Silverware & Silverplate

At an antique mall the other day, I noticed that there were many different silver silverware sets priced at or below spot. I'm curious, are there any experts on the board who are buying up silverware as a bullion investment? If so, what do you look for to identify sterling vs. coin silver vs. plating?

I bought a "quadruple plated" silver sugarbowl for $3. Not much of an investment, but I have a place in my pantry for it.

 

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Usually, sterling ware will have STERLING stamped on it somewhere.

Anything by Wm. Rogers is silver plate.

 

As far as I know silver plate is not worth anything.

 

Yes, silverplate is basically worth copper value since its usually plated over copper. Sterling sells at a discount to the silver market, so buying it at spot would be a bad buy unless you just want a fancy silverwear set. I think the best price I have ever seen sterling sell for is about 90% of spot.

 

I'll add to what was stated above that real silverware will always have a stamp on it indicating that it is made from silver and not plate. Another caution. Pieces with large handles may be filled with plaster or cement called weighted silver. Other pieces that are subject to this kind of treatment are candle sticks, large handles on serving dishes, legs, bases, and so forth. If you are buying for bullion value, you need to take this into account not only because of the weight calculation but also because refiners often won't take this stuff until it's been cut up and filler removed.

 

I've never really understood that. Why does 92.5% silver sell for less than coin silver (90%)?

 

I would think that it's the shape it's in.
Being sterling it'd be harder to sell, harder to ship, harder to calculate that it is real verses a franklin or something that is much more liquid.
Plus there is manufacturing costs to melt down the sterling in most cases too.

 

Because of the variability of what the other 7.5% is, and the fact that often it is metals very hard to extract from the silver. 90% US coin silver is easy to smelt, and a known item. Throw a bunch of sterling in a pot and there is no knowing what the other 7.5% may be.

That is what I have heard.

Chris

 

Somebody once told me that sterling silver is worth less because it's harder to recover the silver. The problem is with sterling silver there are a variety of metals that can make up the 7.5% of non-silver, so it costs the refineries more to figure out what the compostion of the silver alloy is, then sort it, then melt it. Where as with the 90% "junk silver" coins, it's a fixed alloy. And they know anything coming out of the US mint has the same composition.

 

HAHA I had to step away for a second. you beat me.

 

A few years ago I bought several sterling silver rounds. As I recall they were Canadian Olympic Commeratives. Would they be in the catagory of a Franklin or a sugar bowl ?

 

I would say better than normal sterling, but not as desirable as 90% silver would be. I would try to get junk coin multiple for it, but not be surprised if a little lower.

 

Indeed. Prior to 100% fiat money this is the only reason for government coinage of precious metals. It is a convenient assay of the metal at hand. You know the purity and weight. Hence it's easier to sell and ironically costs more than sterling whatever. Junk PMs, mainly in regard to silver and gold, really refers to the metal in any form that can't directly be used for monetary purposes. (bullion & coinage)

 

The British coinage up until after the war to end all peace, used .925 silver. I do not have a handy reference but would there not be some standard alloy used for sterling coins, as there was for United States coinage?

 

There is for British coinage, and some others, but usually when you refer to sterling you are talking about silverware and miscellaneous items. If sterling always referred to British coinage then I do not believe the discount for sterling would be as severe.

 

You also have to remove the stainless steel parts like knife blades which have the silver molded around them and can not be just pulled out.

 

I think the discount for sterling coins is an American phenomenon, since the American market as a whole just doesn't seem to appreciate foreign silver coins, even the Panamanian silver coins that were minted on US silver coin planchets! Here in Japan, on the other hand, US 90% "junk" silver coins don't get any special treatment from dealers, and you can take a bag of mixed silver foreign coins to mini-smelters and they will calculate the fineness of the silver after they have melted the coins.

 

I'd say the whole discount on sterling due to added cost to smelt is simply a ploy to pay less. Just as few coins are smelted today, so too, sterling is rarely smelted unless it's damaged. Anyone can sell silverware on eBay for melt or more and if you run a business specializing in silverware, you can get significantly more for a nice piece someone needs for their set.

 

Maybe the US smelters are just lazy then, or maybe they pay a premium for US junk that the Japanese dealers don't. I just don't know. I do know its not the dealers but the smelters themselves, since I have been at the smelters selling silver, and talking to them, and any sterling silverware or utensils they would discount. I was always told by them its harder to process, therefor their costs are higher. That is all I know.

Chris

 

Of course, there is a big difference between Sterling silver flatware and Sterling silver coins. As has been pointed out, flatware/tableware can contain materials that aren't even metal, so the total weight is not necessarily an accurate indication of the actual silver content. Coins, on the other hand, are assumed to be solid metal, so sterling silver coins should contain at least .925 silver by weight.