Junk Silver and Banks

A number of clients have used this strategy for awhile, so I thought I would share it. Do want to preface that everyone’s results will vary, but this is worth a try in the future. Actually, if silver goes to $50 or $100 then this strategy will make even more sense. So let me first define 90% and 40% silver.

History

Any dime, quarter, or 1/2 dollar that is pre-1965 U.S. contains 90% silver. These coins are still U.S. legal tender and can still be used to purchase goods and services, but their actual and true value is based on the amount of pure silver they contain, and that value today is substantially higher than the coins’ face value. As of this post, here below are the melt values…

1942-1945 Nickel **	$0.05	$1.0757	2151.52%
1916-1945 Mercury Dime	$0.10	$1.3831	1383.12%
1946-1964 Roosevelt Dime	$0.10	$1.3831	1383.12%
1916-1930 Standing Liberty Quarter	$0.25	$3.4578	1383.12%
1932-1964 Washington Quarter	$0.25	$3.4578	1383.12%
1916-1947 Half Dollar	$0.50	$6.9156	1383.12%
1948-1963 Franklin Half Dollar	$0.50	$6.9156	1383.12%
1964 Kennedy Half Dollar	$0.50	$6.9156	1383.12%

In the mid-1960s, as the price of silver increased and the U.S. government sought a lower cost form of coinage as an alternative to the 90% silver content coins minted previously, the U.S. Mint began producing Kennedy half-dollars composed of an inner layer of 79% copper and 21% silver, and sandwiched or “clad” with an outer layer made up of 80% silver and 20% copper. In total, each coin was made up of 40% silver and 60% copper. They were the last regularly-circulated U.S. coins still containing any silver. Below is the value.

1965-1970 Half Dollar (40% silver)

$0.50

$2.8277

565.54%

Now here are a number of steps to take advantage of buying “junk silver”…. (be nice to the teller, and remember the banks are taking advantage of you, so enjoy this as the only way to get back!!)

Drive to your local bank and ask if they have any rolls of coins for sale. You are looking for rolls of circulated coins, so don’t be afraid to ask the teller if they know the origin of the rolls. Uncirculated rolls from the Federal Reserve will not contain any silver coins.
Buy as many rolls of circulated half dollars, quarters, or dimes as you can afford. Collectors tend to report better results with half dollars, most likely because many noncollectors do not realize that half dollars minted from 1965-69 contain 40 percent silver. The more rolls you purchase, the more likely you are to happen upon silver coins. Remember that the money you are “spending” is not actually gone — your nonsilver coins can simply be exchanged for more rolls later.
Bring your rolls home and look through them. Set aside any coins dated 1964 and earlier, and half dollars dated 1965-69. With any luck, you will find a few.
Reference the melt value of silver referencing the above section of this article to determine the value of your silver coins. As a general rule, each $1 in face value of 90 percent silver coins contains about 0.715 troy ounce of pure silver, and every $1 of 40 percent silver coins contains about 0.295 troy ounce of silver. These calculations are slightly imperfect, however, because coins lose metal content as they wear. The exact silver content of your coins can only be determined by weighing them.

5.Sell your silver coins at a coin shop, or save them for a rainy day.

6.Place the non-silver coins back into rolls, and either return them to the original bank in exchange for more rolls, or try different bank. If you have several banks nearby, establish a rotation to avoid buying back rolls that you have already searched.

Good hunting!!!!

22 Responses to “Junk Silver and Banks”

tv ally Says:
7. July 2010 at 3:42 pm

Great detailed information, I just bookmarked you on my google reader.

Sent from my iPad 4G

How To Invest in Gold and Other Hard Assets

22 Responses to “Junk Silver and Banks”

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