Silverware as an investment?

[pcunix]

I see dealers buying and selling silverware at or under melt value now.

Is this an indication that they think the silver melt price is far too high now and will tumble?

Where is the collectible value floor on most of this? in other words, how far would the metal value have to fall before older pieces would have their own value not determined by the price of silver?

I realize that's an open question; I'm just looking for a general feeling. It seems to me that this might be a very bad time to be buying silverware, but I don't know where it has been historically.

[oel]

Hi pcunix,

Hi,

Metal scrap value is one thing and scrap value of silver recently has seen historic heights.
Collectable silver value is another thing; determined by supply and demand and you could say prices are determined at auctions by the various bidders. The global change in economic power ; like the wealthy Chinese and Russians, who are buying back their own silver inheritance spread around the world.
Silver objects during the ages have been melted down and made into coins to pay for wars or other. So you could say silver objects of a certain age are rare to come by. Also the price of a silver object could be influenced by the used silver art and the maker. Famous and well-known silversmith’s of all time periods are more or less highly collected.
Is silver good investment? Perhaps and like always future will tell.



Regards,

Oel

[pcunix]

Yes, of course. I'm not sure how much of this stuff is actually being melted - just because it is being traded around at melt vale doesn't mean it is actually being melted.

What would you advise someone right now? Should they begin collecting or wait for silver prices to calm down?

[oel]

Hi,

My advice would be; read and study more about silver & hallmarks and the art of collecting. Remember plenty fakes are flooding the markets.
Only buy if you like, recognize and appreciate the piece and not solely for investment and only buy if you can effort it. Remember; scrap value is the minimum value of a piece pending on its weight and silver standard (fineness) and in combination with the world marked price of silver, at a certain moment in time. No guarantees.

Regards,

Oel

[pcunix]

Yes, I've been reading about fakes, though I can't imagine there is much profit in making a fake that only sells at melt value.

Let me put it another way: I think silver (metal) is overpriced right now. Does that make this a bad time to buy this kind of collectible - would you expect to see better prices as the bullion market calms down?

I have pieces I inherited from my grandmother - the set is incomplete. Most of it is engraved with her mother's maiden name - I don't think those pieces are unusual so I could probably find them at melt to fill in what is lost (haven't researched those yet, though). As they aren't rare, I wouldn't necessarily mind matching the engraving either (though I have some hesitation there) but I'm in no hurry - so if the thought is that pieces like that will go down as bullion declines, I should probably wait?

[Hose_dk]

when you enherit - sentimental value is added. Memories.

what silver to buy? My experience is that I bought a lot - I used my buyng to gain knowledge and a taste of what I want. A lot I bought close to silver scrap value - when value was DKK 1 per 1g. Today that is scrapvalued at much more. Today DKK 3 per 1gram. I stll have it - and I keep it. Today part of my pension savings (20 year away)

I gained knowledge. Bought spoons anno 1920 - wanted older bought anno 1850 - oh they where old.
Then realised that everything after anno 1800 was not interesting. Still spoons, then I went for anno 1750. Then started searching for ealy 1700. Today I am full up with first quarter of 1700 - ie 1700 to 1725. Now I want anno 16XX

now I dont buy spoons.
My thing is beakers - baroque ones. Have a danish collection of around 6 of them. And approx 10 different swedish tompet beakers anno 1750 to 1820
Frensch and Austria Hungaria

Captains spoons, sugar toungs,
So your taste becomes sofisticated.
But one thing - museums pieces say nothing to me. I prefer things that I can buy. Affordable but should be age 200 years +
Younger I reserve my money.

[JLDoggett]

Investing is something that requires expendable income, and like any investment the value is at risk. That being said: I collect silver but not as an investment but for the love of the pieces.

Certain things like my service of Tiffany Audubon flatware should always be worth well in excess of its melt value, or until silver reaches a $200.00 U.S. However I have "scrapped" quite a few services of Towle sterling flatware this year as their value was the market value of the silver they were made from. I was lucky that I shipped them to the refiner when silver was $48.00 U.S. per ounce. Today they would be worth a little more than half what I recieved in October. It was not that long ago that silver was trading in the $6.00-$7.00U.S. per ounce, and when I was an apprentice gold was $35.00U.S. per ounce.

The question you should ask yourself is how much above their spot value (refinery value of the metal content) something is worth to you. If you can buy something below the spot value, you will do well as long as the metal value remains the same or goes up in value. If the price of the metal drops you will lose money on your investment. You must decide the risk and how much risk you are willing to take.