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Is junk silver really junk? Despite the unflattering term “junk silver,” which refers to pre-1965 U.S. dimes and quarters that contain 90% silver, are certainly not worthless.
Silver coins date back to the nation’s founding and can still be used as currency today. However, 1965 marked a significant turning point for U.S. coinage. Due to the growing demand for silver for industrial use and rising prices, the government’s silver reserves were dwindling. In response, the Coinage Act was enacted, which removed all silver from dimes and quarters. The U.S. began minting “clad coins,” which we still use today. These coins feature a copper core encased in a copper-nickel alloy.
In the bullion investment market, these pre-1965 silver coins are bought and sold based on their silver content, which makes them more valuable than their face value. They received the term junk silver simply because they have no collectible or numismatic value.
| QUANTITY | 100 | 250 | 500 | 750 | 1000 |
|---|---|---|---|---|---|
| 90% Silver Dimes Mixed | $30.21 | $30.06 | $29.96 | $29.86 | $29.71 |
The history of junk silver, particularly silver half dollars, has been shaped by market dynamics and investor behavior over the decades.
In the 1970s, circulated silver half dollars were abundant and diverse. Investors typically received a mix of half dollars for Franklin, Kennedy, and Walking Liberty, with Franklin and Kennedy coins being the most common. During this period, these coins were valued primarily for their silver content, with no significant premiums over other 90% silver coins like dimes and quarters.
The 1980s saw a significant shift in the junk silver market. The decade began with a dramatic spike in silver prices, reaching nearly $50 per ounce in January 1980. This price surge triggered the widespread melting of silver coins, as many sought to capitalize on the high silver value. Despite this, 90% of silver coins remained relatively plentiful throughout the decade. However, the extensive melting did begin to affect availability, and silver half dollars occasionally commanded premiums over other denominations.
The 1990s marked a period of changing dynamics for junk silver. After a decade of heavy smelting, the supply of 90% silver coins had noticeably decreased. This scarcity often resulted in silver half dollars selling at premiums compared to dimes and quarters. However, these premiums were not consistent throughout the decade. During periods of low interest in silver, such as the early 1990s before a price run-up, the premiums on half dollars often disappeared.
The Y2K scare in 1999 briefly reignited interest in silver coins, driving up premiums across all 90% silver coins. However, this was short-lived, as the market experienced a sell-off in 2000 and early 2001 when Y2K concerns proved unfounded.
Many investors purchase junk silver coins primarily as a form of bullion investment, while others buy them for “survival purposes<https://www.cmi-gold-silver.com/small-survival-gold-silver-coins/>.” These buyers are concerned that the dollar could be printed to the point of becoming worthless. If such a worst-case scenario were to occur, US silver coins would once again serve their original purpose: as currency.
CMIGS hopes Americans never face a day when their once-strong dollar loses value. However, we recognize that the history of paper currencies often shows they are continuously printed until they become worthless. Today, 98% of the US money supply—dollars in circulation and available for spending—exists as digital or electronic dollars rather than printed currency.
Junk silver will typically come in bulk bags based on face value that is bought based on a silver content calculation. These bags will come in various face-value quantities.
When originally minted, a bag of 90% junk silver coins contained 723 ounces of silver. However, because of wear due to circulation, a smelted bag of dimes or quarters typically yields about 715 ounces of silver. A bag of half-dollars may yield slightly more, around 718 to 720 ounces, as half-dollars circulated less frequently than dimes and quarters and therefore experienced less wear.
Since a “bag” (with a face value of $1,000) contains approximately 715 ounces of silver, its value closely tracks the spot price of silver. For instance, if the price of silver increases by ten cents, the value of a bag of U.S. silver coins rises by about $70. However, their premiums can increase significantly when junk silver coins are in short supply.
CMIGS ships all bags of junk silver coins from our location in Phoenix. We do not drop-ship 90% US silver coins; we rarely drop-ship any orders. A drop shipment occurs when the selling dealer has another dealer send the products directly to the buyer, which helps the selling company save on shipping costs.
We do not drop-ship junk silver coins because we thoroughly inspect each 90% US silver coin before shipping, replacing any excessively worn or damaged coins.
Additionally, we do not ship in $1,000 bags due to their heavy and cumbersome nature. When a client purchases $1,000 face value in US silver coins, CMIGS ships the order in two new $500 bags.
History has shown that during buying frenzies, such as the Y2K scare, premiums on junk silver coins can significantly exceed those of other bullion products. It is important to pay attention to premiums, especially in times of economic crisis. As a general rule of investing, it is advisable to avoid reactionary investing. However, if it is necessary, we have provided an article outlining trends behind these premium spikes, a comparison of junk silver to other bullion and other helpful information.
CMI Gold & Silver, with extensive experience in selling 90% Silver Junk Coins since 1974, provides investors with a high level of expertise and confidence. We typically have 90% Silver Junk Coins available at all times. Shipments are usually made within one to two days of receiving cleared funds. When you purchase from CMI Gold & Silver, you can be confident in the authenticity and delivery of your 90% Silver “Junk” Coins, providing you with a sense of security. We are backed by over 50 years of experience providing quality products to investors nationwide.
Call one of our non-commissioned brokers today to get your questions about buying and selling precious metals answered.
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