During the Second World War America removed the nickel content from their coins so that they could use the metal for the war effort. As a result, the Jefferson Wartime Nickel content was 35% silver, 9% magnesium and 56% copper. The coins were to be removed from circulation after the war had finished, but have over the years ended up in the investment portfolio of many silver investors.
The Jefferson wartime coins were one of the last coins that were minted for circulation containing silver content matching their face value. They were made from the middle of 1942 through to 1945. After the 1960s silver content coins were only minted for special commemorations.
How is 35% Junk Silver Sold?
These silver coins can often be found in bulk bags on online retail and auction sites. It is also possible to buy tubes and even individual coins. They are therefore a flexible way to buy silver for investors looking to invest a little or a lot. Junk silver is priced based on its silver content value, which is 35% of the weight of each coin.
Junk silver can typically be purchased at 1-3% above the silver spot price. By shopping around it is possible to buy below spot when buying in bulk. This is especially true when there has been a rise in the spot price and bags of coins at local shops have not yet reacted to the price movement.
35% junk silver can provide an excellent means of adding silver to your investment portfolio. As the value of the coins is purely silver content, not numismatic, the condition of the coins is hardly relevant to the sale price.
Storage of Junk Silver
Some investors consider lower purity junk silver an inefficient purchase. With 35% and 40% coins investors end up owning a large amount of worthless copper and magnesium, and storing all this non-precious metal is not the best use of space.
Coins are stored in bags or tubes and even boxes. The quantity can mean that the coins take up a lot of space if kept in a safe, but a lot of investors just keep their coins in the cupboard or under the bed, as most thieves wouldn’t even realize that the nickels were worth far more than their $0.05 face value. It is always advisable to keep coins in a safe if possible though.
Junk Silver as “Survival Coins”
Silver investors tend to want to keep their silver holdings outside of the banking system. With the possibility of financial collapse, or worse still a world disaster, silver coins provide individuals with a relatively modest means to stock up with an asset that will hold its value in just about any economic environment.
People do actually buy 35% silver coins as “survival coins”. 35% silver coins could be an excellent tool for bartering if there was currency collapse, and with more in the news these days about the precariousness of the USD it is making more sense to more people to buy junk silver coins.
The more junk silver that you buy the better price you are likely to get, so we always recommend buying in bulk to lock in the lowest over spot premium possible.