Category 5. Invest in junk silver coin such as US 90% silver coin, US 40% silver coin, Canadian 80% Silver coin and Canadian 60% Silver coin.

Millions of these coins are minted every year until 1964 for 90% US silver coin and from 1965 to 1976 for 40% US silver coin. Thus, there is little numismatic value in them except for some of those coin minted in 1800s and still in good form. Personally, I will invest in these coins 80% for their silver value and 20% for their numismatic value.

5a) Basic Understanding

Before you invest in these coins, you should realize that not all US coin are silver coin. You should know the following
Which coin is a silver coin?
a) Until which year these coins are 90% silver coin.
b) Until which year these coins are 40% silver coin and which one is silver coin and which one is not.
c) Proof silver coin minted after 1976 where silver coins no longer minted by US mint.
I have problem with coins in these category as I don’t know how to differentiate these coin from the rest of the coin.  Coins falls in (a) and (b) has a more clear-cut way to distinguish the silver content. Eg. 1964 Kennedy half dollar is 90% silver. 1965-1968 is just 40% silver.

What is the silver content of the coin?
Having known all that, then you can know the coin value merely by the silver content.

US Junk Silver Coin 90% silver unless specify
No    Year Minted    Description             Rough Coin Weight (g)    Silver Content oz per coin
1    1942 - 1945    War Nickel                              1.93511            0.056
2    1916 - 1945    Mercucy Dime                          2.49837            0.0723
3    1946 - 1964    Roosevelt Dime                        2.49837            0.0723
4    1932 - 1964    Washington Quarter                  6.25456            0.181
5    1916 - 1947    Walking Liberty Half Dollar       12.5091            0.362
6    1948 - 1963    Franklin Half Dollar                   12.5091            0.362
7    1964               Kennedy Half Dollar                  12.5091            0.362
8    1965 - 1970    Kennedy Half Dollar (40%)         11.507            0.148
9    1878 - 1921    Morgan Peace Dollar                 26.7114            0.773
10    1921 - 1935    Peace Dollar                            26.7114            0.773
11    1971 - 1976    Ike Dollar (40%)                        24.569            0.316

Canada Junk Silver Coin
It is a very large table, I didn't put it here because ebay review difficult to upload table.

What a lengthy table to compare with especially for Canadian silver coin.

5b) COIN Condition
The next thing to look at is the condition of the coin. Whether, it is in brilliant uncirculated, circulated, good, fine or extra-fine condition. Some of the 90% coins are minted as far back as late 1800s. It is quite difficult to get these coins in good condition.

Personally, I will go for 90% silver coin minted from 1960 – 1964, as these coins are the newest 90% silver coin and may be still recognizable. Though, some of it may be circulated coins, the probability of the coin in good conditions is much higher.

For numismatic purposes, I will buy some old 90% silver coin, I may not be able to afford those XF coins probably a good coin will do. It may no sense to have many of them because some of them are so unrecognizable that I may as well buy some silver round or blank.

5c) Pricing
The 90% silver coin are priced about USD$3.00 above the silver spot price for each oz of silver content. These pricing are wholesale pricing for $100/- face value silver coin bag which has 71.5 oz of pure silver. Freight, Insurance and Tax are excluded. Some of the coins inside the bag are in very bad condition.

If you buy from other source, the price will depend on the condition of the coin and the quantity as well. I ‘m not sure about the pricing for Canadian silver coin. From the price I seen in ebay, apparently, Canadian silver coins are more expensive.

5d) Strait Settlement Silver Coin
Some of the Strait Settlement Coin are in form of 60% silver, 80% silver etc. However, one needs to look at the documentation and spend a brief time on the historical aspect of the coin. Thus, it is a time consuming process with a low ROI just for the silver content. On another aspect if you look at the pricing of these coins in ebay, they are priced more for their numismatic value rather than the silver content of these coins. Thus, I think it is good too have some but not a lot.

5e) Strategy
Most likely these coins will represent the store value of silver content in the future. Because it is energy intensive to melt down the coin for its silver and future energy price will sky-rocket when we run out of oil.
Once people started to realize the rarity of silver, there will be tendencies to buy any form of junk silver coin. Bear in mind, there will also lot of people selling fake junk silver coin by then. Thus, it better to get a few coins in your hand first when the price is still cheap, then you can have a first hand look and experience on the real junk silver coin. In the future time of crisis, you may not be easily cheated by others

5f) Selling/Dispose strategy
You need to educate your buyer which coin is 90%, 80%, 60% or 40% silver coin. Then, you got to tell them how many oz of silver inside each coin. They will have to multiple it with the silver price to get the rough value of the coin. So selling may not be straight forward process.

5g) Coin Grading
Please read the fine word before you do your purchase from ebay

Basal (Basal) - A piece of metal that can be identified as a coin, but that's about all.

Fair (Fair) - (Mint state 1 to 3) You can identify the type of coin; the date may or may not be visible.

Almost Good (AG) - You can read the date but parts of it and legend are worn smooth.

Good (G) - (Mint state 4 to 6) Legends, designs and dates are visible but heavily worn. 

Very Good (VG) - Designs and date are clear but lacking details.  You must be able to see a "full rim" - the line around the edge of the coin where it was raised up.

Fine (F) - (Mint state 12 to 15) All major details will be visible with the major details virtually complete.

Very Fine (VF) - (Mint state 20 to 30) More details will be visible with major details virtually complete.

Extremely Fine (XF or EF) - (Mint state 50 to 55) Light wear on the high points with some mint luster present.

Almost Uncirculated (AU) - (Mint state 50 to 55) Small trace of wear visible on the highest points with at least half of the mint luster still present.

Uncirculated (UNC)- (Mint state 60 to 65) No trace of wear with some small nicks or marks present.

Mint State (MS) - (Mint state 60 - 70) "Uncirculated" and "Mint State" are terms that are many times used interchangeably.  MS 70 is considered a perfect coin.  Extremely few regular issue coins are considered MS-70 although it is common for new, modern bullion coins to be given a grade of MS-70.

Proof (PF) - Coins specially struck for collectors. Usually mirror-like surface. Sand blast and matte proof in some series.

6. Some Recommended Portfolio
Invest in 200 oz of silver. Assume an average cost of USD25/- per oz (COIN, Premium, freight, tax etc). USD5000/- investment.

No    Category                  Oz Example    Oz Range    Recommendation
1    Common Bullion               100             60 – 120    Buy and store by tubes
2    Premium bullion coin           20              10 – 30     Preferably all are different coin
3    common silver round           10               0 – 10      Buy if you like the round
4    Silver bars                           40              20 – 60     Buy for long term disposal to factory
5    Junk Silver                          30               20 - 50     Preferably lot of different type of coins.

Thanks for reading, if you have anything please feel free to message  at my ebay id:  silvermalaysia, do visit my store at  my ebay link

Disclaimer: I shall not be liable for anything if you follow any of my advice. Please do your own due homework first before you invest your money in anything. If you lose money by buying silver don’t blame me ok.