Do Junk Silver Coins Make Worthwhile Investments?

Wednesday, October 05, 2011 2:05
 

Investing in silver coins is ‘gaining currency’ around the world as investors realize the potential benefits of putting their money in an excellent store of value like silver. The most popular way to buy silver is to acquire silver coins. American Silver Eagles, Canadian Silver Maple Leafs and other similar coins are quite easy to buy as well as sell, which makes them good investments. Although less popular, junk coins are another excellent way by which you can invest in silver. Many investors are not familiar with what these silver coins are and they overlook these as potential investments because of this reason.

What are Junk Coins?

In spite of the unprepossessing name they bear, junk silver coins are far from worthless as investment materials. Typically, early U.S. legal tender coinage is termed as junk coins. These are just old coins that no longer retain any numismatic value. However, they do contain silver and this is what they are valued for in present day.

Junk coins may have been legal tender at some point of time. Otherwise they may be legal tender in countries other than the U.S. The fact that they do not have a face value anymore does not affect their intrinsic precious metal content resale value in any way. This is what makes these junk silver coins a good buy when you want to increase exposure to precious metals.

How to Buy Junk Coins?

Junk coins are usually bought by the bag and one bag may contain a mix of dimes, half dollars and quarters that were minted in the early years. Many silver dealers also offer junk coins in rolls. One point to remember is that it is the total silver weight of the collection in the bag that is of importance rather than the actual proportion of each kind of coinage that makes up the mix.

A Convenient Way to Own Silver

Junk silver coins are a convenient way to own silver. Many investors are realizing the advantages of owning junk coins that can easily be stored, sold and preserved in good condition for future generations. The fact that with junk coins your investment remains easily divisible is another great advantage with this kind of investment. Owing to this factor, you can easily sell just that part of your silver investment that will yield the funds you require at any specific point of time instead of liquidating all of your holdings.


source: Wholesale Gold Group