What is the difference between "spot" and "melt"?

[barrytrot]

What is the difference between "spot" and "melt"?

Quitquit's add indicates that I should know what this means and I feel quite ignorant as I don't.

Please help!

[Thogey]

junk silver

halves my choice design $.40 over spot NOT MELT
your choice $.60 over spot

my choice denomination $.20 over spot


minimum $100 fv maximum $3000 fv

40% junk $1 UNDER SPOT , NOT $1 UNDER MELT. if you dont know what this is ask another member not me. dont have time to explain

BUYER PAY ACTUAL SHIPPING

I found his post to be condescending, snotty and rude in tone.

I'm no dummy and I thought spot and melt described the same number.

I won't be doing business with qitqiut. There are other polite and respectful members to do business with.

If any local trading partner of mine said something like that I would tell them to go to hell.

[93_Confirmed]

Spot is the current price for one ounce of pure gold or silver. Melt is how much you would receive for a particular quantity of gold or silver if it were melted down. Melt is used in cases where you're not dealing with pure .999. For example, junk US silver is only 90% silver so it's melt value is less than the current spot price.

Download the coinflation app and you'll have a tool to see these values.

[barrytrot]

93_confirmed,

So spot is "spot" and melt is spot times purity?

Are you sure? That seems "the same" to me as naturally the spot multiplies only but the actual amount of the element in question.

Please verify you are certain of that.

[Thogey]

I think we understand them to be the same value. Spot price X ASW=melt value. That melt value is the spot price of a given ASW for the coins.

If that's what he means. It's not that difficult to explain.

[Nickelmeister]

I think I know what qq means:

If you say junk silver at $1 under spot it means $fv x 0.715 x (spot-$1)
If you say junk silver at $1 under melt it means $fv x 0.715 x spot - $1

[Nickelmeister]

More specifically, he is advertising 40% at "spot -$1"

That means each half if (spot - $1) x ASW, and not (spot x ASW) - $1 each.

[slvrbck]

I think quitquit needs to find the time to explain

[Robarons]

Okay to make this clear if I got $3 Face in 80% and for this sake of this example lets say $1 face 80% is $20

SPOT is $60
So 'under MELT' would be $59

Spot is in terms of Troy ounces- $30 is spot so $1 under spot is $29/oz
Melt can be in ANY quantity of silver- so if a silver dime is $2 then a dime at $1.95 is under melt or 100 dimes is $200 and to sell this lot at $199 is under melt?

[neilgin1]

junk silver

halves my choice design $.40 over spot NOT MELT
your choice $.60 over spot

my choice denomination $.20 over spot


minimum $100 fv maximum $3000 fv

40% junk $1 UNDER SPOT , NOT $1 UNDER MELT. if you dont know what this is ask another member not me. dont have time to explain

BUYER PAY ACTUAL SHIPPING

I found his post to be condescending, snotty and rude in tone.

I'm no dummy and I thought spot and melt described the same number.

I won't be doing business with qitqiut. There are other polite and respectful members to do business with.

If any local trading partner of mine said something like that I would tell them to go to hell.

damn right Thog....i personally bend over backwards to maintain a tenor of respect to the gang, and i read this:

if you dont know what this is ask another member not me. dont have time to explain

then i say, make time......i been trading over 30 years, five years buying physical silver.....and the quote isnt coherent to me.

i know right NOW , 40's are 8 and half times face....which means $85.50 per $10 face.

and another thing i dont gravitate towards is this "my choice, your choice" spread....wtf is that?...that mean i'm going get a nasty stanking dirty bag of clods?

blow him off Barry...you're a smart man, there's always guys in trading, you just dont wanna have anything to do with...."don't have time"....bovine scat!

[sambo]

If 90% is priced at 7.15ozs to $10 face, melt and spot should be the same to silver stackers.

[beauanderos]

Spot price is the price you see quoted on Kitco and other sources. That only applies if you are referring to .999 forms of silver

Melt is the value of the silver, when you consider the purity of it. A 90% silver coin would be .723 X spot if it is basically uncirculated, the melt on most junk silver is calculated at .715 X spot (to account for wear)

If quitquit is stating he is selling 40% as he refers to, he is implying that .... Silver is at $28.50, so subtract a dollar from that... makes it $27.50. Now perform your calculation to determine the melt value. He is not saying ... Silver is at $28.50, perform your calculation to determine the melt value and subtract a dollar from that. There IS a difference.

