Junk silver
Encyclopedia
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
and Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
for any silver coin
Silver coin
Silver coins are possibly the oldest mass produced form of coinage. Silver has been used as a coinage metal since the times of the Greeks. Their silver drachmas were popular trade coins....
which is in fair condition
Coin grading
In coin collecting coin grading is the process of determining the grade or condition of a coin, one of the key factors in determining its value as a collector's item....
and has no numismatic
Numismatics
Numismatics is the study or collection of currency, including coins, tokens, paper money, and related objects. While numismatists are often characterized as students or collectors of coins, the discipline also includes the broader study of money and other payment media used to resolve debts and the...
or collectible
Coin collecting
Coin collecting is the collecting or trading of coins or other forms of minted legal tender.Coins of interest to collectors often include those that circulated for only a brief time, coins with mint errors and especially beautiful or historically significant pieces. Coin collecting can be...
value above the bullion
Precious metal
A precious metal is a rare, naturally occurring metallic chemical element of high economic value.Chemically, the precious metals are less reactive than most elements, have high lustre, are softer or more ductile, and have higher melting points than other metals...
value of the silver
Silver
Silver is a metallic chemical element with the chemical symbol Ag and atomic number 47. A soft, white, lustrous transition metal, it has the highest electrical conductivity of any element and the highest thermal conductivity of any metal...
it contains. Such coins are popular among people seeking to invest in silver
Silver as an investment
Silver, like other precious metals, may be used as an investment. For more than four thousand years, silver has been regarded as a form of money and store of value. However, since the end of the silver standard, silver has lost its role as legal tender in many developed countries such as the...
, particularly in small amounts. The word "junk" refers only to the value of the coins as collectibles and not to the actual condition of the coins; junk silver is not necessarily scrap
Scrap
Scrap is a term used to describe recyclable and other materials left over from every manner of product consumption, such as parts of vehicles, building supplies, and surplus materials. Unlike waste, scrap has significant monetary value...
silver.
Precious metals including silver are measured in troy
Troy weight
Troy weight is a system of units of mass customarily used for precious metals, gemstones, and black powder.There are 12 troy ounces per troy pound, rather than the 16 ounces per pound found in the more common avoirdupois system. The troy ounce is 480 grains, compared with the avoirdupois ounce,...
ounces
Troy ounce
The troy ounce is a unit of imperial measure. In the present day it is most commonly used to gauge the weight of precious metals. One troy ounce is nowadays defined as exactly 0.0311034768 kg = 31.1034768 g. There are approximately 32.1507466 troy oz in 1 kg...
(ozt). A spot price
Spot price
The spot price or spot rate of a commodity, a security or a currency is the price that is quoted for immediate settlement . Spot settlement is normally one or two business days from trade date...
for silver is the price for a troy ounce of silver which is 99.9-percent pure, or 999 fine
Millesimal fineness
Millesimal fineness is a system of denoting the purity of platinum, gold and silver alloys by parts per thousand of pure metal by mass in the alloy. For example, an alloy containing 75% gold is denoted as "750". Many European countries use decimal hallmark stamps Millesimal fineness is a system of...
. Silver coins including junk-silver coins have set silver-alloy contents ranging from 35-percent to 90-percent or more. The term "coin silver," for example, refers to 90-percent silver alloy which was the most common alloy used to mint silver U.S. coins.
Any combination of 90-percent silver U.S. coins which have a face value of US$1.00 contains 0.715 troy ounces of 99.9-percent silver (0.7234 troy ounces if uncirculated), except for the silver dollars (Morgan and Peace) which contain .7736 troy ounces of silver. In other words, a full troy ounce of 99.9-percent silver is contained in any combination of 90-percent silver U.S. coins which have a face value of US$1.40.
Common U.S. coins
The most commonly collected junk-silver U.S. coins were minted before 1965 and include Morgan and Peace dollars; Liberty Head "Barber," Walking Liberty, Franklin and Kennedy half dollarsHalf dollar (United States coin)
Half dollar coins have been produced nearly every year since the inception of the United States Mint in 1794. Sometimes referred to as the fifty-cent piece, the only U.S. coin that has been minted more consistently is the cent.-Circulation:...
