Its a big business these days, and its populated by every order of scammer and thief. Be very wary.
Around here, the more reputable companies buy for 75% of the spot price. You can find that at
Kitco - Gold Precious Metals - Buy Gold Sell Gold, Silver, Platinum - Charts, Graphs, Prices, Quotes, Gold Stocks, Mining Stocks, bullion dealers and its updated continuously. Anyone paying less than the 75% is probably a crook and should be avoided. You quoted somebody trying to steal your goodies at 33% of spot. Its his right to try to steal/scam you out of your silver. Your job is to find someone more honest to deal with.
Most of us prefer to deal with someone who pays cash.
There are some pitfalls in all this. Silver knives often have stainless blades, so you won't get much for them. The hollow handles are also weighed with pitch to hold the blade in. Standard practice seems to be they'll pay you 1/2 ounce for the handle.
Silver hollowware are the serving pieces. Cups, platters, pitchers, salt and pepper shakers, the list is endless. Some of those items are weighted with sand or pitch. No body buys filler at spot price, so be reasonable.
Experienced buyers (and sellers) can tell silver or gold by touching or handling it. There seems to be a lot of folks trying to pass silverplate off as sterling. Good luck with that.