Personally, I am buying more and more junk silver coins as the price has dropped significantly in the last part of 2011. Junk silver coins are made with 90% pure silver. We see replicas of them everyday in cash registers and when we receive our change when purchasing goods and services. Before 1965, coins such as Washington quarters and Kennedy half dollars were 90% silver! Today, there is no silver left in our coins. They have as much value as a paper Federal Reserve Note. Nada. Nothing. Zero. Yes, you can still purchase something with a quarter or a dollar, but at the end of the day, there is nothing backing up the currency. I guess in some ways, you can actually buy something for nothing because in my opinion, the US dollar is worth nothing.

The question “where do I sell my junk silver and gold bullion coins?” has been asked on many gold and silver bullion forums. There are going to be thousands of opinionated answers to that question because most silver buyers see that it is crazy to sell any junk silver or gold at this time. Many professionals question why people would part with something as valuable silver bullion at the moment that this asset class is going up in value. Many people are confusing the rise in the price of silver with the actual value of the silver. The actual value of silver rarely changes. If silver were still used as money, it could still buy approximately the same amount of goods and services that it did 100 years ago depending on market conditions, supply and demand, etc. It’s a commodity with market driven prices. Scarcity is the only thing that will cause it to go up in value.

The 3 Best Places To Sell Your Junk Silver Coins

1. Local coin shops and jewelry stores are a great place to sell your junk silver and put that money into another hard asset class.
2. Craigslist or EBay is another great place to sell if you want to get the highest price. You can set your own price and terms.
3. If you really need to sell your silver quickly, you can arrange to have your gold and silver picked up discretely at your home and have it shipped fully insured to reputable dealers like GoldSilver or GoldenEagleCoin.

But if I were you, I would buy more junk silver as it is selling for a bargain when you consider it was selling in the $40′s a few months back. When buying precious metals such as junk silver coins, buy for the long term Sell when the asset class starts declining in value and buy a rising asset.

Has Your Silver Really Increased In Value?

Of course silver can and will increase in value. Because it is rare like gold, the price is market driven. Silver has many industrial uses. It’s used in manufacturing consumer electronics products like smart phones, lap top computers, etc. The more the demand, the higher the price. As investors are clamoring to silver, industrial buyers and end users are in direct competition for buying this precious metal. When this happens, the value does increase. Just don’t let inflation fool you thinking that you have made “bank” when your silver shot up in value in 2011.

People confuse inflation with increased valuation. How many times have you heard people tell how much money that they made on their home because they said it increased in value? If you live in California, then you may have been one of the lucky ones that made money by selling and then moving to an inexpensive area like Nevada. But if sold in California and then moved to a nearby city and bought another home, you made nothing.

Assume that a person bought silver for $20/oz. A year later silver bullion is selling at forty-two dollars an ounce. Many people believe that silver bullion has increased in value by $22/ounce. In reality, inflation has increased and the value of the silver bullion has not changed one iota. You need to be concerned that the Federal Reserve has tripled the money supply in the last 3 years. There are 3 times as many dollars chasing the same products. Do not think that the prices of goods and services are going to remain low for extended period as inflation has a way of sneaking up on you and stealing your wealth. As long as the Feds keep the interest rates low, not too many people are complaining because they are getting borrowed money for cheap.

People have this illusion that paper assets are the sign of true wealth. This is a myth because most paper assets are not backed by anything of real value. The rise in the price of your paper assets means that your dollars are worth less.

Many people that sell their junk silver coins are doing so to invest in other assets such as bonds, stocks and real estate. Don’t let the hype of Wall Street suck you into thinking your precious metals are worth exchanging for dollars or stocks. If you want to trade either gold bars or silver bullion coin and buy into the stock market, then contact a trusted fee only adviser and invest in silver & gold mining stocks.

Be wise and keep your junk silver coins as a hedge against inflation. When there is a run up in the price of silver, you can make money if you sell it before it hits the top. Supply and demand are going to dictate the price along with human emotion and greed.

Now that you are armed with knowledge, maybe you are considering buying more junk silver.  Check out Golden Eagle Coins as they have great service and a large inventory.