How this calculator works
Silver items are marked by their fineness, the share of pure silver by weight. Fine silver is .999, Britannia silver is .9584, sterling is .925, coin silver is .900 and many older European pieces are .800. The remainder is usually copper, which hardens the metal, and sometimes another metal that has its own scrap value. This calculator multiplies the item weight by the purity to get the pure silver content, then multiplies by the price per gram. If part of the item is a priced base metal, that share is valued separately and added. A dealer who buys scrap must refine and resell it, so the offer is below melt value; the spread input models that discount. The price of silver is normally quoted per troy ounce, so divide the ounce price by 31.1034768 to get a price per gram. Sterling flatware, candlesticks and jewellery are the usual sources of scrap. Plated items are worth very little: the silver layer is a tiny fraction of the weight, and the base is usually not precious.
Formula
Purity = the fineness mark as a decimal. Pure silver weight = item weight x purity. Silver value = pure silver weight in grams x price per gram. Base metal value = item weight x base metal share x base metal price per gram. Melt value = silver value + base metal value. Dealer offer = melt value x (1 - spread). Price per gram = price per troy ounce / 31.1034768.
Worked example
100 grams of sterling silver at .925 contains 92.5 grams of pure silver. At $1.20 a gram the silver value is $111.00. With no base metal and an 8% dealer spread, the estimated offer is $102.12. If 5 grams of the item are a base metal priced at $0.01 a gram, the extra value is $0.05, which barely changes the total.
Advertisement
Frequently asked questions
How do I tell sterling from silver plate?
Look for a stamp such as Sterling, 925 or STG. Plated items are often marked EPNS, EP or Silver Plate. A magnet test and a visual check of wear at the edges help, but a jeweller or refiner can test it properly.
What is a troy ounce?
It is the standard unit for precious metals, equal to 31.1034768 grams. It is heavier than the ordinary avoirdupois ounce of 28.3495 grams, so do not use a kitchen ounce scale for silver weight without converting.
Why is the dealer offer lower than the melt value?
The dealer has to refine the metal, pay for assay and shipping, hold inventory and make a margin. Small lots and mixed purity attract a larger discount. Get more than one quote before selling.
Are coins worth more than their melt value?
Some are, because of numismatic value. Common bullion coins trade close to melt, but rare dates and grades can be worth far more. Check a coin guide before selling a collection as scrap.
Does this include tax?
No. Tax treatment of silver sales varies by country and by the form of the metal. In Canada, some investment-grade precious metals are exempt from GST/HST while scrap may not be. Check the rules where you live.