Wednesday, May 19, 2010

Understanding Junk silver coins

Why 90% junk silver coins are worth the investment -

Junk silver is actually a misnomer for coins with 90% silver and 10% copper content.

Junk silver coins may have no value for collectors in a sense that junk silver dollars can be bought without regard for their aesthetic quality – it would not matter much if it’s nicked or scratched on the surface – as long as its intrinsic value is still intact.

Junk Silver coins are usually sold in bags with a face value of about $1,000. Junk Silver dimes are not made out of scrap metal, in contrary to its misleading name. It is made of 90% silver plus 10% copper to make it durable.

Despite its misleading name, junk silver is the colloquial term for circulated silver coins in the United States that were minted prior to the Coinage Act of 1965. Enacted on July 23, 1965, the Coin Act stopped the minting and circulation of dimes and quarter dollars with 90% silver content.

Though they were struck with a 1964 mint date but in truth, some of the junk U.S. silver dimes were minted until 1966.

The year 1965 also marked a period of coin shortage in the U.S. coin history. Subsequently, the Coinage Act also signaled the rise of silver prices. Junk silver coins are also present in Canada.

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