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 reprocessed as a raw material.
Scrap silver covers all silver-bearing items that, after their primary use phase, are returned to the silver market as a secondary raw material. This includes jewellery, tableware and cutlery, coins from circulating silver money, dental alloys and 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 mixed and must be determined before further processing.
Finenesses at a glance
The most important silver alloys found in the scrap-silver sector across the UK and Europe:
| Stamp | Fineness | Typical use |
|---|---|---|
| 800 | 80.0 % Ag | Continental tableware, older cutlery |
| 835 | 83.5 % Ag | Jewellery, cutlery (19th/20th century) |
| 925 | 92.5 % Ag | Sterling silver - jewellery, silverware worldwide |
| 958 | 95.8 % Ag | Britannia silver (UK) |
| 999 | 99.9 % Ag | Fine silver, bars, bullion coins |
The fineness can usually be recognised from the struck hallmark. If no hallmark is present, an X-ray fluorescence analysis (XRF) or streak test is advisable.
Melt value calculation
The material value of scrap silver results from weight, fineness and the current silver spot:
Melt value (£) = gross weight (g) × fineness (‰ ÷ 1000) × silver price (£/g)
The Melt Value Calculator determines the current silver price per gram and the melt value for any items to the second. The Silver Calculator additionally allows entry of various units (grams, ounces, kilograms).
Buying price vs. melt value
Dealers and refineries always pay less than the calculated melt value for scrap silver. The difference - also referred to as the spread - covers analysis costs, melting effort and margin. Typical buying rates lie between 70 % and 90 % of the melt value, depending on quantity and purity. With the Purchase Price Calculator a realistic guideline value can be determined.
Factors influencing the buying price:
- Fineness and identifiability - hallmarked pieces achieve better terms than unmarked goods.
- Quantity - larger lots are usually valued with a smaller discount.
- Purity - heavily soiled or soldered pieces increase the processing effort.
- Selling route - refineries usually pay more than general buyers.
Tax notes
In the United Kingdom, the sale of scrap silver from private ownership may give rise to a Capital Gains Tax liability where the gain exceeds the annual exempt amount. Unlike investment gold, silver is not VAT-exempt: purchases from a VAT-registered dealer are generally standard-rated at 20 %. Not tax or investment advice - for binding information please consult an accountant.
When buying scrap silver, dealers must comply with the UK Money Laundering Regulations, which include customer due diligence and identity verification.
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 silver price - all three can be combined in a few clicks in the Melt Value Calculator.