The 10 Worst Silver Coins for Investment

People can choose to buy silver coins for a variety of reasons: Maybe they like a particular coin’s design, or its history, or they just like holding on to it. Maybe they derive happiness from having all of the coins of a particular set. Or maybe they enjoy owning a particular coin simply because it is so coveted—its numismatic value is high.

All of these reasons for buying silver coins are perfectly valid. But if you’re interested in silver coins from a purely investment perspective, then there are three criteria you should be concerned with:

1. Mark-up over spot
2. Recognition/trust factor
3. Size (smaller the better)

There are trade-offs with items #1 and the others, though: Coins with the smallest mark-ups over spot tend to come from unknown (non-government) mints; multi-ounce rounds and medallions also have lower premiums than one-ounce or fractional coins. The key is finding balance, and two entire classes of coins can be eliminated altogether based on these criteria: Collectible numismatics and “large coins.” After discussing why, we’ll look at the eight worst values among coins that are currently being produced and sold new.

10. Collectible Numismatic Silver Coins

Collectible numismatic coins are those that have market values that are wildly out of line with the value of their silver content. They are prized for their rarity more than anything else. The problem with these coins as investments is that their numismatic premiums are unlikely to keep up with the rise in the price of silver. For example, if silver goes up 177% from $18 to $50, then a one-ounce numismatic collectible coin valued at $100 is likely to go up by only 32% to $132. The collectible coin will go up based on the silver it contains, but there’s no reason to think the numismatic premium will increase too.

Perhaps the numismatic premium will go up with inflation, but assuming silver beats inflation, numismatic coins are still a bad bet. There’s another possibility, too—that numismatic values will actually go down as silver goes up. Why? Because in a scenario wherein the demand for silver goes through the roof, people are going to want as much silver content as they can get. This could divert demand from numismatics and into coins like Silver Eagles, Silver Maple Leafs, and generic silver rounds that have very low mark-ups over spot.

In summary: If you want to buy a few numismatic coins because you enjoy them, by all means do so. But as an investment strategy, buying numismatics is not wise. If you believe, as I do, that silver is set to skyrocket, then the name of the game is getting as much silver in your hands as possible… With one caveat: It has to be liquid.

9. Large Coins

Two-, five-, and ten-ounce coins are produced by a lot of mints, and some even make kilo or one-hundred-ounce “medallions” that are made to look like coins. The per-ounce mark-up over spot on these items is low, but your savings come at a price: liquidity.

Imagine you want to sell your one-hundred-ounce medallion—the market for one hundred ounces of silver is much smaller than the market for one ounce of silver. Only a fraction of the people who can afford to buy one ounce or ten or twenty ounces of silver can afford to buy one hundred ounces at any given time.

Now take things even further: Imagine the dollar has collapsed or is collapsing, and you want to barter in silver. Here, the smaller increment the coin, the greater the relative value. Even ten-ounce coins will trade at a steep discount here, as to be useful, someone will have to melt down and recast them. That comes with an expense, and thus it is wiser to buy coins that are already cast in one-ounce or even smaller increments.

8. Silver Australian Koala

The Silver Koala is produced by the Perth Mint and is legal tender in Australia. The coins are also very cute, and who wouldn’t want one? But as an investment, they’re not so hot. The new 2010 issues are selling for $6 over spot and the 2009 issues are selling for an identical price.

A coin like the Silver Koala is a fun one to own, and makes a great gift. There are certainly worse coins to buy as investments, but with its high mark-up and limited appreciation potential, the Koala comes in at #8 on our worst-investments list.

7. Silver Australian Kookaburra

Like the Silver Koala, the Australian Kookaburra is produced by the Perth Mint and is legal tender in Australia. The Kookaburra has one unique distinction: it’s the only legal-tender coin to change its design annually. Kookaburras have been minted since 1965; ironically the year that U.S. coins were debased of their historic silver.

New Kookaburras sell for about $6 over spot, just like Koalas. They are attractive coins, too, and make a welcome addition to anyone’s collection. So why are they ranked below the Koalas? Because market demand for cute Koala coins is significantly higher than demand for Kookaburras. What is a Kookaburra anyway? The 2007 coin is already selling at a $3 discount to the new issues. Thus, Kookaburras, despite their rarity and legal-tender status, most certainly can lose non-silver value in a short time.

