ArcaMax

With the prices of gold and silver bullion making all-time highs, many people are thinking about turning grandma’s sterling silver flatware or grandpa’s collection of gold coins into cash. It could be considered “found money.”

But there are a few things you need to understand before you rush to the nearest coin dealer or hotel ballroom where a newspaper ad promises you “highest prices” for your old stuff. The headline numbers will certainly not make their way into your checking account.

There’s a vast difference between the gold and silver markets, despite the current record prices. Gold is primarily a store of value, being pushed higher recently by central bank purchases as they diversify from the U.S. dollar amid global geopolitical uncertainties. Silver has a much larger industrial use, which is growing in many high-tech applications.

Supply and demand rule both markets. And while experts say there is no major disruption of supply, recent market surges have interrupted the process of acquiring, melting and certifying the quality of these commodities before they can be entered into official warehouses. That has created distortions in pricing that might surprise you.

It’s hard for most to remember, but just 50 years ago it was illegal for Americans to hold onto gold, except for that needed for artistic and professional uses. People could have jewelry and collectible coins, but the "hoarding" of gold coins, gold bullion and gold certificates was banned on April 5, 1933 by executive order of President Roosevelt. People were required to turn in their gold by May 1, 1933. Violations were punishable by a fine of up to $10,000 and up to 10 years in prison! They were paid the official, government-set price of $20.67 per ounce.

Then the Gold Reserve Act of 1934 reset the official gold price to $35 an ounce, effectively giving the government a huge profit! Gold remained at that official $35/ounce price, allowing foreign central banks to exchange dollars for gold, until August 15, 1971, when President Nixon suspended dollar convertibility for foreign holders.

At that point, officially disconnected from the U.S. dollar, the price of gold started to rise in world markets. However, the ban on American citizens owning gold wasn’t lifted until December 31, 1974.

Since that point, gold has been on a long-term upward trend toward the current level (as I write) at more than $5,200/ounce. And as I’ve written in many columns over the years, Americans have been able to buy gold bullion coins, gold collectors’ coins, shares in gold mining companies and mutual funds that own gold mining shares, as well as in exchange traded funds that track the price of gold throughout the day. The most notable of those ETFs carries the symbol GLD.

While gold mining shares pay dividends that tend to grow as prices rise (and mining costs remain stable), there have been many years when gold lagged the performance of the S&P 500. However, 2025 was the exception, with gold rising 65% and many mining companies turning in even better stock performance.

When it comes to selling your gold, you’ll need a trusted dealer. And you should recognize the key ingredients in valuing your hoard of gold jewelry or coins. Your gold jewelry is likely 14 or 18 carat gold, worth about 40% less than its weight in gold. And don’t forget that gold is weighed in troy ounces, not on your bathroom scale!

When it comes to coins, these days collectors’ gold coins, such as the pre-1934 U.S. 20- dollar gold coins that used to carry a premium of at least 25% over their gold value, no longer have much bonus value. Instead, that gold coin is based on its actual bullion weight and the current market value of gold, minus the costs of shipping and melting and certifying, and the profit to the coin dealer. So, your one-ounce gold coin could be worth 5% less than the daily price of gold!

Since silver has so many industrial uses, there is an increasing demand for silver — much of which is supplied by melting existing silver vs. new mining discoveries. But before you salivate at the thought of melting down that unused flatware or the baroque candelabra you inherited, first check to see whether it is sterling silver or silver plate! There’s a big difference.

Sadly, you aren’t the first one to think of raising cash in this manner. In fact, according to metals expert David Greenstein of Aurum Trading LLC, the recent huge rally in silver prices has created a backup at the refineries. Says Greenstein: “The bottleneck of increasing supplies at the refiners have led to significant discounts in what dealers can pay for your stuff.”

For example, suppose you have a $1,000 bag of pre-1964 silver coins, containing 90% silver. It’s called “junk silver” in the trade. That $1,000 face value bag of coins has 715 ounces of pure silver in it. And at a silver price of $100, it looks like it should be worth about $71,000. But because of supply chain issues, you’ll be lucky to get $60,000 for it under current circumstances, says Greenstein.

Eventually, if prices remain stable, you’ll get closer to market value. In the meantime, you might be better off having an elegant dinner party.

If you’re going to sell your precious metals, you’ll want to make sure you are dealing with a reputable dealer. Find one at the website of the American Numismatic Association (www.Money.org). Your closet may contain hidden treasure, but it’s up to you to make sure you get the best price. And that’s The Savage Truth.

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(Terry Savage is a registered investment adviser and the author of four best-selling books, including “The Savage Truth on Money.” Terry responds to questions on her blog at TerrySavage.com.)

©2026 Terry Savage. Distributed by Tribune Content Agency, LLC.