Selling Physical Silver Bullion

Investors tend to consider silver bullion to be a long-term investment. Some investors buy silver rounds with the intention of only spending them in the case of an economic catastrophe. Still, regardless of your reasons for buying silver, eventually it will come time to sell it. One of the benefits of silver investment is its liquidity; it is relatively easy to exchange silver rounds for cash.

Find a Buyer

Now that you’re ready to liquidate your silver investment, the first step is locating a buyer. Most dealers who offer silver rounds for sale are also willing to purchase them from individual investors.

Silver bullion may be sold to online dealers, or to local coin shops. There are advantages and disadvantages to each strategy. Investors hoping to sell silver rounds as quickly as possible may be better served by a local dealer, who may be able to purchase the rounds on the spot. However, most local dealers do not have the capability to purchase a large collection at once. If you are liquidating a large investment, you may need to visit several local shops. If you intend to sell rounds locally, opt for a coin shop or precious metal dealer, who will usually pay higher prices than a pawn shop or a storefront offering to buy scrap gold and silver.

For a more efficient selling process, turn to online dealers. They have the capacity to purchase any quantity of silver rounds. When selling your metals to an online dealer, you will typically send the rounds in the mail after locking in an exact price quote, and are paid once they are received by the dealer.

Determining the Value of Silver

Before selling your silver rounds, check the current spot price of silver. Then, calculate the current value of your precious metal investment. Precious metal dealers work with the same information to calculate how much they will pay for your silver rounds.

Know that dealers will pay slightly below this amount, in order to account for their potential to profit. The amount is known as the “spread,” or the difference between how much they are willing to pay for a particular silver round and how much they would ask for the same round. If your rounds are particularly rare or collectible, this could mean that the dealer will offer an added amount on top of their typical buy prices (paid for generic rounds), though not always.

Finding The Best Prices

Different dealers set different spreads. Though all silver dealers are working off the same spot price, do not be surprised if the price quotes provided vary dramatically from buyer to buyer. Shop around to find the dealer willing to pay the most for your silver rounds. Often, these are online dealers, since they have lower overhead and therefore can work with a smaller spread.

Tax Implications of Selling Silver Rounds

Before selling silver rounds, it is important to understand the tax implications of this decision. When liquidating your silver investment, you may be responsible for taxes on the profits. Speak with a tax advisor before selling silver rounds to be sure you understand the requirements and implications of the sale.