1. What is Melt Value?

The melt value is the intrinsic value of precious metal based on its weight, purity, and current market price. It represents what the metal would be worth if melted down and sold at the current spot price.

2. How Does the Calculator Work?

The calculator uses the melt value formula:

Where:

• \( Weight \) — Weight of the metal in grams or ounces
• \( Purity \) — Purity of the metal (0 to 1, where 1 is 100% pure)
• \( Spot Price \) — Current market price per unit weight

Explanation: The formula calculates the actual precious metal content value by multiplying the total weight by the purity percentage and current market price.

3. Importance of Melt Value Calculation

Details: Knowing the melt value helps investors, collectors, and sellers understand the minimum value of their precious metal items, separate from any numismatic or collectible value.

4. Using the Calculator

Tips: Enter weight in grams or ounces, purity as a decimal (e.g., 0.925 for sterling silver), and current spot price per unit. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between melt value and market value?
A: Melt value is just the metal content value, while market value may include premiums for collectibility, craftsmanship, or demand.

Q2: How do I find the current spot price?
A: Check financial news websites, precious metal exchanges, or bullion dealer websites for real-time spot prices.

Q3: What purity should I use for common items?
A: Common purities include 0.999 for fine gold, 0.925 for sterling silver, and 0.900 for some older coins.

Q4: Does this work for all precious metals?
A: Yes, the formula works for gold, silver, platinum, palladium, etc. as long as you use the correct spot price for each metal.

Q5: Why would melt value be important?
A: It helps determine if an item is priced fairly, assess scrap value, and understand the metal's intrinsic worth separate from other factors.