Calculating / converting 90% silver face into ounces

ARCO

Can someone help out. It is driving me nuts that I cannot figure it out.

Dealers quote .999 silver rounds and bars at some price above or below spot price on their bid and ask prices. Easy enough.

Some dealers quote 90% silver as above...at a price either above or below silver spot to reflect their spread. Again, easy enough.

So, if a dealer quotes 90% silver at a face rate (25.50 times silver face...as an example), what is the math formula to convert the face bid or ask into price per ounce?

Thank you,
Tyler

Wingsrule

$1.00 worth of 90% face silver contains roughly 0.715 ounces of 'pure' silver. If you take the current spot price of silver ($36.20) and mutiply it by this factor and the dollars of face value involved in the transaction, you get the "xx.x times spot" that you commonly hear.

Using numbers:

$1.00 face x 0.715 x $36.20 = 25.88x face

So a fair market value for $1.00 face at Friday's closing price would be $25.88. Similarly, $10.00 face value would be worth $258.80. You will see markups (markdowns) of various percentages depending on how much 'face' you have to sell, as well as if you are buying or selling it. Some use a multplier other than 0.715. Check prices on the BST to get a feel of who charges what. Check Tulving or APMEX to get an idea of where their prices are in relation to what someone else may be charging (paying) you.

If a dealer says "I'll sell you some 90% at 30x face" and you want to figure out the "$ per ounce" you would be paying, take 30 and divide by 0.715 = $41.96 per ounce.

As a double check, using the example above, 25.88 / 0.715 = $36.20 per ounce.

derryb

Modern Math (before they called it algebra)

ARCO

Got it. Thanks guys. So easy. Now I feel like a real tool.

tyler

laserart

Here is an easy calculator,

http://www.carlscoins.com/

gecko109

<< <i>$1.00 worth of 90% face silver contains roughly 0.715 ounces of 'pure' silver. If you take the current spot price of silver ($36.20) and mutiply it by this factor and the dollars of face value involved in the transaction, you get the "xx.x times spot" that you commonly hear.

Using numbers:

$1.00 face x 0.715 x $36.20 = 25.88x face

So a fair market value for $1.00 face at Friday's closing price would be $25.88. Similarly, $10.00 face value would be worth $258.80. You will see markups (markdowns) of various percentages depending on how much 'face' you have to sell, as well as if you are buying or selling it. Some use a multplier other than 0.715. Check prices on the BST to get a feel of who charges what. Check Tulving or APMEX to get an idea of where their prices are in relation to what someone else may be charging (paying) you.

If a dealer says "I'll sell you some 90% at 30x face" and you want to figure out the "$ per ounce" you would be paying, take 30 and divide by 0.715 = $41.96 per ounce.

As a double check, using the example above, 25.88 / 0.715 = $36.20 per ounce. >>






All the above is correct.....except it does not apply to dollars. They contain about .77oz per $1.00 face value.