Junk silver has become a buzz word among precious metal traders. Before you dismiss this as a viable investment due to the word ‘junk’ you need to get an insight into the whole spectrum of junk silver market. Junk silver refers to any government issues coin whose numismatic value does not exceed the silver bullion value in the said coins. Most of these coins are pre-1964 releases which contain 90% silver (coin silver) and 10% copper. If you are an adventurous investor, then you should learn 3 reasons to buy junk silver and more importantly, get an insight into the market.
In the US, some of the coins you can include in your portfolio include US quarters, dimes, and half-dollars. Examples are Morgan and Peace dollars, Washington quarters, Roosevelt dimes, walking liberty, standing liberty quarters among others.
What are some of the 3 reasons to buy junk silver?
With the price of silver hitting over $ 1.23 per gram, a junk silver coin containing over 90% of pure silver and weighing about 2.5 grams will give good returns or melt value. Of course these high returns or ROI feature among the top reasons for investing on junk silver but there are still other reasons.Scarcity factor; in any market, profit is always hinged on supply and when there is scarcity of a commodity, prices tend to pick an upward trend. These junk silver coins are not in circulation any more and hence, their price in the market will always be high due to the scarcity factor. If you collect a good number of these coins and watch the markets keenly, you can make a killing. For example, the Federal Reserve Bank reports that since 2001 when silver hit a low of $4 per Ounce, this precious white metal has maintained an upward trend to date and it is no surprise that it stood at $ 35 per Ounce as of April 2012.Easy authentication; one of the problems associated with precious metals investment is a prevalence of fakes. However, these junk coins were made by the US government and hence, authenticating them is very easy. In fact, this is one top 3 reasons to buy junk silver because you will not lose money on your investment. If you ask around the gold market on the other hand, there are many investors who have lost all their money by buying fake jewelry and other items.
Having verified the safety of your investment and understood why it is one of the best investments, you need to start collecting these coins. This can be done in antique shops, coin roll searching, garage sales and flea markets. Moreover, these 3 reasons to buy junk silver are not the only things that make this market ever attractive.
Consider the coins are utilitarian as they can still be used in vending machines. What’s more, they need no assaying and by using an online store, you can easily start a very stable investment portfolio. Next time you see a 1964 Kennedy Half dollar, or a 1946-1964 Roosevelt dime, get online and check their value; it could be your lucky day.
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