6. Silver Chinese Pandas

Now if Silver Koalas are adorable, what of these Silver Chinese Pandas? Even the most cold-hearted silver bug would be willing to pay a fairly hefty premium for one of these—one being the operative word. Pandas, regardless of how cute, are not good investments to be bought in bulk.

The 2009 Chinese Pandas are currently selling for about $18 above spot—that’s almost double the value of the coin’s silver content. Pandas minted 2004 through 2008 range anywhere from a dollar more valuable than the 2009s to several dollars less valuable. Some particular years, like 2003, have appreciated greatly, but it’s a matter of speculation as to which issues will become more valuable down the road. As investments, Silver Chinese Pandas rank among the worst new coins available to buy.

5. Silver Australian Lunars

Silver Lunars are yet another set of Perth-minted coins that are legal tender in Australia. What’s unique about Lunars is that their designs coincide with China’s ancient lunar calendar. The 2008 issue, for example, is “The Year of the Mouse.”

Lunars are yet another group of coins that sound fun to own. The problem is that their mark-up precludes them from being viable investment coins. Currently, Year of the Mouse coins are selling for almost twice the value of their silver content, while 2007 “Year of the Pig” coins have depreciated to just 1.6 times spot. If you buy Silver Lunars, you must be prepared for the fact that they could lose non-silver value fairly rapidly.

4. Silver Britannias

Silver Britannias are produced by the U.K.’s Royal Mint and have a 2-GBP face value. They are one-ounce coins, though they’re just .958 silver, compared to the standard .999 fine silver. These coins are beautifully minted, but their mark-up—at about $17 over the value of their silver content—is too rich to make them viable investments.

What’s more, older Britannias haven’t appreciated by much, as the 2008 and 2009 coins are selling for the same price as the 2010s, and 2007s are only trading at a buck or two higher than the latest issues.

3. Australian Silver Kangaroos

Oh boy, another cutesy animal coin! Everyone loves kangaroos, but there are many problems with these coins. Most importantly, they aren’t even very cute—the design is very basic and features only the outline of a kangaroo. Secondly, they trade at a huge mark-up to the spot price of silver—currently they’re selling for more than double the value of their silver content.

Kangaroos do come in limited mintages, usually not exceeding 20,000. This cap on supply stimulates demand and increases the non-silver value of the coins. But, of course, that value can be ephemeral. Rather than buying around eight Kangaroos, you could buy an entire roll of twenty generic rounds. When silver skyrockets, the disparity between the two holdings will be enormous.

2. Perth Mint Items

In addition to minting several Australian legal-tender coins, the Perth Mint also makes a variety of “specialty” rounds. These items feature images such as the Battle of Gettysburg, the First Man on the Moon, Barbie, and the Transformers.

Such novelty coins might be fun to own, but the wisdom of doing so—even as collectibles—is questionable, given the Perth Mint’s huge mark-up over spot price. For instance, Battle of Gettysburg coins are currently selling at a mark-up of more than $110 over spot. While these could very well appreciate in value in the years to come, it’s far smarter to take that $110 and buy another five or six one-ounce rounds.

1. Liberty Dollars (and Other “Alternative Currencies”)

Most silver investors and collectors are opponents of America’s Federal Reserve and the central-banking institutions all over the world. We’re attracted to the idea of alternative currencies, and subverting the various government monopolies on money. This is what Liberty Dollars were all about, and for challenging the Fed’s illegal monopoly, Liberty Dollar’s founders were thrown in jail. And this is the Land of the Free?

Silver bugs are almost unanimously sympathetic to the Liberty Dollar, but this doesn’t make the coins a good investment. The Liberty Dollar strategy was to get silver (and gold) coinage into circulation by thwarting Gresham’s Law. Gresham’s Law states that “bad money drives out good.” Silver could not circulate side-by-side with paper fiat money, then, because silver coins would always end up in the hands of hoarders who realized their value was greater than that of the paper money. Liberty Dollar’s strange response to this was to make their silver into “bad money” by overstating the face value of the coins to an absurd degree.

Well, the plan didn’t work. But there are still thousands of people who paid face value for one-ounce silver coins marked $50 “MSRP” (manufacturer’s suggested retail price). I’m one such individual. I bought one coin to have as a collector’s item and because it was a beautiful coin, but I have friends who invested hundreds of thousands of dollars into Liberty Dollar. How much better off would they be now had they bought generic silver rounds?

