Investing in Precious Metals: ‘Junk’ Silver vs. Bullion

Many Canadians are finally understanding the value in diversifying their investment portfolios with precious metals such as gold, silver and platinum. In doing so, they are also discovering how to do it wisely and unwisely. 

Canadian investors have the option to invest their money in a wide range of gold, silver and platinum products. Many buy pure coins and bars called “bullion”, while others choose “junk” coins.

Bullion is highly pure gold or silver that comes in bars, coins and rounds. This bulk quantity of precious metal has purity of at least 99.5% and has gone through an extensive minting process to remove impurities. 

“Junk silver” refers to old silver coins that contain 35% to 98% silver. There is still huge value in “junk” coins, so don’t assume that these old and worn products are worthless. The term only applies to the coins’ numismatic value since most of these older coins have faded designs on them. 

Why should Canadians Invest in Junk Silver?

There are many reasons why Canadian investors should purchase junk silver instead of silver bullion. Here are five popular reasons why:

1. Junk Silver Isn’t Worthless

Did you know that Canadian coins produced between 1919 and 1967 are 80% silver? Coins minted before 1919 are 92.5% silver! Although some people look at these coins and assume that they are only worth their face value, the silver content makes them much higher in value. Many U.S. coins produced before 1965 similarly have valuable silver content.

2. Low Purchase Premiums

Canadian investors will find that purchasing junk silver can have lower premiums. This is often because the following process to extract the silver from the coins to produce highly concentrated silver bullion (99.9% pure) can take significant effort, time and money. Many choose to keep junk silver in its current state for this very reason.

3. Legal Tender

Every junk coin has been issued by a country’s government and has a face value, whether it is a nickel, dime, quarter, half dollar or dollar. That means you can always purchase goods and services with these coins.

4. Easily Recognizable

You don’t need to guess the silver content of older coins because the manufacturing process has been well documented and never changed over certain years. 

5. Small Quantities

If you’re a prepper who is getting ready for the coming collapse of the global economy, you may wish to stock up on small quantities of junk silver. It is said that these coins will be used to barter when banking systems no longer operate.

Why Should Canadians Invest in Bullion instead of Junk Silver?

Some investors choose not to invest in junk silver. For many, investing in bullion can make a lot more sense:

1. Security

Each piece of bullion, whether a coin, bar or round, is made by a reputable company with a reputation for perfection. Many precious metal products also have security features included to stop unscrupulous people from copying or removing metal. These include engravings, digital codes, serial numbers, reeding, hidden images and more.

2. Easy to Sell

Try selling a handful of old, worn silver and you may immediately have difficulty. Without any assurance of the item’s authenticity, your quest for cash may be arduous.

3. Collectability

Few precious metal enthusiasts – especially investors – find junk silver to be collectible. Bullion products are highly sought after and can be especially collectable when unique designs and stylistic attributes are engraved or stamped on its surfaces.

4. Easy to Obtain

Pure silver coins are quick and easy to purchase online with secure shopping sites like Royal Bull Precious Metals. The specifications of each bullion product are easy to access and come with guarantees on each purchase.

So, Should You Buy Bullion or Junk Silver?

The choice is ultimately yours. Junk silver has significant value, but it may be more difficult to sell your investment. Bullion is highly pure and makes buying and selling easy.

If you choose to purchase bullion, Royal Bull has some valuable gold, silver and platinum options that may fit nicely into your investment plan.