Buying Junk Silver Coins

Recently, we found a coin dealer that sells "junk" silver coins very close to spot silver prices.   Junk silver describes coins that have no numismatic value over the value of the silver it contains.   Generally, these are Roosevelt dimes and Washington quarters minted for circulation up to 1964.  With the decline of silver prices, soon I expect to be able to purchase these coins at 10 times face value.  So a dime would cost $1 and a quarter would cost $2.50.   A bonus is that our state does not charge sales tax on coin and bullion sales.

Here are some of the advantages of this approach:

• Enjoyment.   I collected coins as a kid and found many silver coins in change.   I can add to my missing dates in the collection, although at higher than face value.
• Liquidity.   Very easy to buy and sell.  If the prices goes up, I can sell small amounts to coin dealers or individuals.
• Hedging.   If inflation returns, the nominal value of US currency will go down, but the value of these coins will increase.

I plan to buy about $100 dollars worth of junk silver coins each month for rest of this year.  

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This is not financial, numismatic, or investment advice. Please consult a professional advisor.

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