Liberty Dollar is currently on hiatus, pending court cases, but this advice applies to all would-be alternative currencies: If a currency can viably compete with the dollar, it will have to do so on its own merit, when people no longer want to accept dollars. Anything else will either fail thanks to Gresham’s Law, or defeat itself in its attempts to subvert Gresham’s Law. Either way, it’s not wise to jump on the revolutionary bandwagon too soon. Wait until you have sufficient stockpiles of silver first!

Tags: silver coins, top ten

The 10 Best Silver Coins for Investment

In the cult comedy classic UHF, the antagonist R.J. Fletcher unknowingly gives a rare collectible penny to a panhandling bum. “Don’t spend it all in one place,” says evil-businessman Fletcher, thinking the coin is only worth one cent. The bum, however, knows the coin’s worth and thanks Fletcher profusely. Later, the bum foils Fletcher’s plot to destroy Channel 62 by using the proceeds from selling the coin to save the station.

Most people fantasize about finding a “diamond in the rough”—a rare collectible coin handed out as change from Wal-Mart—but as an investment strategy, numismatics are less attractive that silver bullion.

Why? Because the price of silver is set to skyrocket. Currently trading at around $18.50, many analysts see silver at $50 or higher within the next year or two. Having too much money tied up in numismatics means you could miss out on the coming silver explosion.

With that in mind, here is a list of the top ten best silver coins for investment.

1. Silver American Eagles

The Silver Eagle is the only silver bullion coin the world with its weight, content, and purity guaranteed by the U.S. government. This alone makes the coins preferable to privately minted “rounds,” and is clearly worth the minimal premium associated with Silver Eagles. New, uncirculated Eagles typically sell for between $1.80 and $2.50 over the spot price of silver, while “used” Eagles may trade for as little as $1 above spot.

What makes the Eagle so special is that it is instantly recognizable. In a future barter situation, Eagles will almost definitely receive a premium over the coins issued by foreign governments and rounds struck by private minters. The coins’ limited quantity also grants them some numismatic value that tends to appreciate with age. For instance, 1986 Silver Eagles currently fetch a $7-above-spot premium, and even Eagles from as late as 2001 can trade for as much as $5 or $6 over spot.

2. Silver Canadian Maple Leafs

Much like the Silver American Eagle, the Silver Canadian Maple Leaf is a government-issued, legal-tender coin. Although it lacks the caché of the Eagle in the U.S. or abroad (anywhere but Canada, of course), the Silver Maple Leaf remains one of the world’s most recognizable silver coins, and is also one of the most aesthetically appealing. Maple Leafs are magnificently designed, and a truly beautiful sight to behold. They’re also the purest of government-issued silver coins, at .9999 fine silver (most others are just .999).

New, uncirculated Maple Leafs tend to sell for around $1.80 and $2.50 over spot, just like American Eagles, but Maple Leafs tend to gain numismatic value more quickly. For instance, 2008 Silver Maple Leafs are already selling for around $3 over spot. Some issues have very low mintage numbers, too. The 1988 Silver Maple Leaf—the first year the coin was produced—had a mintage of more than 1.1 million units, while the 1992 issue had a mintage of just 343,800.

3. APMEX 1oz Fine Silver Rounds

While Silver Eagles command a premium due to their easy recognition, and Maple Leafs are valued for their stunning beauty and low mintage quantities, when it comes to getting the most silver for your buck, APMEX Fine Silver Rounds are your best bet—at least in terms of “coin” form. Technically, non-legal tender issues by private minters are not considered “coins” at all and must be referred to as “rounds” for legal purposes. But silver is still silver, no matter if it’s issued by the U.S. government or a for-profit corporation like APMEX, and the latter’s “rounds” are among the most widely recognized and accepted of private issues.

APMEX rounds are .999 fine silver and sell for $0.79 over spot at APMEX’s Web site, http://www.apmex.com. APMEX stands for American Precious Metals Exchange, and the firm also sells Eagles, Maple Leafs, and other government and private silver coins and rounds, as well as gold, palladium, and platinum. APMEX rounds aren’t as visually striking as the higher-premium government issues, but at some level, silver is silver, and APMEX rounds are easy to store and trade without costing much over spot beyond the coinage costs.

