What Are You Actually Buying?
A 40% silver bag contains U.S. Kennedy half dollars minted between 1965 and 1970. These circulated coins are valued for their silver content (approximately 295 troy ounces per $1,000 face value) rather than their numismatic or collector value.
The term "junk silver" describes this product category. It does not mean the coins are worthless or defective; it simply indicates they are valued by silver weight rather than collector premium. The coins are genuine U.S. Mint products with established silver content.
Before purchasing, understand exactly what a dealer is selling. Confirm the bag contains only 1965 to 1970 dates. The Kennedy half dollar specifications by date confirm silver content for each year, helping you verify any purchase.
Date Verification: The Critical Check
Date verification is the most important step when buying 40% silver. Only 1965, 1966, 1967, 1968, 1969, and 1970 Kennedy half dollars contain 40% silver. Adjacent years have completely different compositions.
1964 Kennedy halves are 90% silver, worth significantly more per coin. 1971 and later dates contain zero silver. A properly sorted 40% silver bag should contain no coins outside the 1965 to 1970 range.
For any significant purchase, spot-check a random sample. Pull 20 to 50 coins from different areas of the bag and verify all dates fall within range. This provides reasonable confidence without examining every coin.
Mixed Lot Risks
Be cautious with "mixed date" or "unsorted" offerings. While legitimate mixed lots exist, they also create opportunities for less scrupulous sellers to include non-silver dates or misrepresent contents.
If a price seems unusually low, question why. Legitimate dealers have costs for sorting and verification. Deep discounts may indicate problems with the inventory or seller practices.
Understanding Pricing and Premiums
40% silver bag pricing consists of two components: the melt value (silver spot price multiplied by approximately 295 ounces) plus or minus a premium or discount reflecting market conditions and dealer margins.
Calculate melt value yourself before accepting any quote. If spot silver is $28 per ounce, melt value is approximately $8,260 for a $1,000 face value bag. Compare dealer quotes to this baseline to understand the premium you are paying.
You can track current 40% silver coin pricing and availability to understand market conditions. Shopping multiple dealers helps identify competitive pricing; premiums can vary significantly between sources.
Dealer Selection and Due Diligence
Purchase from established, reputable dealers whenever possible. Look for membership in industry organizations like the Professional Numismatists Guild dealer directory, which maintains standards for ethical business practices.
Research dealer reviews from multiple independent sources. Established dealers with long track records and transparent business practices provide the most reliable transactions.
Both national online dealers and local coin shops can serve you well. National dealers often offer competitive pricing due to volume; local dealers provide face-to-face service and immediate possession. Consider your priorities when choosing.
Questions to Ask Before Buying
Clarify essential details before committing. Are all coins dated 1965 to 1970? What is the return policy if date issues arise? What are total costs including shipping and any payment fees?
Ask about buyback policies. Knowing you can sell back to the same dealer simplifies future transactions. A dealer's willingness to buy back inventory demonstrates confidence in what they sell.
Liquidity and Resale Considerations
40% silver bags are liquid assets with established dealer markets. However, liquidity is somewhat lower than 90% silver or government bullion coins due to lower trading volume and fewer specialized dealers.
When selling, expect bid-ask spreads of 3 to 8 percent depending on market conditions. During strong physical demand, spreads tighten and prices improve. During weak demand or heavy selling, spreads widen.
Building relationships with dealers before you need to sell improves transaction efficiency. Dealers who know you may offer better pricing and faster transactions than dealing with unknown sellers.
Weight, Storage, and Handling
40% silver is heavy. A $1,000 face value bag weighs approximately 50 pounds and contains 2,000 individual coins. Plan your storage solution before the silver arrives; you need weight-bearing capacity and adequate space.
Shipping costs reflect this weight. Factor shipping into your total purchase cost. Heavy packages also require someone to receive delivery; plan to be available or arrange for secure delivery options.
For home storage, ensure your safe is rated for the weight you plan to store. Bank safe deposit boxes have weight limits; verify capacity before renting. For larger holdings, professional vault storage may be more practical despite ongoing fees.
Handling Circulated Coins
40% silver bags contain circulated coins with varying degrees of wear. Handling does not damage their silver value, but reasonable care prevents loss of individual coins and maintains organization.
Consider keeping coins in their original bag or transferring to sturdy containers. Label containers clearly with face value, date range, and purchase date for accurate inventory tracking and future tax reporting.