I know there is another thread about gold and silver here, but it does not answer my questions.

I need some teaching. I have some sterling silver pieces that I thought I would sell. I went to a coin dealer that I had been told was the best around to sell to. A buddy had sold some gold jewelry and some pre-1935 silver dollars to them and was well pleased. He got $22 per silver dollar. I think coin silver is about 90% silver. By the way, silver closed at $38/troy ounce when he sold.

Now, what I think I know. Sterling silver is only 92.5% silver. Silver is sold by the troy ounce which is approximately 31 grams. I realize that the buyer is in business to make a profit. Lets do some math.
A hypothetical 800 gram piece of sterling x .925 = 740 grams silver
740 grams silver / 31 grams = 23.8 troy ounces
23.8 troy ounces x $37.75/ounce = $898.45
I know refining cost money (don't know how much), I know the coin dealer is going to make a profit.

Now, what I was told. This buyer said that they only pay between $8 and $12 per ounce with the higher amount going to larger amounts sold. He stated that while sterling does contain 92.5% silver, during the refining process, you LOSE another 20-25%. I've never heard of this!!
Lets go back to the hypothetical example.
23.8 troy ounces - 25% (5.95 ounces) = 17.85 troy ounces
17.85 troy ounces x $12/ounce = $214.20

$898.45 vs. $214.20 = Holy rip-off Batman in my book!!

And back to the silver dollar part. If my buddy was paid $22/silver dollar which contains .773 troy ounces of silver. That equates to $28.46/troy ounce (if my math is correct). Why would they pay over $28/ounce for coin silver vs. $12/ounce for sterling?

I am not a mathematician so I may have royally mess this up. But .........................what can you experts tell me.

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Miss My Buddy crsides!!