instead formed from less valuable metals. Many people hoarded the silver bullion coins to protect themselves as a hedge against currency not backed by gold, and for the pure value of the silver in the coins. This hoarding continues today, and with silver prices over $15 an ounce (Jan 2010), and having gone as high as $49 in 1980, silver is less likely than ever to be common again.

Still, it appears from time to time, if you know where to look.

Check your big change jar at home. Chances are you have some silver quarters and don't even know about them. Whenever you get more change, check them out. You're looking to see if the coin has a dull gray side, and when dropped on a hard surface or rubbed on another coin, they have a distinct bright ringing sound. Of course, the date on the front is the key - 1964 and before.

Half dollars have never been popular so they tend to languish. Freshly rolled coins from the U.S. mint are always brand new coins, not silver bullion coins, but older rolls lying around may have some surprises. If your bank is willing to sell you rolls of half dollars, check them out. Odds aren't high that you will find one, but there is a chance. If your local bank can't help you out, always ask the cashier wherever you go. They might have a roll or a few halves lying around, and they usually will be more than happy to sell them to you at face value. Just don't tell them you're looking for silver. If you find any silver halves, you will be more likely to find 1965-1970 than you would older halves, so remember that they are only 40% silver.

Check out places where money doesn't circulate very well. This is hard to define, but, for example, I was in a casino and in my change I received a silver quarter. Most casinos use machines that pay off with a paper receipt, rather than a bucket of change, and although the one armed bandits may not be full of silver, the change machines still might. They have to keep the machines filled to provide change on fractions of a dollar, and you might get lucky. You're looking for old coins, so the older the place the better - you never know.

Just keep looking and you might find some.

Of course, coin stores have tons of pre-1965 silver bullion coins to sell, usually at a premium. If you are happy with the price, buy. If you want a lower price, bring up the silver spot price, and if you're buying enough you might get a better deal.

Some collectors also call silver clad coinage Junk Silver, so if you see ads for silver clad coinage, pre-1965 coinage or junk silver, you know you're on the right track. These ads appear in the paper quite a bit and you might see silver bullion coins at garage sales, estate sales, gun shows and other sale venues.

Since I brought up spot price, I should explain.

New York, London and some other markets set the price for silver as a commodity, which is traded like a stock, but for tangible things like coffee, wheat, pork bellies and frozen concentrated orange juice.

The silver spot price is generally used as a standard for investors to determine how valuable their silver is, and whether they're getting a good deal when buying any silver bullion coins. The lower the spot price, the less valuable the silver, so like with stocks, buy low, sell high.

Silver is calculated by the ounce, and no U.S. minted silver bullion coins that were in circulation equal one ounce. Although silver dimes, quarters, halves and dollars are 40-90% silver, they are all less than 1 ounce in silver content by weight, so you'll have to calculate your silver coin values.

Silver Bullion Coins - Silver Coin Values

Silver dime - .0723 ounces
Silver quarter - .1808 ounces
Silver half (pre 1965) - .3617 ounces
Silver half (1965-1970) - .1479 ounces
Silver dollar - .7734 ounces

These figures are maximums, assuming a coin hasn't been worn down over the ages (which any in circulation surely will be). To get an idea of silver coin values, take the silver content of your coin, and multiply it by the spot price.

In this case, a 1964 Washington quarter is roughly .1808 ounces of silver. If today's spot price is $16.00, then the quarter's silver content is valued at about $2.89, more than 11 times its face value - not bad.

Check out the current spot price to value your silver bullion coins.

8 Hour New York Silver Price




24 Hour New York Silver Price

So far I've been talking about finding silver coinage in your pocket or in random places. They are only worth the value of their silver content as dictated by the spot price.

Coins in much better condition, near mint or mint, will probably fetch a higher price to coin collectors. These coins are usually carefully protected and are available from coin stores, private collectors and directly from the U.S. Mint for current years).

Mint condition silver bullion coins feature bright faces and the sharpest relief on all the features. As these features get worn down, condition drops and so do silver coin values. If you are collecting to get the brightest, sharpest coins, you will want to go straight to the source or a good coin dealer who can identify coin condition for you, and deal in high quality coins.

You can also send your coins to PCGS - Professional Coin Grading Service because most buyers won't trust your assessment if you say it's near mint, especially without examining the coin yourself. If you buy coins from someplace like Ebay, proof of a PCGS score is a must, if only to give you a benchmark.

The U.S. Mint produces mint sets for all coins every year, and also produces silver clad sets. In 2010, they are apparently making the new state park quarter set available in silver clad, so there are some options fo getting uncirculated silver bullion coins right from the Mint. Note that only the coins that would have been silver clad are silver clad. The 2010 set features 4 Lincoln cents, however, that are 95% copper, something that hasn't been done since copper was removed from pennies in 1982.

Finally, one of the most popular collectible silver bullion coins to come from the U.S. Mint is the American Silver Eagle. Since 1986, Liberty has been walking across its obverse with the heraldic eagle majestically splayed across the reverse. These beautiful coins are 1 ounce of .999 silver and do not have a monetary denomination. They are simply beautiful pieces and the only 1 ounce silver U.S. coin. These are quite common, and can be found at the U.S. Mint and dealers in wonderful condition, often charging a premium for uncirculated, proof coins. Even many older ones are found in pristine condition due to lack of circulation in pockets and being used as change, but many collectors will only pay you spot price for them, even in perfect condition. It depends on if they are buying just for the silver, or are true numismatists and want silver bullion coins in ratable conditions.