How are the silver coin
prices arrived at

Silver coin prices are made up of only two things.

The percent of silver in the coin and whether it has collector appeal or not.

A silver coin will come usually as 500 fine or 50% silver, 800 fine or 80 % silver, 900 fine or 90% silver and then 925 fine which is 92.5 % which is sterling silver.

There are some other strange percentages of silver amongst some of the smaller foreign nations but the usual ones are listed above.

To determine how the silver coin price is arrived at find the silver content of the coin grouping, weigh the coins in troy oz and multiply by the percent of silver to see what the silver content value is. Subtract this value from the whole weight and what is left is just what was mixed with the silver to manufacture the coin.

Example: a coin lot weighs 16.74 avoirdupois ounces,

multiply by .907 to get the troy oz which is 15.18 troy oz,

then multiply the purity or 900 (90%) = 13.66 troy oz of silver

times the value today say $18.00

plus the commission percentage of the dealer say 7 %

which raises the purchase cost to US $19.26 per troy oz and tax if applicable

this equals your purchase price at that point in time or US $263.09 total for a cash purchase.

The weight won’t change but the silver price may move a little or a lot up or down, so it is what it is when you make the commitment to purchase.

If silver goes up you feel you have beaten the dealer when you go in to pay in cash. If it goes down you feel that the dealer took advantage of you knowing that the price was going down.

The real truth is that if a dealer knew what was going to happen to the market he would be leveraged in the futures market not trying to make 20 dollars on a sale of some silver coins but real money.

Dealers do not know for sure what the market will do, they hope just like you. They are just trying to get their small piece of the pie.

Now if you are a seller of silver coins, think for a minute, to get the silver from the coins there would be a refining charge, oh yes, so the actual price paid for the silver coins will be a little lower than that of spot silver which is the pure silver price and this is how silver coin prices are arrived at.

Also remember that if you are using cheap ounces to pounds scale that you multiply the weight in ounces by .907 to get the weight in troy ounces.

A troy ounce weighs more that a regular everyday ounce. Precious metals are weighed and sold in troy ounces only.

Dealers in precious metals have scales that weigh in troy ounces and are certified accurate to weigh.

I hope that I have made it clear in steps, how the silver coin prices are established.


If a coin has collector appeal than none of this applies and a whole set of different factors apply.