; Liberty Head "Barber," Standing Liberty and Washington quarters
Quarter (United States coin)
A quarter dollar, commonly shortened to quarter, is a coin worth ¼ of a United States dollar, or 25 cents. The quarter has been produced since 1796. The choice of 25¢ as a denomination, as opposed to 20¢ which is more common in other parts of the world, originated with the practice of dividing...
; Liberty Head "Barber," Winged Liberty Head "Mercury" and Roosevelt dimes
Dime (United States coin)
The dime is a coin 10 cents, one tenth of a United States dollar, labeled formally as "one dime". The denomination was first authorized by the Coinage Act of 1792. The dime is the smallest in diameter and is the thinnest of all U.S...
; and Jefferson "Wartime" nickels
Nickel (United States coin)
The nickel is a five-cent coin, representing a unit of currency equaling five hundredths of one United States dollar. A later-produced Canadian nickel five-cent coin was also called by the same name....
.
Dollars
- MorganMorgan DollarThe Morgan dollar was a United States dollar coin minted intermittently from 1878 to 1921. It was the first standard silver dollar minted since production of the previous design, the Seated Liberty dollar, ceased due to the passage of the Fourth Coinage Act, an act which also ended the free coining...
(1878–1921) -- 90-percent silver - PeacePeace DollarThe Peace dollar is a United States dollar coin minted from 1921 to 1928, and again in 1934 and 1935. Designed by Anthony de Francisci, the coin was the result of a competition to find designs emblematic of peace. Its reverse depicts an eagle at rest clutching an olive branch, with the legend...
(1921–1928 and 1934–1935) -- 90-percent silver
Half-Dollars
- Liberty Head "Barber"United States Barber coinageLiberty Head designs appeared on United States minor silver coinage from 1892 to 1916. They derive their common name from their designer, Chief Engraver Charles E. Barber.-Origins:...
(1892–1915) -- 90-percent silver - Walking LibertyWalking Liberty Half DollarThe Walking Liberty half dollar was a silver 50-cent piece or half dollar coin issued by the United States Mint from 1916 to 1947; it was designed by Adolph A. Weinman....
(1916–1947) -- 90-percent silver - FranklinFranklin half dollarThe Franklin half dollar is a coin that was struck by the United States Mint from 1948 to 1963. The fifty-cent piece pictures Founding Father Benjamin Franklin on the obverse and the Liberty Bell on the reverse. A small eagle was placed to the right of the bell to fulfill the legal requirement...
(1948–1963) -- 90-percent silver - KennedyKennedy half dollarWithin hours of the assassination of John F. Kennedy on November 22, 1963, Mint Director Eva Adams called Chief Engraver Gilroy Roberts, informing him that serious consideration was being given to depicting Kennedy on one of the larger silver coins: either the silver dollar, half dollar, or...
(1964) -- 90-percent silver - Kennedy (1965–1970) -- 40-percent silver
Quarters
- Liberty Head "Barber"United States Barber coinageLiberty Head designs appeared on United States minor silver coinage from 1892 to 1916. They derive their common name from their designer, Chief Engraver Charles E. Barber.-Origins:...
(1892–1916) -- 90-percent silver - Standing LibertyStanding Liberty QuarterThe Standing Liberty quarter was a 25-cent coin struck by the United States Mint from 1916 to 1930. It succeeded the Barber quarter, which had been minted since 1892. Featuring the goddess of Liberty on one side and an eagle in flight on the other, the coin was designed by sculptor Hermon Atkins...
(1916–1930) -- 90-percent silver - WashingtonWashington Quarter (U.S.)The Washington quarter is the present quarter dollar or 25-cent piece issued by the United States Mint. The original coin began to be struck in 1932, and was designed by sculptor John Flanagan....
(1932, 1934–1964) -- 90-percent silver
Dimes
- Liberty Head "Barber"United States Barber coinageLiberty Head designs appeared on United States minor silver coinage from 1892 to 1916. They derive their common name from their designer, Chief Engraver Charles E. Barber.-Origins:...
