SPOT PRICE Vs MELT PRICE

silversearcher

silversearcher

Active Member
Silver Stacker
Hello guys and girls,

This is probably is a post delt with in the past. However in a previous post I did mention when buying pure silver "999 coins" I always buy as close to the spot price as possible. I still stick by this principal . But of late I've bought about 5 ounces of coins 72% silver under melt price. For example - if the melt price of each the coin is $20, I've managed to purchase these coins for $2 - $3 below melt price. These are purely bought as investment coins only for their silver content. I know the term "junk silver coin" is broad, covering many world coins, but is this a good investment if bought under the current melt price ? If a more experienced member could shed some light on this subject that would be much appreciated. Kind Regards
 
Best you sell $100 of your junk silver purchase on SS to determine wether it is a good investment or not.
Profit=Yes
Loss=No
If you let it ride the market will decide ;)

REDBACK
 
hiho said:
melt value would be the spot value minus the refining cost?
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*nods head in agreement* I think that is the true 'melt value' of junk silver... The amount that companies buying this stuff to melt down regularly will pay, or how much it costs you to do this for yourself.

But sometimes I hear it referred to as the actual silver content at spot value... i.e. if you have a 70% silver "stuff" that weighs one troy ounce, then you take it to be 70% of the spot price.

Point is, its a bit like a biscuit in Australia and a biscuit in the U.S.A... same word, different meaning to different people.

You know what? I reckon we should get a 'glossary of terms' linked off the main page to eliminate such confusion. Shotgun not doin it though coz I'm a noob. :P
 
Were the coins you bought below spot 999 coins or other purity ?
 
silversearcher said:
Interesting, seems as if nobody has provided a decent answer yet.....
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You have to provide a decent question first mate.
It really sounded like bragging to be frank no matter how many times i read it- followed by a pat on the back question.

'Hello guys and girls,
This is probably is a post delt with in the past. However in a previous post I did mention when buying pure silver "999 coins" I always buy as close to the spot price as possible. I still stick by this principal . But of late I've bought about 5 ounces of coins 72% silver under melt price. For example - if the melt price of each the coin is $20, I've managed to purchase these coins for $2 - $3 below melt price. These are purely bought as investment coins only for their silver content. I know the term "junk silver coin" is broad, covering many world coins, but is this a good investment if bought under the current melt price ? If a more experienced member could shed some light on this subject that would be much appreciated. Kind Regards'

75% under melt..Blah Blah..
Always buy close to spotBlah Blah..
Stick by this obvious principal..Blah..Blah.
Purely brought as investment coins for silver coins Blah..de de Blah Blah.
Then 'Is this a good investment ifBlah Blah Blah...
So you brought as a pure gamble because you were not sure if they were a good investment to paraphrase your technique..Which by the way in itself i am not questioning.
But you got an answer Bird brainPut a small portion on the friggen market and find out the practical way.
Or hold them for a few years and then get 34 different opinions and.. Drum roll.. sell them and find out the same.
Cant help some people
Almost forgot Smiley face :)

REDBACK
 
In the US, I notice they refer to "melt price" which is the same as spot price. Similar to here we refer to a coin as "specimen" or "bullion coin" they call "BU = Brilliant Uncirculated".
 
Matthew 26:14 said:
In the US, I notice they refer to "melt price" which is the same as spot price. Similar to here we refer to a coin as "specimen" or "bullion coin" they call "BU = Brilliant Uncirculated".
Click to expand...

That makes it even worse because this guy is an Aussie


REDBACK
 
Hey Redback no need to be rude mate. And nobody twisted your arm even to enter this forum. Level headed comments is what most of us seek, not being flamed. Remember- I did ask for a more experienced member to shed some light on this subject. I'm sure others may wish to "LEARN" more about "SILVER INVESTING" not a rant and rave from a fellow Silver Stacker member.
Yes there maybe some confusion in what is ment by melt value is. We all should know what spot price is, but melt price on silver coins is treated differently.

MELT PRICE IS- metal content, paying attention to what they call "melt value" which doesn't imply the melting of the coin (which may be illegal) but rather the intrinsic value of the silver contained.

Regards...................
 
silversearcher said:
MELT PRICE IS- metal content, paying attention to what they call "melt value" which doesn't imply the melting of the coin (which may be illegal) but rather the intrinsic value of the silver contained.

Regards...................
Click to expand...

Still doesn't make sense :rolleyes:
Same thing to me spot/melt
 
spannermonkey said:
silversearcher said:
MELT PRICE IS- metal content, paying attention to what they call "melt value" which doesn't imply the melting of the coin (which may be illegal) but rather the intrinsic value of the silver contained.

Regards...................
Click to expand...

Still doesn't make sense :rolleyes:
Same thing to me spot/melt
Click to expand...

Think we are just talking semantics here, as

Value of metal in coin = melt value/price ? = no. of oz of silver in coin x spot price

I always thought spot price was universally used to value silver coins/items - personally I would have thought spot to be exactly the same as melt price, unless the melt price is a specific term used only at the refinery (e.g. = silver content - refining fees).
 
I know it sounds like it makes no sense. But that's the definition of "melt price". Although I did like Hiho's definition. Point being if there is a refiners cost, that cost may well be more than the value of the silver content. If so why would so many silver investers buy "junk coins" ? Probably need a experienced member who has bought "junk coins" and remelted or resold to give us NEWBIES some insight. I'd love to hear from him on this subject... Regards
 
I buy junk coins as a diversification in case SHTF and paper fiat is worthless,they are a low cost form of fractional silver so I will be able to buy stuff with them if there comes a time when no body will accept paper. I would never melt down any of my pre-dec coins as someday the will be worth more than spot price, even the post 46 ones.
 
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