Melt Value
Definition
Melt value is the worth of an item’s actual metal content, calculated as the current spot price multiplied by the troy weight and the metal’s purity. It ignores any collectible, design, or brand premium.
Melt value is the baseline figure dealers and refiners start from when pricing coins, bars, and scrap metal.
Why it matters
Melt value tells you what an item is worth strictly as raw metal. For common bullion, the price you pay or receive tracks closely to melt plus a small premium. For numismatic or collectible pieces, the market price can sit well above melt, so melt acts as a floor rather than the full value.
In practice
To estimate melt value, you need three inputs: the spot price of the metal, the item’s weight in troy ounces, and its fineness or purity. A coin described as one troy ounce of pure gold has a melt value roughly equal to the gold spot price. A 22-karat coin weighs more overall but still contains a known amount of pure metal, which is what melt measures.
Common confusion
Gross weight is not the same as pure-metal weight. A 22-karat coin can weigh more than one troy ounce yet contain exactly one troy ounce of gold. Melt value is based on the pure content, not the stamped face value or the total alloy weight.