DO NOT Get Scammed With Junk Silver (WATCH THIS FIRST)

Key Concepts

• Junk Silver: US minted dimes, quarters, and half dollars from 1964 or earlier, containing 90% silver and 10% copper.
• Constitutional Silver / 90% Silver: Alternative terms for junk silver.
• Face Value Multiplier (X): A pricing method for junk silver, where the price is a multiple of the coin's face value (e.g., 40x face).
• Troy Ounce: A unit of weight for precious metals, equivalent to approximately 31.1 grams.
• Spot Price: The current market price of silver per troy ounce.
• Numismatic Coins: Coins valued for their rarity and historical significance, distinct from junk silver.
• SHTF (Shit Hits The Fan) Situation: A hypothetical scenario of societal collapse or extreme emergency.

What is Junk Silver?

Junk silver refers specifically to US minted dimes, quarters, and half dollars produced in the year 1964 or earlier. Coins minted in 1965 or later are not considered junk silver. While US half-dollars minted between 1965 and 1970 were 40% silver (often called "40%ers" or "40% silver Kennedy half-dollars"), these are also typically excluded from the definition of junk silver. All junk silver coins are composed of 90% silver and 10% copper. The term "junk" is not derogatory but signifies that the silver content is not pure (90% instead of 100%) and that the coins are circulated, often worn, and do not hold numismatic value due to rare dates.

Pricing Junk Silver: The Face Value Multiplier

Unlike other silver items priced per ounce or per coin, junk silver is priced using a "face value multiplier." This method can be confusing as it doesn't directly translate to a price per ounce without understanding the underlying conversion.

• Example: A dealer might quote junk silver at "40x face." This means for every dollar of face value, you pay $40.
  • To purchase $1 face value in junk silver (e.g., four quarters), you would pay $40.
  • Alternatively, $1 face value could be one half dollar and two quarters, also costing $40.

Understanding the Price Per Ounce

The face value multiplier is directly linked to the spot price of silver and the amount of silver in a given face value of junk silver.

• Key Fact: $1.40 in face value of 90% silver coins (accounting for wear and copper content) is equivalent to one troy ounce of silver.
• Calculation: If the spot price of silver is $56 per ounce, and you are paying 40x face value, you are effectively buying junk silver at spot price.
  • 40x face value = $56 per ounce when the spot price is $56 per ounce.
• Misconception: A common mistake is assuming 40x face means $40 per ounce. In reality, at a spot price of $56/oz, 40x face equates to $56/oz.

The Junk Silver Buying Guide 3.0

The video introduces an updated "Junk Silver Buying Guide 3.0" which is valid as long as the spot price of silver is below $17.80 per ounce. This guide helps buyers determine the price per ounce they are paying.

• Purpose: To demystify the pricing of junk silver and prevent buyers from being scammed.
• Mechanism: The guide utilizes a chart of face value multipliers. By looking at the multiplier offered by a dealer, one can calculate the actual price per ounce being paid, relative to the current spot price.
• Example: If a dealer offers 35x face value, and the spot price is $56/oz, the buyer is paying $49 per ounce ($56/oz * (35/40)). This allows the buyer to assess if the offer is fair.

Importance and Utility of Junk Silver

The speaker advocates for stacking junk silver for several reasons:

• Bartering in SHTF Situations: Junk silver is considered a highly trusted and easily usable form of barter in emergency scenarios due to its recognizable denominations and silver content.
• Current Pricing: The price of junk silver is currently around or even below spot price when purchased from online dealers or local coin shops, making it a reasonably priced option.
• Limited Supply: The government is no longer minting these coins, and a significant amount is being melted down by refiners. This scarcity increases the rarity of the remaining junk silver.

Face Value Multiplier Chart

A chart of face value multipliers is available for free download via a link in the video description. This chart is a crucial tool for both buying and selling junk silver, enabling users to quickly ascertain the price per ounce.

Conclusion

Junk silver, comprising pre-1965 US dimes, quarters, and half dollars, is a valuable asset for investors and preppers. Understanding its pricing through face value multipliers is essential to avoid overpaying and to make informed purchasing decisions. The limited supply and historical significance of junk silver, coupled with its utility in barter, make it a recommended addition to any precious metals stack, especially given its current attractive pricing.