When it comes to silver investments, purchasing high grade silver coins at 99.9% purity is the go-to business but do you know that people who <a href="http://atlantagoldandcoin.com/coins/silver-coins/junk">buy junk silver coins</a> can also benefit from participating in the industry? Junk silver coins are those that have been minted prior to 1965 and contain 90% silver. While they are not as valuable as pure silver coins, the high percentage of silver in these coins still merits enough attention to be considered a worthy investment.
There is a wide selection of junk silver coins available, including Kennedy half dollars, silver dollars, Barber quarters and Mercury dimes, among others. To maximize your investment when you buy junk silver coins, consider these tips and thoughts.
1. You must first learn the ropes when it comes to identifying which coins are worth the investment. In the case of junk silver, you can buy Roosevelt dimes, Mercury dimes, Washington Quarters, Barber quarters, Franklin or Kennedy half dollars and Morgan silver dollars, as these are all good choices that are likely to generate high future returns. Narrowing down your options will also help you focus on a long term silver bullion purchasing plan. With fewer coin types to think about, you can easily estimate the potential profit of each investment.
2. To calculate the silver value of the coins that you have, you can multiply the silver content of each coin by the current spot price of silver. This goes back to limiting your junk silver coin collection until you become familiar with the market trends. For example, Kennedy half dollars contain 0.36169 ounces of silver while mercury dimes contain 0.07234 ounces. Suppose you decide to buy silver junk coins in the form of Kennedy half dollars and the market price of silver is $40 an ounce; this means that the silver value per coin is $14.47.
3. You'll also notice once you start making the rounds that prices for the junk silver coin are commonly based on a multiple of the face value of the coin. Confused? At first, it can be difficult, but here's an example: if a silver dime is selling at a face value of 30, you would multiply the face value of the dime (.10) by 30 to arrive at $3.00. One tip would be to ask the coin dealer to explain how he calculates his rate. If he has nothing to hide, he will explain it without hesitation.
4. As a buyer, you should also know that the face value quoted typically applies the same to dimes, quarters, and half dollars; however, it's common for the face value quote of silver dollars to be higher. This means that whether you are purchasing half dollars, quarters or dimes, it will always be in reference to the "prevailing" face value which in turn is based on the silver price.
5. Junk silver coins are generally sold in bulk. Junk silver coin bags are commonly sold in face value quantities of $100 up to $1,000. Going back to our previous example, this means that a $100 silver coin bag would sell for $3,000; whereas a $1,000 silver coin bag would require an investment of $30,000. Should the face value increase by even just 50 cents, you automatically earn a profit of $50 on your $100 investment or $500 on your $30,000 investment.
Finding the best coin dealer to work with means doing your research and not necessarily limiting your options to your local coin dealers. Go online, ask around, find auction sites, or coin buyers who are in the business of junk silver coins. Just be sure to be well armed after doing your homework, so that you can feel confident when you approach a coin dealer to buy junk silver coins as an investment.
There is a wide selection of junk silver coins available, including Kennedy half dollars, silver dollars, Barber quarters and Mercury dimes, among others. To maximize your investment when you buy junk silver coins, consider these tips and thoughts.
1. You must first learn the ropes when it comes to identifying which coins are worth the investment. In the case of junk silver, you can buy Roosevelt dimes, Mercury dimes, Washington Quarters, Barber quarters, Franklin or Kennedy half dollars and Morgan silver dollars, as these are all good choices that are likely to generate high future returns. Narrowing down your options will also help you focus on a long term silver bullion purchasing plan. With fewer coin types to think about, you can easily estimate the potential profit of each investment.
2. To calculate the silver value of the coins that you have, you can multiply the silver content of each coin by the current spot price of silver. This goes back to limiting your junk silver coin collection until you become familiar with the market trends. For example, Kennedy half dollars contain 0.36169 ounces of silver while mercury dimes contain 0.07234 ounces. Suppose you decide to buy silver junk coins in the form of Kennedy half dollars and the market price of silver is $40 an ounce; this means that the silver value per coin is $14.47.
3. You'll also notice once you start making the rounds that prices for the junk silver coin are commonly based on a multiple of the face value of the coin. Confused? At first, it can be difficult, but here's an example: if a silver dime is selling at a face value of 30, you would multiply the face value of the dime (.10) by 30 to arrive at $3.00. One tip would be to ask the coin dealer to explain how he calculates his rate. If he has nothing to hide, he will explain it without hesitation.
4. As a buyer, you should also know that the face value quoted typically applies the same to dimes, quarters, and half dollars; however, it's common for the face value quote of silver dollars to be higher. This means that whether you are purchasing half dollars, quarters or dimes, it will always be in reference to the "prevailing" face value which in turn is based on the silver price.
5. Junk silver coins are generally sold in bulk. Junk silver coin bags are commonly sold in face value quantities of $100 up to $1,000. Going back to our previous example, this means that a $100 silver coin bag would sell for $3,000; whereas a $1,000 silver coin bag would require an investment of $30,000. Should the face value increase by even just 50 cents, you automatically earn a profit of $50 on your $100 investment or $500 on your $30,000 investment.
Finding the best coin dealer to work with means doing your research and not necessarily limiting your options to your local coin dealers. Go online, ask around, find auction sites, or coin buyers who are in the business of junk silver coins. Just be sure to be well armed after doing your homework, so that you can feel confident when you approach a coin dealer to buy junk silver coins as an investment.
About the Author:
Learn more about how to buy junk silver coins. Stop by Atlanta Gold and Coin Buyers' site where you can find out all about junk silver coins and what they can do for you.
