What is Junk Silver?

Junk silver is a purely informal term which is used throughout the western world, primarily in the United States, the UK, Australia, and Canada, to describe any silver coin which has no real value as a collectible. These coins are usually in fair condition, but are not of the quality desired by numismatics. As such, their only real value is held in the bullion value of the silver they contain.

Junk silver and scrap silver are not the same. Scrap silver is a term used to describe silver jewelry and silver items other than currency. If you plan to invest in junk silver, keep your eyes open for scrap silver, as well; the right kind can help you increase your profit margin.

Precious metals, including junk silver, are measured in troy ounces and priced using spot prices that vary depending on the market. Spot prices are determined by other factors as well, including the fineness of the silver; a troy ounce of silver which is 999 fine or 99.9 percent pure is worth the most. Junk Silver coins are manufactured from different alloys that begin with silver percentages as low as 35 percent. Most silver coins minted in the United States, for example, were made from coin silver, an alloy containing 90 percent silver.

Investors who are just starting out, including those with only small amounts of money to put toward investments, can benefit greatly from investing in junk silver. Easy to find, and much less costly on the front end than silver bullion bars, they are more reliable than silver mining stocks and lower priced than the popular American Silver Eagle.

By gaining an understanding about what to look for and learning about how pricing works, you can start investing in silver with only a few dollars if that’s all you have to begin with; with careful work, you can gradually build up your investments and improve your overall quality of life.

Next: Understanding Junk Silver: What to Look For

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What is Junk Silver?

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