Silver is an excellent investment vehicle that consistently gains value, but to take advantage of
that you’re going to have to sell it at some point. Whether it’s to convert your metal holdings
to cash or to take advantage of a spike in spot prices you have several options on how to go
about selling your silver, from local refiners to bullion specialists. One thing you should
definitely consider is selling online; it’s safe, easy and can get you a great price.
Before selling online – or any other way – the first step is to be clear about exactly what
you’re selling and what you expect to get for it. In general the price you’ll get is closely tied
to the spot price, but it doesn’t exactly match it. Dealers will always pay slightly below spot
price and sell slightly above it – this “spread” is how they make their profit. To compensate,
each bar or round will carry a premium above spot price. This will depend on the type and
condition of bullion you’re selling, so make sure you have a good idea of what it should be.
To check, look at what similar items are selling for compared to the spot price.
Probably the most popular way to sell online is to sell directly to a dealer. You’ll probably get
a slightly lower price this way than if you make a private sale, but in return you have a lot
more protection against something going wrong. There are plenty online metal dealers who’ll
be happy to buy silver from you, so you should look up as many as you can and compare the
prices they’re offering. These prices usually change daily to follow the spot price, but you’ll
find they can vary quite a lot between dealers so it really is worth looking around.
Once you’ve found a dealer whose price you’re happy with there are a few stages to go
through. Because prices fluctuate constantly the actual value of your silver will change
between agreeing the sale and you being paid, so a process called “locking in” is used to
protect both sides of the deal. When you agree to sell your silver you’ll need to provide your
credit card details. This is a deterrent to you suddenly changing your mind if the price rises
sharply after you agree to sell; if you cancel you’ll be billed the difference between the agreed
price and the actual price at cancellation. For this reason you need to be really sure you want
to sell before going ahead with the deal. On the other hand if the price falls after you agree the
sale, you’re still guaranteed the price you agreed on.
Once the deal is locked in you need to get the silver safely to the buyer. Registered and
insured post or a specialized courier is the best way to do this; that way you’re protected
against loss in transit. Once the buyer has the silver you’ll be paid for it. Payment methods
vary, with wire transfers or a paper check being the most common. It can be unnerving to
send off your metal before you’ve received the money, but with a reputable dealer you have
nothing to worry about. It’s important to note that you won’t get paid as quickly as if you sell
locally, but the odds are you’ll get a better price. That, and convenience, make online selling
an option you definitely shouldn’t ignore.