The Rio Grande catalogue in front of me has got fine silver casting grain priced at $9.40/oz and sterling silver casting grain at $8.16.
Silver can be re-cast as long as you use at least 60% new metal each time you cast, or if you use a graphite crucible (which will remove most oxygen). Also, you can put sand over the top of the melted metal when it's in the crucible and still heating up. Silver casts much better than brass or copper, and everything casts better than nickel-silver (which is nickel and copper and zinc. Copper and zinc makes brass).
When silver is cast it will be in its annealed state. You can either forge it or roll it to make it hard again. Or you can actually harden it like steel. To achieve a rockewll hardenss of 47 on your silver, bake it at 700ºf for an hour, or so, then let it air cool. Baking at 1400ºf will give you a rockwell hardenss of 48 but, as silver is hot-short, it will shatter if you drop it.
Silver is kind of expensive as knife-making metals go (brass is about $7/lb, nickel-silver is about $1.30/oz) but compared to the cost of the other junk you're likely to put on your knive (stabilized burl, ivory, damasteel, etc) its downright cheap so I don't see a reason to be miserly about it. Especially if you're casting, I wouldn't worry about sweeping up your fillings - I bet it'd cost you more money in your time than the silver is worth.
I also vote for Rio Grande as your supplier. You can get damn near anything from them and they're very reasonable. If you don't mind waiting a little longer, you can get free shipping, too.
- Chris