[Thogey]

That's fine. He shouldn't be such a dick about it though.

[93_Confirmed]

That's fine. He shouldn't be such a dick about it though.

I always thought his ads were snarky.

[beauanderos]

I feel quite ignorant !

Oh... I am so tempted. But I am going to be the better man and walk away from this layup

[beauanderos]

That's fine. He shouldn't be such a dick about it though.

Regardless of what you think of how the guy words his ads.... his current prices (tied to spot as they are) are very likely to be the LOWEST prices you will find any members willing to sell junk silver at during this manipulated pullback. I know I won't compete with him. If you think we've hit a midpoint low (shin) and still have money to put to work... then zip him a PM. Silver could turn on a dime and head back up... or it could continue to be pulled even lower prior to options expiry on Monday. The point being, you guys are going to be hard-pressed to source cheap silver during this pullback... no one is asking you to take the salesman out for a beer in order to score a good deal on a used car.

[daviscfad]

So basically if spot is 28.62 and you subtract a buck you have 27.62. If you multiply dollar under spot "27.62"times melt ".1808"you get 4.993696. Rounded to $5.00. If you take spot "28.62" and multiply it by melt ".1808" you get $5.18. A dollar off that is $4.18. This correct ray? Also I used the weight of a silver quarter

[RedRockGirl]

I emailed said member once, because his ad was confusing to me. He was clearly bothered by a noob's dumb question. Cheap price or not, I walked away.

[beauanderos]

So basically if spot is 28.62 and you subtract a buck you have 27.62. If you multiply dollar under spot "27.62"times melt ".1808"you get 4.993696. Rounded to $5.00. If you take spot "28.62" and multiply it by melt ".1808" you get $5.18. A dollar off that is $4.18. This correct ray? Also I used the weight of a silver quarter

I think that sums it up pretty well. You can see there's a substantial difference depending upon how the calculation is made.

[neilgin1]

... no one is asking you to take the salesman out for a beer in order to score a good deal on a used car.

Mundo...i dont know why, but that made me laugh...reminded me of that scene in Pulp Fiction, when Harvey Keitel is called in to help clean up the bloody mess the boys made....and Travoltas character starts sucking him up to him, and Harvey responds..."ok before we start sucking each others...etc etc"....(lmao!!!...i'm sober too) i'm gonna find that scene.....YEH, why WOULD you take a car salesman out for a beer?

[neilgin1]

wait a minute here, i just thought of something after i checked out the "ad"...and Ray, if you could, walk me thru this....not that i'm gonna do bizness with the guy...in fact if an atomic bomb blew up, and the kid was the last silver seller standing...i still wouldnt deal with him....

he's talking in face value amounts and spot....and the low quote, is .20 cents over spot for HIS choice of denomination with a minimum buy of $100FV.....i get it NOW!! Ray, you and Nicklemeister helped me figure this CF out.......IF the formulation is based on the 7.15 toz per $10 FV...he scoops up a bunch of mishmashed clods, and AG3's.......maybe a few G4's.....a $100 FV worth...we're using the 7.15 valuation...there is NO WAY $100 FACE is gonna net out at 71.5 toz.....no way...you'd be LUCKY to get 65 toz per 100 face!...and maybe even it'd go as low as 63 toz the $100...especially with a bunch of thin scraggly clods...its that MISSING 6.5 to 8 toz per 100 face, that allows this cat to offer "cheap" like that...nothings cheap....you pay ONE WAY or the other...Ray, if i'm off, tell me....i'm teachable........now with the 40's he's offering...it'd 28.64 minus a dollar...okay, but what 40?...a Kennedy is .15 toz...a silver Ike is .33...guy doesnt say...and heaven forbid, i'd have the audacity and gall to email him a LEGITIMATE trading question....i might make him ...mad at me........fh!

[OneBiteAtATime]

I would explain this to you guys, but I don't have time.

[RedRockGirl]

I would explain this to you guys, but I don't have time.

Thanks. I needed that chuckle.

[Mossy]

If he does not have the time to explain what /he/ thinks he means, I would not have time to deal with him.

Or to bother asking anyone.

[OneBiteAtATime]

Currently on a 40% Kennedy.

Melt is: 28.48x.1479=$4.21
Spot minus $1 is 27.48x.1479=$4.06