What Should You Do With Your Silver Coins?

Silver coins are a form of stored wealth or cherished collectibles. This guide helps you identify their worth and make informed decisions about selling or preserving them.

Identifying and Valuing Silver Coins

The value of a silver coin involves its metal content and appeal to collectors. Many United States coins minted before 1965, such as dimes, quarters, and half-dollars, contain 90% silver. Some half-dollars minted between 1965 and 1970 contain 40% silver. Markings like “.999” or “.925” indicate silver purity, with .999 signifying nearly pure silver and .925 representing sterling silver.

Simple tests identify silver content. A “ping test” involves balancing the coin on your fingertip and gently striking it with another, listening for a clear, sustained ring. The magnet test shows silver is not magnetic; if a coin sticks to a strong magnet, it contains little to no silver.

Melt value is a coin’s worth based on its silver content, fluctuating with the current silver spot price. To calculate it, multiply the coin’s silver weight by its purity percentage and the current spot price. For example, a 90% silver coin weighing 0.4 troy ounces would have its melt value calculated by (0.4 oz 0.90) current spot price.

Numismatic value is a coin’s worth beyond its melt value, driven by collector desirability. This value is influenced by several factors:

• Condition or grade, assessed on a scale of 1 to 70, with higher grades indicating better preservation and commanding higher prices.
• Rarity, determined by low mintage numbers or unique production errors.
• Mint marks, small letters indicating the mint location.
• Historical significance, such as a coin tied to an important event.

To assess your coins, consult reputable online price guides. Professional coin dealer associations can connect you with certified appraisers. For valuable or rare coins, consider professional grading services like the Numismatic Guaranty Company (NGC) or the Professional Coin Grading Service (PCGS). These services authenticate and grade coins, providing an objective assessment of their condition and enhancing buyer confidence.

Selling Silver Coins

After identifying and valuing your silver coins, several avenues exist for selling them. Local coin dealers offer immediate appraisals and cash offers. This typically involves bringing your coins for an in-person evaluation, where the dealer assesses their condition and silver content. Many local dealers test silver content for free, often using non-intrusive X-ray testing. While convenient, local coin shops may offer prices below the current market spot price to cover operating costs and profit margins.

Online marketplaces and auction sites, such as eBay or specialized coin platforms, provide a broader audience and potentially higher selling prices, especially for numismatic coins. Listing coins online requires detailed descriptions, clear photographs, and accurate condition statements. Managing bids, communicating with buyers, and arranging secure shipping are part of this process. Online precious metal dealers, like JM Bullion or APMEX, also buy silver coins, often focusing on melt value. These platforms typically have a structured online selling process, sometimes requiring a minimum transaction, and provide shipping labels for secure transport.

Precious metal buyers or refiners primarily purchase silver for its melt value, suitable for selling larger quantities of common silver coins or “junk silver.” They assess coins based on weight and purity, offering a price tied to the current spot price. Pawn shops also purchase silver coins, offering immediate cash. However, they generally offer lower prices, typically 50-70% of the melt value, to cover risks, overhead, and mandated holding periods.

Before selling, obtain multiple offers to ensure a fair price. For graded coins, documentation of their professional assessment can streamline the process and support the asking price. Avoid cleaning coins before selling, as improper cleaning can cause damage, significantly reducing numismatic value. When a sale is finalized, ensure clear agreement on payment methods and shipping responsibilities. Gains from the sale of silver coins held for over a year may be subject to capital gains tax as collectibles, typically at a higher rate than other long-term investments.

Storing and Preserving Silver Coins

Proper storage and handling maintain the condition and value of silver coins, particularly numismatic ones. Always handle coins by their edges, never touching the faces, to prevent transferring oils and dirt that can cause tarnishing or permanent damage. Wearing soft cotton gloves further protects coins. Work over a soft surface, like a towel or velvet pad, to cushion the coin if accidentally dropped.

Cleaning coins is discouraged for amateur collectors, as it can devalue them by causing scratches or removing natural toning. If a coin requires cleaning, a professional conservator should do it.

Choosing the right storage materials prevents damage. Recommended materials include:

• Mylar or other PVC-free plastic flips or holders.
• Sealed plastic “slabs” for professionally graded coins.
• Acid-free coin albums or pages for organizing collections.
• Tubes for bulk storage of bullion coins.

The storage environment also plays a role. Maintain a stable temperature, ideally around 68°F (20°C), and control humidity between 30% and 50% to prevent tarnishing and corrosion. Avoid storing coins in areas prone to extreme temperature fluctuations or high humidity, such as basements or attics. Protect coins from prolonged direct light exposure, as it can cause discoloration.

For valuable collections, security is a consideration. Home safes, especially fireproof and waterproof ones, offer secure storage with convenient access. Bank safe deposit boxes provide high security for valuable holdings. Regularly inspect stored coins for environmental damage or deterioration to address issues promptly.