Many people would like to put some of their savings into precious metals. However, middle class people may think that it takes thousands of dollars to start investing in silver, gold, or platinum. Of course, wealthy people do work with large amounts of money, but people can start investing in silver on a very tight budget. Now keep in mind that any precious metals purchase is risky, and even the so-called experts cannot tell you what you can sell your silver for tomorrow. But I can tell you that if you look at a five or ten year chart, you will see that precious metals have been a good way to preserve the value of your money against inflation. The past does not always predict the future though, so you would be wise to study a precious metals investment, just like you would do for any other place you put your hard earned money.
That said, look at one of the most budget friendly ways to start collecting silver, which is sometimes called the poor man’s gold. Many US coins that were minted on or before 1964 were 90% silver. So if you have 10 1964 dimes, which would total up to one dollar in face value, you would also have about .715 of a troy ounce of silver. Of course, as of the time of this writing, the silver content is worth several times the one dollar face value.
Other US coins also contain silver. Half dollars which were minted between 1965 and 1970 are 40% silver. Many people are shocked to learn that some US 5 cent pieces, or nickels, were minted with silver during WWII because of a shortage of base metals. However, this article will concentrate upon the popular 90% silver coins.
So in order to get the silver bullion value of 90% silver US coins, simply multiply the dollar amount by .715. Then take that number and multiply it by the bullion silver ounce value for the day. You can get a good estimate on the value of the coins as judged by their silver content. Now keep in mind that some older coins also have a value as rare coins, and that value could be much more then the bullion value. However, most of the older coins use the bullion value as a basis to judge their estimated value. This is especially true if these silver dimes, quarters, halves, or dollar coins are circulated and are not considered to be of a rare or better date.
So when you look on an online auction site and see rolls of 90% silver coins for sale, people are using the fact that they contain silver as a yardstick for judging their value. That value is called their melt value. On some days, people may be willing to pay more then this because they anticipate a rise in silver prices. However, at other times you may be able to pick up a bargain by buying these coins at, or even below, their melt value.
It is always wise to spend a long time looking at the prices other people are paying for similar items, weighing that against the melt value, and then doing your own research to make an informed decision. This article is meant to explain the basics of the value of US silver coins, but is not meant to be a complete education. That, like anything else worth doing, can take years, and can even be a consuming, lifelong passion.
Source by Marilyn Katz
The Value of US Silver Coins For Investing and Wealth Preservation On a Budget
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