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Also I think you have to have at least 20 silver for his spawn requirements so carry some around with you to hopefully increase his spawn rate.
That's not true. For any NPC to respawn you have to meet their spawning requirement again. For some of them their spawning requirement is a flag event like a defeated boss or having rescued them once that stays trigered once you trigger it, but the game still always checks for that flag every time the NPC respawns. In the Merchant's case, he will never spawn unless you have at least 50 silver in your inventory.