SPOT PRICE Vs MELT PRICE

[ Matthew 26:14 wrote:
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". ]

Oh yeah thanks Mathew....
 
silversearcher said:
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...................
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Hey 'RETARD' listen up

No idea what your or my definition of an experienced member is and frankly i don't care.

But kid i was back packing Kilo's of silver around Melbourne and Country Victoria when most dealers snubbed their noses at Proof Kilo 2000 dragon Sets and sold them near spot.
Were you even out of high school then?
Been trading Gold and Silver a millennium before you realised Chocolate gold money could not be traded at the GSR rate.
You see i realise i am far from an expert at this game even with all the leg miles i have done and research and graph bending and reading etc etc etc but i have come full circle.
So 'Stimpy' sit behind your computer eating potato chips using God knows what 'Speak and Spell' your typing on to give you such clear sentence structure and continue making Stupid comments(I did take the time to read all your posts in case i had been harsh..but i wasn't.. or rudei am now)
There is confusion and your creating it.
Love your forecasts FMe....insightful to say the least.
So from a person whose handled more Gold and Silver than you have eaten Smarties...Sincerely-Your a Douche bag or as my generation would say 'A drop kick'

By the way..sorry i just had to add
A lot of the experienced members you are imploring to Don't consider it 'Investing' :rolleyes: - more as Hedging or define the use of PM's as 'A store of Wealth'

Ohhh Smiley face timealways forget to add those for Curtesy sake. ;)
REDBACK
 
What's "Speak and Spell" ? I'm old old school mate, prefer pen and paper personally. However, I do thank some those who shed some light on this topic. Redback, please no more responses as your rants and raves are not only vexatious but verbose.... Regards
 
silversearcher said:
[ Matthew 26:14 wrote:
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". ]

Oh yeah thanks Mathew....
Click to expand...

Times I've gone to bullion dealers in the US they interchangeably use "spot" and "melt" to mean the same thing. I think because when you talk to dealers there and you are looking to sell, they usually say something like " I am buying at $X today as thats what the refinery will pay me to melt it down" which I guess is where "melt price" comes from. And when you see them say what their melt price is, its the same as the "buy" price on the live spot market, not the "sell" price.
 
silversearcher said:
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
Click to expand...

Yes. Silver bought under melt price is a good investment... How could it be a bad investment? I don't understand
 
As far as I know the melt price is the spot price so indeed if you are paying less than spot/melt for the silver content in the product then you are generally getting a good deal- unless you plan on selling them to a dealer who would likely give you a percentage under spot for the actual silver content in the product - as long as this percentage is smaller that the percent under spot/melt that you paid then you win - simple maths.

On the market, outside of dealers, you should achieve spot without a problem for the actual silver content. Win again!

However, for instance, if you were to approach a refiner with say two bags of product described as follows:-
100kg of 80% junk silver
100kg of pure silver;
and wanted to melt these into say 1 x 180kg pure bar then the melting/refining charge per kg will be greater for the 80% silver coins due to added refining costs.
 
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