The price of silver is having a profound effect on the UK market, says UK trade newspaper Antiques Trade Gazette. With a peak value of £57 per troy ounce ($114) on December 29, and with prices showing no sign of dropping, the ATG reports that: ‘More and more Georgian works including snuffboxes, vesta cases and canteens are now heading for the melt. Even low-value items with a small silver content… are being destroyed as the metal is removed.’
In an interview with the newspaper last week, British dealer Michael Bloomstein – who deals in the trade of precious metals including gold, silver and platinum – said he had received a George IV silver tea and coffee service marked for London 1824 which is now worth £4708.62 ($9423.21) because of its overall weight of 101 ounces.
Although there are a number of factors pushing the price of silver up, including uncertainty over interest rates and tariffs, one of the main concerns seems to be with China, which uses large amounts of the metal as a conductive layer in solar-powered cells. In a move that is expected to further affect the market, the Chinese government recently restricted exports of refined silver.
‘Under the policy that took effect on January 1st, only large, licensed, state-approved companies with an annual silver production capacity of 80 tonnes and a credit line exceeding $30 million can export silver,’ says Mike Maharrey of the Money Metals Exchange on FXStreet.com. ‘According to analysts, the rules will lock hundreds of small and mid-sized exporters out of the system. These smaller firms are key suppliers to industrial users and silver refiners around the world.’
China ranks second in global silver mine production, but the Chinese dominate the silver market through their massive refining capacity. The country controls 60% to 70% of the world’s refined silver supply, says Maharrey. ‘Silver demand has outstripped supply for four straight years. The Silver Institute projects a fifth straight supply deficit this year.’
It takes between 10 and 20 years before an ounce of metal is mined from a newly discovered silver deposit. If China continues to restrict its exports, the world will need to get its refined silver from other sources – and antiques are the perfect patsy. Who cares about the craftsmanship of a Georgian silver coffee service when you can walk away with more than $9000?
Actually there are some dealers who care a great deal, and Billy Robertson from Cache Antiques in Sydney is one of them. He first started buying and selling silver when he was nine years old. ‘When you’re dealing with a nice early Georgian piece that’s been hand raised by a skilled craftsman, it really should be kept,’ he says. ‘The same goes for Chinese export and Indian silver. It was made by hand, those craftsmen put part of their life and soul into it and it should be saved from the melting pot.’
Billy says he’s seen an increase of interest in silver as the price per ounce has skyrocketed. ‘Things are being taken out of the cupboard by people who are curious as to the value,’ he says, ‘but it hasn’t stopped the market from buying. We are seeing an uptick of new collectors entering the market who want to purchase their first piece as a form of investment, but also buy something that one can use daily.’ He says recently sold items include every form of tableware imaginable, and of course jewellery. ‘We’re willing to pay a higher price to get some of those items that haven’t seen the light of day for decades. I actually see it as a positive thing: it means we’re getting some lovely fresh stock.’
Back in the UK, Michael Bloomstein has experienced an epic week of trade. ‘So many people were waiting to come in when we reopened we had to put a sign on the door as we couldn’t fit any more customers in the premises. I’ve never had to do that before.’
Read more at www.antiquestradegazette.com
See antique silver at Cache Antiques www.cacheantiques.com.au
