Scrap Silver
Also: Silver scrap, Recycled silver, Second-hand silver
Scrap silver refers to used silver from jewellery, cutlery, coins or industrial products that is melted down or further processed as a raw material.
Scrap silver comprises all silver-bearing objects that, after their primary phase of use, are returned to the silver market as a secondary raw material. This includes jewellery, table silver and cutlery, coins from silver circulation money, dental alloys as well as industrial components such as solder paste, contact materials and photographic chemicals. Unlike investment products such as bars or bullion coins, the fineness of scrap silver is often heterogeneous and must be determined before further processing.
Fineness Levels at a Glance
The most important silver alloys occurring in Europe in the scrap silver segment:
| Stamp | Fineness | Typical use |
|---|---|---|
| 800 | 80.0 % Ag | Table silver, older cutlery |
| 835 | 83.5 % Ag | Jewellery, cutlery (19th/20th c.) |
| 925 | 92.5 % Ag | Sterling silver – jewellery, silverware worldwide |
| 958 | 95.8 % Ag | Britannia silver (UK) |
| 999 | 99.9 % Ag | Fine silver, bars, investment coins |
The fineness can usually be identified by the struck hallmark. If a hallmark is missing, an X-ray fluorescence analysis (XRF) or streak test is recommended.
Melt Value Calculation
The material value of scrap silver results from weight, fineness and the current silver spot price:
Melt value (€) = Gross weight (g) × Fineness (‰ ÷ 1000) × Silver price (€/g)
The melt value calculator determines the current silver price per gram as well as the melt value for any piece to the second. The silver calculator additionally allows the entry of different units (grams, ounces, kilograms).
Purchase Price vs. Melt Value
Dealers and refineries always pay less for scrap silver than the calculated melt value. The difference – also referred to as the spread – covers assay costs, melting effort and margin. Typical purchase rates lie between 70 % and 90 % of the melt value, depending on quantity and purity. With the purchase price calculator a realistic benchmark can be determined.
Factors influencing the purchase price:
- Fineness and identifiability – stamped pieces achieve better terms than unhallmarked goods.
- Quantity – larger lots are usually valued with a smaller discount.
- Purity – heavily soiled or soldered pieces increase the processing effort.
- Sales channel – refineries usually pay more than general buyers.
Tax Notes (Malta)
When selling scrap silver from private ownership, a private individual in Malta does not charge VAT, as they are not acting in the course of a business. Malta levies no capital gains tax on private disposals of movable assets such as precious metals: Maltese CGT applies only to specific assets defined by law – notably immovable property, securities and business interests. There is no holding-period requirement comparable to a speculation period. Note that, unlike investment gold, silver is not VAT-exempt: sales of silver by a taxable person are subject to Malta's standard VAT rate of 18 %. Dealers buying scrap must comply with Malta's anti-money-laundering obligations, including customer due diligence above the statutory thresholds. Not tax or investment advice – for binding information consult a qualified adviser. Sources: cfr.gov.mt, legislation.mt, eur-lex.europa.eu.
In Brief
Scrap silver is not waste but a valuable secondary raw material whose material value can be calculated precisely. The decisive factors are fineness, weight and the day's current silver price – all three can be combined in a few clicks in the melt value calculator.