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What Are Junk Silver Coins?

Junk silver coins, despite their rather unfortunate name, are a great investment. In fact, they may be the ideal investment for people who are concerned about the current economic climate in the U.S. So what are they, exactly?

The Last Real Money Issued in the U.S.

Throughout the first half of the 20th century, most of the coins issued in the U.S. contained 90% silver. This meant that apart from their printed "legal tender" value, they have intrinsic value based on their silver content. Over time, because of inflation of the currency, these coins came to be worth more than their face value, as the price of silver rose.

The term "junk" silver originates from coin collectors, and refers to coins that were circulated, and have no value as collectibles. Their value arises purely from their precious metal content. While the name is less than appealing, junk silver coins have a number of unique properties that make them excellent investments.

First, junk silver coins have precious metal content that is certified by the U.S. government. Counterfeiting of coins is rare, so typically if you have a certain variety of coin and can read the date, you can be confident of its silver content. Second coins are conveniently sized, making them an easy way to trade in small quantities of silver, should the need arise. Finally, these coins are still considered legal tender, which means there is an absolute floor for their value - it can never go to zero. Even in the case of a total collapse in the price of silver, these coins can still be spent for face value.

Fight Inflation with U.S. Junk Silver Coins

At the rate the U.S. government is expanding the money supply, high inflation in the future is about as close to a sure bet as exists in the financial markets. Commodities such as silver are typically inflation proof, and are a good store of value in times of uncertainty. Junk silver coins are easily recognized, and their silver content is widely known, making them highly liquid all over the world.

In short, if you are considering investing in physical precious metals, junk silver coins merit close consideration. They are still readily available, at very low premiums over meltdown value. One of the best places to find them is on Ebay.