1. What is Melt Value?

The melt value represents the intrinsic metal value of a coin or bullion based on its precious metal content. It's calculated using the current spot price of the metal, the item's weight, and its purity.

2. How Does the Calculator Work?

The calculator uses the standard melt value formula:

Where:

• Weight — The item's weight in troy ounces (1 troy oz = 31.1035 grams)
• Purity — The metal content as a fraction (e.g., 0.999 for 99.9% pure)
• Spot Price — Current market price per troy ounce of the pure metal

Explanation: This calculation gives you the raw metal value before considering any numismatic or collectible premium.

3. Importance of Melt Value

Details: Knowing the melt value helps investors and collectors understand the minimum value of their precious metal items, determine fair prices when buying or selling, and make informed investment decisions.

4. Using the Calculator

Tips: Enter weight in troy ounces (1 troy oz = 31.1035 grams), purity as a decimal fraction (e.g., 0.925 for sterling silver), and the current spot price in dollars per troy ounce. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between melt value and numismatic value?
A: Melt value is the raw metal worth, while numismatic value includes collector premiums based on rarity, condition, and demand.

Q2: Where can I find current spot prices?
A: Check financial news sites, precious metal exchanges, or bullion dealer websites for real-time spot prices.

Q3: How accurate is this calculation?
A: It's mathematically precise, but actual buy/sell prices may vary based on dealer premiums, market conditions, and item form.

Q4: Does this work for all precious metals?
A: Yes, the same formula applies to gold, silver, platinum, and palladium - just use the appropriate spot price.

Q5: Why use troy ounces instead of regular ounces?
A: Precious metals are traditionally measured in troy ounces (31.1035g) rather than avoirdupois ounces (28.3495g).