The Hidden Value of 90% US Silver Coins
Today, you rarely see these pre-1965 U.S. 90% silver coins in circulation. Why? Because although these coins are U.S. legal tender and can still be used to purchase goods and services, their actual and true value is based on the amount of pure silver they contain, and that value today is substantially higher than the coins' face value.
According to Sir Thomas Gresham, a British Economist in the mid-16th century who formulated the principle known as Gresham's Law: "When coins of equal face value but different intrinsic value are put into circulation side by side, the coin with the higher intrinsic value will be hoarded and only the coin of lower intrinsic value will remain in circulation."
That is exactly what happened in the 1960's when Public Law 88-36 was passed and silver was eliminated as the underlying exchange for one and two dollar bills. In 1965, the U.S. government discontinued minting U.S. dimes, quarters and half dollars with a 90% silver content and switched instead to cheaper cupro-nickel coins with less intrinsic value.
As Gresham's Law predicted, bad money drove out the good, and pre-1965 silver coins quickly disappeared from circulation. One of the results of that situation was that a new industry dealing in the sale of silver coins to investors was born.
One of the primary benefits of a 90% silver coins investment is that the coins have a built-in guarantee simply unavailable with most other silver investments: No matter what happens to the price of silver, the value of your 90% silver coin will never be worth less than its face value.
Another feature of 90% silver coins that is often of great interest to investors is that these coinss, depending on market conditions, have been priced at a premium—or a discount—to the price of silver bullion.
In addition, buying U.S. 90% silver coins offer you a convenient, transportable and divisible way to own silver. They are real money... you can spend the coins anywhere... and they will never be worth less than their face value.
Throughout history, silver bullion has served mankind as a primary monetary metal. It is durable, divisible, convenient, has utility value, and cannot be created by fiat.
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