About two and a half years ago I bought a few rolls of junk silver dimes for around $65 to $70 each including shipping. I shopped around and got them from different online auctions and websites. Even then the prices I found were barely above the spot silver value of the coins at that time.
Individual 90% silver dimes were going for 2 to 3 bucks each and generally that was “plus postage”. My intent was to buy full rolls. If I had bought 50 dimes individually at that price I would have paid as much as $200 for a roll instead of $68 total.
Junk Silver Can Help When You’re In A Bind
Awhile back we had some unexpected expenses and over a period of time I sold my rolls. The last ones went for $140, and that was ‘wholesale’ at a pawn shop! Now they are going for nearly $200 (with shipping). What if I had been able to buy 100 rolls a couple years ago? That would have been approximately a 5,000 investment which would now easily sell for $15,000 or more.
And don’t forget the $50 plus prices on silver we saw not too long ago. In the above scenario, if one had acquired 100 rolls of 90% junk silver dimes and sold them during the $50 per ounce market that $5,000 investment could have easily turned into $25,000 cash. For just over a year in waiting that wouldn’t be a bad return at all, and there is no doubt that many investors enjoyed just that and more!
Will Junk Silver Ever See $50+ Per Ounce Again?
These days it seems that silver has settled out in the $30 to $33 range. Fluctuations from $30.00 to $33.00 are the norm. Will silver ever hit another big spike? Will silver ever reach a stable $100 per ounce level? Will silver ever be seen below $25 again? More likely than not silver will, at the very least, see a gradual rise over time. I also expect silver to see big spikes in spot value from time to time. When it happens many investors try to buy whatever they can and watch that spike closely. Often they can sell most or all of their holdings and then buy every bit of it back a few months later with cash left over. Other times the money is used to invest in another commodity or metal.
Junk Silver Prices Lag When Market Changes Quickly
When silver prices are changing quickly there is a lag affect on circulated junk silver coins. If prices are seen to be rising quickly, like it did a couple years ago, people will rush to buy the rolls which, in an auction setting, runs up the price. In the beginning of a spot spike rolls may even sell at high premiums. Speculators make their purchasing decisions based upon the assumption that silver will continue to increase. The hope, I guess, is that the spot will continue to rise and the buyer will be into the profit range.
Eventually the market slows down and rolls or bags (Generally a $1000 face value mix of circulated US 90% silver coins) start to level out. At first the actual premiums may be very high but over time the prices drop closer to spot if the silver market stays steady. Keep in mind here that I am actually referring to buying coins in an online auction setting. There are also various precious metals merchants who buy and sell junk seller based directly upon the spot value at the time of purchase. An advantage to this could be in knowing just how much silver had to rise in order for you to sell back to the merchant at a profit. Be wary of wide ranges between buy and sell as well as any hidden fees associated with selling back to the merchant.
The numbers I used here are just to give an idea. Profits and investments would be based upon factors such as quantities bought or sold. Naturally, if you sold all in one lot the overall price would be lower than if you had sold a few smaller lots or groups.
Ounce to ounce buying single coins will cost much higher than buying rolls. Rolls were selling in the mid $130s a year ago but you could get them cheaper if you bought multiples. As a rule the higher the quantity junk silver you buy, the lower the premium you pay.
“Junk silver” is a term to describe U.S. dimes, quarters, and half dollars that were minted in 1964 and earlier, as well as various other U.S. coins, because they are composed of between 35% and 90% silver, while newer and current coins are composed of the much cheaper base metals copper and nickel.
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