Monday, April 6, 2009

When to Sell Silver Bullion

It is important to know when to sell silver bullion just as it is to buy silver bullion. Most people have silver as an insurance against the potential dangers of inflated currency, so it is vital a proper judgment is made on when to sell so that one’s asset value is retained. Selling at the wrong time can jeopardize the asset value and result in a loss of the original investment not to mention potential gains from the future price of silver.

The time to sell silver bullion should not be dependent on the value of silver but on the need to convert to cash. For this reason it is a good idea to have a mix of various silver bullion products. Silver coins, Junk coins, small silver bars as well as large ones.

Owning just one very large bar of silver, for example restricts you in that you would have to sell the entire bar just to get access to what would likely be a small amount of funds. Owning some coins, such as junk coins for example, means that you can sell as many or as less coins as you need to satisfy your current cash flow needs. Owning some smaller silver bullion bars also is a good idea as then you can pick and choose more closely what you want to cash in. It is wise, if you own rare or proof silver coins, not to sell them at all. Sometimes they can be difficult to replace due to a limited mintage or rarity.

One should consider to whom one is selling coins. Perhaps you would like, at another time, to buy them back. Belonging to a coin collectors club or having a reputable dealer you know and transact frequently means you can usually sell the silver bullion with the possibility of buying it back at a later time. This would be unlikely if you sold your silver bullion on eBay for example. If you do sell through auctions or even newspaper classifieds or unknown dealers, make sure you can trust the buyer, particularly if the value of the silver is high.

Of course it is better not to sell silver bullion if you can possibly help it. The future value is expected to rise and that means there can be a potential loss by selling now so it is better not to sell any silver asset unless you really need to and then sell only enough silver to convert to what you actually need.

The current overall trend of silver is rising. The value of silver has continued to rise over the past few years, as the need for industry outweighs the production of silver. Silver is not being mined a great deal and new silver is mostly being obtained as a by product of mining other minerals or metals.

In view of the above in reality, when to sell silver bullion should probably consider to be never. That way one can retain one’s silver bullion and enjoy the lasting benefits of it.

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