4. Morgan Silver Dollars

Morgan Silver Dollars are U.S. government, legal-tender coins that were minted from 1878 to 1904, and then again for one year in 1921. They’re 0.86-ounce coins made up of 90% silver and 10% copper, giving them a silver weight of 0.77344 troy ounces—almost exactly the silver content of the original Spanish dollars on which the U.S. currency was originally based.

Although many Morgan Silver Dollars have huge numismatic premiums, lower-quality coins from years in which many were minted can be purchased at just a little over the spot price of silver. Normally, coins of .999 silver purity are preferable to those mixed with other metals, but the Morgan Silver Dollar is so highly recognizable, it is a rare exception to this rule.

5. Austrian Silver Philharmonics

The Austrian Silver Philharmonic is a rare coin that even outdoes the Canadian Silver Maple Leaf in terms of beauty. It is also the only silver coin that is denominated in euros, with a legal tender value of €1.5. One side of this coin features selected instruments from Austrian Philharmonic Orchestra—a national treasure of Austria—while the other side depicts the Golden Hall in Vienna, which is the site of the orchestra’s annual New Year’s Day concert. Fans of Austrian economics also seem to have a soft spot for these coins.

Austrian Philharmonics trade for $2-3 over spot, new, but the 2008 issues are already commanding a premium of at least $2.30—and that’s for orders of five hundred or more! A single 2008 Austrian Philharmonic coin can be purchased from APMEX for around $3.50 over spot, with price breaks at the purchase levels of twenty, one hundred, and five hundred. Two-thousand-nine Philharmonics start out at $2.30 over spot and can be had for as little as $1.79 over spot for very large orders.

6. APMEX ½oz Fine Silver Rounds

Although one-ounce has become the standard weight of silver coins and rounds, there are advantages to ½-ounce issues. For one, they are more liquid. If using silver in the course of barter, what do you do when you need to make change? You can’t cut a one-ounce coin in half, and if you go to the trouble of melting it down and recasting it, there’s a lot of effort and expense involved. For this reason, two ½-ounce silver rounds are always more valuable than one full-ounce silver round—all other things being equal. This is a hard concept for a lot of silver investors and traders to grasp, since we’re so used to using “token” currency.

There is a disadvantage to ½-ounce and lighter issues, though: they fetch a higher premium. Half-ounce issues from APMEX sell for more than $2 over spot—or $4 over the per-ounce spot price. Still, if you’re going to have diverse silver holdings and you believe in the possibility of future-barter scenarios, then you’d be well advised to have some half-ouncers on hand. Half-ounce silver rounds also make a great gift and can be used at restaurants as tips to help spread the silver bug.

7. “Junk” Silver Dimes

From 1837 to 1964, United States ten-cent pieces were made of 90% silver and 10% copper—just like the Morgan Silver Dollar. Dimes, of course, were smaller, and thus contained less silver; roughly 0.0715 troy ounces.

Although many of these older dimes have become numismatic collectibles, so-called “junk” silver dimes can be purchased at a mark-up of as little as $0.20 per coin. On a per-ounce basis, this is a little steep at about $2.79 above spot, but given the increased liquidity of the smaller coins, this premium may be justified.

8. “Junk” Silver Quarters

Similar to junk-silver dimes, United States quarter-dollar pieces were also made of 90% silver and 10% copper from 1932 to 1964, and were exactly 2.5 times as heavy as silver dimes.

Thus, a silver quarter contained approximately 0.17875 troy ounces of silver, and a dollar’s worth of silver dimes contained an equal amount of silver as a dollar’s worth of silver quarters. “Junk” silver quarters can be purchased at a mark-up of around $0.40 per coin.

9. Mexican Silver Libertads

It’s not just the U.S. and Canada that issue one-ounce silver-bullion coins; our neighbors to the south do as well. Mexican Silver Libertads are beautiful coins, but they command a pricier premium upwards of $2, and are somewhat less marketable than the issues of “trustier” governments like the U.S. and Canada.

10. Monarch Precious Metals 1/10oz Silver Rounds

To reiterate, the smaller the coin, the more liquid—within reason. In addition to ¼oz and 1/10oz rounds, Monarch also produces 1-gram rounds, and with coins that tiny, the cost of production outdoes the value of the metal by several times. One-tenth ounce, however, is a great weight for trade; and yes, ten 1/10-ounce coins are always going to be worth more than one one-ounce coin, all other things being equal. This can be verified by a quick eBay search, and it makes sense, too: As stated earlier, going to the trouble of breaking down existing coins into smaller increments would be costly, and these coins have already been broken down. They cost quite a bit more—about double the price of their silver content at current rates—so they should definitely not be your only coins, but they are a welcome addition to any diversified silver portfolio.

