Why 'Junk Silver' Should Be Your Next Precious Metals Purchase

By Steve Emerick

With silver trading down near its all-in cost of production, many of you have been asking for the best ways to own some. We don't blame you.

Today, we'll look at one of the more popular ways to own some silver. It's divisible. It's liquid. And, don't let the name fool you. It's anything but junk. In fact, our late, great co-founder, Glen O. Kirsch, believed every family member should own a $1,000 Face Value bag of it.

Of all the forms of precious metals you can own, here's why we believe your very next purchase should be at least a bag or two of the 90% silver coins (dimes, quarters and half dollars) minted by the U.S. Treasury prior to 1965.

These coins are commonly referred to as junk silver, but there's nothing junky about them. They got that designation because they've been in circulation so long they have no value to collectors. But to us, they spell protection against inflation, eroding buying power and expensive premiums.

Junk silver coins contain 90% silver and are valued based on their silver content. Each $1,000 face value bag of coins contains 715 ounces of PURE silver; AND ANY BUYER WILL PAY YOU ACCORDINGLY. You will never need to have these coins assayed for their silver content or appraised for their grade.

Since the idea of face value versus inherent value can be confusing, let's break it down on a per coin basis and examine what the true value of a coin is. For simplicity's sake, we will assume a silver spot price of $21.

First, let's determine the approximate silver content in each of the available denominations. By using the industry standard that $100 face value of pre-1965 quarters, dimes and half dollars - regardless of the mix - contains 71.5 ounces of silver, the following approximate silver contents can be extrapolated:

• Half Dollars - 71.5 oz. of silver/200 half dollars = 0.3575 ounces of silver per half dollar
• Quarters - 71.5 oz. of silver/400 quarters = 0.17875 ounces of silver per quarter
• Dimes - 71.5 oz. of silver/1000 dimes = 0.0715 ounces of silver per dime

Now, let's determine the approximate value of the individual coins based on a sample silver spot price of $21:

• Pre-1965 half dollar - 0.3575 oz. of silver X $21 = $7.50 per coin
• Pre-1965 quarter - 0.17875 oz. of silver X $21 = $3.75 per coin
• Pre-1965 dime - 0.0715 oz. of silver X $21 = $1.50 per coin

Here's a chart to summarize the above:

Coin	Face Vaule of Coin	Quantity (coins per bag)	Ounces of Silver (per coin)	Dollar Value (per coin)	Dollar Value of Silver in $100 FV Bag
	$0.50	200	0.3575	$7.50	$1,500*
	$0.25	400	0.17875	$3.50	$1,500*
	$0.10	1,000	0.0715	$1.50	$1,500*

*Based solely on $21 spot silver price. Chart does not include shipping, handling, insurance, or premium to purchase.

Again, we think they are one of the single most practical ways to own precious metals today. Here's more information:

1. They're the real thing. The dimes, quarters and half-dollars made by the U.S. Mint prior to 1965 are instantly recognized as 'the real thing.' They don't need to be assayed to determine their precious metals' content; they don't need to be appraised by an expert to tell you what grade they are. Virtually anywhere you go, you can find a buyer who knows that a $100 face-value bag of these coins contains 71.5 ounces of pure silver and will pay you accordingly.

2. They are readily divisible. A bag of these coins is easily and instantly divisible. Need just a few bucks to clinch a deal? A handful of silver dimes will do the job. These 90% pure silver coins really can work as 'pocket change.' Try doing that with a one-ounce gold coin or 100-ounce bar of silver.

3. They've never been confiscated. For anyone who worries that the U.S. government may once again try to confiscate gold in the United States – as Franklin Roosevelt did back in 1933 – here's a reassuring fact: silver coins have never been subject to confiscation. You don't need to lie about owning them. (Of course, you should never brag to anyone – a neighbor or a government bureaucrat – about any precious metals you own.)

4. They are extra convenient. Most dealers sell these coins in $1,000 face-value bags. We do too, of course. But at today's prices, those 715 ounces of silver will cost you around $16,660, basis a spot price of $21. (Prices subject to change due to product availability and market fluctuation.)

That's why we break these bags down into 10 bags of $100 face-value coins, making them much more affordable. (They are also easier to store and, when it comes time to sell, easier to liquidate.) We recommend that every family own a few of them.

5. The premiums are falling. A little over a year ago, there were severe shortages of junk silver in the market. Premiums spiked to 24%, and deliveries could take a month or two. Now, premiums have fallen by about 10%, and delivery times are back to normal.

ASI takes pride in having some of the lowest premiums in the country. But always shop around to get the very best deal you can. When you do, be sure you're comparing apples and apples, not apples and oranges. Insist...

• your coins are shipped to you by U.S. Post Office insured registered mail, with a return receipt requested
• the price you're quoted includes everything, including shipping, handling, and insurance
• never, ever fall for a "buy below spot and we'll store it free" pitch - if you ever hear that, run, don't walk, to the nearest exit.

Speak with one of our knowledgeable Preferred Client Relations representatives at 877-340-0790. Or if you prefer, email us and tell us the best time to call you.

So in closing let me ask you: Do you own all the silver you should? If not, you know whom to call. We look forward to helping you Keep What's Yours.

In future alerts, expect to hear more ways to own silver such as:

• Perth Mint Certificates in silver
• Silver Accumulation Program
• Bullion options – coins, bars, and rounds

A Parting Thought... Junk silver coins, comprised of 90% silver, are truly a testament to the dollar's devaluation. When these coins were minted, they were produced to ensure that $100.00, or $100 face value, of any combination of these coins would contain the exact same amount of silver and as such, represent the exact same value.

After all, silver once represented real money in the United States, so $1.00 worth of silver dimes had to be worth the same as $1.00 worth of silver quarters – so on and so forth.