Melt value is the value of a coin or bar based solely on the precious metal it contains, calculated by multiplying the metal weight by the current spot price.
How to Calculate
Example: A pre-1964 Washington Quarter contains 0.1808 troy oz of silver. If silver spot is $30/oz: Melt Value = 0.1808 × $30 = $5.42
Melt Value = Metal Weight (in troy oz) × Spot Price
Melt Value vs. Market Value
- Bullion coins and bars typically trade at a modest premium above melt value
- Numismatic coins can trade at multiples of melt value based on rarity, grade, and demand
- Worn or damaged coins may trade near or at melt value
Why It Matters
Melt value establishes the floor price for any precious metals item. Regardless of numismatic trends or market sentiment, the metal itself always has intrinsic worth.