We don't recommend selling silver but the time may come when selling some silver might be a necessity. So it is a good idea to look at some factors to consider when it comes to selling silver
Why you are selling silver is important. If you are selling to make a profit then of course you will want to sell for more than you paid. So how much you paid for your silver becomes an important issue. When you figure this original cost, remember to include any shipping, insurance and storage costs as they all form part of the overall cost of buying silver.
If you are selling silver to get some cash then how much silver you are selling becomes more important. It is a wise move to only sell as much silver as you need to to obtain the cash you require. This might only be a small amount so selling some coins is usually better than selling large silver bars in this case. There is little to be gained from converting all your silver into cash if you are only interested in a smaller amount of cash.
This is why it is a good idea to have a diversity of silver, some in silver rounds, some in small bars and perhaps some in larger bars. Depending upon the amount of silver you want to have and how much you can afford.
Now there are two silver prices. The silver paper price, or spot price. This is the price you see every day in stock market news. There is also the physical silver price which, these days, is a lot higher due to an almost overwhelming shortage of silver and the demand in these economic times by people to want to put their assets into precious metals such as silver and gold.
Why is the spot silver price so low one might ask, as the demand is so high? This is because the spot price is based upon a paper silver contracts which banks and financial institutions buy and sell between themselves to control the price of silver. The same applies to gold also. In both instances if the 'official' price of silver and gold are low, that will inspire some confidence in the value of the dollar and other currencies. That this idea is mistaken is evidenced by the fact that if you try to go out and buy physical gold or silver these days, the demand is high, the price is higher and the waiting time for delivery is around 4-8 weeks.
So if you selling silver you are safe in being able to get above the spot price for the silver. How much above you will get will depend on the type of silver you have to sell and to whom you sell it to. Silver coins and silver rounds are easier to sell than silver bars, particularly if the bars are very large.
When selling silver, auctions, such as eBay, can provide a fruitful avenue through which to sell silver but it is a good idea to browse the auctions first and see what people are asking and paying for silver. Generally it is higher than the spot price but it could be significantly higher in certain circumstances. When you check out the auctions, check out how many bids an item is getting. This is an indicator of the demand for that type of silver.
Selling through an established gold or silver dealer is somewhat safer and you may get above the spot silver price but probably not as much as in a private sale or one through an auction and you will also have to take into account that you may be expected to pay for the shipping. Some dealers have such a high demand for silver at the moment and such short supplies they may even pay above the spot price and even pay for the shipping. Checking the dealers terms of service also is a wise move. Selling silver to a scrap silver merchant is not recommended as they will pay you the minimum possible.
Following the above tips will help you improve your chances of getting a better price when it comes to you selling silver.