Tags: silver coins, top ten

Junk Silver or Junk Bonds?

Junk Silver

“Junk silver” and “junk bags” are terms that refer to $1000 in U.S. coinage—dimes, quarters, or half dollars minted 1964 or earlier; commonly known junk bags consist of 90% silver. Junk bags of silver dollars are sold separately and have always held a higher premium.

We are talking about coins that are only in fair condition and have no collectible value above the bullion value or the “melt value.” The word “junk” refers only to the value of the coins as bullion, and “junk” is not scrap silver.

When these coins were freshly minted they contained 0.7234 troy ounces of silver per dollar of face value. In practice, the recognized weight of fine silver is 0.715 troy ounces per coin, or 715 troy ounces per bag—a bit less than original, due to wear. Thus the market recognized junk bags as containing 715 ounces of silver if smelted to 0.999 purity. Less common as junk silver are Kennedy half dollars from 1965 to 1970, which contained 40% silver.

In days gone by, junk bags of Canadian dimes and quarters were in the marketplace, but in today’s world very few exist. The Canadian coins contained 80% silver (0.600 troy ounces per dollar of face value) until 1966. In 1967, they were minted in both 80% and 50% varieties. In 1968, they either contained 50% silver or none at all ((such as the Cupro-Nickel). Dollars and half dollars were minted in 80% silver until 1967.

Junk silver coins are still considered legal tender and at many times have carried very low premiums. Today, however, the premium on junk bags is about 20% or more. There have been higher premiums near the peak of the silver price in 1980 and also during Y2K, when silver bags were in high demand.

For those beginning to invest in the real silver market, U.S. silver coins are easily recognized. In addition to being easy to describe to someone who has never seen a 90% silver coin in their lifetime, coins provide convenient divisibility. In other words they can be traded in small amounts, while a silver bar of perhaps 100 troy ounces cannot be divided or used for small transactions.

Simply stated, junk silver is popular among survivalists, but today it might be added among financial survivalists! In the event of a currency collapse, it is speculated by many in the precious metals community that silver coins could provide a viable alternative to today’s currency (scrip), commonly perceived to be money.

So, that is a very brief summary of “junk” silver and it must be pointed out that there is no default risk associated with owning silver. The price does vary along with all other assets, so you might risk not being able to trade your silver for the same amount of currency used for the initial purchase.

Junk Bonds

Now let’s look at “junk bonds.” A junk bond is a high yield bond that is rated below investment grade at the time of purchase. Bonds can also become “junk” if the market determines that the issuer’s risk has increased. For a quick example, at one time General Motors bonds carried a very high rating with the risk of default being extremely low, but today does anyone think that GM is capable of paying back the bondholders? These junk bonds are called “Fallen Angels.” Generally, junk bonds have a higher risk of default or other adverse credit events, but typically pay higher yields than better quality bonds.

Risks in all bond investments, including “high” quality bonds:

1. Inflation

2. Currency risk

3. Risk of Principal

4. Market Risk

5. Political Risk

6. Default Risk

7. Liquidity Risk

There are other risks but the point is made: bonds of any caliber have risk! In this day and age, nearly everyone is familiar with the fact that certain rating agencies described the risk of certain “assets” to be high grade at near zero risk. Today that is laughable but certainly no joke, as it has basically taken down the global markets to the present level, and the trust (confidence) in the system has been greatly damaged.

These days, we see many fleeing to government bonds, due to the perceived safety. However, it might be interesting to note the words of currency expert, the late Dr. Franz Pick, who said that government bonds are “certificates of guaranteed confiscation.”

We might ask if Franz Pick’s statement is true or false. Perhaps we can approach the question differently since the outstanding public debt is roughly $35,000 for everyone in the U.S. Simply ask yourself if you, your friends, and your neighbors are able to pony up the amount required on a per capita basis. If so, don’t worry be happy! But if roughly $140,000 per household is not in your petty cash drawer (or your neighbor’s) you might start to consider what really deserves to be called junk—bonds or silver.

