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Silver has been a popular investment for over a century, with it’s varied industrial uses and popularity as a hedge against inflation. From jewelry to coins and bullion, silver remains a popular investment and trade item. But when it comes time to part with your silver, whether for financial reasons or simply to consolidate your collection, you may be wondering about the process. Selling silver isn’t always straightforward, but with some knowledge, you can ensure you get a fair price and avoid common pitfalls. In this ultimate guide, we’ll explore everything you need to know about selling silver, including where to sell silver, how to sell silver, and what to expect when selling silver.
Where to Sell Silver
The first step in selling silver is figuring out where to sell it. There are several options available, each with its advantages and disadvantages. Common places to sell silver include:
1. Local Coin Shops
Many people opt to sell their silver to local coin shops, as they are knowledgeable and often the highest payers. Getting more than one quote, even on the phone, is easy and can ensure you get a fair price.
2. Online Marketplaces
Selling silver online is another popular option. Websites like eBay allow you to sell your silver to buyers nationwide and open up your potential customer base. Selling online requires more work, as you need to photograph, describe, ship and insure all your items. This can often result in a lower net-price after fees and shipping, depending on the items.
3. Online Silver Dealers
These are businesses that specialize in buyer gold and silver. You can send your items to them, and they will send you back a check, assuming everything is genuine. These carry some similar cons to selling on eBay, as you still need to ship and insure your items. Prices are often comparable to local coin shops, but you must also ship it.
4. Pawn Shops
While convenient, pawn shops often offer lower silver prices, as they don’t specialize in precious metals. It may make sense if you want to get a loan on it instead of selling, but most likely not for just selling.
5. Private Buyers
If you know someone interested in buying silver, this can yield the most money by cutting out the middleman, but be cautious when dealing with people you do not know very well.
How to Sell Silver
Once you’ve decided where to sell silver, it’s time to consider how to sell silver effectively. Here are some steps to follow:
1. Asses Your Silver
Before selling, it’s important to calculate how much actual silver you have. Multiply the purity by the weight in TROY ounces (not regular food ounces) to determine the actual amount of pure silver you have in total.
2. Understand the Market Value
Silver prices fluctuate based on market demand. You can easily search “what is silver selling for today” on websites like Kitco to see the current spot price.
3. Know Your Buyer
Whether selling silver online or in person, be sure you’re dealing with a reputable buyer. Check reviews and ratings and see how long they have been in business. A trustworthy buyer will be transparent about how they will figure out your silver!
What to Expect When Selling Silver
When you decide to sell silver, knowing what to expect throughout the process is essential. Typically, selling silver involves the following:
- Appraisal: Whether you’re selling silver jewelry, coins, or bullion, the buyer will assess the weight and purity to determine its value.
- Offer: Once the buyer appraises your silver, they’ll make you an offer. The offer will vary depending on the rarity or spot price at the time of sale.
- Payment: Payment methods depend on where and how you sell your silver. Most coin shops will be cashing a certain amount and writing a check for larger purchases. Online marketplaces often payout directly to your bank account.
Is It Worth Selling Silver for Cash?
There are pros and cons of selling silver. If you need immediate cash, selling silver can be a quick way to raise funds. Silver is liquid, meaning you can get a fair price anytime. If the market price is relatively low, selling immediately might not be the best option. Precious metals increase over time, but nothing is guaranteed in life!
Some sellers also wonder how to sell gold and silver tax-free. If you’re wondering, “Do you pay taxes when you sell silver?” we can answer that question. If you make money on the sale of your silver, you are technically supposed to report the net profit as income. However, buyers such as local coin shops do NOT have to report the purchase of silver unless you are selling extremely large amounts at once, specifically (5) 1000oz silver bars or more. It is essential to talk to a tax professional to confirm reporting laws, especially if selling large amounts of precious metals.
How Much Will I Get If I Sell My Silver?
The amount you will get when selling silver depends on various factors, such as:
1. The Weight (Amount) of the Silver
The more silver you have, the higher price you should be able to ask. If you are selling only a few ounces, expect to get slightly less than if you have hundreds, or thousands of ounces. A fair price on a small amount of silver is likely between 85% and 95% of the silver price. On larger deals, expect 92%-97% of the spot price.
2. The Type of Silver
Silver coins, such as Silver Eagles, Maple Leaves, and Britannias should bring more than generic silver rounds and bars. Expect 25c-50c more an ounce or more depending on the specific product and quantity.
3. The Condition of Your Silver
Silver coins and bullion in perfect condition sometimes bring more than items that are in very poor condition. Always keep your coins and bullion appropriately stored to prevent damage and scratches.
Conclusion
Selling silver can be a smart way to make money, but it’s essential to understand the process. You can get the best possible price by knowing where to sell silver, how to sell silver, and what to expect. Whether you’re selling silver coins, jewelry, or bullion, taking the time to research and understand the market will help you make a sound decision. Have questions about buying or selling coins? Contact Edelman’s today for more information!
