Junk silver coins offer a unique investment for many looking to make a few extra bucks. You can really make some serious money with these, if you can do it right. As you may know, the value tends to increase over time. For this reason, even melt value, how much they are worth when melted down to the precious metal, is really what you are going to look at. There are some things to consider when you try to make a few bucks with junk silver coins. While most are purchased through dealers, which I'll detail, there are some other ways to come out way ahead on your precious metal investment. Junk silver coins don't have to come from the dealers, where they charge a markup.
This is really the quickest and easiest way to invest in junk silver coins, but it may not be the most profitable. Still, let's go over some of details when you purchase from a dealer, so you know what to expect, and what to look out for.
You will typically buy junk silver coins through a dealer in bags with a $1000 face value. This means the total value of the dollars, half dollars, or other denominations is $1000. You could have nearly double that in melt value, or more. In addition, you can occasionally find a rare year, where you can make even more by selling the rare junk silver coins to other dealers. This means more profit for you.
If you keep your eyes open, you will find dealers that sell in smaller face values. Keep in mind that you will likely pay more per dollar this way. In other words, ten bags of old junk silver coins with a face value of $100 will cost you a lot more than one bag with a face value of $1000. This means buying junk silver coins in bulk will be the better deal, at least in most cases.
You should know that junk silver coins, including dimes, quarters, half dollars and dollars all weigh about the same per dollar value. In other words, ten pure dimes will weigh about as much as one dollar, and about the same as four quarters. This is really why junk silver coins are sold by face value amounts. This really allow you to figure out about how much of the precious metal you will be getting, since they are generally around 90% pure.
You will find the online market to be really competitive, which allows you to get a great deal on old junk silver coins. This means you can actually save quite a bit of money, even after shipping and handling are taken into account. Be sure to check online sites like eBay, as well as the online dealers. You will find many people are selling junk silver coins, which gives you a great chance to save some money, so you can invest for less money.
If you are looking at junk silver coins, the first thing you need to know is they should be dated before 1965. This means anything 1964 or later is 90% pure. After 1964, the industry went to clad, worth virtually nothing. This means the junk silver coins you buy must be dated properly, so they have some real value.
Alternative to dealers:
You can make way more on junk silver coins by avoiding the dealers altogether, if you are willing to put a little time and effort into it. It won't be easy, but it really can be done. Here's how to invest in junk silver coins for a lot less money than the dealers are charging.
To use this alternative method for junk silver coins, you will need to get some cash in hand and head to any local bank of your choosing. You will want to have at least $100 to start, but you can do a little less, or more, if you wish.
At the bank, ask if you can buy dollar or half dollars. If you take a hundred bucks, ask to get one hundred dollars worth. If you can only choose on or the other, it's probably best to go with the dollars instead of the half dollars.
Take your change home. Sort through the dollars and half dollars and look at the dates. If you find any that are 1964 or older, they are great old junk silver coins. Set the ones with the right dates off to the side. Take the new ones and put them into a bag or other container, so you can take them back to the bank.
Take the post 1964 ones back to the bank. Cash them in. You can go to another bank and begin the process all over again. Continue until you find a bank that has a higher percentage of junk silver coins on hand, which you find by sorting them out.
If you find a lot of junk silver coins from any of the banks, go back and buy more of them, but with cash, not the post 64 ones. It is possible they had someone turn in many junk silver coins for cash, at face value. If you take in the post 64 ones, you will simply dilute the good ones on hand for future trips to the bank.
When you get your junk silver coins this way, you will only pay face value for them from the bank. This will save you a lot of money, and will make for a much better investment.
Be sure to get current pricing guide. Some junk silver coins are worth a lot more than the melt value. It's not unheard of for a dollar or half dollar to bring in hundreds of dollars from a dealer. This can really make you more money. As you know, this would make your investment in much more profitable. You may make hundred of dollars or more with virtually no start up costs or dealer fees. This makes great sense, and it's a great way to get started.