Most people are probably not even aware of the wonderful opportunity that awaits them in junk silver coins, especially if they have had no former experience in the precious metals markets. Many of us have heard about the trading of gold and silver coins. These are often used as alternative investments and make fine collector's items. Junk silver coins are an entirely separate commodity from these more precious metals based coins. Their uniqueness lies in the fact that they play quite a significant role in the silver coin market.
So what are junk silver coins exactly? Unveiling the jargon used in the precious metals industry reveals that they are silver coins that contain 90% silver content or less. These are different to pure bullion silver coins - that have been minted from higher quality silver that has been graded at a purity of 99.9%. Junk silver coins can be further differentiated from silver round bars - that are known also to be manufactured from silver that is rich in purity.
The most important aspect for an investor to take seriously about junk silver coins is that they are often transacted in bulk quantities. Here in lies its appeal. It would therefore not be practical for you to sell junk silver coins in single units simply because this would not afford you any real profit potential. Instead you would be interested in marketing your junk silver coins in bag quantities as is the trend these days. Bags are typically bought and sold from prices ranging $100, $250 and even up to $1000. Junk silver coins are found in a variety of flavors such as the commonly known Mercury and Roosevelt dimes and the Morgan and Peace dollars.
A typical example of how you would go about selling a bag of junk silver coins to silver coin dealers is demonstrated below. For example, if you wish to sell Franklin half dollars, then a $500 named bag of these coins would contain exactly 1000 pieces of half dollar coins. Given that each of the coins have a silver rating of 90%, and with each of them weighing 0.36169 ounces, means that your bag actually has 361.69 exact ounces of silver. Now after observing the silver spot prices of the day, assuming it sat at about $30, would translate to a $500 bag having a silver value of an amazing $10,850.70.
The bulk transaction makes it easier to experience the effects of fluctuation in the silver spot price. If you are selling one coin, a $1/ounce change in the spot price would be almost negligible. In bulk however this can amount to a substantial value. Assuming you bought that $500 bag of Franklin half dollars for $10,850.70 and the spot price rose up to $31/ounce the following day; you would then have a junk silver coin bag valued at $11,212.39, resulting in a profit of $361.69.
Bear in mind though, that silver coin dealers that deal in junk silver coins would rarely be willing to buy or sell on the exact spot price. They, like you, are in this to build profits. This will be your only serious hurdle in trading junk silver coins and it would certainly serve your interests to seek out established coin dealers that move coins within range of the silver spot price.
That is not to say that you should dismiss junk silver coins as lesser equivalents of their more prestigious coin counterparts. They have proven to be extremely profitable in most cases even though they contain smaller amounts of silver. The silver market in fact thrives because of 90% silver coins and for this reason investors should be more open to incorporating them into their portfolios, so as to take better advantage of the ever fluctuating spot price of silver.
So what are junk silver coins exactly? Unveiling the jargon used in the precious metals industry reveals that they are silver coins that contain 90% silver content or less. These are different to pure bullion silver coins - that have been minted from higher quality silver that has been graded at a purity of 99.9%. Junk silver coins can be further differentiated from silver round bars - that are known also to be manufactured from silver that is rich in purity.
The most important aspect for an investor to take seriously about junk silver coins is that they are often transacted in bulk quantities. Here in lies its appeal. It would therefore not be practical for you to sell junk silver coins in single units simply because this would not afford you any real profit potential. Instead you would be interested in marketing your junk silver coins in bag quantities as is the trend these days. Bags are typically bought and sold from prices ranging $100, $250 and even up to $1000. Junk silver coins are found in a variety of flavors such as the commonly known Mercury and Roosevelt dimes and the Morgan and Peace dollars.
A typical example of how you would go about selling a bag of junk silver coins to silver coin dealers is demonstrated below. For example, if you wish to sell Franklin half dollars, then a $500 named bag of these coins would contain exactly 1000 pieces of half dollar coins. Given that each of the coins have a silver rating of 90%, and with each of them weighing 0.36169 ounces, means that your bag actually has 361.69 exact ounces of silver. Now after observing the silver spot prices of the day, assuming it sat at about $30, would translate to a $500 bag having a silver value of an amazing $10,850.70.
The bulk transaction makes it easier to experience the effects of fluctuation in the silver spot price. If you are selling one coin, a $1/ounce change in the spot price would be almost negligible. In bulk however this can amount to a substantial value. Assuming you bought that $500 bag of Franklin half dollars for $10,850.70 and the spot price rose up to $31/ounce the following day; you would then have a junk silver coin bag valued at $11,212.39, resulting in a profit of $361.69.
Bear in mind though, that silver coin dealers that deal in junk silver coins would rarely be willing to buy or sell on the exact spot price. They, like you, are in this to build profits. This will be your only serious hurdle in trading junk silver coins and it would certainly serve your interests to seek out established coin dealers that move coins within range of the silver spot price.
That is not to say that you should dismiss junk silver coins as lesser equivalents of their more prestigious coin counterparts. They have proven to be extremely profitable in most cases even though they contain smaller amounts of silver. The silver market in fact thrives because of 90% silver coins and for this reason investors should be more open to incorporating them into their portfolios, so as to take better advantage of the ever fluctuating spot price of silver.
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Want to find out more about junk silver coins, then visit Atlanta Gold and Coin Buyers' site on how to choose the best silver coin dealers when buying or selling 90% silver coins.
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