Is Antique Silver a Good Investment?
When talking to folks about my beloved piles of junk, I will inevitably mention some piece of silver I have collected that I am particularly fond of. Usually after mentioning the word silver, the friend (or foe) will say “Wow. That must be worth a lot.” I like to play a little game at this point and ask why they think it is so valuable. “Because it is silver!” I would caution those who think they can buy a $20 pair of sterling silver salt shakers and make a killing selling it to a reclamation dealer or running home to post it on eBay.
Intrinsic Silver Worth
Right now the spot price for pure silver is around $17 per troy ounce. There were some crazy times pure silver (99.9%) reached highs in the $40 per troy ounce, but as of February 2015, it has been hovering at $17.
This brings me to my first point, sterling silver is by definition only 92.5% silver. So right off the bat, do not expect the $17 per troy ounce for pure silver. So let’s assume you intend to send pieces of sterling silver to a reclamation dealer and cash in. From the research I have done you can expect the following costs:
- Loss in weight – a certain percentage of the silver boils off during the smelting process. As such, you can expect to lose another 2+% of the weight from the firing process. Remember, sterling is only 92.5% silver. So now you are down to 90% or a bit less in weight.
- Postage – you have to get it there. More weight, higher the cost of shipping and insurance.
- Processor Fee – reclamation dealers are in the business to make money. Fees vary and a reputable dealer will charge a percentage. For example, Midwest Refinery pays 90% of the pure silver value after smelting (http://www.midwestrefineries.com/silver.htm).
In summary, I have bought very few pieces of silver I am confident I could make money on by sending it for reclamation.
Are Sterling Silver Pieces a Good Investment?
So are sterling silver pieces a good investment? I really doubt that the average piece of weighted or solid sterling you will find for a reasonable price in an antique shop is a good investment in the short term. I always assume the dealer has at least considered what they could get from reclamation and at least checked eBay for current prices. Over the long term is less clear.
Weighted refers to pieces that have a sterling silver coating over a heavier and often reinforced center. The center material can be pitch, resin, plaster, wax or what is generically termed “cement.” If you want to reclaim the silver, you will first have to strip it off the inner material. Brand is also a good indicator of silver thickness. You can really feel the difference between a pair of Gorham weighted silver candlestick holders and a pair of Duchin candlestick holders!
Are There Investment Grade Silver Pieces?
If you are looking for investment grade silver, I would suggest you look at the piece as a whole. Is it old English silver? Is it a well-known company such as Gorham? Is the piece in perfect condition? Yes, silver adds to the value, but just being sterling does not make it a good investment.
Ok, I will give you that silver has an intrinsic value. If you drop a glass depression plate and it chips, the value drops to half or zero depending on the piece. If you drop your weighted silver compote dish, it will still be worth the value of the sterling. FYI, I think the moral of this paragraph is don’t drop your depression plates.
If you are looking to make silver a part of an investment strategy, buy silver stock or silver ingots with a reputable brand. Otherwise I suggest you buy what you like with the intent of enjoying it.
I LOVE SILVER
With that said, I LOVE SILVER. I like polishing it. I like looking at the intricate designs. And best of all, good silver is hallmarked giving me hours of entertaining research.
Below are some of my favorite silver pieces.
English Scent Bottle
I love hallmarked items. Deciphering the code is half the fun! This particular piece can be dated to between 1910 and 1920 by the manufacturer mark, L&S. L&S stands for Levi & Salaman (Phineas Harris Levi & Joseph Wolfe Salaman), Newhall Street, Birmingham, England. Looking at the other marks, the lion tells me it is sterling. The anchor means Birmingham. The other marks are driving me crazy. It should give me the exact date and I just can’t match it up to the charts. I think because it is a small piece it is kind of squished down. Still how exciting is it to have a scent bottle from just after the Edwardian period.
Salt and Pepper Shakers
Good grief I have no idea why I like these so much. Of them, the smallest are Gorham and solid sterling. The larger ones are various manufacturers and weighted. The Gorham are worth around $40 while the larger silver are only worth $25(ish). That just goes to show that quality is a driving factor.
Note the Gorham on the left is worth $20 while the weighted one next to it is worth $8 and the far right is worth $12.50. I really can’t tell the weight difference, but I doubt there is $10 weight difference between the Gorham piece and the other two. Brand in combination with the quality of the piece makes the difference.
Sterling Pencils
Seriously. Who is going to take the time to strip down a sterling pencil and send it to reclamation? The value of a mechanical pencil is in the intricacy of the design and is enhanced by being either sterling or gold. I believe the pencils below are for women and likely used as part of a bridge set. It is hard to tell much about them since the sterling indicator is on the ring and not the pencil.
Damaged Glass
I bought this cruet early in my silver collecting phase for $10. I knew it had a cracked handle at the top. Had the top not been sterling the value would be 50 cents at Goodwill. Since the top is sterling, I believe it is worth $10 max. I highly doubt it will go up in value and I highly doubt there is $10 worth of silver. In the end, if the value doesn’t go up, then it is not a good financial investment. It is just another thing the kids are not allowed to play with.
Letter Opener
I threw this one in here to acts as the devil’s advocate for buying clearly marked pieces. This letter opener is silver, but is NOT marked sterling. Had it been marked sterling silver, it would have been in a shop for between $10 and $25. Since it was not marked, I got it for $1. It tarnishes like silver. It polishes like silver. But without some sort of hallmark or sterling indicator, it is only worth a buck.
For comparison, I put a nail file where the handle is hallmarked sterling. That cost me $10 and is no lovelier than the letter opener. There are style differences, but in the end the mark makes one 10x the value.
