Every gold or silver coin has two prices: what it's worth as raw metal, and what someone will actually pay for it. The first is melt value — fixed, calculable, and the same for everyone. The second depends on premiums, condition, rarity, and demand. Confusing the two is the most common mistake new buyers and sellers make. This guide shows you exactly how melt value is calculated and what it is for the coins people ask about most.
What Is Melt Value?
Melt value is the worth of the precious metal physically contained in a coin — nothing else. It's calculated with one formula:
Pure metal content (troy oz) × spot price = melt value
Example: 1 American Gold Eagle = 1.000 ozt gold × $3,300/ozt spot = $3,300 melt value
Note the phrase “pure metal content,” not total coin weight. Most bullion gold coins are alloyed with copper or silver for durability, so the coin's gross weight is higher than its actual gold content. The table below distinguishes the two for every major coin.
Melt Value Reference: Modern Bullion Coins
These are minted to fixed, government-certified specifications — the numbers below never change regardless of the coin's year or condition.
| Coin | Metal | Fineness | Gross weight | Pure content |
|---|---|---|---|---|
| American Gold Eagle (1 oz) | Gold | 91.67% | 1.0909 ozt | 1.000 ozt |
| Canadian Gold Maple Leaf (1 oz) | Gold | 99.99% | 1.0000 ozt | 1.000 ozt |
| South African Krugerrand (1 oz) | Gold | 91.67% | 1.0909 ozt | 1.000 ozt |
| Austrian Gold Philharmonic (1 oz) | Gold | 99.99% | 1.0000 ozt | 1.000 ozt |
| British Gold Sovereign | Gold | 91.67% | 0.2569 ozt | 0.2354 ozt |
| American Silver Eagle (1 oz) | Silver | 99.9% | 1.0000 ozt | 0.999 ozt |
| Canadian Silver Maple Leaf (1 oz) | Silver | 99.99% | 1.0000 ozt | 1.000 ozt |
| Mexican Silver Libertad (1 oz) | Silver | 99.9% | 1.0000 ozt | 0.999 ozt |
Melt Value Reference: Pre-1965 US Silver Coins
These older coins are 90% silver alloyed with copper. They're covered in detail in our junk silver guide — included here for quick reference alongside modern bullion.
| Coin | Metal | Fineness | Gross weight | Pure content |
|---|---|---|---|---|
| Morgan Dollar (1878–1921) | Silver | 90% | 0.8594 ozt | 0.7734 ozt |
| Peace Dollar (1921–1935) | Silver | 90% | 0.8594 ozt | 0.7734 ozt |
| Walking Liberty / Franklin Half (pre-1965) | Silver | 90% | 0.4019 ozt | 0.3617 ozt |
| Washington Quarter (pre-1965) | Silver | 90% | 0.2009 ozt | 0.1808 ozt |
Morgan and Peace Dollars often carry collector premiums well above melt — check numismatic value before treating them as bullion. See the section below.
Melt Value Is Not a Transaction Price
Melt value tells you the floor — what the metal is worth with zero markup in either direction. In practice, you never buy at melt value and you rarely sell at it either:
When you buy
Dealers add a premium over melt to cover minting costs, shipping, and margin. Premiums range from 2–5% on common bullion coins to 10%+ on fractional sizes or scarcer mints. Our dealer comparison page tracks current premiums across major dealers for popular coins.
When you sell
Dealers buy back below melt value — typically a 1–5% spread on common bullion — to cover their own margin and resale risk. A coin shop offering a price slightly under spot for a Silver Eagle isn't lowballing you; that's the normal buy-sell spread every dealer operates on.
Numismatic Value Can Dwarf Melt Value
Melt value is a floor, not a ceiling. Rarity, mintage, condition, and historical demand can push a coin's actual worth far above its raw metal content — sometimes by orders of magnitude. A common-date Morgan Dollar in worn condition might trade close to its $0.77 ozt of silver melt value plus a modest premium. The same coin in a low-mintage year and uncirculated condition can sell for hundreds or thousands of dollars to collectors, with the silver content being almost irrelevant to the price.
Before assuming any coin is worth only its melt value, check its date, mintmark, and condition against a numismatic price guide (PCGS and NGC both publish free price guides online) or get it appraised by a reputable dealer. This matters most for pre-1965 US silver coins, classic gold coins (pre-1933), and any coin with a mintage under roughly one million.
Quick Checks Before You Trust a Melt Value
Melt value calculations assume the coin is genuine. A few fast checks catch most counterfeits and platings before you do any math:
Weigh it precisely
Government mints hold extremely tight weight tolerances. A digital scale accurate to 0.01g will catch almost any counterfeit — gold-plated tungsten fakes, for example, are typically off by a noticeable margin once you know the genuine spec.
Check the diameter and thickness
Calipers are cheap and reliable. Mints publish exact diameter and thickness specs for every coin; deviations of even a fraction of a millimeter are a red flag.
Try a magnet
Gold and silver are both non-magnetic. A coin that's noticeably attracted to a strong magnet is not solid precious metal — though the converse isn't proof of authenticity, since some fake alloys are also non-magnetic.
Frequently Asked Questions
What is melt value?
Melt value is the value of the precious metal physically contained in a coin, calculated by multiplying its fine metal weight in troy ounces by the current spot price. It excludes any collector or numismatic premium.
How much gold is in an American Gold Eagle?
A 1 oz American Gold Eagle contains exactly 1.000 troy ounce of pure gold, with a gross coin weight of 1.0909 troy ounces at 91.67% fineness — the extra weight is the copper and silver alloy added for durability.
Is melt value the same as what a dealer will pay me?
No. Dealers buy below melt value to cover their margin and sell above melt value to cover minting and overhead costs. Melt value is a reference point, not a real transaction price in either direction.
Should I melt down a rare or old coin for its metal value?
Check numismatic value first. Many older or low-mintage coins are worth significantly more to collectors than their melt value — sometimes far more. Always verify date, mintmark, and condition before treating a coin as pure bullion.
How do I check if a gold coin is real?
Weigh it on a precise scale and measure it with calipers against the mint's published specs, and try a magnet test (gold is non-magnetic). For larger purchases, a coin shop's XRF testing gives certainty.
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