Silver Coinage

Out of reach for most average coin collectors is the realm of the earliest silver dollars produced by the United States Mint. This generally encompasses the flowing hair and draped bust types, each of which include one extreme rarity. Although not everyone has the funds or motivation to purchase these coins, they represent a very important part of history. Thus, they are worth knowing about and studying to better appreciation of the hobby of collecting.

The early Mint in Philadelphia would strike the very first silver dollars in 1794. The quantity minted was about 2,000, but a mere 1,758 were deemed acceptable and released to the public for circulation. Of this limited number, it is estimated that just 130 or so pieces survive to the current day. These are highly prized and among the most expensive United States coins available.

Because of the portrayal of liberty on the coin with her hair flowing over her shoulders, the first silver dollar is known as the Flowing Hair dollar. This design was issued from 1794-1795 and the Draped Bust silver dollar followed from 1975-1804. The extreme rarity of this series is for the coins dated 1804. These were actually struck many years later as diplomatic gifts, providing a special status and very limited number of coins struck.

When buying one of these early silver dollars it is essential to remember that there are only a few of them around which means getting them certified is extremely important. It is recommended to look for existing accreditation from one of the finest grading services or have one of these services: NGC, PCGS, ANACS, or ICG, grade your coin.

Silver investing has moved into the mainstream with the advent of electronically traded funds, which track the spot price. Although this method just uses the click of a button, there are other options such as junk silver coins that provided valuable benefits. Besides being physical silver, there are also other advantages.

These coins have a composition of 90% silver. They were generally minted in the 20th century before the date 1965, when the composition of the coins was changed to copper and nickel. Values are based on the intrinsic value of the coins, with one dime containing 0.07234 troy ounces of silver. Quarters, half dollars, and silver dollars are also struck in 90% silver.

One of the chief advantages provided by junk silver is its standing as legal tender. Since these coins were manufactured by the United States Mint with a certain face value, the coins can always be spent for the given face value. While the intrinsic value of the coins is now much higher, at one time the legal tender values provided a hedge against the value.

Its divisibility is an additional key benefit of this kind of silver. Divisibility means the ease at which silver can be divided into smaller units. Unlike a 100 ounce or 1000 ounce bar of silver, the junk silver comes in bags of individual coins as small as a dime. As mentioned the dime contains less than a tenth of an ounce of silver, which is a pretty small unit.

Finally, the last benefit is the low premium that is paid. Whereas newly minted coins might sell for several dollars above the market price of silver, junk silver can trade at par or even a discount. You literally get more silver for your money, a great option for any investor.