Gold and silver jewelry (and sterling silver)

What is it worth?

Background: My wife and I went to a party with her family. They told her that they are selling their gold and silver jewelry (and silver flat-ware). I said nothing! I've been buying gold and silver for the last ~15 years. I think it is good as long as Ben B. and Tim G. are around.

Today: My wife gathered up a box full of 20 carat, 18 carat gold, and silver jewelry (and flat ware of sterling silver). She wants to join the crowd. This is stuff that she received as gifts (not from me) or inherited. I told her that I would buy it. I'll write her a check, and she can deposit it back in our checking account. She didn't go for that.

So, as it relates to gold and silver bullion, what is 18 carat gold and sterling silver worth? I can't melt it down to the pure form. This is just stuff on my computer hard-drive:

So, sterling silver is worth at something less than 90% of the spot silver price? How much less?

And 18K gold jewelry is worth something less than 75% of the spot price of gold? How much less?

Thanks,
Doc

 

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I would say let your wife sell it for a few of reasons. First, she may be right and you [and] others may be wrong. This might turn out to be an excellent time to sell. Second, that sort of low quality junk metal really can't be considered an investment. Third, it isn't worth starting an argument over.

 

OK, you are calling a market top? That is very brave.

Go figure. I thought 20 carat gold and sterling silver was worth something. I'll tell her to throw it in the garbage.

Who said that I was arguing with my wife? I've never done that in 30 years of marriage.

 

This site has all kinds of melt value calculators http://www.silverrecyclers.com/
Even scrap gold

 

How can you be married and never have had an argument?? Good advice, let her sell if she wants, but she should be very careful how she does that..suze orman talked about that just tonight.. she says find out value from a reputable jeweler, check with bbb for any complaints that may have been registered about the company before you sell to them, and know about things like vapor loss (she really said that) and she also did day that yes, it is a good time..price is nice right now..could it go up? Yes, but it's anyone's guess as to if it will go up.No arguments? Sorry. I find that hard to swallow.. I had a very wonderful marriage, together 24 years, and, well, arguments they help people grow even closer.Of course, that is only my opinion.Wow! Congratulations!Lucy

 

Folks go nuts for sterling flatware on eBay. You might want to follow a few auctions of similar items and see what they go for. That should give you an idea of what folks are willing to pay.

 

Hopefully she sells to someone who will appreciate it for what it is, and not just see dollar signs and melting pots. I'm sure a lot of great things have been lost to melting the past few years just so people could have some spare change. It's a real shame. I've bought several sets of sterling flatware that was hallmarked and dated to the early 19th century from friends and co-workers just because I couldn't see them destroyed. Now I eat with style where they reside at my summer home.
Guy

 

Well, Doc, if you don't want an opinion, don't ask for one. If you are already perfect, why bother to ask for advice? Good luck, pal. You're on your own.

 

I believe sterling is 92.5% silver, thus worth more than 90% coin silver.

 

www.midstatesrecycling.com/karat_kalc

Weigh your gold, enter the amount in grams or DWT in the correct karat box and get an idea of melt value. Keep in mind that there are refining costs and unless you are scraping around $50,000 worth you will be paying several hundred to have it refined yourself.

 

And for what it's worth...

925/Sterling = 92.5% pure

Based on Kt Plumb. If marked KP these are spot on, if simply marked K or KT, deduct roughly 1%.
10K = 33.3% pure
14K = 58.5% pure
18K = 75.0% pure
21K = 91.6% pure

 

Forgive him Cloud...for he knows not with whom he speaks!

LOL...but in all fairness, you DID call his wife's heirlooms..."low quality junk metal"...that..."really can't be considered an investment". :too-funny:

​

 

I have no special insight into where silver and gold prices are going, and I admit it. The difference is that he won't admit it. He already "knows" the answer to the questions he asked, so why ask?

I don't think it qualifies as "heirlooms" if he calls it "stuff" and she wants to sell it all, probably below melt value.

 

I've found that sterling gets a bigger discount from melt than coin silver.

With coin silver, you know that the other 10% is copper, and that makes the refining process easier. With sterling, the other 7.5% could be all sorts of different things, and that makes the refining process harder.

I don't know how it works out for different concentrations of gold. I suspect that gold is so valuable, and so chemically different from everything else in its common alloys, that there's less of a discount in general -- but I haven't yet tried to sell any scrap gold, so I don't know what the market is like. I do know that I don't ever see much of a discount from spot on US circulating or commemorative gold.

 

Big,
Thanks. I've been working on it.

Lucy Ray,
I'll say that we have never had an argument. Now, we do have discussions. We work very well as a partners. And, yes, I have never once raised raised my voice. You do this?

What works for you is different than me. She is my best friend. She is my partner. I'd never in a hundred years argue with her. I don't argue with my male friends, either.

Cloud,
Sorry guy. I don't know you, and we are not friends. But maybe we can be friends? I tend to get aggressive on the internet. I apologize.

It's just that all I have ever done is to manage money. I would never call a market top in any PM, public equity, private equity, or bond investment. I have a creed that says: "I will not make a prediction of any market in any given year as history has shown this to be a futile exercise".

And I don't ever say "your stuff is junk". That isn't a good plan for future clients.

I am not saying "buy gold and silver" bullion. I am just thinking that a couple may want to keep what they have (my gold/silver coins aren't FS, either). I weighed it. There is 282 grams of 18K-20K gold. And another 1222.5g of silver. Some say Tiffany. Our basis is next to nothing, so a sale would trigger a big cap gain tax.

I understand that the local dealer will be glad to offer 50% of the current spot price. Then we get to pay tax on gold/silver sale at 28% (plus GA at 6%) on the sale? That 50% of value with a kicker of 34% to Washington for a net gain of 17%? I pay taxes according to the law.

I'd rather give it to the kids so they can get the grandkids through college. Just saying.

Nonetheless, I have this opinion. A guy needs at least ~10% in PM. JMO, you know. I just posted this on another thread. The momentum favors gold. Just saying.

 

you should be able to get 45 or so per pennyweight for 18karat and 30 something for 14 karat

 

I hope she and her family aren't going to sell the sterling and gold to a "cash for gold" type place. They severely undervalue the stuff they buy. They're in it for the money, and often will take advantage of folks that don't know what their stuff is worth.

 

Not a bad idea at all, hmmm wonder where I could get these sort of items close to melt? Obviously they were worth more than melt before the run-up of silver, and will hold some value if silver drops.

 

I've always paid a lot of attention to price level in investing and would go so far as to say it has been the key factor in all of my investing. It isn't a matter of prediction as much as it is valuation, and it has never been futile. Just the opposite.

You may also want to consult a tax professional, or find a new one, because the inherited merchandise definitely will not have a cost basis near zero, especially if it is Tiffany. It is also pretty easy to sell such merchandise for more than 50% of melt value.

 

I guess my dealer must be very fair with his buying offers. He only charges (discounts) 12 1/2% of the true gold value and 15% of the true silver value for his commission on jewelry. Over $1000 he likes to pay by check but has gone up to $3000 on a cash basis.