Uncovering Value: A Guide To Investing In Pre-Owned Sterling Silver Jewelry

Sterling silver is a popular material for jewellery because it is the brightest fine metal but also one of the least expensive. Its low cost means styles change more quickly, and sterling silver pieces might be replaced more often than gold or platinum pieces. Sterling silver is 92.5% silver and 7.5% other metal alloys, usually copper.

If you're looking to buy used sterling silver jewellery as an investment, it's important to do your research and only buy from reputable sources. You'll want to make sure that the silver is pure and that the piece is of good quality. Look for hallmarks or stamps that indicate the purity of the silver, such as 925 or sterling. It's also a good idea to establish a relationship with a reputable dealer or wholesaler who can provide documentation on the origin and purity of the silver.

When buying used sterling silver jewellery, you can look for unique, high-end pieces or build a collection of classic, timeless items. Sterling silver is versatile and can be worn on any occasion, whether you're dressing up or keeping it casual. It's also hypoallergenic, so it's a good choice for those with sensitive skin.

Keep in mind that the resale value of sterling silver jewellery will depend on the weight and purity of the silver, as well as any collectible value the piece may have.

How to buy used sterling silver jewelry for investment

Verify the silver is sterling silver

Sterling silver is an alloy containing 92.5% pure silver and 7.5% copper or another stronger metal. The addition of the other metal strengthens the silver without compromising its appearance.

The Magnet Test

Sterling silver is not magnetic, so if you hold a magnet near the piece of jewellery and it is attracted to the magnet, it is not sterling silver.

The Markings Test

Most silver pieces will be embossed with a stamp or marker, such as "Ster", "925", or "Sterling Silver". This is the simplest way to verify the grade of silver. However, some silver-plated items may also be marked with "925", so it is worth doing other tests to verify the piece is sterling silver.

The Smell Test

Clean sterling silver should not have a smell. If you rub the metal and it smells metallic, brassy, or dirty, it is probably not sterling silver.

The Rubbing Test

Use a soft cloth to rub the piece of jewellery and then check the surface. If there are black marks on the cloth, it is likely to be sterling silver, as real silver oxidises on exposure to the air, leaving tarnish on the cloth.

The Acid Test

You can purchase a silver acid test kit online or from a jeweller's store. You will need to make a small scratch on the piece of jewellery and apply the acid to the scratched area. The acid will cause a colour change, which you can compare to the colour scale provided with the kit.

The XRF Test

If you want to avoid damaging the surface of the jewellery, you can find a jeweller or pawn shop with an XRF (x-ray fluorescence) analyser. This will test the piece without damaging it and will provide a printout of the metals contained within.

Assess the resale value

When assessing the resale value of a piece of sterling silver jewelry, it's important to consider its potential value as a collector's item. Websites like eBay are a good place to start—browse similar pieces of jewelry to get a sense of their selling price.

If the piece of jewelry you're looking to sell is not a collector's item, you can calculate its scrap metal value. This is the value of the silver it contains. Here's how to do it:

• Find the weight of your sterling silver jewelry in ounces.
• Multiply that weight by 0.925 to determine how much pure silver it contains.
• Multiply that number by the current price of pure silver per ounce.

For example, if you have a sterling silver ring that weighs 1 ounce, and the current price of pure silver is $26.06 per ounce, the value of your ring would be $21.21 (26.06 x 0.925 x 1).

Assess the scrap metal value

When assessing the scrap metal value of sterling silver, it's important to note that sterling silver is typically 92.5% silver and 7.5% other metals, usually copper. This composition is what gives sterling silver its strength and durability, making it suitable for jewellery and tableware.

To determine the scrap metal value of your sterling silver, you'll need to follow these steps:

• Weigh your sterling silver item: Start by weighing your sterling silver item in ounces. This will give you a base value for the rest of your calculations.
• Calculate the pure silver content: Multiply the weight of your item by 0.925 to determine how much pure silver it contains. This accounts for the fact that sterling silver is usually only 92.5% silver.
• Multiply by the current price of pure silver: Take the weight of pure silver you calculated in the previous step and multiply it by the current price of pure silver per ounce. This will give you the scrap metal value of your sterling silver item.

For example, let's say you have a sterling silver spoon that weighs 1 ounce. Here's how you would calculate its scrap metal value:

• 1 ounce (weight of sterling silver item) x 0.925 = 0.925 ounces (weight of pure silver)
• 0.925 ounces x $22.89 (current price of pure silver) = $21.17 (scrap metal value)

Note that the buyer's commission is usually deducted from this final value.

It's worth mentioning that the price of silver fluctuates constantly due to its status as a precious metal traded on various exchanges worldwide. Therefore, it's essential to check the current price of silver before performing these calculations to ensure an accurate assessment of your sterling silver's scrap metal value.

Look for hallmarks

Sterling silver is 92.5% silver and 7.5% other metal alloys, usually copper. To ensure that you are getting the best quality jewellery, you should look for hallmarks in a hidden place on your new accessory.

Hallmarks are stamps that indicate the standard or purity mark, the initials of the maker, a date letter, and the place of assay. In the UK, the standard mark for sterling silver is a lion passant, but this can vary in other countries. For example, the symbol for silver made in Birmingham is an anchor, while the Edinburgh mark is a three-turreted castle.

In addition to these standard marks, special commemorative stamps may be added to regular silver marks to mark special events. For example, the head of Elizabeth II facing right was used to mark her Golden Jubilee in 2002.

When looking at hallmarks, you should also pay attention to the date letter, which indicates the year in which a piece of silver was assayed. This letter is usually changed annually and can help you determine the age of the jewellery.

It is also important to note that hallmarks can be faked, so be sure to purchase your jewellery from a reputable source.

Compare prices

When buying used sterling silver jewellery, it is important to compare prices to ensure you are getting a good deal. Sterling silver is a safe investment, and its high silver content means its cost is comparable to pure silver. However, it is still cheaper than pure silver because it contains less silver.

The price of sterling silver fluctuates over time, so it is impossible to state its exact worth at any given moment. It is dependent on the silver spot price, which is influenced by factors such as demand and supply, global economic trends, oil prices, and the strength of the US dollar.

The best way to compare prices is to use a sterling silver calculator, which will determine the value of the product based on its weight and the current spot price of silver per troy ounce. You can also calculate the price manually by following these steps:

• Confirm the item contains 92.5% silver by checking for a hallmark (usually "925" or "sterling").
• Weigh the item and record its weight in ounces.
• Find out the amount of silver in the item by multiplying its weight by 0.925.
• Determine the silver value by multiplying the current silver spot price per ounce by the amount of silver in the item.

It is worth noting that the price of sterling silver jewellery can vary depending on factors such as the condition, age, and size of the piece, as well as any gemstones it contains. Additionally, the craftsmanship and gemstone used can influence the price of sterling silver rings specifically.

Frequently asked questions