If you have decided to sell part or all of your silver investment, the first decision is where to sell your bullion. There are many potential buyers, each differing in the prices they are willing to pay, as well as the process to receive your funds.
Online vs. In Person
Most coin shops, online dealers, and other sellers of silver coins and bullion also purchase such items from individual investors. While local dealers may be able to give you cash on the spot, they are rarely able to purchase more than a few rounds at a time. In addition, because local coin dealers face high overhead costs, they are typically unwilling to pay near the spot price of the metal.
Selling to an online silver dealer is one of the easiest ways to turn your silver rounds into cash. Online silver dealers are some of the biggest buyers of silver coins, rounds, and bars because they have expansive inventories, frequently made up of silver rounds purchased both from wholesalers and mints, and from individual investors. Choose a reputable online dealer, such as JM Bullion, when selling your silver rounds.
The Selling Process
Some investors are worried about the prospect of sending their silver rounds to an online dealer prior to receiving payment for them. Due to the shipping aspect, selling silver rounds to an online dealer is a little different than selling them in person. The process is safe and efficient, so long as you deal with a reputable dealer. Work with dealers who have a solid track record of purchasing collectors’ silver. Such companies value their reputation, giving them an incentive to make sure their purchases proceed smoothly.
First, request a price quote from the dealer based on the number and type of rounds you wish to sell. This price quote is typically valid for a set period of time, to ensure that the spot price of silver does not change dramatically between the time of the offer and the time the sale is completed. Within this limited time period, send the silver rounds to the dealer. Once received, the dealer will send you a paper check or bank wire payment.
Typical Prices Paid
The prices paid for silver rounds are dependent on the current spot price of silver, a market value based on the value of one troy ounce of the precious metal. This is a widely-published price that you can expect all silver dealers to refer to. Before selling your silver, do your research so that you know how much to expect to be paid. Do the math to calculate the spot price of your silver so that you can judge the dealer’s offer.
Dealers typically pay slightly under this value – for example, $1 or $2 per ounce under the spot price – in order to account for their profit. The difference between their ‘buy’ and ‘sell’ prices is known as the “spread,” and it differs from dealer to dealer. Dealers with smaller spreads will offer to pay more for your silver rounds.