Melt value is the intrinsic value of an item based solely on the weight of the precious metals, which is calculated based on the current spot price.
For bullion investors, this calculation is a fundamental way to determine the base value of items such as coins, bars, or jewelry, regardless of numismatic or collectible premiums.
The FindBullionPrices.com Bullion Coin Melt Value Guide provides melt values and specifications for a variety of gold and silver coins from the United States and the rest of the world. Explore bullion coin melt values using the categories below.
Understanding these terms helps investors and collectors decide when buying or selling precious metals based on melt value.
| Term | Definition |
|---|---|
| Troy Ounce | The industry uses the troy-ounce scale for measuring precious metals. A troy ounce is about 31.1035 grams, which is heavier than the regular ounce (28.3495 grams). |
| Spot Price | This is the current market price of the metal, which changes based on market conditions. |
| Purity/Fineness | Indicates the proportion of precious metal in an item. For instance, 24-karat is pure gold (99.9% fineness), while sterling silver is 92.5% pure. |
| Bullion | Refers to gold, silver, or other precious metals in the form of bars, coins, or ingots, primarily valued by their weight and purity, not by their collectible or historical value. |
| Numismatic Value | This is the value of a coin or precious metal item based on factors like rarity, age, condition, and historical significance. Numismatic value is separate from melt value. |
| Alloy | Gold or silver coins are often mixed with other metals for durability in the minting process. |
The melt value is simple to calculate if you have the necessary information.
First, identify the weight in troy ounces. For standard coins and bars, you can find this information on dealer websites.
Second, identify the metal's purity or fineness. For example, a 14-karat gold item is only 58.3% gold, while a 24-karat item is 99.9% pure.
Third, multiply the item's weight by its Purity to get the total amount of pure precious metal.
Finally, multiply the weight of the metal by the current spot price to get the melt value.
For example, one troy ounce of 90% pure silver at a spot price of $31 per troy ounce has a melt value of $27.90.
(1 troy ounces) X (0.9 purity) X ($31 spot price) = $27.90 melt value.
| Metal | Type | Description |
|---|---|---|
| Gold | Scrap Gold Jewelry | Old, broken, or unwanted jewelry, often sold for melt value based on its gold content. Items marked with "10K," "14K," or "18K" can be tested or weighed for their gold purity. |
| Gold | Coins with Low Numismatic Value | Common or heavily circulated coins, such as those damaged or without significant collector interest, are ideal for selling at melt value. |
| Gold | Dental Gold | Crowns, bridges, and fillings that contain gold can also be refined and sold for their metal content. |
| Silver | Scrap Silver Jewelry | Tarnished or broken silver jewelry marked "925" (sterling) typically sells for melt value. |
| Silver | Silverware/Flatware | Silver cutlery and trays marked "Sterling" or "925" can be sold based on their silver content, excluding plated items that contain very little silver. |
| Silver | Silver Coins | Pre-1965 U.S. dimes, quarters, and half dollars, which are 90% silver, are common in the melt market. |
The higher the Purity, the higher the melt value. Always confirm the Purity before selling. Testing the Purity might be necessary for items like jewelry or industrial silver.
Monitor current spot prices for gold and silver. The market can fluctuate daily, and timing your sale when prices are high will ensure a better return.
Buyers often deduct refining costs for scrap items, especially if the item is an alloy.
Selling for melt value is ideal for precious metal items that lack collectible or artistic value. For instance, damaged jewelry, worn-out coins, or industrial silver are still valuable for their metal content.
Understanding melt value offers several advantages. Focusing on the weight and Purity ensures you get the most accurate return based on current market conditions.
Additionally, selling precious metals for melt value provides a fast and efficient way to convert old or unwanted items into cash without waiting for the collector's market.
