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 collection’s melt value. Generally, people believe that if their U.S gold coin(s) are damaged or scratched, they will sell at 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 spot price of gold.

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.

Generally, if the present gold price is $1000 per ounce, a buyer will offer $900 or slightly less. In other words, you will receive slightly below what’s published as the current market value of gold.

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, then you don’t have to worry about ending up accepting the bullion coins’ melt rate.

What Is A Gold Coin’s Melt Value?

It is fairly common for coins to be melted down in the United States. Today, billions of dollars worth of coins are being bought and sold, with countless coins being passed on. The majority of coins that are sold to pawn shops, jewelers, and other gold buyers are usually melted down because those buyers don’t have a market for the coins. It is unfortunate because there is a pretty sizable market for so-called unwanted gold coins.

The biggest downside to melting a gold coin is that it destroys its value both in terms of its historical value as well as its collector’s value. 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 a buyer will always buy it at melt value.

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)

Some online buyers of gold coins may have a calculator that helps figure out a Bid and Ask value that’s based on the value. The value generally defaults to around 5%  but can be changed. However, that’s only if you choose to sell your gold coins using this method.

Some US gold coin calculators will have an indicator of total gold value and the total content of gold. Uncirculated gold coins usually don’t have as much wear will have more gold. A gold coin in circulation, which has wear, will not have as much gold. That’s why the percentage amount for wear will need to be entered into some calculators for an accurate price estimate. Any amount greater than zero will work to adjust the total gold value and the result accordingly.

Final Word

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 Gold Mexican Libertad, if sold for $1800, it’s easy to see that based on its melt value, it is $1500, so you know that the premium you’re paying for the art and history of the coin is $300. 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.