Beyond the Bullion Bar: A Beginner's Guide to Investing in 90% Silver Coins

When you think of investing in silver, what comes to mind? For many, it's large, gleaming silver bars locked away in a vault. But one of the most practical, accessible, and popular ways to own physical silver is through U.S. coins minted before 1965.

Often called "junk silver," these dimes, quarters, and half dollars are anything but junk. They represent a tangible piece of American history and a solid investment strategy for both beginners and seasoned "stackers." Here at Midwest Precious Metals Exchange, we believe in the power of these historical coins. Let's break down why they are such a smart addition to any portfolio.

What Exactly Are 90% Silver Coins?

Prior to 1965, the United States minted its dimes, quarters, half dollars, and dollar coins using an alloy of 90% silver and 10% copper. This gave the coins durability for circulation while backing their value with precious metal. After the Coinage Act of 1965, these coins were replaced with the copper-nickel "clad" coins we use today.

When investors refer to 90% silver, they are typically talking about:

• Roosevelt Dimes (1946-1964)

• Mercury Dimes (1916-1945)

• Washington Quarters (1932-1964)

• Standing Liberty Quarters (1916-1930)

• Franklin Half Dollars (1948-1963)

• Walking Liberty Half Dollars (1916-1947)

• Kennedy Half Dollars (only 1964)

A Note on "Junk Silver": This is a common industry term that can be misleading. It simply means the coins have no special numismatic or collector value beyond their silver content. You're buying them for the metal, not as a rare collectible.

Why Should You Invest in 90% Silver?

These coins offer a unique combination of benefits that you won't find in larger bullion bars or rounds.

1. Immediate Recognizability and Trust

These are official U.S. coins. Anyone can recognize a Washington quarter or a Roosevelt dime. This inherent trust makes them incredibly easy to buy, sell, or trade. There's no need to question their authenticity or silver content, as they are backed by the history of the U.S. Mint.

2. Excellent Divisibility

Imagine you need to sell a small portion of your silver holdings. It's impossible to shave off a piece of a 100-ounce silver bar. With 90% silver coins, however, you can sell as little as a single dime's worth. This flexibility is perfect for small transactions or for bartering in an emergency scenario.

3. Affordability and Accessibility

You don't need thousands of dollars to start investing. You can begin by purchasing a single roll of dimes or quarters. This low barrier to entry allows anyone to begin converting their currency into a hard asset, steadily building their silver stack over time.

4. Government-Backed Face Value

While you would never spend them, these coins will always legally be worth their face value (a dime is always worth at least 10 cents). This provides a nominal floor to their value, though their real worth is tied to their silver content, which is almost always significantly higher.

How Are 90% Silver Coins Valued?

The value of "junk silver" is determined by its silver melt value. While the math can be precise, a simple rule of thumb is that $1.40 face value of pre-1965 coins contains approximately 1 troy ounce of pure silver.

For a quick calculation: Value = (Face Value of Coins / $1.40) x (Current Spot Price of Silver)

Dealers typically sell 90% silver in a few standard ways:

• By the Roll: For smaller, manageable purchases.

• By the Bag: This is the most common method for larger investments. Bags are sold by their total face value, such as a $100, $500, or $1,000 face value bag.

You will always pay a small amount over the melt value, known as the premium, which covers the dealer's cost of acquiring and handling the coins.

What to Know Before You Buy

• Focus on the Silver, Not the Date: For pure investment, you are buying silver weight. Don't worry about finding specific or "rare" dates, as that falls into the realm of coin collecting and carries higher premiums.

• Expect Circulated Coins: These coins were used in daily commerce, so expect them to show wear. Reputable dealers sell bags based on average wear, so you can be confident you are getting the correct amount of silver.

• Buy from a Reputable Source: Your most important decision is where you buy. A trusted precious metals dealer like Midwest Precious Metals Exchange ensures you are getting genuine, legally acquired 90% silver at a fair market price.

For anyone looking to own physical precious metals, 90% silver coins are a perfect starting point. They offer a unique blend of history, flexibility, and trusted value that is hard to beat.

Ready to add the stability and value of silver to your portfolio?

Explore our selection of 90% silver coins today and take a tangible step in protecting your wealth!