90 silver bags are simply bags made from canvas-type cloth that contain Washington quarters, Franklin or Kennedy half-dollars, and Mercury and Roosevelt dimes that were minted in 1964 or previous years.
Those were the times when all of our U.S. coins were still made of real silver (actually 90% silver and 10% copper.) The phrase 'junk silver' was coined (no pun intended) during the 1970's because these 'junkie' coins had little or no collector value at that time. Well, that's definitely not true today, with these types of coins becoming harder to find!
The type of junk silver coins most often found in silver bags are the Washington quarters. A usual silver bag will include mixed dates of 1964 or earlier and all of one coin denomination - i.e. all quarters, dimes, or half-dollars. The grade of each coin will vary but generally 95 percent will have dates that will be readable.
Coin dealers will generally sell 90 junk silver bags in face value lots of $1000.00, $500.00, $250.00, $100.00, and sometimes even $50.00 lots. When you invest in a $1000.00 bag, for example, you'll be getting 10,000 dimes, 4,000 quarters or 2,000 half dollars!
However, the face value of the coins will be $1000.00 but will contain 715 ounces of silver, regardless of the denomination of the coins, because of the 90% silver composition of the coins. That means you'll be getting a lot more silver for your money!
How to Determine the Value of Your Junk Silver Coin Bag
Before you march off to sell your 90 silver bag to a coin dealer, you'll need to determine ahead of time, what your bag is worth:
- First, find out what the current spot price of silver is - I like to use Kitco.
- Multiply the amount of troy ounces of silver in your bag by the current silver spot price. To figure the silver weight in individual junk coins, I like to use the melt value calculator at SilverMonthly.com
- If your bag has 715 oz of silver and the spot price of silver is $30, that would be $21,450.
- Now subtract that amount from the price the dealer is quoting you. Shop around and compare what various dealers (both online and local) are offering. Do your homework and be informed!
- You need to remember that the price of junk coin bags will follow the spot price of silver. Let's say the price of silver rises ten cents - from $30.00 an ounce to $30.10 an ounce. A $1000.00 face value bag of 90 junk silver Washington quarters will rise $70, give or take.
90% junk silver is a great way for new buyers to invest in silver for the following reasons:
- 90 junk silver is the most cost-efficient method of buying silver per ounce in bulk. You see, with junk silver, no refining or minting fees are added to the cost of the coin. When you buy a modern silver bullion coin such as the American Silver Eagle, this manufacturing premium is always going to be added to the cost of the coin.
- Because of their age and circulation, it is only natural for junk silver coins to have lots of wear and tear. But even discounting the scratch marks, nicks, abrasion, worn detail, unrecognizable face, you're still getting 99% of the silver content! That means that the coins will be worth far more than their face value!
- Another advantage to buying junk bags is that the coins can easily be divided into smaller quantities to use as bartering instruments in an emergency. You can also sell the coins individually, the same way, if you didn't want to sell the entire bag all at once, to take advantage of rising silver prices.
Now that you've learned a little bit about 90 silver coin bags, I think you'll agree that they are a terrific investment. With the price of silver expected to move even higher in the coming year, adding a few to your portfolio will be a prudent and profitable decision!