Jimmy Rogers states, “I’m now selling long-term U.S. government bonds short. That’s the last bubble I can find in the U.S. I cannot imagine why anybody would give money to the U.S. government for 30 years for less than a 4% yield. I certainly wouldn’t. There are going to be gigantic amounts of bonds coming to the market, and inflation will be coming back.”

As the debt burden continues to increase, more and more people will see the light and realize that it is not the government responsible for paying off the bonds—it’s the people themselves. And where is that “money” coming from?

It is an honor to be,

David Morgan

Tags: 90% silver bags, bonds, government debt, inflation, junk bonds, junk silver, silver coins, silver investing

Silver Coin Value

Silver coin value depends on the investor or the collector. For the collector, the rarity, grade, and demand of the coin give its value. But for an investor, a silver coin value depends on supply, content, grade, and demand; or, simply put, an investor wants to know how many coins were minted and how many are left, the percentage of silver, the quality of the coin, and the popularity of the coin.

Obviously, the investor is looking at some of the same factors as the collector, but the collector usually doesn’t use the silver content as a measure of value. To the collector, grade and rarity are much more important than any other factor. The collector will be buying the coin for her collection, not necessarily for profit’s sake–like the investor will.

For the investor, the amount of substitutes increase the value of the coin. That’s why the investor cares about the silver content more than the rarity. The silver content means, if the investor wanted, the coin could be melted down and have the silver cast into a new form of silver. For this example, a 1,000 ounce silver bar could be created from the coins. The coins have a different use, a substitute, showing the investor a second measure of value.

However, regardless of investor or collector, valuing a silver coin can be simplified to four factors: rarity, grade, supply, demand, and content.

With rarity giving coins huge price tags, many investors can be confused by believing rarity automatically means value. And speaking as an investor, rarity does not mean value. However, highly sophisticated investors will find value within rare coins. So, unless your a highly skilled investor, rare coins should be viewed solely as a collector’s item. Not an investment.

But in-defense of the collector, rare coins do fetch the highest prices. Indeed, these high prices are due to the limited number of coins: limited from the original minting or limited in circulation. For example both are rare coins a Quarter originally minted only 100, and a Dime originally minted thousands yet only 100 remain. These coins are rare because of the supply; they’re rare because of a limited number on the market and will fetch higher prices.

Similar to rarity, grade also determines the value of silver coins because high quality coins are far fewer than plain junk silver coins. Unlike junk silver, higher graded coins represent coins with higher quality. As junk silver is for investors, high graded coins are for collectors. Basically, collectors are looking for rare coins, and highly graded coins are rare.

Think of graded coins a subcategory of rare coins. Or think about a rare coin, then think about the same rare coin but with a scratch. Each coin is rare, but the first coin is much more rare without the scratch. The scratch would grade the coin lower, thus less rare. As such, the closer the coin is to un-circulated the higher grade the coin will have. Higher grade means rare means collectors will bid up the price.

Switching gears to demand, even coins face popularity contests, (at least its not as pointless as class president). More for collectors, popularity contests for coins stem from a historical significance, or ascetic beauty. Certain coins are demanded because of a special place in history, or because a coin has a beautiful design.

Now that we’ve covered most of a collector’s valuation, we’ll dive into what else an investor uses to value a silver coin. An investor will use rarity, grading and demand to determine value, but far more important is the silver content of the coin. Certain coins will have a certain percentage of silver the coin is made of.

For example the American Silver Eagle is 99.9% silver, while the 1964 Washington Quarter is 40% silver. Obviously, the silver eagle is more valuable to the investor than the quarter.

Which brings us to the conclusion, investors and collectors have different goals. Profit and a collection. And these goals give each person different factors for determining the value of a coin.

Tags: pure silver coins, silver coin value, silver coins

Junk Silver Ratings: The Top Five Places to Find Junk Silver

Coins may be call “junk silver,” but far from a junkie investment. Junk silver is a term thrown-on the coins by coin collectors because most of these coins won’t have a collector’s value. But junk silver has value in the eyes of silver investors. So, where do you find your next silver investment in junk silver? Here are a few ideas to start with. Rated from number one to five, we’ve listed five places to find junk silver as an investment.

1. eBay – rated number one because junk silver in thousands of varieties abound on eBay. If you’re looking for $5 dollars or $1,000 dollars of junk silver almost any amount can be found on eBay. In addition to the amount of junk silver, eBay also provides information on the credibility of each seller. As an investor buying your next asset, finding an honest seller could mean the difference between profit or loss.

