Silver is an expensive metal to produce, so coins minted for circulation typically are not made of 100% silver. Instead, the metal is mixed with other alloys to make them more affordable and durable.
It is not possible to validate whether a coin contains pure silver by scratching or acid testing. The best way to determine silver content is by checking its mintage year and examining the edge for telltale signs.
Pre-1965 Dimes
One of the most popular silver investment products on the market is pre-1965 junk (or 90%) silver dimes and quarters. These coins have no numismatic value and are sold strictly for their precious metals, silver content, and melt value, which is usually worth more than the face value of the coin. They are ideal for investors seeking a low-maintenance way to add silver to their portfolios and can even serve as a hedge against inflation over the course of months, years, or decades.
Since these coins were common in pocket change until the 1960s, they have become familiar to many Americans who are comfortable with them as a form of currency. While modern dimes and quarters are made from clad or copper-nickel alloy, these old 90% silver ones are still highly sought after by both collectors and investors.
Junk silver dimes are popular because they are easy to find and inexpensive. They are also easy to store and transport, making them a convenient choice for anyone who wants to build a silver holding. However, they may cost more, gram for gram, than investment-quality silver bullion coins like the American Silver Eagle.
A typical bag of junk silver dimes or quarters will contain 10,000 to 12,000 pieces. The bags are typically counted by machine, and each dollar of face value contains about 0.715 troy ounces of silver. Keep in mind that the other 10% of these coins are composed of copper, which is a precious metal as well but doesn’t command as high a price as silver.
Another popular option for those looking to invest in silver is 90% silver half dollars. These legal tender coins were struck in 90% silver from 1946 through 1964 until the 1965 Coinage Act reduced their silver content to 40%. Buying 90% silver half dollars means you are getting more silver for your money than modern circulating clad half dollars, and they have the added bonus of having the iconic President John F. Kennedy on them. This makes them a great choice for those who want to invest in silver but are looking for something more affordable than the more expensive 90% silver Bicentennial half dollars that were struck in 1970.
Pre-1965 Quarters
The last US quarters made with 90% silver were minted in 1964. These quarters, along with dimes and half dollars, are often referred to as junk silver because they have no numismatic value. Despite this, they have a considerable melt value. They’re popular among serious silver investors because they are readily available, affordable, and easy to store.
The term “junk” is not meant to be pejorative – it simply means that these coins don’t have much numismatic or collectible value. They do, however, have an appeal to those who are interested in precious metals as an investment, a hedge against inflation, or a safety net in case of a financial crisis.
In the early 1960s, economic expansion pushed silver prices to record highs, and people began hoarding millions of dimes, quarters, and half dollars that were minted with a 90% silver content. This caused a coin shortage, and President Lyndon Johnson decided to change the composition of circulating quarters to a copper-nickel clad.
While it is possible to find 90% silver quarters dated prior to 1965, finding a high-grade example can be challenging. For a regular quarter to be worth more than its face value, it must be graded at least MS62 or higher by the Professional Coin Grading Service (PCGS).
In addition to being worth much more than their face value, rarer errors and top-grade examples of 90% silver coins can be very valuable. For instance, a well-worn regular 1965 quarter may be worth just 25 cents, but a mint state specimen can fetch $8 or more.
Another way to tell whether a coin is 90% silver is to look for the denomination and the date of issue. While the Standing Liberty and Washington quarters are the best choices for silver buyers, 90% of silver collectors should also consider the Barber and Franklin varieties minted between 1892 and 1916. These are all 90% silver, but the Barber variety has a design that is a bit different from its successors and is therefore not as desirable. The Franklin variety has a double tail, which is a distinguishing feature of the coin and can add value.
Pre-1965 Half Dollars
From 1794 to 1964, most dimes, quarters, and half dollars minted by the United States contained 90% silver. After 1964, however, the silver content of half-dollar coins was reduced to 40% silver and then to copper-nickel in 1971. Until then, half-dollar coins made of 90% silver were very popular with collectors and investors. Today, savvy investors purchase pre-1965 silver halves and other circulated 90% silver coins for their silver bullion value rather than for their numismatic collectible worth or historical interest. These 90% silver coins are often referred to as junk silver.
These 90% silver coins have a bullion value that closely tracks the price of silver, and they have not yet received any additional premium based on their age or condition. Investing in these pre-1965 silver coins is an inexpensive way to add the pure silver element to your investment portfolio.
Many of these coins are well-worn, but they still hold a high level of demand for their underlying silver bullion value. Investors and collectors alike are interested in adding pre-1965 silver coins to their holdings because they offer a cost-effective way to acquire precious metals.
The pre-1965 half dollar was the first coin to feature a famous historical figure rather than a president on its obverse, and it is also one of the most sought-after American silver coins in the world. The designer of the coin, Gilroy Roberts, had to quickly complete the design so that it could be struck just four weeks before its release date in January 1964. In order to meet this deadline, Roberts and his assistant engraver, Frank Gasparro, modified designs they had previously completed for the John F. Kennedy Presidential Series Medal.
Although the Kennedy Half Dollar is not as rare as the earlier Barber or Walking Liberty half dollars, its recognizable depiction of the assassination of John F. Kennedy in Dallas, Texas, on November 22, 1963, makes it a favorite with investors and collectors. When buying this type of coin, it is important to focus on those that are certified by reputable third-party grading companies.
Pre-1965 Nickels
If you’re looking for a silver coin to add to your collection, start with the pre-1965 nickels. These three-cent coins are made of 35% silver, which is higher than the 90% silver found in dimes and quarters minted before 1965. However, it is not the highest amount of silver found on any coin in circulation. The only other coin with a higher silver content is the 1942-1945 “silver nickel.” These five-cent pieces were produced during World War II when much of the nation’s copper and nickel production was diverted to critical war efforts. The silver-nickel alloy used for the war nickels contained 35% silver, 56% copper, and 9% manganese.
Due to the high demand for industrial metals like nickel during World War II, the United States Mint began minting nickels with a higher percentage of silver than usual beginning on October 8, 1942. These “war nickels” lasted only four years before the demand for nickel returned to normal, and the coin reverted to its traditional copper-nickel composition.
Nickels minted after 1964 don’t contain any silver. The only five-cent coin that has silver in it is the 1943-1945 “silver nickel.” While these coins have a much lower silver content than their counterparts, they do still have some value as a collector’s item. The 1944 nickel was designed by Felix Schlag, who won a design contest with a prize of $1000. However, he forgot to include his initials on the coin and only added them in 1966.
In the 1960s, with the introduction of clad coins and rising silver prices, the public started hoarding these pre-1965 35% silver coins to take advantage of their bullion value. This, along with the high demand for the new 1964 Kennedy Half Dollar, severely depleted the US Mint’s supply of Silver and prompted it to pull these coins from circulation in favor of the more economical clad versions.
As a result, most of these 90% silver coins have not been seen in circulation since 1965. Today, they are commonly referred to as junk Silver because their value is based on the amount of silver they contain rather than numismatic or collectible characteristics. However, even though they are considered junk, these coins can be a valuable addition to any silver portfolio.
