Deciding when to sell your silver holdings, whether in the form of coins, bullion, ETFs or other forms of precious metal, is one of the most challenging aspects of investing in silver. The market for silver can be volatile, and predicting future prices is inherently uncertain. Whether you are just starting or have been a lifelong stacker, considering the right time to divest is crucial for maximizing your returns and meeting your financial goals.
Many investors buy silver as a long-term hedge against economic instability and inflation. Silver’s intrinsic value and historical performance as a safe haven make it an attractive option for those looking to preserve wealth during periods of high inflation.
It doesn’t matter if you are just at the beginning stages or have been a lifelong stacker. It is important to think about future divestment.
Silver is also valued for its liquidity. It can be easily sold in various forms, such as coins, bars, and even sterling silver flatware and jewelry, providing quick access to cash when needed.
When holding sterling silver flatware, jewelry or coins, trying to figure out when to buy or sell can be confusing. Many investors choose to own physical silver as a long term store of value for reasons of financial security. However, silver can also be a way to get quick cash should you need it.
What is my Silver Worth?
Precious metals trading activity happens in worldwide futures markets in New York, London and Singapore. The silver spot price fluctuates because of the commodities trading markets. The price is based upon buying a futures contract, typically for very large wholesale orders of at least 5,000 troy ounces. You can find the today’s spot price on our website.
Silver is the affordable precious metal. It’s relatively easy to acquire more metal for the same amount of money. One downside of silver is that it is not very portable.
For example, a Monster Box of Silver American Eagles (500 coins, 500 troy ounces) weighs roughly forty-two pounds. Imagine trying to carry that, along with all your other gear in a situation where you need to leave home quickly.
In comparison, $10,000 worth of gold weighs only a few ounces, which you could easily carry in your pockets.
The premium over spot price for silver can also be higher than that for gold. It’s typical to find premiums in the 1-4 percent range when buying gold. Silver is a different story.
Silver Coin Premiums When Selling
Even though the Mint charges wholesalers only around $2.50 per coin to cover the cost of manufacturing and distribution, the dealer premiums over for 1-ounce Silver American Eagles fluctuates based on availability and demand. As a result, many dealers will also pay record high buy back prices when there are market shortages of these coins.
Calculating Silver Value
To calculate the value of your silver, add up the total number of troy ounces. Take into account any items that may have a lower purity, such as 90% junk silver coins or sterling silver, multiplying the weight of the item times the purity. Then multiply the total amount by today’s silver spot price and you have the estimated melt value.
Coins can carry a numismatic premium over their melt value, including government issued silver bullion coins. The amount of numismatic premium is determined at the time of sale.
Will this be the year to sell your silver investment?
The silver market has had a wild ride in recent times, with silver prices rising steadily, while trailing slightly behind other commodities’. Many market experts are anticipating a bullish market well into next year.
The current market price for silver is a primary consideration. Monitoring spot prices and historical trends can help you gauge whether the market is favorable for selling.
Where Can I Sell my Silver?
There are typically four avenues to consider when choosing where to sell your silver. Knowing where you can get the best price for silver is important. Waiting until you need to sell can often lead to settling for a low payout.
The easiest and quickest way to sell is to use a broker that is willing to exchange silver for cash or in some cases via direct deposit to your bank account.
Using a broker is not complicated and there are many different types of companies that deal in precious metals. It’s like that you are already familiar with some.
Online Bullion Dealers
Online bullion dealers are an excellent choice to consider when looking to sell silver. Virtually every online bullion dealer will make an offer to buy your silver.
In some cases, online bullion dealers will list their “buy back” prices directly on their website. This allows you to figure out a rough idea of what each piece in your collection is worth.
For some pieces, it can also be helpful to look at completed auction listings on eBay for pricing.
You will need to contact each dealer to get their requirements for packaging and shipping.
Each dealer has different requirements for shipping them your silver to sell, such as insurance requirements.
There are two other things to consider when selling your silver investment to an online bullion dealer.
The turnaround time can take a week or two before you get paid. This delay may not be important if you are selling for the best possible price.
It’s also important to ask if shipping insurance is included. Shipping insurance can add additional cost which eats into your profits. It’s good to know in advance if you will need to insure your silver from being lost in transit. Some people prefer to use USPS Registered Mail service.
It becomes a waiting game once your silver is in the mail. The first thing that the dealer will do is take an inventory and assay any pieces that may need it.
After the shipment is received and inventoried, the dealer will contact you with the amount they will pay. The dealer will most likely mail you a check once you’ve agreed upon an amount. Some dealers may offer to send you the money via ACH bank transfer.
The entire process, from selecting a dealer, to shipping and receiving your payment can take several weeks. This is not ideal if you’re in a situation and you need to liquidate your silver investment in a hurry.
Local Coin Shops
Local Coin Shops are one of the most ideal places to liquidate your silver investment. Most people think of these stores as only a place for numismatics and collectors.
Historically, coins have often been minted from gold and silver. So most coin shops are also in the business of trading precious metals with their customers on a daily basis.
In most cases, you won’t need an appointment or provide the Shop with any advanced notice. You can often just walk in with your silver and lay it on the counter. The clerk will inventory what you’ve brought and assay any pieces they may need additional confidence in.
Many Local Coin Shops have a similar pricing model for their buying and selling activity. They will often buy generic silver slightly below spot price. Typically $1 to $2 below the current silver spot price per ounce.
Before the pandemic, you could buy government items like American Silver Eagles slightly above the current silver spot price. Today’s premiums on silver eagles are still at unprecedented levels and you can usually expect to receive above the current spot price for sovereign government produced bullion products.
Numismatic and semi-numismatic items will fetch prices that are reasonable and based on their resale value. Dealers may also pay a better price on an item they know they can sell quickly.
eBay and Other Online Marketplaces
There are many bullion investors that shop eBay to buy silver bullion. Many are skeptical and cautious when using eBay due to the increase in counterfeit bullion sales. It is quite common to find counterfeit coin reproductions among the listings.
Most bullion buyers on eBay look to make their purchases through sellers with significant and recent positive feedback. Some reputable online bullion dealers such as APMEX, Bullion Exchanges, Liberty Coin often offer lower premiums through their eBay stores.
In addition to buyer skepticism, another major factor is to consider the fees charged. Final valuation fees on auctions can be as high as 13% of the winning price. On top of that, eBay requires sellers to accept only PayPal for payment. This can add an additional 4% in fees.
With combined fees as high as 17%, selling on eBay can be a losing proposition.
There are exceptions. eBay can often the best option when selling graded bullion, numismatic or semi-numismatic items that carry a significant premium.
Pawn Shops & “We Buy Gold” Stores
Local Pawn Shops and “We Buy Gold” stores have always been a place to sell your precious metals investments.
Keep in mind that these places are in business to make a tidy profit. They have overhead costs of operating a storefront, paying rent, utilities, employees, etc.
In many cases, the prices that they are willing to pay are significantly lower than other options. But if you’re in a hurry, these stores can quickly turn your precious metals into cash.
Conclusion – Is Now the Time to Sell Your Silver?
Ultimately, the right time to sell your silver depends on several factors.
- The current state of the precious metals market.
- The value of your specific piece/pieces.
- Finding the best place to sell.
- and most importantly, your own financial plans, goals and ambitions.