What is a good standard practice for purchasing sterling silver?

[JayDubya]

Asking the group here for their opinions.

What is the consensus regarding purchasing sterling silver?

Because of assaying and processing (melting) costs one should attempt to purchase sterling below melt value.

So when purchasing sterling, how far below melt is a generally accepted range?

I was going to post my target, but don't want to sway anyone's opinion and skew responses.

 

[Someone_else]

In the ancient past, I looked into the price of sterling silverware. I gave up. So much was overpriced. And so much was "weighted" with garbage. Or simply plated.

If I were to buy sterling silverware, it ABSOLUTELY MUST be 92% silver by weight. Or better.

I lost. But if you can buy 92% silver at just under spot, and it is absolutely identifiable as sterling so you can sell or trade it easily, that would work for me.

 

[JayDubya]

Thanks for the reply Someone_else, but it seems that "just under spot" is off the mark by quite a bit.

I haven't bought sterling in over a decade, easily been that long ago.

But because of the increase in spot I'm seeing more and more available sterling and I was considering seeing if I can turn it over fairly quickly.

But from what I'm seeing it sure doesn't look that way.

Used to be I could buy at around 15% to 20% below melt (I almost always used the mid 17.5%) and I did okay.

I wasn't doing it as a second job, just something to bring in a little extra cash and every now and then find a piece or two to keep.

But now it seems like 17.5% wouldn't even come close to cutting it. Seems like I'd have to come in with some real low-ball offers in order to see profit.

In fact, from what I'm seeing I may have to consider selling the few pieces I held onto instead acquiring new stuff. I've got an old Tiffany three ball feet bowl, a fairly ornate tea caddy, a random vase and set of silverware that I held onto. Maybe now is the time to let them go.

Just wondering if that's what anybody else is seeing or if anyone is actually buying and turning the stuff what their target is.

 

[Goldhedge]

Never having bought it... I asked GROK:

"What is a good standard practice for purchasing sterling silver?"​

Purchasing sterling silver—whether for jewelry, flatware, or investment—requires some know-how to ensure you’re getting quality and value. Sterling silver is an alloy of 92.5% pure silver and 7.5% other metals (usually copper), making it durable yet prone to scams or misrepresentation. Here’s a solid standard practice to follow:
1. Verify Authenticity

• Look for Hallmarks: Genuine sterling silver is stamped with “925,” “Sterling,” or “S925.” This indicates the 92.5% silver content. Check under a magnifying glass or loupe, as marks can be tiny (e.g., on the clasp of a necklace or inside a ring).
• Magnet Test: Silver isn’t magnetic. If a magnet sticks, it’s not sterling—it might be silver-plated or a base metal. This isn’t foolproof (some alloys mimic silver), but it’s a quick red flag check.
• Ask for Documentation: Reputable sellers provide certificates or receipts stating it’s sterling silver, especially for high-value items.

2. Assess Quality and Craftsmanship

• Weight and Feel: Sterling silver has a decent heft—lighter than pure silver but heavier than cheap alloys. Thin, flimsy pieces might be plated or low-quality.
• Finish: Look for smooth edges, no pitting, and a consistent polish. Tarnish is normal (silver reacts with air), but excessive scratches or dents signal poor handling or fakes.
• Source: Buy from trusted jewelers, established retailers, or artisans with good reviews. Avoid random online marketplaces unless the seller’s vetted—e.g., Etsy sellers with high ratings and clear return policies.

3. Understand Pricing

• Silver Spot Price: Check the current market price of silver (e.g., $30-$35 per troy ounce as of March 2025, though it fluctuates). Sterling is 92.5% silver, so a 1-ounce piece has about 0.925 ounces of pure silver. Raw material value is a baseline—expect to pay more for craftsmanship.
• Markup: Jewelry and flatware include labor, design, and brand premiums. A fair price might be 2-5 times the silver’s melt value, depending on intricacy. Antique or designer pieces (e.g., Tiffany & Co.) fetch higher premiums.
• Weigh It: If possible, use a scale (in grams or ounces) and calculate the silver content. For example, a 100-gram sterling item has 92.5 grams of silver—compare that to the spot price to spot gouging.

4. Buy for Purpose

• Jewelry: Focus on durability (e.g., thicker chains) and style. Check clasps and settings—sterling pairs well with gemstones but should feel secure.
• Flatware: Look for heavy, balanced pieces. Vintage sets (e.g., Gorham, Reed & Barton) often have better craftsmanship than mass-produced modern stuff.
• Investment: Coins, bars, or rounds labeled “925” are less common (most bullion is 99.9% silver), but if buying sterling for silver content, prioritize weight and purity over aesthetics.

5. Check the Seller’s Policies

• Returns: Ensure a 14-30 day return window in case it’s not sterling or arrives damaged.
• Reputation: Research the seller—online reviews, Better Business Bureau ratings, or word of mouth. Brick-and-mortar stores let you inspect before buying, a plus over online-only deals.

6. Test if Unsure

• Acid Test: Jewelers use nitric acid kits—apply a drop to a scratched spot; sterling turns a creamy color, fakes turn green or black. DIY kits cost $10-$20, but practice on scrap first.
• Density Test: Sterling’s density is about 10.36 g/cm³. Weigh it, then measure volume by water displacement—if the math’s off, it’s not pure sterling. This is overkill for most buyers but good for high-stakes purchases.

Practical Example
You’re eyeing a 50-gram sterling silver necklace for $150. Spot price is $34/oz (1 oz = 31.1g). Silver content: 50g x 0.925 = 46.25g, or ~1.49 oz. Melt value: 1.49 x $34 = $50.66. The $150 price includes a ~3x markup—reasonable for decent craftsmanship. It’s stamped “925,” feels solid, and the seller’s legit. Good buy.
Final Tips

• Avoid “Silver” Alone: If it just says “silver” without “925” or “sterling,” it’s likely plated or fake.
• Clean It: Tarnish doesn’t mean low quality—polish with a silver cloth or baking soda paste.
• Budget: Set a limit based on use—$20-$50 for simple pieces, $100+ for heirlooms or antiques.

Stick to these steps—check marks, know value, trust your source—and you’ll snag sterling silver that’s worth the price.

 

[JayDubya]

Appreciate the effort Goldhedge
But GROK is telling me to buy at three times spot price.
Thanks but no thanks.