90% Silver Coins, Junk Bags
From 1795 to 1933 the United States minted gold and silver coins for use in commerce. It wasn’t until 1965 that this practice was stopped with silver (1933 for gold). Dimes, quarters, half-dollars and full dollars were minted in 90% silver. If you look at the change you have around your house you will probably notice that you do not have any coins minted prior to 1965. The reason for that is because good money draws out the bad.
"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." - Gresham’s Law.
Just like an American Gold Eagle that has a face value of $50 and an actual value much higher than that, the actual value of a quarter with silver at $30 per ounce is around $5; therefore if any of these are spotted they are hoarded. Why use a coin as $.25 when it’s worth $5?
As time progressed more and more people began to hoard pre-1965 90% silver coins and as a result today these coins are aggregated in $1,000 face value bags, called “junk silver,” (a name made famous in the 1970’s) and are marketed to investors. $1,000 face value is equal to 4,000 quarters or 10,000 dimes etc. Each bag contains close to 715 ounces of pure silver and weighs roughly 55 pounds.
Due to their relatively high availability, no collectible value and being a secondary market product (no new minting and marketing cost), 90% silver coins can be bought a very low premiums over the spot price of silver.
Many investors in junk bags of silver are looking for a way to have silver in small quantities because they believe that if there was ever to be an economic collapse they could be used to barter with much easier than larger 1 oz. versions of silver coins. And after all they will never be worth less than their face value.