Melt Value Explained: What Your Coins Are Worth as Metal
Every silver or gold coin has two potential values: what collectors will pay for it, and what the raw metal inside it is worth. That second number is the melt value, and for millions of common-date coins it is effectively the market price. Knowing how to compute it takes one formula and a current spot price.
Intrinsic value versus numismatic value
A coin's intrinsic (melt) value is what its metal would fetch if melted down. Its numismatic value is what collectors pay for it as a coin, based on rarity, condition and demand. The market price is essentially whichever is higher. A worn common-date silver dime trades at melt; a rare date of the same series trades far above it. Melt value therefore acts as a floor: precious metal coins cannot fall below it for long, because refiners and stackers will buy them at that level.
The melt value formula
Melt value equals the coin's actual precious metal weight in troy ounces multiplied by the spot price. The metal weight is the coin's gross weight times its fineness (purity). For example, a US Morgan or Peace silver dollar weighs 26.73 grams at .900 fine, which works out to about 0.7734 troy ounces of pure silver; multiply that by the current silver spot price to get its melt value. Spot prices move constantly, so melt value is always a moving target.
Common silver coin contents worth memorizing
- US dimes, quarters and half dollars dated 1964 and earlier: 90% silver. Roughly 0.0723 oz of silver per dime, 0.1808 oz per quarter, 0.3617 oz per half dollar.
- US half dollars 1965-1970: 40% silver, about 0.1479 oz each.
- War nickels 1942-1945 (large mint mark above Monticello): 35% silver, about 0.0563 oz each.
- Silver dollars 1878-1935 (Morgan and Peace): about 0.7734 oz each.
- Many world coins were silver into the mid-20th century too; check the specific issue, as fineness varies widely.
What is junk silver?
Junk silver is the affectionate term for common-date, worn silver coins with no collector premium: they trade purely on metal content, usually in bags or rolls quoted at some multiple of face value. Despite the name there is nothing wrong with them; they are simply the most affordable way to hold physical silver. A useful rule of thumb: $1 of face value in US 90% silver coin contains about 0.715 troy ounces of silver after accounting for circulation wear.
Gold coins and melt
The same logic applies to gold. Modern bullion coins such as American Eagles and Krugerrands contain a stated amount of gold (commonly one troy ounce) and trade near spot plus a small premium. Older circulating gold, like US pre-1933 gold or British sovereigns (0.2354 oz of gold each), trades at melt plus whatever numismatic premium the date and grade justify. Always check for rare dates before treating old gold as bullion: melting or selling a key date at metal price can be an expensive mistake.
Tracking melt value without a spreadsheet
Because spot prices change every trading day, a collection's melt value changes with them. Numist tracks the live melt value of your saved collection across gold, silver and other metals, so you can see the metal floor under your coins at a glance. Its value figures are informational estimates, not a formal appraisal, and before selling anything unusual it is worth checking whether numismatic value exceeds melt; our guide on what makes a coin valuable covers how to tell.
Common questions
- How do I calculate the melt value of a silver coin?
- Multiply the coin's pure silver content in troy ounces by the current silver spot price. Silver content is the coin's weight times its fineness: for example, a pre-1965 US quarter contains about 0.1808 troy ounces of silver.
- What does junk silver mean?
- Junk silver refers to common, worn silver coins that carry no collector premium and trade purely on their metal content, typically pre-1965 US dimes, quarters and halves sold in rolls or bags. It is generally the cheapest way to buy physical silver.
- Which US coins contain silver?
- Dimes, quarters and half dollars dated 1964 or earlier are 90% silver; half dollars from 1965-1970 are 40% silver; nickels from 1942-1945 with a large mint mark over Monticello are 35% silver; and Morgan and Peace dollars are 90% silver.
- Is melt value the same as what a dealer will pay?
- Not exactly. Dealers typically buy slightly below melt to cover their margin and sell slightly above it, and prices track the constantly moving spot market. Melt value is the reference point that both sides negotiate around.