Wednesday, October 1, 2008

Buy Scrap Silver

If you can buy scrap silver, you can sometimes get silver for a good price.

But what is scrap silver? Scrap silver is any silver that can be found in bags of old coins, old coins in the attic perhaps, old unused photographic paper as well as in electronics, and other areas. Sometimes you can find silver wire (not tin or steel) in very early radio or TV equipment. Silver is mostly used in industry and the photographic world so that is where you are most likely to find scrap silver.

You can buy junk silver coins or bags of old silver coins. These usually have around 40 percent of silver in them. It can be a worthwhile exercise to check each coin and ensure there are no historically valuable coins in the bag (very unlikely but still possible and has happened). The condition, to be a collectors coins, needs to be very good, unless it is a particularly old coin such as a early Morgan where the value can be surprisingly high.

A good look around and it is possible to spot a bargain and buy scrap silver for next to nothing. Then you can either hoard it or sell it on the open market. If you want to sell it you can find many sites on the net that are willing to buy scrap silver, especially with the current shortage around, and you would likely get a small amount over the current spot rate.

You can also go to a scrap metal dealer who will be happy to take the silver off your hands, but again, make sure you are quoted a scrap silver price that you know what the current spot silver price is and that you don’t sell it for less than it is worth.

With scrap coins or junk coins, you would need to establish if the coin had any value to a collector before selling as scrap. A collectors coin has to be of reasonable quality and in an uncirculated condition. Going to a silver coin dealer and getting a valuation is a good idea if you come across one of those early silver coins. Some of the early silver coins can be quite valuable, more so than scrap silver, so it pays to be diligent and check these things out.

To buy scrap silver can be a very worthwhile exercise but, like anything else, you do need to do some research and find out as much about the silver you accumulate this way.

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