Now, an order for 20 bags often takes two or three phone calls. 999 fine silver bullion, and now bags of pre-1965 US silver coins are in short supply.īefore Y2K, an order for 100 bags of junk silver coins could be filled with a phone call to any one of many wholesalers. Untold quantities of bags were refined into. On January 3, 2000, as soon it became evident that the world’s computers were not going to fail, investors began selling, and they sold throughout the year and into 2001, forcing down prices on US silver coins until they sold at discounts (below the value of their silver content). In the US, Silver Eagles were much more popular and remain more popular today than Silver Maple Leafs. Silver Maple Leafs, which are Canadian silver coins minted by the Royal Canadian Mint, were popular with Y2K buyers who lived along the Canadian border. Other popular alternatives to junk silver coins during the Y2K buying were the US Mint’s Silver Eagles. Silver Eagles, Silver Maple Leafs as alternatives During 1999, the price of silver was essentially unchanged. The Y2K scare showed just how quickly US silver coins can pick up big premiums and that premiums on 90% silver coins can rise while the price of silver remains stagnant. One recommendation was that junk US silver coins be stashed away so that they could be used as money when banks closed and ATMs no longer spewed $20 bills.Ĭonsequently, in 19 people fearing Y2K bought junk silver coins at whatever prices, and bags picked up 50% premiums. Newsletters were dedicated to teaching people how to prepare. Their fears were exacerbated as respected economists issued warnings and wrote books. Y2K Buying Spurs Junk Silver Coin Buyersįearing that the world’s computers would quit working January 1, 2000, many people began preparing for the worst. The Y2K scare caused another huge melting of circulated 90% silver coins. For most of the 1980s, investors were net sellers of silver, which resulted in huge quantities of junk silver coins being refined and converted into. This caused investors to avoid silver in the ’80s, except for a strong market in 1987. (Today, reclaimed silver remains a major source of this essential metal.)īecause of these efforts, silver went into “surplus” in the 1980s, i.e., newly refined silver exceeded industrial demand. Further, the rising prices of the 1970s had spurred efforts to mine more silver and to increase the recovery of silver in the secondary market. In the 1980s, following silver’s spike to 50/oz, industrial silver users implemented efficiency moves that slowed industrial demand for silver. During the Y2K scare (discussed below), junk silver coins carried a 50% premium over bullion products. Over the last four decades, when precious metals enjoyed bull markets, junk US silver coins often achieved premiums of 20% to 30% over spot. 999 fine bullion items, a little background on junk silver coin prices and silver prices is in order. To support the assertion that bags of US silver coins hold greater upside potential than. 999 fine bullion items (1,000-, 100-, and 10-oz bars and 1-oz rounds) can be produced at any time consequently, there are limits as to how high premiums on. 999 fine silver bullion products because at times, and especially during rising precious metals markets, circulated 90% US junk silver coins pick up huge premiums as the supply of junk silver coins is limited. (Actually, today 98% of the US money supply, dollars in circulation and available to be spent, are not “printed” dollars but are digital or electronic dollars.) Junk Silver Coins or Bullion Bars?Īlthough pre-’65 silver coins would be ideal for survival purposes, when junk silver coins sell at premiums near the premiums on 100-oz silver bars and 1-oz silver rounds, junk silver coins hold greater upside price potential than. Yet, we are aware that the history of paper currencies is that they are printed until they become worthless. If this “worst-case scenario” were to become reality, US silver coins would be used for the purpose they were originally minted: as money.ĬMIGS hopes that Americans never see the day that their once proud dollar becomes worthless. Although many investors buy junk silver coins as bullion investments, other investors buy junk US silver coin s for “ survival purposes.” These buyers fear the worst for the dollar, that it will be printed until it becomes worthless.
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