The Cheapest Way to Buy Silver

Written By Jimmy Mengel

Posted February 16, 2016

A month after my son was born, I received a small package in the mail from a great aunt whom I hadn’t seen in a decade.

I was delighted to hear from her, of course — and even more touched when I opened the envelope and a gleaming 1963 Silver Franklin half dollar fell into my hand with a note: “To a prosperous future.”

When I asked my mother about it, she told me it was custom for her family to give a new member of the family a silver coin to start them off with a bona fide valuable commodity that they could hold forever. Her great aunt had sent my grandmother one when my mother was born; she then received one when I was born; and so on.

The gesture was largely symbolic, as the coin was neither rare nor collector grade. But it brings to light a valuable point… While the front of the coin clearly stated a half dollar, the coin is in fact worth much more than that.

That’s because it was struck with 90% silver and 10% copper. So it’s actually worth about $7 in melt value, a full 1300% more than face value.

By simply loading up on coins like this, you can sometimes score silver for below spot price.

In the realm of coins, now is a great time to load up, as precious metals prices have hit three-year lows.

But the demand for silver bullion coins like American Eagles and Canadian Maple Leafs is currently at record highs…

“The demand remains at an unprecedented level,” according to Richard Peterson, acting director of the U.S. Mint. “People at the Mint had to work overtime and sometimes over the weekends to meet the increase in demand.”

So even if you’re lucky enough to find some, you’ll be paying more than spot price.

And that’s one reason “junk silver” is looking far more valuable than its name suggests…

Junk silver is a catchall term for any government-issued coin minted before 1965. It’s called “junk” because it really has no collectible value beyond the actual metal that makes it contains.

You see, before 1965, the government typically produced coins with anywhere from 35%-90% silver. Now they are struck with less valuable metals like copper and manganese — neither of which will get you too far investment wise.  

Another benefit is that there aren’t any refining or minting fees attached. With silver bullion coins and bars, a manufacturing premium is passed along to the buyer. This is not the case with junk silver coins. 

Will Junk for Food

A great example of the power of junk silver is taking shape near the shores of Lake Michigan.

junk silver
Image courtesy of The Blaze.

One local restaurant is actually offering burgers and fries for a massive discount if you pay in silver change minted in 1964 or before. In fact, you can get a hamburger at Late’s Diner for a measly 12 cents if you use your junk silver coins. A cup of coffee will run you 7 cents.

 Why would a company offer such drastic discounts?

“With the value of the dollar going down, we think the price of silver — the value of silver — is going up,” owner Todd Tikalsky told the Blaze. 

“With the government printing money and all it’s — the more and more things printed out, the less that they’re worth.”

Tikalsky isn’t the only business owner betting on silver’s rise…

A Shell gas station in Montana has two prices: cash and junk silver.

If you paid with pre-1964 dimes, quarters, halfs, or dollar coins you could get a gallon of gas for 20 cents a gallon!

With gas going for upwards of $4 a gallon, that is no small discount. 

The restaurant and the gas station may indeed have the last laugh — some junk silver coins can be worth up to 2,000% of the face value on the coin!

What Are the Most Valuable Junk Silver Coins?

Anything with 90% silver is a hell of a find in car ashtrays, coffee cans, or plain old change from the gas station.

But you’ll want to pay attention to the purity.

We like 1964 Kennedy Half Dollars, 1946-1964 Roosevelt Dimes, and 1932-1964 Washington Quarters. All sport a 90% silver quantity. 

Here’s the rundown of the silver value for all U.S. junk silver coins, courtesy of Coinflation

