Selling Physical Silver: A Tip To Maximize Your Profits
I have to consider myself lucky. I was able to sell some of my physical silver at an amazing time in the precious metal’s history. What a rally we have going on right now (a bubble some will say)…
I’ve held onto my silver for long enough to make over a $30 per ounce profit! You see, I bought a fair amount of silver bullion back in 2000. I got in near $5 per ounce. But when I bought it, I didn’t see this kind of return coming. Honestly…
As you know, silver has been an amazing investment over the past few years. And if you hold any physical silver, such as coins or bullion, you may be considering selling now too.
My advice is quite simple. It’s allowed me to maximize my profits and it’ll help you do the same…
Shop around for the best rate.
I know it sounds really basic, but I was surprised at the differences in the market. Just by doing a little homework, I was able to make an extra $1.20 an ounce by selling to the right dealer!
If you have never bought or sold coins or precious metals, it’s as simple as walking into a jewelry store or coin shop and talking to the dealer behind the counter. You agree on a price for whatever you are buying or selling and the deal gets done.
I got my best deal by visiting a few shops and talking to the dealers. Now I know its old school to actually talk to someone in person, but it may be well worth your time… And whether its coins or bullion, you will want to bring the dealer a sample of what you have.
Now here’s the most important part…
Get the dealer to appraise your metal. Not all silver is created equal.
By doing so, the dealer knows exactly what they’re getting. They can see the mint, purity, grade, etc… And more importantly, you know how much they’re willing to pay you. But don’t just settle on the first price you get. Especially right now!
Dealers are buying up both silver and gold at record rates.
They want what you have. There’s no doubt it’s a seller’s market in hard assets right now. But dealers don’t want to pay a penny more than they have to. You need to shop around.
Here’s how my deal went down…
The first shop I went to was a bit shady. It felt like I was in a used car dealership. So I thanked him for his time and walked out. I didn’t feel comfortable with what he was offering and it turned out I was right. (Note to self, listen to your gut instinct more often.)
It felt like he was trying to steal my silver from me… All while making me feel like I was twisting his arm!
This guy was as slick as they come. He felt just like a used car salesman. So I pressed on to two more reputable coin shops. And I’m glad I did.
The deals kept getting better and better. And by the time I reached the final dealer, I was much more at ease…
At the last shop, there was a line of people waiting to strike a deal. They wanted to either buy or sell a precious metal of one color or the other… I felt a lot better about my pending exchange.
And best of all, I got more money for my silver!
Now before I tell you what price I got, there’s something you need to know. You never get exactly what any metal is quoted on the spot market. Let’s face it, the dealer needs to make a profit.
The first dealer, that used car salesman, wanted to give me $2.58 under spot prices. But it’s a good thing I didn’t take it. The last dealer I went to offered me $1.38 an ounce under spot. By doing some legwork, I saved myself hundreds of dollars!
The takeaway here for you should be clear. Take your time and shop around. It could be well worth it.
As you can see, buying and selling physical assets requires a little groundwork on your part. It’s not like placing trades through your online stockbroker.
The spot price exists as a guideline when trading the physical metal. So you need to get as close to that price as you possibly can.
My last word of advice…
If it feels like you’re getting taken advantage of… you probably are. Simply settling on the first dealer’s offer could be a costly mistake. Step away and find a different coin dealer, jeweler, or pawnshop to deal with.
Remember, profiting in any market never comes easy. And selling precious metal is no different…
Category: Commodities
