When discussing bullion and coins, the melt value and spot price are two terms that sound similar but have different meanings. The melt value of a coin is the amount of money it would be worth if it were melted down into its component metals, ultimately referring to the value of the amount of precious metals contained within it. Spot price, however, refers to the current market price for a particular metal at any given time, expressed in troy ounces.
The melt price is beneficial when referring to issues not made solely of one precious metal. For example, while coins like the American Silver Eagle are primarily made from pure silver, other coins, like Mexican Pesos, are composites that may only contain a small amount of silver or gold. In such cases, the melt price would be used to calculate the value of just the precious metal content within the coin, not its total weight.
