What grade are "junk" coins considered to be in before they are "junked"? Or, asked another way; what condition do coins have to be in before they are considered "junk" and only good for bullion investing? I have several bags of old U.S. silver "junk" coins and some actually seem to be in pretty good condition. Maybe a few of them might even be in collector grade condition? I don't know.
There's no firm answer. I've bought "junk" lots with FR-2 cull stuff, and I've bought lots with EF/AU Mercury dimes. I typically don't sell for scrap unless it's common date, circulated stuff. Damaged coins -- dyed, burnt, all get tossed into my scrap pile unless it's good date. You can often find good coins in scrap lots. If you want to take the time to go through it carefully, you can make extra money.
I would assume junk coins have considerable damage, like dings, scratches, or just generally a low grade. The bag of silver you are talking about probably just has coins in it that couldn't make VF or XF. Also, someone could be referring to common dates... I guess it depends on one person's definition of junk against another's definition.
In general terms, a coin is considered as junk whenever the value of the coin equals or is only slightly above melt value - regardless of the grade. And yes, that includes in many cases MS grades.
Good info! i always though junk was, well, junk, garbage.. below about good, below poor ect... Something to keep in mind i guess!
Another quote backing up what Doug says. For example, if we buy a bunch of coins at work and some are in 2x2's and uncirculated they are "junk". I've tossed too many unc 1964 Kennedy halves in the "melt bucket" along with XF+ Franklins and the occasional proof coin. Get into the World stuff and it's even scarier. I have cut out lower mintage proof coins and tossed them in a bucket. Hate to see it happen but if the silver is higher than retail it DOES happen. Supply, demand and highest price.
Very true, back during the 79 - 80 silver dness there wer even BAGS of Mint State Morgans being sent to the smelter. As just one example Silvertowne sent over a dozen bags of MS 1883 O dollars off to the smelter. It sounds terrible but at the time the numismatic value before the metal jump was about $15 and they would scrap at $30. So that would mea you wuld have to try and sell them to collectors at $32 a how long would it take to find 12,000 who want one? Sure you could sell a few, maybe a few rolls to dealers or speculators and make a few more dollars over a few month period. Or you can scrap them and be paid tomorrow and turn the money again.
