The white metal's heady rise has people rushing to sell heirlooms.
SATURDAY, APRIL 9, 2011
What do you get when you combine a weak economy with soaring silver prices? Cash-strapped people lining up to sell their silverware. In New York's diamond district on Friday, a scrap-silver dealer had his arms full. "We're getting more business than ever before," he said, as he emptied the contents of a garbage bag one customer brought in—silver bowls, cups, a platter, an ashtray, forks, spoons and more. (There were no knives because, as the customer pointed out, sterling silver knives actually contain very little silver.)
Earlier in the day, silver had topped $40 an ounce for the first time since 1980, thanks to an explosive rally that began in February 2010, when prices were $15.14 an ounce. If this keeps up, silver could best the $49.45 hit in '80, when the Hunt brothers tried to corner the market.
Whether that will actually happen isn't clear. Our colleague Anna Raff makes a good case that silver may now be topping out (see Commodities Corner). But right now, it seems, people around the world just can't get enough silver.
According to a study by The Silver Institute, $5.6 billion of investment money poured into silver last year, almost doubling 2009's figure. Investors rushed to exchange-traded funds that hold silver, and to silver coins of the U.S., Canada, Austria and Australia.
Philip Klapwijk of London research firm GFMS says some manufacturers will look for alternative metals and nano-silver. But he doubts there will be enough substitution to dampen prices. In other words, there's still some time to unload a few place settings.
-- Jim McTague
You're right where Bernookie wants you, irates low so risk taking is the only game in town, hence the market pop. He's hoping you make enough money to pay off the loan you overstated to the bankers for that overpriced real estate you bought after 2004. Or that you'll take the money and chase goods, and services so adroitly, it'll make everyone buy up all those foreclosed properties and we are off to the races in housing again.
The fact that he's dead wrong on outcome, is why you are in stocks and risk assets. You can't win unless you play the house game. There is no alternative, and this momo is on its way past makes sense to makes a fortune in short order.
The secret is, when to get out.
Attended an estate sale today. Purchased a sterling (.925) silver serving set (fork and spoon) for $194 and a sterling crumb scraper for $22. I weighed the serving set when I returned home and was delighted to find it weighed 8.5 oz. and the crumb scraper 1 oz. A total purchase of $216 figures to be (worth?) approx. $359 at Friday's spot close ($40.93/oz.).
Seems to good to be true. Am I missing something here? Does scrap silver not get valued at spot price? If so, what is the appropriate discount? Can anyone help me out here?
If attractive, look past the metal price to value as a collectible. Would you value the statue of David on the value of the marble?
If enticing, I bet you can get $450 easy from someone who likes the look, and not just the metal content.
We are at a weird kind of tipping point right now. No one will buy silver items for spot price, as it is just too high. I have been buying silver teapots, trays, bowls, and just stuff that I like. I have been paying below melt for it on ebay.I also pick up junk that I don't l ike just to scrap it. The best deal I have found is Midwest Refineries.com They pay you 90% of the silver value of what yous send in, and you can have your $$ in silver bars, rounds, bank wire or check.
So you have 9.5 oz of sterling which is 925 so that is 8.95 oz pure silver x 90% x whatever spot is on the day they complete your order.
Your probably going to get $2-3 under spot for it, and some dealers will also deduct around 5% for smeltering (meltdown cost) I can't quote what you'll get, but earlier today I sold a Franklin mint set, sterling, 100 peices of 500 grain, and the best quote i got was for $3300. You'll make some $$$$$, but probably not as much as you hoped. JMHO Good Luck!
On Ebay 20 ounces of Silver Eagles are going for $1000, which amount to $50 an ounce.
When poor people are selling their little silver and gold, who do you think are buying them? The rich. Silver is still cheaper today then it was in 1980, it has a long way to go from here.
When joesixpac gets off the floor of the honkeytonk, and gets involved in the trade and sells his mother's jewelry and silver spoons for his next sixpac of beer, the trade is in maturity.
It could run another fifty bucks with the news of the world's bankruptcy, but joe is the last one to enter the fray.