From Silver Bullion

What is junk silver bags

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 coins have value in the eyes of silver investors.

Junk silver is one of the most popular ways to invest in silver bullion. Dealers often sell junk silver in lots, or "junk silver bags" of varying price and size.

90% silver generally refers to pre-1965 circulated silver dimes, quarters and sometimes even half-dollars which were all comprised of 90% silver and 10% copper. These silver coins are generally sold in $1,000 junk silver bags which reflect their face value, regardless of the denomination of the coins. $1,000 junk silver bags all contain the same amount of silver which is generally 715 troy ounces. These junk silver bags also come in half and quarter bags ($500 and $250 bags).

Silver bags can be purchased in bags of coins composed of 40% silver, but 90% junk silver bags are acquired more often than 40% silver.

40% junk silver bags consist of only circulated Kennedy clad half-dollars minted between 1965 and 1970. These coins have an outer layer composition of 80% silver and 20% copper and are bonded to an inner core of 20.9% silver and 79.1% copper. Slightly lighter than 90% junk silver bags, these $1,000 face value bags contain approximately 295 troy ounces of pure silver.

Advantages of investing in junk silver bags

Junk silver bags do offer the follow investment advantages:

- they are legal U.S. tender;

- they are recognized around the world as a trading medium;

- they carries a low premium over spot silver;

- they provide small increments of barter;

- they are very liquid.