Does gold plating affect silver melt value?

I just bought three sterling silver medals which are gold plated. By my estimate they contain about 0.8 oz. of silver each and I paid about $17 per medal. That seems like a good deal, but would a bullion buyer devalue these because they are plated? Would it make any difference if it were melted? In reality, the amount of gold isn't even measurable.

 

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Really? No opinions? Well, I sent a message to a refinery and I'll post what I find out.

 

i personally don't think the gold plating will affect the melt value of the coin. Here in Manila, i come across a bunch of gold plated silver coins which sell for the same amount as regular silver coins. Im not sure about the market in other countries though

 

I would say the gold plating doesn't affect the value probably, but sterling does sell at a discount to .999 and .900 because its harder to refine, and isn't a standard alloy.

 

EDIT: Double post

 

How gold plating will the silver melt value will depend on where you sell it . If you sell a gold-plated .999 silver round or bar to, for example, a local dealer, then that local dealer is going to give you silver melt value minus a discount and will not care at all about the gold plating on the .999 silver bar or round.

However, the gold-plating might affect the collector's value of that particular silver round or bar, especially if it is a silver art bar that is being sold on ebay. It depends on that particular silver round or bar that is being sold on ebay. Some ebay sellers will sell a bar for an extra premium if it is gold-plated. Some ebay bidders might make a higher bid on a silver coin or bar because it is gold-plated. It just depends.

 

This is wrong, it is a standard alloy as almost all silver jewelry is sterling, and there are tons of coins, bars and medals made from sterling as well.

 

From Wikipedia:

Sterling silver is an alloy of silver containing 92.5% by mass of silver and 7.5% by mass of other metals, usually copper. The sterling silver standard has a minimum millesimal fineness of 925.
Fine silver (99.9% pure) is generally too soft for producing functional objects; therefore, the silver is usually alloyed with copper to give it strength but preserving the ductility and beauty of the precious metal. Other metals can replace the copper, usually with the intent to improve various properties of the basic sterling alloy such as reducing casting porosity, eliminating firescale, and increasing resistance to tarnish. These replacement metals include germanium, zinc and platinum, as well as a variety of other additives, including silicon and boron.

I mean, obviously the .925 part is standard, but it could contain different metals that refiners wouldn't know about.
Also, sterling sells at a discount to .999 and .900 usually.

 

I'm certainly seeing a hefty discount for sterling at this weekend's Raleigh coin show. The strongest offer I found there was $38.50 for generic .999 bars and rounds (2% back of melt), 26.5 x face for 90% (about 7% back of melt), 10 x face for 40% (14% back of melt) -- and $31/oz for sterling (almost 15% back of melt).

I've got almost 20 ounces of Canadian Olympic sterling proofs that I'd like to unload, but it bugs me to take that much of a hit, and it bugs me even more to send these rather nice coins straight into the pot. There's really not much of a market for them, though, and I don't think their future prospects are that great either.

 

In my experience it will effect value as it requires an additional step in the process. The local refiner here takes about 2% off for plated bullion.
Guy

 

@JeffB - That is interesting info on the discount rates. Seems very odd that sterling would sell at a discount to 90% silver, since it actually has a higher silver content. I guess the difference could be that U.S. coinage doesn't generally get smelted, because it trades better in its current form.

@coleguy - What would that extra step be -- deplating? I just don't think anyone would really do that. If you smelted a gold-plated .999 round, the amount of gold in the mix would easily fall into that .001. It sounds suspiciously like an excuse to tack on another 2 percent.

 

Another interesting point, at my local bullion buyer, I tried to sell them one of my ASE's which had a painted flag on the front and they claimed that the painting made it 10% less valuable, but of course the store down the street paid me over spot for it. So I guess it really just depends on who you sell it to.

 

you're referring to the 1973 - 1976 canadian olympic coins right? me and my wife collect those things and can't find any of them around here in the philippines anymore.

 

You're misunderstanding this a bit. .925 will sell for less than .900 per ASW (actual silver weight). Let's say the coin shop will pay you $200 for 5 ounces ASW in .900 (which weighs more than 5 oz. total). They would pay you $185 for 5 ounces ASW in .925, but the total weight of the alloy would be a little lower than the total weight of the .900 that composes the 5 oz. ASW. Know what I mean?

 

Yes - thanks for the clarification. Although I'm still unsure about why silver that requires less refining (.925) would bring a lower value.

You're in Michigan -- have you dealt with Midwest Refineries?

 

Hm, no I have not. Have you? You in Portland? I was there for a week in April.

Well, I think sterling is discounted because with 90%, you're separating out copper. With sterling, you're seperating out copper probably, but also possibly other metals. And since the alloy differs a bit, the refiner doesn't exactly know what he's looking for, zinc, copper, whatever. At least that's how I've understood it.

 

I would check with Apmex. They sell sterling rounds so they likely buy them as well.

 

0.8 oz of gold plating? Not a chance. Thats almost one ounce of gold on each one. That would make the plating worth waaaaay more than the silver it's layered on.

 

Regarding sterling, it has always sold at a discount. I have always heard its because its harder to smelt out the impurities than it is with 90%. Sterling frequently has harder metals to separate, and its inconsistency of "other" metals in it makes smelters have to spend more time on it.

Any other plating than gold and I would say it would decrease silver bullion value, but the thin gold plating on these shouldn't, but like I said expect to take a little hit since its sterling.

 

He said they contain .8 oz of silver, not gold.