You may have seen or heard the phrase “junk silver” before and thought that it was a put-down of some kind for spare coins. However, the word “junk” is incredibly misleading – coins that receive this moniker are not trash at all.

Junk silver is critical for first-time silver investors because of its accessibility and liquidity. It is also important for those wishing to add historical relevance to their collection. So, the sections below serve as your complete guide to junk silver.

What Is Junk Silver?

Junk silver is a formerly-circulated piece of currency that draws its value from its silver content, rather than its numismatic importance. In other words, it is old money that was made using silver, and the premium you’ll see over its face value is a reflection of the actual metal used to make it.

Because these coins have the wear and tear on them associated with any circulated coin, they are called “junk.” However, most of them were made with no less than 35% silver.

In fact, in American coinage, most silver-bearing coins were made with a 90% silver component. Only a select few came with less, and those examples bore either 35% or 40% silver.

The Three Silver Tiers: 90%, 40%, and 35%

Junk silver is categorized in terms of its silver purity. For American coins, there are three tiers of junk silver coinage you may choose to buy.

90% Silver (the most common)

The most common tier of junk silver for American coins is also the purest. From the debut of the dime, quarter, half dollar, and dollar coins in the 18th century until 1964, each coin featured a composition of 90% silver and 10% copper.

Popular examples from this tier include:

Washington quarters (1932 – 1964): These are fairly easy to find and collect. However, take care about the dates, as we are still using Washington quarters at present, and there could be some confusion.

Mercury dimes (1916 – 1945): Mercury, or Winged Liberty, dimes are favorites because of their artistic design. They are also excellent for beginners because of their size, which keeps their price fairly low.

Franklin half-dollars (1948 – 1963): One of the most iconic coins in recent memory. Because they are both plentiful and have a contained production run, you might be able to realize some additional value if you can assemble a full set of them.

Morgan dollars (1878 – 1904, 1921): The most notable example of a dollar coin because of its coincidence with so many critical eras in American history. The Morgan dollar is the coin of both the Wild West and the emergence of the US as an industrial country. Note, however, that not all Morgans are junk – some of them have numismatic value.

Now, as long as you select a dime, quarter, half dollar, or dollar coin from prior to 1965, you’ve got a 90% junk silver coin on your hands. So, popularity or not, get whatever coin from that era that you like.

40% Silver (limited)

After 1964, the US Mint largely withdrew silver from the composition of its circulating coins due to rising costs associated with sourcing the shiny metal itself. One of the last silver-bearing coins that it regularly issued was the Kennedy half dollar.

The Kennedy half dollar is the most common circulation coin ever issued with 40% silver as part of its composition. They pay tribute to President John F. Kennedy, whose assassination in November 1963 shocked and appalled the nation.

Now, these coins are certainly desirable to collectors for their silver content and historic significance. However, be aware that they may take longer to buy or sell than 90% coins due to the fact that they don’t allow the maximization of silver content.

35% Silver (rarest)

The junk silver coins that feature the least amount of silver are also the rarest. Between 1942 and 1945, the US Mint issued nickels featuring 35% silver, 56% copper, and 9% manganese.

These coins bore this unique composition due to the demands of the American war effort in World War II. The need for nickel in munitions meant that the metal was in short supply for its more common application.

Thus, even though these coins feature less silver than the other junk coins, they are still popular because of their singular place in American history. Each one is worthy of a conversation because of its indelible connection to the last great war in human history.

How Junk Silver Is Priced

Pricing junk silver begins at the same place that every piece of silver does – the spot price. The spot price is an ever-changing snapshot of various market factors, including, and most notably, the price for currently-expiring silver futures contracts. However, for all intents and purposes and almost all investors, it is the market price for a troy ounce of silver.

So, each junk coin’s valuation begins by multiplying the spot price by the weight of the silver within the coin. In almost every case, this weight will be less than a troy ounce, so the spot price portion of a junk coin’s value is usually less than the actual spot.

From there, each dealer adds a small percentage of additional cost to the object that represents the dealer’s profit. This amount is known as the premium.

For junk silver, premiums are usually lower than the ones you’d find for modern bullion pieces. Between this fact and the lower weight of most junk silver pieces, they are ideally priced for beginning investors.

Please note that the face value on these coins is largely irrelevant to its value. It is certainly the floor for the value you can get from junk silver coins, but you should never use these coins for their stamped values. The silver inside them is likely worth more.

Where to Buy Junk Silver

The good news is that junk silver is widely available. You can find junk silver coins through every primary source for precious metal items you’d expect.

For one thing, online dealers (like JM Bullion) offer a wide range of junk silver products. You can buy rolls of junk silver coins, bags of them, or even mixed collections of different era coins.

If you want a more hands-on experience, you can always head to local coin shops in your area. The nice thing about junk silver is that you don’t have to worry about maintaining the condition of the coin. So, there’s no issue if you want to handle junk silver physically before you agree to buy.

Third, traveling coin shows always bear numerous opportunities to pick up junk silver. In fact, if you want a compelling historical tie-in with your junk silver, a coin show might be the place to find what you want.

Finally, estate sales can often yield junk silver finds simply by virtue of the fact that estate sales are usually conducted by elderly people or their descendants. Through mere daily use and ownership of currency, it’s possible that their pocket change has moved into the realm of junk silver.

The most important thing to do is shop around and compare the premiums for junk silver that you find before you buy. Remember – junk silver’s value stems from its metal content, not its historical significance, so you need to take care not to pay someone for the journey a junk silver coin took in his or her pocket.

Conclusion

The use of the term “junk” in association with a silver product is unfortunate, as it suggests that the product is trashy or worthless. The truth is they are anything but trash. They are coinage from earlier periods when the US Mint issued coins that featured silver as part of their compositions.

Because of their low cost, low standard of care, and historical significance, they make excellent entry points for new precious metals investors or those with a budget in mind. Junk silver coins also serve well as thoughtful gifts, due to the fact that each one comes with its own story.

If you’d like to get started with junk silver investing, feel free to check out our selection of pieces. If you want a bit more guidance, don’t hesitate to call us at 1-800-276-6508, Monday through Friday between 8 AM and 6 PM CST.