Need help with junk silver conversion

Robb

I'm trying to figure out the best formula for calculating melt value of junk silver U.S. currency. I've found two formulas and am wondering which is better and whether there is some other formula that is better. For this exercise I'm using a pre-1964 half dollar based solely on silver content, no collector value, and the spot price of $35/troy ounce.

Formula 1:
Spot x % silver or 35 x .36 which comes to $12.60

Formula 2:
Face x .715(no idea where this number comes from but it's the same multiplier no matter the denomination) x spot or .5 x .715 x 35 which comes to 12.52

Which formula is better? Other than the obvious joke, buy with 2 and sell with 1.

mkman123

I just use coinflation.com calculator

Robb

<< <i>I just use coinflation.com calculator >>



Just did that and they computed $12.66 Unfortunately I don't see the formula that they use anywhere.

gsa1fan

I like Carl's the best. Bottom of page.

Texthttp://www.carlscoins.com/

OPA

<< <i>I just use coinflation.com calculator >>



or: http://www.coinmelt.com/

Robb

<< <i>

<< <i>I just use coinflation.com calculator >>



Just did that and they computed $12.66 Unfortunately I don't see the formula that they use anywhere. >>



Found it. They use Formula 1 but down to the exact silver content instead of rounding it off.

mkman123

I use the site as a reference.....if I can get silver cheaper than the current price I'm happy!

Flea market opens back up this weekend...........I hope the coin guy has silver for me at 5x I've been saving up!

Robb

<< <i>I like Carl's the best. Bottom of page.

Texthttp://www.carlscoins.com/ >>



$12.65 He appears to use Formula 1 as well but down to the exact percentage.

Robb

Now I have to figure out how to compare the apples of junk silver to the oranges of bullion bars and rounds.

CaptHenway

A BU $1000 bag of silver contains 723.38 tr. oz. of pure silver after refining out the alloy.
A circulated bag is assumed to average out at 715 tr. oz. pure. That's where the .715 oz. per dollar figure came from.
TD

BigE

Interesting, around 8oz of silver wear off of a 1000.00 bag due to circulation, wonder how much would be gone if coins were pure and not 90%. As far as gold tender goes, it would be way better to own krugerands if we ever had to go back to the gold standard----------------------BigE