Is Junk Silver a Good Investment?

Disclaimer: I’m not a financial advisor, and this is not financial advice. What I share here is my personal opinion and what I do as someone passionate about precious metals.

What is Junk Silver?

If you're new to the world of precious metals, you may have heard the term "junk silver" and wondered what it means. Despite the name, junk silver is far from trash. In fact, it refers to U.S. coins minted before 1965 that contain 90% silver. These include dimes, quarters, and half dollars—everyday coins that were once made with real silver before the U.S. switched to cheaper materials.

The term "junk" simply means that these coins have no numismatic (collector) value—they're valued only for their silver content, not for their rarity or condition. Because of this, they can often be purchased closer to the market price of silver, known as the spot price.

Why Buy Junk Silver?

So, why would someone buy junk silver? For me, it’s a practical and affordable way to invest in silver. Here’s why I think it’s worth considering:

1. Affordability: Compared to modern silver coins like American Eagles or Canadian Maples, junk silver is generally more affordable. This can be especially advantageous if you’re starting out or if budget constraints make it challenging to invest in higher-priced bullion.

2. Constitutional Money: Junk silver is still considered constitutional money, meaning it was originally issued as legal tender and thus has historical and intrinsic value. This offers a layer of protection for your investment, much like modern silver coins that are also considered legal tender.

3. Liquidity: Junk silver coins are widely recognized and accepted. They can be easily traded or sold, making them a practical choice for those who want to hold silver in a form that is readily accessible and understandable to other investors.

4. Diversification: If you’re unable to invest in more modern silver coins due to their higher premiums, junk silver offers a way to diversify your silver holdings while still holding a significant amount of precious metal.

Is Junk Silver a Good Investment?

Now, is junk silver worth the investment? In my opinion, yes—at least for the role it plays in my precious metals strategy. Here’s why:

• It’s silver: At the end of the day, junk silver is real silver. Silver has historically been a good hedge against inflation and a way to preserve wealth over time.

• Potential Bull Run: I believe silver has a strong future and could see significant price increases. If silver enters a bull market (a period of rising prices), junk silver could increase in value right along with it.

• Liquidity: Junk silver is easy to buy and sell. Because it’s made up of widely known coins, it’s very liquid—meaning it can be quickly converted to cash or used for trade.

My Approach to Junk Silver

Again, this is just my personal view, but I see junk silver as an excellent addition to my precious metals collection. I don’t rely solely on it— I also hold gold and other forms of silver—but I like the flexibility and affordability that junk silver offers.

At the end of the day, whether you choose to buy junk silver or not depends on your own goals. Some people prefer bullion or numismatic coins, while others, like myself, see value in having a mix. The key is to get started and invest in something that aligns with your financial strategy.