How Junk Silver Is Priced (And Why Prices Change Daily)

If you buy a gallon of milk, the price stays naturally stable for weeks. If you buy silver, the price changes every second.

For new buyers, this volatility—and the confusing math used by dealers—can be a barrier. "Strategies? Spot? Premium? 71.5 multiplier?"

It sounds like a secret language. Let’s translate it.

The Formula

Every silver coin price is made up of two parts:

Price = (Spot Price × Metal Content) + Premium

Let's break that down.

1. The Spot Price (The "Paper" Price)

The "Spot Price" is the global stock market price for 1 troy ounce of pure silver. It is determined by traders in London and New York. It changes constantly during trading hours.

• Note: You will almost never buy physical silver at Spot Price. Spot is the price for a 5,000oz contract delivered to a warehouse.

2. The Metal Content (The "Melt" Value)

A standard pre-1965 Quarter is not 1 ounce. It is roughly 0.18 ounces. To find the "Melt Value" of $1.00 Face Value (4 quarters), the industry uses a standard multiplier: 0.715.

• Why 0.715? A fresh coin was 0.723 oz. After decades of wear in pockets, the industry agreed that 0.715 is the fair average weight.

Example: If Spot Price is $30.00/oz: The Melt Value of $1.00 FV (4 quarters) is: $30.00 × 0.715 = $21.45

3. The Premium (The "Physical" Cost)

This is where dealers make money, and where supply and demand show up. The Premium covers:

• Minting costs (for new items)
• Sorting/shipping/storage
• Dealer profit
• Scarcity

Because they aren't making any more 1964 Quarters, the premium on Junk Silver fluctuates wildly. When demand is low, premiums might be $2 over spot. When demand is high (like during a banking panic), premiums can soar to $10 over spot, because there simply aren't enough coins to go around.

The Multiplier Method

When you shop for Junk Silver, you will often hear dealers quote a "Multiplier" (e.g., "We are buying at 18x and selling at 22x"). This refers to Face Value.

• "22x Face" means: Pay $22.00 for every $1.00 of coins (4 quarters).

Is that a good deal? Use the math:

1. Take the Spot Price (e.g., $30).
2. Multiply by 0.715 (Melt Value = $21.45).
3. Compare $22.00 (the Ask price) to $21.45 (the Melt Value).
4. The difference ($0.55) is the Premium breakdown.

Summary

The price you pay pays for two things:

1. The Metal: An asset that tracks the global market.
2. The Item: A historical, finite object that must be sourced, sorted, and shipped.

Transparency is key. If a dealer won't explain their premium, walk away.

Check Live Prices: Our prices update dynamically with the market. See the current rates in our Store.