Junk Silver

What is "Junk Silver" and why is it important?

"Junk Silver" refers to silver coinage (usually US, but other countries like Canada have junk silver) that has no value to coin collectors due to the high level of wear it has taken over its life.

However, that doesn't make it useless to the survivalist.  Despite that wear, something like 98-99% of the silver content is intact.  This means that the coin is worth the amount of silver present times the current spot price of silver.  This makes these coins a convenient store of value in the event of an economic collapse, and an excellent hedge investment.

How to get Junk Silver

Junk silver can be found, very occasionally, in your pocket change.  While this is handy, since you're finding something worth far more than its face value, it isn't a good way to accumulate any sizeable amount.

You can also go to the bank, and get rolls of dimes, quarters or half-dollars, and comb through them for silver coins.  It works, but you're going to put a lot of effort into this for very little return--nearly all silver has been "extracted" from the circulating currency.

Junk silver can also be found at gun shows, flea markets and eBay .  In these venues, care should be taken to be sure that you aren't paying too much.  You can get some good deals, but the unwary can get taken to the cleaners.

You can also buy junk silver from Three Geckos, either in coinage or in precious metals.  Junk silver is sold in "bags" of $1,000 face value, as well as "half bags" ($500 face value) and "quarter bags" ($250 face value).  We even offer "starter" bags of $25.00 face. The price will vary, due to fluctuations in the current spot price of silver.  By buying this way, you will also have to pay a "premium" over the actual value of the silver.  This premium usually ranges from 8% to 25% or more (depending on the market condition and availabilty).  This is how the dealer makes his money.

Am I paying a fair price?

That's something each buyer has to determine for themselves.  As with all things in a free market, a good sold by a savvy seller is priced at the maximum the market will bear.  When times are good, junk silver usually brings low prices.  When times are bad, junk silver gets more expensive, since more people are wanting to hedge their wealth against economic dislocation.  (Isn't that a nice way of saying "Just in case things go to hell in a handbasket?")  And of course, there is our old friend, the current spot price of silver.  The ups and downs of the silver market effect the price.

However, there are some things you can do as a savvy buyer to insure you aren't taken. 

Buy the bag

First, bear in mind that a "proper" bag of junk silver will contain $1,000 face value of US coins minted in 1964 or earlier.  This means that there is approximately (+/-) 715 Troy ounces of silver in the bag.  So to determine if the price you're being quoted is equitable, multiply 715 (the amount of Troy ounces of silver in a bag) times the current spot price of silver.  Subtract that amount from the quoted price of the bag.  The remaining amount is the premium you're paying the dealer.  Make your own judgment of whether that amount is "fair" or not, and buy or not buy as it suits you.

Buy the coin

At the gun show, flea market or on eBay , you aren't normally going to be buying bags or fractional bags.  You're going to be buying coins or partial/full rolls of coins.  So to determine an equitable price, the first thing you have to do is determine the current spot price of silver, then multiply that times the amount of silver in a given coin, using the following information I've gleaned from various web sites:

Weight/purity of silver in US Silver Coinage
Silver Dollars	Half Dollars	Quarters	Dimes
Eisenhower Dollar Minted 1971-1978 0.3161 Troy oz. fine silver Only some 1971-1976 are silver! These were available in U.S. Government Proof Sets from San Francisco.	Kennedy Half Dollar Minted 1964 to present 0.36169 Troy oz. fine silver (1964) 0.14792 Troy oz. fine silver (1965-1970) Only 1964-1970 are silver, and only 1964 are 90% silver!	Washington Quarter Minted 1932-present 0.18084 Troy oz. fine silver Only those minted from 1932-1964 are silver!	Roosevelt Dime Minted 1946 to present 0.07234 Troy oz. fine silver Only those minted from 1946-1964 are silver!
Peace Silver Dollar Minted 1921-1935 0.77344 Troy oz. fine silver	Franklin Half Dollar Minted 1948-1963 0.36169 Troy oz. fine silver	Standing Liberty Quarter Minted 1916-1930 0.18084 Troy oz. fine silver	Mercury Dime Minted 1916-1945 0.07234 Troy oz. fine silver
Morgan Silver Dollar Minted 1878-1921 0.77344 Troy oz. fine silver	Walking Liberty Half Dollar Minted 1916-1947 0.36169 Troy oz. fine silver	Barber Quarter Minted 1892-1916 0.18084 Troy oz. fine silver	Barber Dime Minted 1892-1916 0.07234 Troy oz. fine silver
	Barber Half Dollar Minted 1892-1915 0.36169 Troy oz. fine silver
NOTES: "Fine Silver" is 0.999% pure. Some silver will be "missing" from junk silver coins due to the wear process.  The missing weight should be negligible. This table covers all US silver coinage, regardless of percent silver content, that the junk silver buyer (as opposed to a coin collector) is likely to encounter.  Remember that you aren't collecting coins, you're actually buying silver in a handy and well-recognized form.  Remember that 1964 and earlier is 90% fine silver, while 1965 - 1969 is 40% fine silver (half dollars only).  Remember to base your calculations on the coin and the percentage of silver content based on the date of mint.

We suggest avoiding all 1965 or later coins to simplify your life.  By doing this, you can boil the above down to this:

• Silver dollars contain 0.77344 Troy oz. silver content
• Half dollars contain 0.36169 Troy oz silver content
• Quarters contain 0.18084 Troy oz silver content
  Dimes contain 0.0723 Troy oz silver content