Decades ago, the US government ceased producing silver coins for general use, causing a fundamental change in American coins.
It signaled the end of a time when everyday currency was mostly composed of silver. Understanding this historical change is vital now as many Americans search for real assets to protect their money and abandon conventional banking institutions.
The change from paper money to precious metals has become very popular recently, and silver ranks among the most sought-after. The reason is that it all comes down to trust. Many Americans are looking for different approaches to safeguard their hard-earned money as they have simply lost trust in banks.
What Year Did the US Stop Making Silver Coins?
Faced with growing silver prices and declining reserves, the US government decided in 1965 to stop making silver coins. This put us on a course that would permanently alter the face of American money.
The Fed started removing silver from our circulated currency and replacing it with less expensive metals like copper and nickel.
Naturally, many people questioned and worried about this action, but the government reassured them that it was necessary to preserve the stability of the economy.
Declaring there would be no profit in stockpiling silver coins, President Lyndon B. Johnson even cautioned against doing so. Ironically, because of their silver composition, those very coins are worth far more than their face value today.
What Is the Appeal of 90% Silver Coins (Junk Silver)?
Although it seems like something you might find at a flea market, in the realm of precious metals, “junk silver” is a term of endearment — US dimes, quarters, and half-dollars stamped before 1965 are known as junk silver.
Given their 90% silver content, these coins contain a lot of this valuable precious metal. The remaining 10% is copper, which provides the coins’ durability.
You may be asking yourself why you’d want old coins, but that’s where junk silver’s allure comes in. Both seasoned collectors and beginners of precious metals choose these coins because of these various benefits:
Bartering
Their small denominations make them ideal for bartering and making change. If you want to diversify your portfolio, having some junk silver on hand could be helpful in many different contexts.
Limited Numbers
What’s more, there is a limited quantity of these coins. Unlike contemporary coins, which the government can create in infinite numbers, the count of pre-1965 silver coins is set.
The demand for these coins will probably rise as more people realize the advantages of holding actual silver. And that will only help increase the value of junk silver coins.
Legal Currency
Although its silver content significantly surpasses its face value, these coins are nonetheless accepted as legal currency in the US. So, in a worst-case economic situation, they could be used to purchase goods and services, offering a safety net in uncertain times.
Storage
It’s surprisingly easy to store junk silver, as well. Silver coins can be easily kept in a safe, a bank deposit box, or even at home, unlike big gold bars that call for specific storage options. Some even roll their coins, which facilitates storage and stacking even more.
Anti-Counterfeiting
Junk silver provides a last defense against counterfeiting. Although there are counterfeit versions of current-day coins, the distinctive shapes and characteristics make it far more difficult to replicate earlier pieces. Knowing that your acquisition is real provides peace of mind.
Fractionals
Like junk silver, the demand for fractional coins drove the bullion business to create its own variations. Usually available in tenth-ounce, quarter-ounce, and half-ounce increments, these fractional rounds provide a more reasonably priced approach to acquiring actual silver.
However, because of its historical relevance and link to a period when silver was a regular component of daily life, junk silver possesses its own unique appeal.
How To Calculate the Value of 90% Silver Coins
Let’s discuss the worth of these 90% silver coins. Every dollar’s worth of silver coins in new mint form contains .7234 troy ounces of silver. However, over time, circulation always gradually reduces part of the silver content.
For 90% junk silver, the market decided on a standard silver weight of .715 ounces per dollar of face value to allow for this wear and tear. This figure helps you determine the worth of your coins quickly and easily.
Your coins’ overall melt value can be found by applying this formula:
- (Face value of coins) x (Spot price of silver) x .715 = Total melt value
- For example, if you have $10 face value of 90% silver coins and the spot price of silver is $25 per ounce, your calculation would look like this: $10 x $25 x .715 = $178.75
- To find out the total ounces of silver in your coins, the formula is even simpler: (Face value of coins) x .715 = Total ounces of silver
- Using the same example, the calculation would be: $10 x .715 = 7.15 ounces of silver
Notably, this calculation ignores any possible numismatic value — that is, value to collectors — that your coins may have. Collectors are ready to pay a premium for some pre-1965 coins, which are rarer or more preferred than others. Your estimated value from the calculation above depends solely on the coin’s silver content.
Why Is Silver a Wise Choice?
Silver has a rich legacy of being used as money for thousands of years. It’s more reasonably priced than gold, which means a wider range of people can buy it. Demand for silver usually rises in uncertain economic times as people and collectors search for stability and security.
If you’re hoping to diversify your assets with real wealth, junk silver’s historical relevance, pragmatic applications, and possible value appreciation are worth checking out.
Open a Precious Metals IRA With AHG
If you are ready to explore the advantages of precious metal ownership, think about including silver in your portfolio. To find out about precious metal IRAs and how you could protect your financial future, get in touch with American Hartford Gold now.
Sources:
Remarks at the Signing of the Coinage Act | The American Presidency Project
Stashing Junk Silver for Bad Times | Backwoods Home Magazine
The FBI Warns the Public of Counterfeit Coin Scams | Internet Crime Complaint Center (IC3)
