| 'Junk-Silver' | | | | coins in different years between 1988 and 2009: |
| The term junk silver is used by countries such as the | | | | Canada, Mexico, China, America, Australia, Great |
| United States, Canada, the United Kingdom and | | | | Britain, Austria and Russia. The standard bullion coin |
| Australia to denote items that contain silver but are not | | | | weighs 1 ounce, with different degrees of purity, |
| necessarily up to the standard that an investor would | | | | although there are some varieties of sizes available. |
| seek. For example, your family silverware is probably | | | | Apart from the governmental coin minting, there are |
| not something an investor would be looking for, but | | | | also numerous privately minted silver coins, called |
| nevertheless is valuable and is silver. The same applies | | | | rounds. It is common for these rounds to have a fixed |
| to many old coins that have other metals in them. | | | | weight of 1 ounce, and a purity of 99.9% and to be |
| Those coins often don't have any value for coin | | | | issued by different kind of companies all over the |
| collectors but are valuable when it comes to the | | | | world. |
| amount of silver they contain. Different coins have a | | | | The great difference between coins and bars is that in |
| different amount of silver in them. Some are 90 | | | | order to determine the value of a silver coin, apart |
| percent pure silver, some are only 65 percent pure | | | | from its physical value given by weight and pureness |
| silver, but the junk silver always has some silver in it | | | | there must be considered the numismatic or collector's |
| and as such it is valuable to silver investors. | | | | value of a coin. Age, rareness, and provenance can |
| Obviously, coins and other collectibles all are a little bit | | | | determine the value of a silver coin just as much as its |
| more expensive than just buying raw blocks of silver. | | | | weight. So, the market value can be higher than the |
| That is because the sellers of those collectibles expect | | | | physical factors - an advantage which can easily turn |
| you to understand the value that comes from the fact | | | | into a problem because there are fewer buyers so it |
| that it's a coin, that it has a pattern on it, that it has | | | | could be harder to sell and convert to money. |
| been handmade, et cetera. They will ask you to pay | | | | Jewelry: |
| for the fact that the coin is unique. If you are not | | | | Although jewelry is a very traditional way to buy silver, |
| interested in that, you'll be much better off, and it will be | | | | it is not really considered in the investment manner to |
| a much decision financially to invest in regular silver. | | | | which we're referring because we're looking for |
| On the other hand, if you don't have a huge amount of | | | | reference to the spot price for our calculations and |
| money to invest, and if you just want to kind of play | | | | jewelry does not align with that. |
| around with the idea of buying and selling silver, then | | | | Certificates: |
| collectibles may be a good idea for you. This is a good | | | | A certificate is a symbolic buy of silver without having |
| start that will get you on the right track when it comes | | | | to store the physical silver bar. The advantage clearly |
| to dealing with silver. If you buy junk silver, you will not | | | | is that the buyer can purchase silver over larger |
| spend much money, and you'll still be able to learn from | | | | distances without shipment of the silver bar. A |
| experience and by practice what it takes to be | | | | certificate represents a certain amount of silver and its |
| successful when trading silver. | | | | value depends on the actual silver value. |
| That knowledge alone makes it worthwhile to you to | | | | There are other things you can buy when you want to |
| invest in junk silver so if you just have a couple | | | | invest in silver, but these are the most well known and |
| hundred dollars to work with, then I encourage you to | | | | common and more than enough to get you started. |
| do this. If you're in the US then you may already come | | | | If you don't want to store the silver, you can buy it and |
| across a lot of junk silver every day in the coins you | | | | sign a contract. This contract states how much silver |
| have when buying goods and services. Check the | | | | you have, what the purity of the silver is and other |
| dates and start to keep any old silver coins minted | | | | important factors. |
| prior to 1965. Today, you rarely see these pre-1965 | | | | The problem is that the United States and other |
| U.S. 90% silver coins in circulation because although | | | | countries in the world don't necessarily have the |
| these coins are legal tender, their actual and true value | | | | physical silver to back those contracts. They don't |
| is substantially higher than the coins' face value but | | | | have the actual metal. Although they were supposed |
| since they are out there, keep your eyes open for | | | | to exchange those contracts for the silver, which you |
| them and you could start a silver collection with no | | | | should always be able do because in fact it is your |
| actual investment capital. | | | | silver, they would not be able to provide you with the |
| As we know that there are different types of | | | | actual metal. |
| investors and different kinds of silver would meet their | | | | What does this mean? It means that if the investor |
| needs. Basically, there are two types of silver | | | | pressed to get the silver that he owns, they would |
| investments: The first and traditional one is to buy an | | | | have to go and buy this amount from other people |
| amount of material silver which is sold in different | | | | that own the metal physically. Of course, when your |
| shapes. The second, more abstract way, is buying | | | | customer is so pressured, so desperate to buy, the |
| shares, funds, accounts and certificates. | | | | prices are going to go up. |
| Material silver can be bought in bigger or smaller | | | | Imagine this situation: let's say you just bought a metric |
| pieces, bars, coins, jewelry, in different states of | | | | ton of silver. You have it somewhere stored in the |
| pureness, and even in abstract shares and funds. Let's | | | | bank, or another storage facility. You own it. It's not just |
| take a look: | | | | a contract that you have signed, you were actually |
| Bars: | | | | given the metal. |
| According to standard, silver bars are made of 99.9 | | | | Now let us say that someone comes to you and says |
| percent pure silver, or 0.999 fine silver. There are | | | | that they want to buy the silver from you. Now, if you |
| different sizes and weights, from less than one ounce | | | | know that the reason they want to buy it from you is |
| (oz) up to 1000 oz. The most common sizes offered | | | | and they are under pressure to fulfill a contract for the |
| on the market are one kilogram, one ounce (31.1 g), ten | | | | metal, you'll be able to ask almost any price you want. |
| ounces (311 g), and five grams. Silver bars are sold | | | | That's why, silver being at $15-$17 an ounce right now, |
| from specialized traders, or in some countries over | | | | is such an amazing investment, and such a great |
| bank counters. | | | | opportunity. The fact is, the United States does not |
| Coins: | | | | have any silver. It has been trying to sell to increase |
| Coins can be bought either as original coins such as old | | | | the value of the dollar, but it is out of the silver and |
| U.S. half dollars, quarter dollars and dimes, which until | | | | doesn't have any more. |
| 1964 were made of 90 percent silver, or 22.5 g silver | | | | I don't have to tell you what it means to someone who |
| per dollar. Many countries used silver coins in the first | | | | has it. I don't have to tell you how it changes the |
| half of the last century. However, since the 1960's, | | | | situation for them. |
| minting silver into circulating "real money" coins isn't | | | | Now the whole thing I described may sound strange to |
| tenable for governments because of its important | | | | you, and even a little shocking, but its truth. If you |
| value increase during last century, so silver has been | | | | accept it and start investing in silver, you will always be |
| almost completely substituted by other alloys. | | | | secured because there is less silver on the face of the |
| The second types of silver coins are the bullion coins | | | | earth and there is less silver above the ground than is |
| minted out of 99.9 percent silver bars as a raw | | | | needed. |
| material. Different countries minted collectible silver | | | | |