Silver has become a popular investment in recent years for those who want more financial stability than the stock market can offer. The increase in interest is attributable to the metal's tangible worth, especially in contrast to stocks. Silver offers a safe way to diversify your portfolio and see financial gains even in down markets.

Silver is available in bars and various coins. Of these, many investors opt for the security and profit potential of certain silver dollars which were issued before 1965. Here are some basics everyone should know before investing in silver.

Why Silver Dollar Coins Are a Good Investment

You have decided to invest in silver coins, but which is the best option for you? Before you decide, it is useful to compare the silver you will net from a bag of quarters and dimes and from a bag of half dollars.

When a bag of quarters and dimes is smelted, it nets about 715 ounces of silver. Half dollars, on the other hand, net 720 ounces. The difference is due to the amount of wear the coins receive.

Half dollar coins are typically handled much less than quarters and dimes, so they will net more refined silver. This makes silver half dollars a more worthwhile investment.

Silver Coins to Invest In

If you are going to invest in silver coins, it is necessary to know which specific coins to seek out. There are three pre-1965 silver coins worth investing in, and these are: the 1964 Kennedy half dollar, the Walking Liberty half dollar, and the Ben Franklin. The premiums for each are higher than those you would net from dimes and quarters.

Investing in Junk

Most of the pre-1965 silver dollar coins you will find are known as junk silver coins. This simply means that the coins have no value to a collector. Investors, however, find them to be extremely valuable.

Offered in $1000 face value bags, junk coins have purely monetary value. That is, they are not in demand for collectors but are still valuable because of the high silver content. Junk coins are a safe investment, particularly if the dollar's worth declines.

Before you invest in silver, make sure that you are thoroughly familiar with pre-1965 silver dollars and what steps you need to take to ensure that you make financial gains.