Junk Silver Prices Thread - Report In Here

There is no "spot" price for 90%. "Spot" silver price represents the value of 1 ozt of .999 silver.
90% silver is priced based on the "melt" value which is calculated as Spot price x .715. Anything added to the melt value is the premium paid above the melt price.
The add should state $2.50 over melt, not over Spot. They are two different things.

As am example , referencing my receipts, on 12 Sep 2020, silver spot price was $26.70. I purchased 4 cull Peace dollars for $104.00 or $26.00 ea. Seventy cents below spot.
I also purchased 90% @ 20x FV on the same day. The "melt" price, $26.70 (spot) x .715 = $19.10 (melt). Thus, I paid a 90 cent premium above the "melt" price of $19.10 which is roughly a 5% premium above the melt price.
I hope this explains the difference between spot and melt price. The terms cannot be used interchangeably in regards to junk silver and .999 silver. I can think of more simple terms to explain this.

I've bought a ton of junk silver over the years and I have found that most of the time, they weight more than the .715 on a $10 roll. Of course, if you have a bunch of slicks like Barber dimes that won't be the case but overall, that .715 holds true. It's an average, not every coin, and you will do fine if you buy it using that calculation IMHO.

I understand what you are saying dowhat, but in common parlance the two words are essentially interchangeable, and JM's advertisement highlights that. If you purchased a silver dime for $2, no one would understand what you mean if you told people you bought a silver dime for $22 below spot, it conveys absolutely no meaningful information.

If you sell constitutional silver to a dealer, the price paid will for FV in relation to the current "melt" price, not the spot price. This applies to buying as well. A dealer is not going to weigh your bag and calculate the actual silver content within. It is just not done that way. At least not anywhere I am familiar with.
It is really not confusing at all if you understand how it works which I have tried my best to explain. It is the business standard and provides one with the knowledge of knowing a good deal from a bad one.
Before I make a purchase of junk I call local dealers to compare premiums, that is the amount above the melt value. They are not all the same and some are ridiculously high.
I must assume that you do not stack NumisEd.

[quote]understand what you are saying dowhat, but in common parlance the two words are essentially interchangeable, and JM's advertisement highlights that. If you purchased a silver dime for $2, no one would understand what you mean if you told people you bought a silver dime for $22 below spot, it conveys absolutely no meaningful information.[/quote
I do not know anyone in any circumstance that would make that statement. The appropriate reply would be, in this scenario, " I purchased a silver dime @ $20 FV". 20 X .1 = 2.
Melt value is a derivative of spot price. As one changes, so does the other.
AdamE, read further down to the Summary of the article you posted.

The melt value of $1 Junk is at most $17.34 today (less if the coins contain less silver due to wear). https://www.NGCcoin.com/price-guide...-values.aspx
Since $20.27/$17.34 = 1.169, the premium is about 17%. Seems steep to me.
In contrast, a Silver Philharmonic (typically the cheapest official bullion coin) is at $27.57. A 14.83% premium.

Might as well buy that one.

I tend to agree with that statement overall. However, we do not know what the exact SHTF situation will be....what caused it, what is deemed necessary at the time, etc. Because of that, I make sure I stack all different kinds just to be sure I have what may be needed at the time.