How to Sell Silver Bars
Silver has been considered a precious metal for thousands of years. In addition to its long-recognized antibacterial properties, silver is an excellent conductor and is used in numerous electronic applications. Many of those who own silver bars keep them in case of emergency. Others need to liquidate their holdings or simply want to take advantage of rising prices. The amount of silver you wish to sell can influence how you do so, because shipping can be costly. A 100-oz. bar of silver weighs almost 7 lbs.
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Instructions
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Find out the spot price. While the value of futures contracts represent the cost of silver (in 1,000-oz. bars) for delivery at some later date, the spot is the best measure of the current value of a single ounce of silver (see Resources).
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Sell high. Silver is fairly volatile when the state of economy is in flux and interest rates are moving higher or lower. Silver tends to move in the same direction as gold, which gets more media attention. The most common mistake people make is to buy when high gold prices are getting a lot of attention; in fact, that is often the best time to sell.
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Search for local shops. Silver usually can be sold in bar form to local pawn shops or precious metals merchants. Searching online should give you an idea of what is available in your local area, and you can call in advance to see if they offer cash for silver bars in the quantity you are selling. Going through a local store saves on the cost and time of shipping, but that might not get you the best price. A reasonable offer is generally within 5 percent of the spot price.
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Online auction sites can be a good way to sell a silver bar. Although your final price is unpredictable, you can set your minimum price and often receive much more than you would from other sources. Selling via an online auction takes time and requires registering with the auction website, but the cost of shipping can be passed on to the winning bidder.
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Sell to dealers. Many online dealers purchase silver bars; they generally pay more for recognizable names. Buy prices are listed online, but phone ahead to get a quote. The usual procedure is to ship your silver to them under an agreement to sell, and if what they receive matches what you described, they mail you a check or credit your account.
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Tips & Warnings
Like gold, silver is a hedge against inflation, particularly for declines in the U.S. dollar. It's often a good time to sell precious metals when the dollar hits a low.
The quality of your silver bars will affect the price they fetch, especially from a local shop or through an online auction. People pay more for untarnished and unscratched bullion because of its aesthetic value. If your bars are tarnished, going through a dealer may be a better bet.
Silver bars typically weigh in at 1 oz., 10 oz., 100 oz. and 1,000 oz. Other sizes, such as 5 oz., are less common. Silver bars that are not clearly assayed for purity and weight will be difficult to sell.
Television and print ads that promise top prices for silver and gold usually offer well below the spot price.
Consult a qualified financial planner before selling silver bars.
References
Resources
- Photo Credit silver sugar bowl with silver spoon image by Alex White from Fotolia.com