(1892–1916) -- 90-percent silver - Winged Liberty Head "Mercury" (1916–1945) -- 90-percent silver
- Roosevelt (1946–1964) -- 90-percent silver
Nickels
- Jefferson "Wartime" (1942 (partial)-1945) -- 35-percent silver
Common U.K. coins
The most commonly collected junk-silver U.K. coins were minted before 1946 and include Edward VII, George V and George VI crowns; as well as Victoria, Edward VII, George V and George VI half crownsHalf crown (British coin)
The half crown was a denomination of British money worth half of a crown, equivalent to two and a half shillings , or one-eighth of a pound. The half crown was first issued in 1549, in the reign of Edward VI...
, florins, shillings, six pences, and three pences.
Crowns
- Edward VII (1902) -- 92.5-percent silver
- George V (1927–1936) -- 50-percent silver
- George VI (1937) -- 50-percent silver
Half Crowns
- Victoria (1837–1901) -- 92.5-percent silver
- Edward VII (1902–1910) -- 92.5-percent silver
- George V (1911–1919) -- 92.5-percent silver
- George V (1920–1936) -- 50-percent silver
- George VI (1937–1946) -- 50-percent silver
Florins (2 Shillings)
- Victoria (1849–1901) -- 92.5-percent silver
- Edward VII (1902–1910) -- 92.5-percent silver
- George V (1911–1919) -- 92.5-percent silver
- George V (1920–1936) -- 50-percent silver
- George VI (1937–1946) -- 50-percent silver
Shillings
- Victoria (1838–1901) -- 92.5-percent silver
- Edward VII (1902–1910) -- 92.5-percent silver
- George V (1911–1919) -- 92.5-percent silver
- George V (1920–1936) -- 50-percent silver
- George VI (1937–1946) -- 50-percent silver
Six Pences
- Victoria (1837–1901) -- 92.5-percent silver
- Edward VII (1902–1910) -- 92.5-percent silver
- George V (1911–1920) -- 92.5-percent silver
- George V (1920–1936) -- 50-percent silver
- George VI (1937–1946) -- 50-percent silver
Three Pences
- Victoria (1838–1901) -- 92.5-percent silver
- Edward VII (1902–1910) -- 92.5-percent silver
- George V (1911–1920) -- 92.5-percent silver
- George V (1920–1936) -- 50-percent silver
- George VI (1937–1945) -- 50-percent silver
Other countries
Canadian quarterQuarter (Canadian coin)
The quarter is a Canadian coin, valued at 25 cents or one-fourth of a Canadian dollar. It is a small, circular coin of silver colour. According to the Royal Canadian Mint, the official name for the coin is the 25-cent piece, but in practice it is simply called a quarter.-History of...
and dime
Dime (Canadian coin)
In Canada a dime is a coin worth ten cents. It is the smallest of the currently issued Canadian coins. According to the Royal Canadian Mint, the official national term of the coin is the 10 cent piece, but in practice the term dime is universal...
coins minted before 1967 contained 80-percent silver with every CAD$1.00 face value containing .6 troy ounces of silver. In 1967, they were minted in either 80-percent or 50-percent silver. In 1968, they were minted in either 50-percent silver or 100-percent nickel. The 1968 nickel coins are magnetic whereas the silver coins are not. Dollar
Canadian silver dollar
The Royal Canadian Mint issued the first silver dollar in 1935 to commemorate the Silver Jubilee of King George V. The coin’s reverse design was sculpted by Emanuel Hahn and portrays a voyageur and an aboriginal paddling a birch-bark canoe. The faint lines in the background represent the Northern...
and half-dollar
50 Cent Piece (Canadian coin)
The fifty-cent piece is the common name of the Canadian coin worth 50 cents. It is sometimes referred to as a "half dollar." The coin's reverse depicts the coat of arms of Canada. At the opening ceremonies for the Ottawa branch of the Royal Mint, held on January 2, 1908, Governor General Earl Grey...
coins contained 80-percent silver through 1967.
Australian "pre-decimal" florin
Florin (Australian coin)
The Australian florin was a coin used in the Commonwealth of Australia prior to decimalisation in 1966. The denomination was first minted in 1910, to the same size and weight as the United Kingdom florin. Florins minted from 1910 to 1945 were produced with a .925 sterling silver content, weighing...
