Art Treasure Faces Meltdown on Records for Gold, Silver Futures

Experts are watching thousands of valuable heirlooms be melted down as financial-market turmoil boosts investors’ demand for precious metals.

Gold futures are trading at close to record prices, and silver has also been at its highest in 2011. Antique jewelry is being thrown into furnaces as sellers forgo the uncertainty of auctions for a quick cash sale from metal dealers. Auction houses are having to pay more attention to melt prices as speculators watch for lots that can be snapped up below their scrap value.