If you do decide to use eBay, it’s easier to find junk silver if you search for more specific junk silver. For example searching eBay for “junk silver” will turn up fewer results than searching for terms like: pre-1964 U.S. Circulated Quarters, or Batch of Silver 1964 Nickels. Also be aware of the sellers rating, the seller’s information can be found to the right of a listing under the heading: “Meet the Seller.” These ratings will provide you with the honesty and credibility of the seller.

2. Lynn Coins – is rated right below eBay only because of the slightly less amount of options. You can find bags of junk silver from $129-$2,175. Although the options are limited, buyers won’t have to spend much time searching. Unlike eBay’s thousands of choices, at Lynn Coins there are 10 choices.

Even though the website looks a little out-of-date and somewhat unprofessional, Lynn Coins is a PayPal verified site—which means the sale has more security than third-party systems you might not know. Also, according to PayPal, Lynn Coins has been in business for seven years, and Lynn Coins has processed “3,406 buyers.”

3. C.C. Silver & Gold Inc. – this company offers a more professional approach. And for investors with a large purchase of $1,000 or more, C.C. is a better option than eBay. Unlike CMI, C.C. seems to have more coin choices as well, as of now C.C.’s website is showing options for Morgan Dollars, Peace Dollars, and 90% Silver coins with U.S. Half-dollars, Quarters, and Dimes all dated before 1964.

While browsing the selection, I noticed non-users will be confused at the process of purchasing what she is looking for. I had a hard time knowing what pull-down option to choose. So, if you don’t use the Internet well, CMI might be a better option.

4. CMI Gold & Silver – Offers junk silver bags to investors worried about professional businesses. Just take a look at the spotless design of CMI’s website. Now there’s a professional website. Anyways, a professional website does not necessarily increase the returns of an investor, and in this case CMI does offer junk silver at the same premium of silver bullion.

One of the downfalls of CMI is the lack of an on-line store. CMI wants buyers to call CMI as to “help you make the right decision for your precious metal investment.” However, professional CMI’s website, requiring investors to call CMI is rather inconvenient. For the Internet users, CMI is not for you; however, for some CMI is the place.

5. Monex Deposit Company – Along with the professional image CMI casts, Monex casts the same. Or it might be egotism, either way Monex says it “[has] led the industry in silver coin investing programs.” But that claim is hard to verify. Again, Internet shoppers will be disappointed because Monex wants you to call an account representative before you can make a purchase.

To concluded this article in rather simple terms, if you love the Internet use eBay, Lynn Coins, or C.C. Silver & Gold Inc., but if not use CMI or Monex. Likewise, if you have a limited amount of money, less than $500, use eBay, or Lynn Coins, but if you have more than $500 go to C.C. Silver & Gold Inc, CMI, or Monex.

Tags: 90% silver bags, junk silver, silver coins, silver investing

‘Rare Coins’ of ‘Special Value’ – Exempt from Laws Allowing Government to Confiscate Gold

In 1933, the U.S. government perpetrated what liberty-minded scholars consider to be the most draconian economic act in its history by confiscating its citizens’ gold. Though it is a subject of much debate, many goldbugs insist the laws allowing the government to do this again are still on the books. Is there anything a precious-metal investor can do to put his or her gold out of the government’s reach?

A Brief History of Confiscation

When Franklin Delano Roosevelt took office in 1933, the country was experiencing the worst economic depression in its history. The prior era, the Roaring Twenties, had been one of inflated assets and an expanding money supply. Eventually, the bubble burst and prices began to drop precipitously. FDR knew what needed to be done — prices needed to be stabilized — but the methods he used to achieve this end were, according to most constitutional scholars, well beyond the legitimate scope of federal power.

FDR’s plan was to depreciate the dollar, which, at that time, was convertible to gold at the rate of $20.67 per ounce. However, this would be impossible to do with millions of $5, $10, and $20 gold coins in circulation. These coins were literally worth their weight in gold, and if the value of the dollar were changed, people would simply melt down the coins or take them out of circulation — either way, this would not help depreciate the dollar and inflate the money supply, as FDR aimed to do.

