When it comes to silver investments, purchasing high grade silver coins at 99.9% purity is the go-to business but do you know that people who buy junk silver coins can also benefit from participating in the industry? Junk silver coins are those that have been minted prior to 1965 and contain 90% silver. While they are not as valuable as pure silver coins, the high percentage of silver in these coins still merits enough attention to be considered a worthy investment.

There is a wide selection of junk silver coins available, including Kennedy half dollars, silver dollars, Barber quarters and Mercury dimes, among others. To maximize your investment when you buy junk silver coins, consider these tips and thoughts.

1. Nothing can be done properly without some degree of knowledge. Going in blind will mean the possibility of buying the wrong type of silver coins, or wavering over whether or not to buy junk silver coins. Someone could come and snatch up the silver coins if you show indecisiveness, and that would mean a lost opportunity for you. To help you out, look for silver coins minted prior to 1965, as they contain 90% silver and are good options. Some examples are Franklin half dollars, Walking Liberty half dollars, Barber head quarters, and Mercury dimes. If you concentrate on these silver coins, you’ll have an easier time focusing on a long-term plan instead of getting caught up with too many details.

2. Practice calculating the value of junk silver coins. The formula is simple. All you have to do is multiply silver content of the coin by the spot price. For instance, the silver content of a 1964 Kennedy half dollar is 0.36169 ounces. Multiply this figure by the prevailing silver price at the time to arrive at the silver value of the coin. For example, at a spot price of $40, the coin is worth $14.47 today. Practice makes perfect, so continue to practice until you become familiar with the process.

3. You’ll also notice once you start making the rounds that prices for the junk silver coin are commonly based on a multiple of the face value of the coin. Confused? At first, it can be difficult, but here’s an example: if a silver dime is selling at a face value of 30, you would multiply the face value of the dime (.10) by 30 to arrive at $3.00. One tip would be to ask the coin dealer to explain how he calculates his rate. If he has nothing to hide, he will explain it without hesitation.

4. Still on face value, it’s common practice for dimes, quarters, and half dollars to have similar rates as a multiple of the face value of the coin. However, with silver dollars, the calculation changes. It increases. Thus, except for silver dollars, you will encounter the term “prevailing face value” for the junk silver coins.

5. Now that you have an idea of how the market works, you can start looking at potential junk silver coin bargains. You can buy junk silver coins in smaller lots or in bulk, such as $100 and $1,000 face value bags. A bag of Kennedy half dollars in $1,000 face value bags at 30x face value will cost you $30,000 to purchase. Consequently, for an increase in face value rate to 30.5, you’ll receive a $500 profit on your investment.

Finding the best coin dealer to work with means doing your research and not necessarily limiting your options to your local coin dealers. Go online, ask around, find auction sites, or coin buyers who are in the business of junk silver coins. Just be sure to be well armed after doing your homework, so that you can feel confident when you approach a coin dealer to buy junk silver coins as an investment.

Want to find out more about how to buy junk silver coins, then visit Atlanta Gold and Coin Buyers’ site on how to choose the best junk silver coins for your needs.