What are 'junk' silver coins?

Morgan silver dollar So-called 'junk' silver coins are coins that retain value mainly because of the amount of silver they contain.

Many older coins have an after-market value to collectors simply for their intrinsic qualities - beauty, rarity, and condition are the main qualifiers for this type of coin. Thus we say such coins have numismatic value - value to coin collectors, or 'numismatists'.

Some older coins, however, are so worn and/or damaged that most collectors simply don't want them. Are these coins worthless, then?

Not necessarily! - not if they contain any amounts of precious metals, such as gold or silver. A U.S. minted silver dollar from several decades ago, for example, is made of 90% silver.

This means that, although an old silver dollar may have a very worn appearance, it still contains a certain value - according to the current spot price of silver.

As a way to fight inflation (which is always eating away at the value of our dollars), many persons simply buy and hold onto these 'junk' silver coins. While the dollar drops in value, precious metals stay ahead of this and retain their value.

Within this site you can learn about collecting silver and gold coins.

Tweet    |    StumbleUpon    |    Digg    |    Reddit