So, under legally dubious means, FDR and Congress passed a law outlawing the private ownership of gold in excess of $100. Millions of Americans were made to trade in their gold coins for paper dollars — effectively at gunpoint. Then, once all the coins were in the government’s coffers, FDR revalued the dollar from $20.67 per ounce of gold to $35 an ounce — a theft of almost forty-once cents on the dollar.

Gold ownership remained illegal in the United States until 1954. That year, the Treasury Department legalized the ownership of “rare” coins. What was a rare coin? Well, since the government had seized all pre-1934 coins, then by definition, all such coins were deemed “rare.” After all, these coins were so uncommon that those few in circulation were worth much more than their face value or the value of the gold of which they were made — the coins had numismatic value. They effectively were no longer “money,” and thus they didn’t pose a competitive threat to the government’s fiat currency.

Gold, Government, and the Law

In 1969, the federal government further clarified the 1954 ruling and officially exempted “rare coins” from any future government confiscations — but still reserved the “right” for the government to seize its citizens’ gold in the future. “The basic principles governing the administration of the Gold Acts and Orders,” said the Treasury Department in 1969, “are that gold, as a store of value, can be held only by the government and that private citizens and entities in the United States can acquire gold only for legitimate and customary industrial, professional, and artistic purposes.”

Two years later, in 1971, President Nixon “closed the gold window” and took the U.S. dollar off the gold standard — making it a true fiat currency with no asset backing or intrinsic value. Four years after that, President Ford legalized the private ownership of all gold — not just rare coins — and gold has continued to be fully legal for the past thirty-two years. Or has it?

Although laws prohibiting gold ownership have been repealed, the laws allowing the government to confiscate gold have not. Rare coins, however, are the exception. For the government to confiscate citizens’ bullion, all the government has to do is act on long-dormant laws. But for the government to confiscate rare coins, it would have to overturn fifty-plus years of precedent and shatter the legal system’s overarching ideal of jurisprudence. This may not be entirely impossible, but it certainly offers the holders of pre-1934 gold coins more protection than the owners of bullion.

Reinstating the Gold Standard?

But why would the government confiscate gold? Some argue it did so in the past in order to revalue the dollar relative to gold, and since the dollar is no longer on the gold standard, the government would have no reason to confiscate gold. This is a good point, but it also begs the counter-argument: Now that the U.S. dollar is not backed by gold, it’s only a matter of time before the house of fiat-money cards crumbles. When this happens — when the government’s printing presses are incapable of printing money with any real value, then the government will certainly look to do something, and conveniently, laws on the books allow it to confiscate privately owned gold. It’s likely that the government could do this ostensibly to reinstate the gold standard!

In such desperate times, would rare coins be safe? It is impossible to know for sure, but it is certainly true the coins would be safer than bullion or non-rare coins. After all, look no further than to the first Great Confiscation in which many “patriotic” Americans willingly turned over their gold for paper money. Certainly, some Americans would do this again, especially if it were in the name of reinstating the gold standard. The government would probably promise gold redemptions would be
reinstated “in a matter of time.”

And while certainly not all goldbugs would willingly turn over their gold, there would be far less resistance to government confiscation of commodity-valued gold than there would be to the seizure of rare, numismatic coins. The government would not want to be in the business of coin dealing, at least not at first, and it would undoubtedly go after the low-hanging fruit — especially when laws on the books allow it to be legally picked.

Win With or Without ‘Financial Armageddon’

Silver investors should be aware of the potential of another Great Confiscation. But, a diverse portfolio of stocks, bonds, cash, and precious metals has worked the best over the past thirty years, and will probably work the best for the next thirty. And, as part of a hedging strategy, holding some rare gold coins — in addition to bullion — is undoubtedly a wise decision. Just in case.

Tags: rare silver coins, silver coins

1916 – 1947 Walking Liberty Half Dollar: 90% silver

1916 – 1947 Walking Liberty Half Dollar is 90% silver, which classifies the coin as junk silver. You can Use the Silver Melt Value calculator to see the value of silver in this coin.

Listed below are the mintage numbers for each year. The year column lists the year and mint mark on the coin where, D is for Denver, S is for San Francisco, and P is for Philadelphia. Also, a coin without a mint mark means the coin was minted in Philadelphia.

The Mintage column is the number of coins struck and released by the U.S. Mint.

The Numismatic Value Range column represents what people typically pay for that type of coin (usually a very wide price range depending on the condition and demand of the coin).

Tags: 90% silver, junk silver, silver coins, walking liberty half dollar