When you bring silver coins to a dealer, they pay you below the current spot price — and sell to other customers above it. That gap, called the bid-ask spread, is how dealers cover costs and earn a margin. Understanding the spread, and the factors that widen or narrow it, puts you in a much stronger position to negotiate a fair price.
The Bid-Ask Spread
Precious-metals dealers operate on the same basic model as any financial market. The “ask” price is what they charge when you buy. The “bid” price is what they pay when you sell. The difference is their gross margin.
A typical example at spot prices of October 7, 2026 (silver $60.73/ozt):
| Product | Dealer sell (ask) | Dealer buy (bid) | Spread per oz |
|---|---|---|---|
| American Silver Eagle | $65–$68 | $58–$60 | ~$7–$8 |
| Generic silver round | $63–$65 | $56–$58 | ~$6–$7 |
| 90% junk silver | market-based | $55–$58 | ~$3–$6 |
Ranges are illustrative. Actual prices move with spot and dealer inventory.
The spread exists for legitimate reasons:
- Overhead (rent, staff, insurance, payment processing)
- Price risk: spot can drop between the time a dealer buys and when they resell
- Authentication costs (XRF testing, verification time)
- Transaction friction (shipping, handling for online dealers)
What Percentage Do Dealers Pay?
As a rough guide, reputable bullion dealers pay these percentages of melt value:
| Product type | Typical buy rate |
|---|---|
| Government bullion coins (Silver Eagles, Maples) | 95–97% of melt |
| Generic silver rounds and bars | 92–95% |
| 90% junk silver, large lots ($500+ FV) | 90–94% |
| 90% junk silver, small lots (under $100 FV) | 85–92% |
| 40% Kennedy halves | 83–90% |
| Pawn shops and jewelry buyers | 70–80% |
The dealer payout calculator lets you enter a percentage and see exactly what a dealer should offer for a given weight of silver.
Factors That Move the Offer Higher or Lower
Quantity. Dealers pay more per ounce on larger lots. Selling 500 oz of Silver Eagles commands a better rate than selling 5 oz, because the fixed cost of a transaction (time, testing, paperwork) is spread across more metal.
Product type. Government-minted coins are universally recognizable and easy to authenticate. Generic rounds from unfamiliar private mints require XRF testing and may be harder to resell, so dealers discount them slightly.
Condition and sorting. A dealer who buys 90% silver accepts that they will need to sort dimes, quarters, and halves. Pre-sorted rolls or bags by denomination save handling time and occasionally earn slightly better rates.
Market conditions. During periods of high silver volatility, dealers widen their spreads to protect against rapid price swings. If spot is moving sharply, expect a wider gap between what you see on a ticker and what you are offered.
Local competition. In cities with multiple coin shops, dealers compete on buyback prices. In a market with only one local shop, that dealer faces less pressure to sharpen their bid.
How Dealers Quote Prices
Dealers use two common pricing models:
Spot minus a fixed dollar amount per troy ounce. For example, “spot minus $2/oz.” At October 7, 2026 prices, that means $60.73 - $2.00 = $58.73 per ozt of silver. The dollar amount is fixed; the implied percentage shifts as spot moves. When spot is high, the percentage is better for sellers.
A fixed percentage of melt. “We pay 92% of melt.” On a 90% quarter with ASW of 0.1808 ozt, that is 0.1808 × $60.73 × 0.92 = $10.10 (versus a melt value of $10.98). The percentage stays constant regardless of where spot is trading.
Either model is fair — what matters is knowing which one is being quoted and verifying the spot price independently before accepting any offer.
The Worked Example: Selling a $100 Face Value Bag of Junk Silver
A $100 face value bag of 90% circulated silver coins contains approximately 71.5 troy ounces of silver (using the industry convention of 0.715 ozt per $1 of face value for circulated coins).
At $60.73/ozt spot, the melt value of the bag is: 71.5 × $60.73 = $4,342.15
A dealer paying 92% of melt offers: $4,342.15 × 0.92 = $3,994.78
A dealer paying 88% offers: $4,342.15 × 0.88 = $3,821.09
The difference between a good offer and a mediocre one on this single bag is over $170. For a $1,000 face value bag (approximately 715 ozt), that same gap exceeds $1,700. Getting multiple quotes is worth the effort.
Use the junk silver calculator to find the melt value of any face value amount, then compare dealer offers as a percentage of that figure.
Red Flags and Scams to Watch For
No itemized calculation. A reputable dealer explains exactly how they arrived at an offer: weight, purity, spot price, and percentage. If a buyer just names a dollar figure without showing the math, ask for a breakdown.
Spot price they quote differs from live markets. Before any meeting, check spot independently at kitco.com, gold-api.com, or any live-price source. If a dealer quotes a spot price more than $0.50 below the current bid, they are padding their margin before the percentage even applies.
Post-receipt price renegotiation. If you ship silver to an online buyer and they come back with a lower offer claiming your coins “weren’t as described,” that is a serious warning sign. Always photograph and document everything you ship, and use dealers with a track record of honoring quoted prices.
Magnetic silver. Genuine silver is not magnetic. A strong magnet (neodymium N52) slides slowly over silver due to eddy currents. If a dealer claims your silver “failed the magnet test,” test it yourself — real silver will not stick.
Getting a Fair Deal
- Know your melt value before any conversation. Use the melt value calculator or dealer payout calculator.
- Get at least two or three quotes, including one from an online dealer.
- Ask every buyer to quote you “spot minus” or as a percentage so you can compare apples to apples.
- Separate numismatic coins from bullion before you go — a dealer paying “melt plus 5%” on junk silver is not the right venue for key-date material. See melt value vs. numismatic value for how to sort your collection.
The spread is real and legitimate. A dealer paying 90–95% of melt is not cheating you — they have a business to run. But a dealer paying 75–80% when you can get 93% from a competitor 20 miles away is a different story.