Tips on Selling Silver for Cash
Many people make extra money trading in silver coins, jewelry, collectibles and even old or broken silverware and silver serving trays for cash. Silver and gold brokers, pawn shops and jewelry stores often have appraisers on site to make silver valuations. Additionally, some recycling facilities will also pay cash for silver. Shop for the best prices and take notice of potential tax liabilities from the sale of silver.
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Find a Reputable Dealer
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Shop and get estimates on the value of your silver before making a decision about who to sell it to. Check with your state’s Better Business Bureau to learn more about the background of companies you’re considering. You can also visit the U.S. Mint website for a list of reputable dealers.
Know the Going Price
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The price of silver is constantly changing. Make sure you know the going price when you comparison shop the rates of silver dealers. Dealers will typically base their fees on the going rate paired with the commission they charge for brokering the transaction.
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Know What You Have
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Silver is valued by its weight, with different types of jewelry and collectibles bearing different amounts of silver. Some jewelry is silver plated, which means a thin overlay of silver is applied to a base metal. Research what you have so you gain better bargaining power with a dealer.
Broken is Fine
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The silver you sell is considered scrap precious metal, so it doesn’t matter if a necklace clasp is broken or a coin is roughed up. What matters is the weight of the silver.
Don’t Sell Collectibles as Scrap
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Beware of accidentally selling something with collectible value as scrap. For example, vintage silver jewelry, rare coins and certain silverware patterns are worth more than just the value of their silver weight. If you have a question as to the collectible value of a silver item, seek the advice of a reputable antique appraiser.
Remove Precious Stones
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Remove gemstones from broken silver jewelry before you sell it. You typically won’t be paid much extra for the stones and you may be able to use them in another setting.
Calculate Your Tax Liability
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The U.S. Internal Revenue Service considers silver a capital asset, and any financial gain from the sale of silver is viewed as taxable income. Silver dealers are not required to report your silver sale to the IRS, but individual sellers are required to report the gain they see from their sale. As of 2010, the capital gains tax on the sale of silver is 28 percent. Taxpayers should use IRS Schedule D of Form 1040 to report these gains.
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