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Silver prices have seen major price movements so far in 2023, with a maximum variation of 13.79% between the metal’s year-low in March ($21.98) and its year-high in April ($25.01). Due to silver’s large price swings, more investors have taken a liking to the white metal as an investment asset with considerable upside potential.
For many precious metals investors, selling silver isn’t a pressing concern. Since gold, silver, platinum, and other metal assets are seen as stable stores of wealth, they are often treated as long-term holds in retirement portfolios. However, some investors prefer to sell their silver to capitalize on a short-term profit-making opportunity.
Figure 1: Silver price movements in dollars per ounce, Jan. to July 2023 (Source: YCharts)
While buying silver through a silver investment company is a fairly straightforward process, selling silver assets can sometimes pose more difficulty. Fortunately, selling silver coins and bullion is easier than you might think.
Selling Silver The Right Way
As of 2020, 11.6% of American investors owned silver assets in their portfolios. Silver ownership rates are likely to continue to rise in the years ahead since Millennials (aged 25 to 43) are the demographic cohort most interested in purchasing silver.
Youth interest in silver has likely once increased since then due to the Reddit-fueled “silver squeeze” phenomenon that took place in February 2021.
Given the rising popularity of silver, it is crucial that investors know how to liquidate their assets should the need to do so arise. Below, I’ve outlined the various methods utilized by collectors and investors to sell silver:
- Local Coin Dealers or Bullion Shops: Local coin dealers and bullion shops specialize in buying and selling precious metals like silver. They often provide competitive prices based on the current spot price of silver.
- Online Precious Metals Retailers: There are numerous online retailers that buy and sell physical silver. These platforms typically offer competitive prices and may also provide convenient shipping options for sending your silver to them.
- Auction Websites: Online auction platforms like eBay allow individuals to list and sell their physical silver assets to potential buyers. However, keep in mind that selling on auction sites may involve fees and shipping costs.
- Precious Metals Exchanges: Some regions have specific precious metals exchanges or commodity exchanges where investors can sell their physical silver.
- Private Sales: Investors can also sell their silver assets through private sales to friends, family, or other interested parties. However, exercise caution when dealing with private buyers and ensure that transactions are conducted securely.
- Pawnshops: In some cases, pawnshops may buy physical silver items, such as coins or bullion, though they may offer lower prices compared to specialized dealers.
- Refiners: Some precious metals refiners also purchase scrap silver items like jewelry or silverware. However, they may only be interested in items with high silver content.
- Coin Shows and Exhibitions: Coin shows and precious metals exhibitions provide opportunities to connect with buyers and dealers interested in purchasing physical silver.
- Precious Metals IRA Providers: If the investor holds silver within a Precious Metals Individual Retirement Account (IRA), they would need to contact an IRA custodian to facilitate the sale.
When selling physical silver assets, it’s essential to consider factors such as the current spot price of silver, any premiums or fees associated with the sale, and the method that offers the best combination of convenience, security, and price. Additionally, be aware of any tax implications related to the sale of precious metals in your jurisdiction.
What Is The Best Way to Sell Silver?
In the majority of cases, the best way to sell silver is through a licensed and reputable online precious metals retailer. These online platforms have established buyer networks, offer competitive prices based on the current market rates, and may provide convenient shipping options to facilitate the sale process.
Note that selling silver online requires a high level of due diligence. Make sure you carefully vet each online precious metals vendor or investment company before soliciting them for a sale.
Personally, I find that many of the best gold investment companies also double as excellent silver buyers and sellers. Consider opting for one of the top-ranked gold and silver IRA companies if you want an expedient and fair deal for your silver. Otherwise, your next best option is likely local coin shows or trustworthy pawnshops.
What Is the Fair Market Rate for Selling Silver?
Before selling your silver, you need to calculate the value of your assets according to the going market rate. The spot price of silver and other precious metals varies widely throughout the year, month, week, and even trading day. Naturally, then, it can be confusing to accurately price one’s silver assets for sale.
Silver should be sold at a price between 90 and 100 percent of the current day’s spot price of silver multiplied by the weight and purity of the item. For instance, if the spot price of silver is US$25 per ounce, ten one-ounce silver bars of 99.9 fineness should be sold on the open market for about $225 to $250.
Pawnshops and other “convenience” options typically purchase silver for as low as 25 to 50 percent of its true market value. For this reason, we generally caution against soliciting pawnshops unless as a last resort.
Price fluctuations in silver are primarily caused by changes in supply and demand dynamics. Factors that can influence silver prices include:
- Industrial Demand: Silver is widely used in various industrial applications, such as electronics, solar panels, and medical equipment. Changes in industrial demand can impact the price of silver.
- Investor Sentiment: Like other precious metals, silver is seen as a safe-haven asset during times of economic uncertainty. Investor sentiment and speculative trading can lead to price fluctuations.
- Economic Indicators: Economic data, such as GDP growth, inflation rates, and interest rate changes, can influence investor confidence and impact silver prices.
- Global Geopolitical Events: Political instability, trade tensions, or geopolitical events can create uncertainty in financial markets and impact the price of silver.
- Mining Production: Changes in silver mining production levels affect the overall supply of silver in the market. This was recently evidenced in 2020 and 2021, when silver prices increased nearly 50% at a time when silver mine production hit a decade low.
Pay attention to the macroeconomic forces listed above throughout the year. They can be monitored strategically to identify the best exit point for selling your silver. Typically, geopolitical flashpoints or times of economic uncertainty are ideal moments for selling silver and gold.
How to Find Local Silver Buyers
Your best resource for identifying local silver buyers is a simple Google search. A good formula for finding silver buyers in your area is to enter the following search queries into Google:
- Silver buyers near me + [City Name]
- Sell silver near me + [City Name]
- Who buys silver near me + [City Name]
- Where to sell silver near me + [City Name]
Additionally, you could try to sell silver on online marketplaces or classifieds sites such as Facebook Marketplace or Craigslist. Note that authenticating your silver and its purity may prove to be more difficult for buyers found on these websites.
Wrapping Up: Sell Silver Today to Qualified Silver IRA Companies
When selling silver, I recommend dealing with industry experts. While you may be able to quickly liquidate your assets on Facebook Marketplace, there is no guarantee that you won’t be haggled, no-showed, or scammed by a malicious local buyer.
To protect your wealth, consider taking advantage of the silver purchasing and buyback programs offered by silver IRA companies. These companies are staffed with highly trained precious metals specialists who recognize the true value of your assets and treat them with the respect they deserve.
Liam Hunt, M.A., is a financial writer covering global markets, monetary policy, retirement savings, and millennial investing. His commentary and analysis have been featured in the New York Post, Reader's Digest, Fox Business, and Forbes.
