US GOLD COINS MELT VALUE *** Many of these coins have numismatic value above their melt value. We pay for this value. Call for a free no obligation quote today! 303-500-5159
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Gold coin melt value – How Does It Work?
Many people who invest in gold coins are often curious or want to know more about their gold coin collection’s melt value. Generally, for common modern gold 1oz coins including U.S gold coin(s) that are damaged or scratched, will sell at or close to their so-called melt value. The melt value is mainly the value of gold which may be melted down to mint another coin, jewelry, or perhaps gold bullion. In other words, it is the amount of gold in the coin.
Many companies offer melting and buying services catering to people who have damaged coins. Some claim to offer the highest possible price, but the so-called “highest” is a relative term. While there are many places where you can sell damaged gold coins, it is important to know the gold coin melt values of the coins so that you know if you’re a fair price is being offered.
If the present gold price is $1900 per ounce, a buyer should offer you close to the spot price for the gold in your coin, even if that coin is damaged. In other words, you should not receive a price much lower than 100% of the melted gold value of the coin.
It is essential to highlight that most coins don’t require melting, even if there are visible signs of wear or may have scratches. Generally, we avoid melting coins because there are buyers interested in buying slightly damaged gold coins. That’s why if it is only minor damage, you will get close to the coin’s gold melt value.
What Is A Gold Coin’s Melt Value?
Simply put, a gold coin’s melt value is the value of the gold in the coin should it be melted.
It is fairly common for severally damaged common gold coins to be melted down. Today, billions of dollar’s worth of coins are being bought and sold yearly, with a small portion of these coins that are extremely damaged coins melted down and recycled. The majority of coins that are sold to pawn shops, jewelers, and other gold buyers are usually not melted and are rather resold as coins, it is only the extremely damaged ones that are melted down because those buyers don’t have a market for the coins.
That said, if you collect U.S gold coins, for instance, knowing the U.S gold coin melt value is important because that tells you how much the gold is worth, but that does not mean that this is the value of your gold coins. There are many factors when determining the true value of your gold coins, including rarity. For US Gold Coins a good book that can help you get a general idea of gold coin prices above their melt value is the Whitman 2022 Red Book Pricing Guide, which can be purchased here through the link.
Calculating A Coin’s Melt Value
Calculating the melt value of a coin is very easy. All you need is the following variables:
The current price (the gold spot price)
The purity of gold content
The coin’s weight
All of these values can be plugged into an online gold calculator, which will tell you how much it is worth.
The figure provided is usually in US Dollars. However, some calculators allow you to convert that into major currencies like UK pounds, AUS dollars, CAD, etc. The price of gold tends to be updated multiple times a day during business days or trading hours.
Using An Online Coin Melt Value Calculator(s)
NPMEX has an online gold calculator to help you determine the value of some of your most popular gold coins. Our bid and ask for these gold coin updates every minute to reflect the changes in the gold prices.
The majority of coin enthusiasts are usually more concerned when it comes to the collectability of a gold coin, i.e., its history, art, and where it was manufactured, instead of simply the amount of gold in it. However, one of the ways to understand the premium placed on history, art, and scarcity of a coin is to know how much the metal is worth, something which is pretty easy to do.
The melt value of a gold coin is simply the spot price of gold or any other precious metal whether it is a half eagle, double eagle or quarter eagle does not matter. For instance, the 1 oz American Gold Eagle, if sold for $1900, it’s easy to see that based on its melt value, if it is $1800, so you know that the premium you’re paying for the art and history of the coin is $100. This approach helps to determine the dollar value on all the non-tangible elements of the coin, in addition to helping you determine if the retailer isn’t engaging in price gouging. Knowing this helps you make informed decisions, especially about which gold coins are worth buying.