, shilling
Shilling (Australian)
The Australian Shilling was a coin of the Commonwealth of Australia prior to decimalization. The coin was minted from 1910 until 1963, excluding 1923, 1929, 1930, 1932, 1938, 1947, 1949 and 1951...
, sixpence
Sixpence (Australian)
The Australian Sixpence was a coin used in the Commonwealth of Australia prior to decimalization. It was minted from 1910 until 1963, excluding 1913, 1915, 1929–33 inclusive, 1937, 1947 and 1949...
and threepence
Threepence (Australian)
The Australian Threepence was a small silver coin used in the Commonwealth of Australia prior to decimalization. It was minted from 1910 until 1964, excluding 1913, 1929 - 1933 inclusive, 1937, 1945 and 1946...
coins minted from 1910 to 1945 contained 92.5-percent silver. From 1946 to 1964, they were minted in "post-silver" coins which contained 50-percent silver. In 1966, the "round" 50-cent coin
Australian 50 cent coin (round)
The round fifty cent coin was the highest-denomination and largest diameter coin of the Australian dollar's decimal coins, introduced in 1966. Due to large amounts made in 1966 and the rising cost of silver, it was not made in any other year...
contained 80-percent silver.
Popularity
Junk-silver coins may be a desirable method of investing in silver for several reasons:Low premiums: Coins can often be purchased for little or no premium
Buyer's Premium
In auctions, the buyer's premium is a percentage additional charge on the hammer price of the lot. It is made by the auctioneer to cover 'administrative expenses'....
over the spot price of silver, particularly during periods of economic stability.
Legal tender: Coins remain legal tender
Legal tender
Legal tender is a medium of payment allowed by law or recognized by a legal system to be valid for meeting a financial obligation. Paper currency is a common form of legal tender in many countries....
and maintain their face value regardless of the price of silver.
Recognition
- Coins are familiar and less likely to have their value disputed than silver rounds or bars.
Divisibility: Coins can be easily spent or traded in small amounts. In contrast, minted silver bullion is rarely smaller than a troy ounce, while minted gold bullion (and other precious metals) is highly valued in even small amounts, like the American Gold Eagle
American Gold Eagle
The American Gold Eagle is an official gold bullion coin of the United States. Authorized under the Gold Bullion Coin Act of 1985, it was first released by the United States Mint in 1986.- Details :...
coins.
For these reasons, junk silver is popular among survivalists
Survivalism
Survivalism is a movement of individuals or groups who are actively preparing for future possible disruptions in local, regional, national, or international social or political order...
. In the event of a crisis or catastrophe during which traditional currency collapses, it is speculated that silver coins could provide a viable alternative, temporarily or indefinitely, while fiat currency, which is not backed by precious metals or other commodities, has no inherent value and can be subject to extreme inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
, even hyperinflation
Hyperinflation
In economics, hyperinflation is inflation that is very high or out of control. While the real values of the specific economic items generally stay the same in terms of relatively stable foreign currencies, in hyperinflationary conditions the general price level within a specific economy increases...
, similar to Weimar Germany and, more recently, Zimbabwe
Zimbabwe
Zimbabwe is a landlocked country located in the southern part of the African continent, between the Zambezi and Limpopo rivers. It is bordered by South Africa to the south, Botswana to the southwest, Zambia and a tip of Namibia to the northwest and Mozambique to the east. Zimbabwe has three...
. Proponents of junk silver and other precious metals adhere to the principle that, while fiat currencies have historically been subject to hyperinflation, precious metals will always have inherent value and can act as a medium of financial exchange when fiat currencies are obsolete.
Junk copper
Some coin collectors and investors are also informally using the term "junk copper" to refer to any copperCopper
Copper is a chemical element with the symbol Cu and atomic number 29. It is a ductile metal with very high thermal and electrical conductivity. Pure copper is soft and malleable; an exposed surface has a reddish-orange tarnish...
-bullion coins of no numismatic value. Prominent examples include U.S. pennies minted before 1982 (partial), Canadian pennies minted before 1997, and some pre-Euro copper European coins. 154 junk-copper U.S. pennies contain a full pound of fine copper.