It’s not often a “newsflash” comes along in the stately world of antiques.
But these are unprecedented times – so much so I felt the need to comment.
In almost 30 years in the business, I have rarely seen anything like it.
I am referring to the booming price of silver. Today I am selling silver teapots for £1,000 that were selling for £200 just six months ago.
Teaspoons that would hardly trouble a valuer a year ago are selling for hundreds.
From the antique shops of Mayfair, to silver bullion traders there is only one topic of conversation – what the heck is happening to silver?
What had once been considered gold’s upstart “little brother” is now the strongest-performing major commodity of the past year.
Earlier this month the price of silver reached unprecedented levels, briefly trading more than $95 (£70) per troy ounce, eclipsing its nominal all-time high.
Why? Well President Trump’s late-night tweets aren’t helping. When global politics look insecure, precious metals act as a hedge against financial instability.
Plus silver is unique in that is both an industrial metal and a store of value so it is sought after by investors and sectors hungry, many in China, for its electrical and thermal properties.
But what does all this mean to someone with even a modest cache of silver in their dining room cabinets, including anything from Victorian flatware to Georgian tea services?
Should you sell, or hang on?
Melt price
In periods of rising bullion prices like now, silver with little historic or artistic value is often sold on the strength of its silver content alone.
This is where the “melt” price comes into play. This refers to its scrap value – the value of an object if it were melted down and sold purely for its silver content.
To calculate it, we multiply the weight of the item by both its purity and the current silver price.
For example, antique coins and flatware made of sterling silver (.925 fineness) would be valued the market price per gram of fine silver once impurities are factored out.
In the UK current scrap silver prices for .925 sterling are high – in the region of £1.60–£2.20 per gram for fine and pure silver respectively.
At these levels, a “basic” piece of silver is likely to realise near-record returns on the melt value alone, compared to even six months ago.
So if you own any unremarkable silver — ubiquitous candlesticks, flatware patterns produced in millions — now is the time to monetise at near-peak bullion valuations.
Of course, collectable silver is worth much more than its melt because of its inherent beauty, rarity, condition, provenance or design.
Well-documented pieces with exceptional craftsmanship or significant collectors’ appeal will always command premiums above melt.
As an auctioneer and lover of antiques in all forms, I am a custodian of material culture.
I will always extol the elegance of a Queen Anne teapot, the craftsmanship of a Paul Storrtureen, or the social history embedded in a Georgian sauceboat.
To destroy such objects for scrap runs counter to everything my profession stands for.
But not all silver is created equal, and the destruction of mass-produced late-19th-century cutlery is not the same as melting a rare 17th-century porringer.
Truly important silver — early, rare and by celebrated makers — is almost never sacrificedeven in boom markets like these.
Its numismatic and historic premiums remain resilient, even when the melt price is spiralling.
If you are struggling to work out whether now is the time to sell your silver, or hold on to it,we have experts on hand to help.
Our silver specialist Daniel Armstrong will advise on the best course of action and help you maximise your investment whether today, or in the future. To find out more or arrange a free valuation, email him on [email protected]
