Monday 27 August 2012

Information on purchasing junk silver

By Annie Collamore


Junk silver is a casual term used within the United States, United Kingdom, Canada and Australia for any silver coin which is in truthful condition and has no numismatic or collectible value above the bullion value of the silver it contains. Such cash are common among people looking for investment-grade silver, significantly in small quantities. The phrase "junk" refers only to the value of the coins as collectibles and not to the precise situation of the coins; junk silver is not essentially scrap silver.

Precious metals together with silver are measured in troy ounces (oz). A spot price for silver is the price for a troy ounce of silver which is 99.9% pure, or 999 fine. Silver coins including junk-silver cash have set silver-alloy contents ranging from 35% to 90% or more. The term "coin silver," for example, refers to 90% silver alloy which was the most typical alloy used to mint silver U.S. coins.

Any combination of 90% silver U.S. cash which have a face value of US$1.00 comprises 0.715 troy ounces of 99.9% silver (0.7234 troy ounces if uncirculated), aside from the silver dollars (Morgan and Peace) which contain .7736 troy ounces of silver. In different phrases, a full troy ounce of 99.9% silver is contained in any mixture of 90% silver U.S. coins which have a face value of US$1.40.

American junk silver refers to coins made from silver that have been minted before 1964, or particular ones minted from 1965-1971.

This one test checks to see if the coin you bought is product of silver.

As a basic rule of thumb, all US nickels, dimes, quarters, and so forth, that have been minted on 1964 and earlier than are product of 90% silver. $1.forty price of any mixture of these cash roughly equates to 1 troy ounce of pure silver. About $3.40 worth of those coins equal 1 troy ounce of silver. When Nixon took the US off the Bretton-Woods agreement in 1971, he had the US mint recover any silver cash to be melted down for its silver content.

Acquiring and investing in silver in this method not only provides you the feeling that you're investing in "lots" of silver, but it's low cost to take action and actually may be an excellent way for small timers to obtain this treasured metal. Every time I purchase something, I at all times test my coins to see if any of them were made on 1964 or before. Occasionally I find a keeper that goes into my junk silver bags. Many people still have no idea about this technique of investing so it nonetheless has some energy to work. Obviously over time, the benefit and provide of finding such cash will dwindle as there are less treasures to be found.

Whereas these coins can't be used for an IRA backed by treasured metals, it's nonetheless potential to revenue from this methodology of investing by taking the time to collect nickels for reselling on the open market. During exhausting economic instances, it is generally more difficult to find silver cash when costs are usually higher. Conversely, throughout growth times you will see that it simpler to obtain these metals in numerous assortments of shapes and sizes.

Canadian quarter and dime cash minted earlier than 1967 contained 80% silver with each CAD$1.00 face value containing .6 troy ounces of silver. In 1967, they have been minted in either 80% or 50% silver. In 1968, they had been minted in both 50% silver or one hundred% nickel. The 1968 nickel coins are magnetic whereas the silver cash are not. Dollar and half-dollar cash contained 80% silver by means of 1967.

Australian "pre-decimal" florin, shilling, six pence and three pence coins minted from 1910 to 1945 contained 92.5% silver. From 1946 to 1964, they had been minted in "put up-silver" coins which contained 50% silver. In 1966, the "round" 50-cent coin contained 80% silver.




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