The first thing you need to realize is that when you buy junk silver coins, you're buying coins that are a worthy investment. They are not as valuable as pure silver coins but definitely not deserving of the word "junk." In fact, if you're lucky enough to find silver coins that date back to 1965 or earlier, the silver content is about 90%. That's close to pure silver and therefore carries considerable weight.
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. Practice calculating the value of silver coins. The formula is simple. All you have to do is multiply silver content by the spot price. For instance, with 1964 Kennedy half dollars, you can multiply the silver content, which is 0.36169 by the spot price of silver at the time. Assuming a spot price of $40 an ounce, this coin is worth $14.47. Practice makes perfect, but before you know it, you'll be well on your way to calculating accurate silver prices for your junk silver coins.
3. You will also notice once you start making the rounds that prices asked by coin dealers for junk silver coins are oftentimes quote as a multiple of the face value of the coin. Confused? It can certainly be a mind-bender for a beginner but let's run through an example: if a silver dime is quoted as selling for a multiple of 30 times its face value, this would mean a dime would be multiplied by 30 or 30 x 0.10 for $3.00. One tip would be to ask the coin dealer to explain his rate. If he has nothing to hide, he will explain it without hesitation.
4. Still on face value, it's common practice for dimes, quarters, and half dollars to have similar rates as a multiple of the face value of the coin. However, with silver dollars, the calculation changes. It increases. Thus, except for silver dollars, you will encounter the term "prevailing face value" for the junk silver coins.
5. Now that you have an idea of how the market works, you can start looking at potential junk silver coin bargains. You can buy junk silver coins in smaller lots or in bulk, such as $100 and $1,000 face value bags. A bag of Kennedy half dollars in $1,000 face value bags at 30x face value will cost you $30,000 to purchase. Consequently, for an increase in face value rate to 30.5, you'll receive a $500 profit on your investment.
To enhance your "buy junk silver coin" skills, expand your range of potential customers from coin collectors to numismatists, auction shops and other sellers. Make sure to practice your price calculation skills and always re-check your values before settling on a specific purchase that is likely to produce long term profits.
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. Practice calculating the value of silver coins. The formula is simple. All you have to do is multiply silver content by the spot price. For instance, with 1964 Kennedy half dollars, you can multiply the silver content, which is 0.36169 by the spot price of silver at the time. Assuming a spot price of $40 an ounce, this coin is worth $14.47. Practice makes perfect, but before you know it, you'll be well on your way to calculating accurate silver prices for your junk silver coins.
3. You will also notice once you start making the rounds that prices asked by coin dealers for junk silver coins are oftentimes quote as a multiple of the face value of the coin. Confused? It can certainly be a mind-bender for a beginner but let's run through an example: if a silver dime is quoted as selling for a multiple of 30 times its face value, this would mean a dime would be multiplied by 30 or 30 x 0.10 for $3.00. One tip would be to ask the coin dealer to explain his rate. If he has nothing to hide, he will explain it without hesitation.
4. Still on face value, it's common practice for dimes, quarters, and half dollars to have similar rates as a multiple of the face value of the coin. However, with silver dollars, the calculation changes. It increases. Thus, except for silver dollars, you will encounter the term "prevailing face value" for the junk silver coins.
5. Now that you have an idea of how the market works, you can start looking at potential junk silver coin bargains. You can buy junk silver coins in smaller lots or in bulk, such as $100 and $1,000 face value bags. A bag of Kennedy half dollars in $1,000 face value bags at 30x face value will cost you $30,000 to purchase. Consequently, for an increase in face value rate to 30.5, you'll receive a $500 profit on your investment.
To enhance your "buy junk silver coin" skills, expand your range of potential customers from coin collectors to numismatists, auction shops and other sellers. Make sure to practice your price calculation skills and always re-check your values before settling on a specific purchase that is likely to produce long term profits.
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.
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