Silver prices have been rising slowly recently. As a precious metal, silver typically receives more attention when bad news breaks. While silver is less valuable and less predictable than gold, there is still an argument that it constitutes a “safe haven asset”.
Unlike gold, silver has industrial uses that affect its price. But if you have any sterling silver or silver coin or bar investments, they will likely be worth more in the coming months. Should you find yourself needing extra money, the right time to sell your silver might be soon. But when you sell silver, you will often be offered a price well below the current spot price.
So, how can you sell silver at spot price? Is it even possible? Let’s have a look and find out.
Do you Get Spot Price For Silver When You Sell it?
When you sell precious metals, you have a high risk of being duped. Buyers aren’t obligated to buy your silver at any particular set price. Because of that, it’s your responsibility to make sure you get the best possible deal.
Choose Your Buyer
It pays to take your time and compare different buyers. Generally speaking, there are many cash for gold and jewelry buyers that offer rates that aren’t transparent. After all, no one is telling them that they must offer you a fair price. In these cases, you, the seller, will usually get a very bad deal. Understanding this is the first step to making sure you get a fairer deal.
Know Your Silver
Silver prices are determined primarily by the weight of pure silver in the item you’re selling. But when it comes to items like silver coins and bars, the mint of the item will contribute to the item’s value. Coins are also more liquid because they are often recognized as legal tender and finding a buyer is usually easy.
The most important step to selling at spot price is knowing the spot price of your silver. Silver items are measured with a number. 1000 represents pure silver, but there are other common numbers you will find on hallmarks. Sterling silver flatware typically has a 925 hallmark on it, meaning it’s 92.5% silver. So, you’ll have to do some simple math to know the value of the silver itself.
Finding Your Silver’s Spot Price
Weigh the silver
Find the hallmark and multiply to find out how much of it is silver. For example:
You have a 5-gram piece of sterling silver flatware with a 925 hallmark.
5 * 0.925 = 4.625g
You have 4.625 grams of silver. Convert it into ounces.
4.625/28.3495 = 0.163 oz
Lastly, look at the spot price of silver and multiply the price by your silver’s weight in ounces.
How much of Market Value can you expect when selling silver?
Bullion retailers usually sell silver with a small premium added over the spot price of their silver. Unfortunately, selling silver usually comes with even worse rates.
Here is a list of places to sell your silver and the prices you can expect to be offered.
Pawn Shops
Pawnshops will often offer great deals for silver. They are also fast and convenient. You can just walk in and walk out with cash in hand. They also usually accept all forms of silver, making them a one-stop-shop for your silver selling needs.
Pawnshops have an overall shady reputation, for good reason. When it comes to silver, most will offer you a decent rate near the spot price. But be especially careful if you bring non-collectibles like silver coins to them. Rare or numismatic silver items tend to attract worse offers from pawnshop owners.
Smelters or Refiners
These business operations are quite simple. They take any items that contain silver and they melt them down and repurpose them.
When you go directly to the smelter or refinery, you cut out any potential middlemen and accept the “melt value” of your silver. The melt value of your silver is the same as the spot price. So, you will get your silver’s value in weight. But don’t expect to be offered any more than that, regardless of if the silver item is collectible. They won’t care because they plan on melting it down right after they buy it from you anyway.
The main downside of smelters and refiners is that they only like to deal with bulk. That’s part of the reason why there are so many middlemen in the silver market. If you have less than 10 ounces of silver, expect to be shown the door. Even if you have more than 10 ounces, they might still not want to take the time to deal with you. But if you have a lot of silver for them to melt, they will give you the fairest offers you’ll find.
Coin Dealers
You can sell silver to coin dealers that run shops near you. They are a convenient option because you can sell your silver coins to them in a matter of minutes.
The prices you will be offered will vary widely, however. You can expect them to offer you at least slightly under the spot price of your silver. The prices a coin dealer will offer you will depend on the individual dealer’s honesty.
Online Dealers
Online bullion companies are one of the better places to trade silver on. You can sell from the comfort of your own home, apart from having to go and ship your silver to them. You can give the dealer a call and get a quote before you ship your silver.
If you choose a reputable online dealer, you can expect to sell at spot price, but with a transparent fee for the transaction. If you choose the right dealer, you can sell your silver very close to the spot price. The only downside is you won’t receive your money instantly. It will take some time for your silver to be shipped and appraised, after which you will be paid for your silver.
We recommend you look for reviews of the company you want to sell your silver to.
Online Marketplaces
Platforms like eBay and Craigslist allow you to ensure that you will receive the spot price for your silver. You can set the price or auction your silver starting at a rate you feel is acceptable.
Some online marketplaces like eBay will charge you a portion of your sale as a fee. But other platforms won’t take too much of your money in fees. Apart from that, the market forces of supply and demand are the only restrictions on what you can charge a buyer for your silver. There are no rules for the price you list, so you can simply charge the spot price for your silver. But if no one wants to buy the silver at the price you listed, these marketplaces won’t be helpful to you. Lastly, be careful if you use the auction feature, or you may be greatly underpaid for your silver.
Selling Silver at spot price: 3 Things You Need to Know
1: Know The Value Of Your Silver
When it comes to most of the people and companies that will buy your silver, it will likely pay for you to show up knowing the value of your silver. That’s the only way to know when to reject a bad offer.
The harsh truth is that all the precious metal markets are full of unscrupulous middlemen that make a lot of money by finding people who don’t know the value of their silver and ripping them off.
2: Know Who You’re Dealing With
You should do your background research on any person or organization you’re thinking of selling your silver to. When this isn’t possible, go back to step one, then ask for a quote. Don’t be afraid to say no if the offer is bad.
Online reviews are plentiful these days. You can use trusted neutral platforms like the Better Business Bureau and Trust Pilot to find reviews. Word of mouth is also good, so ask the people you know if they know of an honest and fair silver buyer.
3: Expect To Get Less Than Spot Value
Even when you’re dealing with the most honest and fair buyers, there will usually be fees, shipping costs, or other added expenses. These expenses can often be negligible, so don’t turn down a great deal because of a small shipping fee.
Final Thoughts on Silver at Spot Price
It’s possible to sell your silver at spot price. Doing so will usually take some time, but it’s worth it to look for the fairest offer available to you.
Knowledge is the first and most powerful weapon you have. Learn the value of any silver you have and research any buyers you’re considering going to. If you’re patient and stand your ground, you can sell your silver at (or at least very close to) its spot price.
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