Description Face Value Silver Value Silver % of Face Value
Silver War Nickel Value 1942-1945 Nickel **
$0.05
$1.0735
2147.02%
1916 Mercury Silver Dime Value 1916-1945 Mercury Dime
$0.10
$1.3802
1380.23%
1964 Silver Roosevelt Dime Value 1946-1964 Roosevelt Dime
$0.10
$1.3802
1380.23%
Liberty Silver Quarter Value 1916-1930 Standing Liberty Quarter
$0.25
$3.4505
1380.23%
1964 Silver Quarter Value 1932-1964 Washington Quarter
$0.25
$3.4505
1380.23%
1947 Silver Walking Liberty Half Dollar Value 1916-1947 Half Dollar
$0.50
$6.9011
1380.23%
1962 Silver Franklin Half Dollar 1948-1963 Franklin Half Dollar
$0.50
$6.9011
1380.23%
JFK silver half dollar 1964 Kennedy Half Dollar
$0.50
$6.9011
1380.23%
40% JFK silver half dollar 1965-1970 Half Dollar (40% silver)
$0.50
$2.8218
564.36%
Morgan Silver Dollar 1878-1921 Morgan Dollar
$1.00
$14.7574
1475.74%
Peace Silver Dollar 1921-1935 Peace Dollar
$1.00
$14.7574
1475.74%
Silver Ike dollar 1971-1976 Eisenhower Dollar (40% silver) ***
$1.00
$6.0337
603.37%
Silver Eagle 1986-2013 Silver Eagle (.999 Silver)
$1.00
$19.0609
1906.05%

** The U.S. Mint issued two compositions of the nickel in 1942. The copper-nickel composition used today and the 35% silver composition listed here.
*** The 40% silver version of the Eisenhower dollar was issued as a collectible only, they are generally not found in circulation. The best way to distinguish the two versions is by weight. The copper-nickel version weighs 22.68 grams, the silver Ike dollar weighs 24.59 grams.

Where Can I Get Some?

Despite not being collector grade, these coins are still pretty rare, so you aren’t likely to amass a valuable silver collection rummaging through your couch cushions and change drawers.

But you can still buy larger quantities of junk silver through a number of avenues.

The easiest and most affordable way to do so is by finding yourself a silver bag. Many numismatic avenues are stocked with entire bags of junk silver coins, often sold (90% only) in bags marked by the face value of $100 to $1,000.

Here’s a rundown of what to expect in these bags, from Cointrackers:

$1000 Face Value 90%

Prices near $14,147 for 90% bags of coins.

A bag containing $1,000 face value coins if sold at spot would be priced at $13,735 assuming that the bag contained around 715 oz. silver, and you were purchasing the bag at the current silver spot price of $19.21.

Now realistically you are always going to pay a premium on minted coins, so assuming it was about 3% more then it would cost you somewhere near $14,147, and that is a bit more realistic.

$500 Face Value 90%

Prices near $7,177 for 90% bags of coins.

A bag of containing $500 face value coins if sold at spot would be priced at $6,968 assuming that the bag contained around 357.5 oz. silver, and you were purchasing the bag at the current silver spot price of $19.49.

Now realistically you are always going to pay a premium on minted coins, so assuming it was about 3% more then it would cost you somewhere near $7,177, and that is a bit more realistic.

$250 Face Value 90%

Prices near $3,588 for 90% bags of coins.

A bag of containing $250 face value coins if sold at spot would be priced at $3,484 assuming that the bag contained around 178.75 oz. silver, and you were purchasing the bag at the current silver spot price of $19.49.

Now realistically you are always going to pay a premium on minted coins, so assuming it was about 3% more then it would cost you somewhere near $3,588, and that is a bit more realistic. 

There are plenty of places to secure bags of junk silver, though I’ve discovered the best deals (closest to spot price) are at local coin shops, flea markets, and antique stores.

One advantage of buying at these places is you can actually inspect the coins to ensure that they are not heavily worn. Older coins will have likely seen the wear and tear of years of jangling in pockets and car seats, which decreases the amount of valuable silver in any given coin.

Buying in person will allow you the chance to weigh your bag to make sure it adds up.

Silver for a Prosperous Future

Buying silver at these depressed prices — in any capacity — is a great long-term investment. But if you can land junk silver at or below spot price, you’re doing yourself a big favor. And it’s a far more fun way to invest in something tangible. 

So always check your pockets, examine your change, and be sure hit your local antique shops, coin stores, and flea markets. The hunt is half the fun!

Personally, I know the next time I’m welcoming a new child into my family, I’ll be continuing our tradition of providing silver for the newborn…

But I may go the distance and get them a bag of junk silver “for a truly prosperous future.”

May you secure a prosperous future for you and yours…

Happy hunting,